CHINA PLANT – the latest Samsung News is that the S Korean manufacturer is looking to build a new plant in China. In this brief article it looks as if the plant is going to cost around $7bn to build. See below:
Samsung News
South Korea-based Samsung Electronics announced Monday that it would spend US$7 billion to build a NAND memory chip plan in China.
The plant, which will mark Samsung’s biggest-ever overseas investment in chip production, is reportedly going to be built in the central-China city of Xian. Before Monday’s announcement, analysts had anticipated the plant would cost about half of the $7 billion price tag.
Bloomberg quoted Korean investment analyst Seo Won Seok saying,
“A single factory of this size could be the largest in the industry. For NAND flash, China will be a key production site, along with Korea.”
Fellow chip manufacturer Intel (Nasdaq: INTC) opened its first plan in China, located in the northeastern city of Dalian, in 2010.
This new investment is for chip production and reflects the competitive pricing of labor costs in China compared to other areas in the region according to Samsung News. With this massive investment away from the S Korean environment this represents a major shift in policy. See the article at TechNews World.
