South Korean electronic giant, Samsung Electronics Co. is going to increase its investment in its China-based memory chip plant by investing an additional $8 billion, officials have informed, as the company eyes to expand its business in the world’s second largest economy.
As per the Chinese media and Xian’s municipal government, Kang Bong-Yong, a Samsung Electronics Vice President, told Chinese officials that the company’s further $8 billion investment in its second plant in Xian is on track, Yonhap news agency reported on Thursday.
The tech-giant’s investment comes at a time when the memory chip market is expected to rebound in the coming year because of limited supplies and increasing demand for the 5G devices.
Previously, Samsung had only revealed $7 billion worth of investment in the second Xian plant.
Company owns two plants in Xian region, where the fist plant has been running its operations since 2014. The second plant is expected to begin operation in the first half of 2020, which is likely to produce V-NAND flash chips.
Samsung’s two Xian-based plants are only memory chip producing facilities outside South Korea.
(With input from agencies)