Samsung Electronics' head office. Photo by: Yonhap/IANS
Samsung Electronics' head office. Photo by: Yonhap/IANS

Samsung launches second phase of China memory chip plant

By Xinhua Time of article published Mar 12, 2020

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XI'AN - The first part of the second phase of Samsung's memory chip facility in the northwestern Chinese city of Xi'an has started operation, with new products rolling off the production line on Tuesday.

The first part of the second phase, which involves an investment of 7 billion U.S. dollars, is already capable of mass production and expected to achieve full capacity by August, according to Samsung China Semiconductor Co., Ltd.

Construction of the second phase started in March 2018, with a planned investment of 14 billion U.S. dollars. Its second part is scheduled to be put into operation in the first half of 2021, the company said. The first phase of the plant, with a total investment of over 10 billion U.S. dollars, went into operation in May 2014.

The company was faced with obstacles such as shortages of raw materials and manpower due to the novel coronavirus outbreak, said Hyunki Ji, vice president of Samsung China Semiconductor Co., Ltd., adding that the local government has provided support to ensure the smooth operation of the plant.

The provincial and municipal governments have coordinated between Samsung's plant and tens of upstream and downstream firms to ensure the transportation and supply of key materials. The government of the Xi'an Hi-Tech Industries Development Zone, where the plant is located, also temporarily set up a special group to help Samsung solve problems, ready to respond 24 hours a day.

Production at the chip plant was therefore not affected, with the first phase achieving its full capacity of 130,000 memory chips in both January and February. 

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