Samsung plans to invest $8 billion to expand its 3D NAND chip plant in Xi’an to boost production of NAND flash memory chips, according tomedia reports. The $8 billion investment is the second phase of the second phase of Samsung’s Xi’an flash memory chip project and will be used for the third expansion of the plant. The expansion of Samsung’s Xi’an chip plant will further increase production of 3D NAND. At present, the plant can process 120,000 wafers per month, and the expansion will begin to process 130,000 wafers per month.
Back in 2017, the company announced plans to invest $7 billion over the next three years in its NAND flash memory chip plant in Xi’an, the first phase of the second phase of Samsung’s Xi’an flash chip project.
The total investment of the Second Phase II project of Samsung is expected to be completed in the second half of 2021. The company also invested $10.8 billion in a testing and packaging plant in Xi’an, the first phase of Samsung’s Xi’an flash memory chip project.
Samsung currently produces 3D NAND in three locations: Huacheng in South Korea, Pyeongtaek in China and Xi’an in China. The company has been producing NAND chips at its plant in Xi’an since 2014. The company recently added a second production line at its plant in Pinze, which is expected to start production next year.
Technically, NAND chips hold data permanently and are part of many compute and storage devices that can be used on mobile devices, memory cards, USB flash drives, and SSDs. Demand for the Internet of Things, artificial intelligence and virtual reality is expected to grow steadily as the Internet of Things, artificial intelligence and virtual reality markets flourish.
In NAND Flash, Samsung competes fiercely with rivals including South Korea’s SK Hynix, Micron Technologies, Western Data, Intel and Toshiba.