FILE PHOTO: The logo of Samsung Electronics is seen at its office in Seoul, South Korea, March 23, 2018. REUTERS/Kim Hong-Ji/Photo File
SEOUL (Reuters) – the South Korean Samsung Electronics Co Ltd said on Friday that he has not decided on the additional investment in a second memory chip production line in the Chinese city of Xi’an, denying a report by China’s official Xinhua news agency.
Xinhua earlier on Friday had quoted company vice president Ji Hyun-ki as saying that the group would spend more than $14 billion in the second phase of the investments in the memory chip plant in Xian.
In 2017, the world’s top memory chip maker announced that it would invest $7 billion in the next three years in its Xian plant for NAND flash memory chips.
“The second phase of the amount of investment in the second production line has not been decided and will depend on the market conditions,” the South Korean tech giant said in a statement to Reuters, in response to the Xinhua report.
Samsung posted its weakest profit in more than two years in the first quarter, hit by falls in chip prices.
Many NAND chip suppliers have seen large price falls since last year, are slowing plans for expansion and have declared a reduction in production to limit supply, technical, research firm TrendForce said in a report earlier this month.
Reporting by Ju-min Park; Writing by Lee Chyen Yee; Editing by Susan Fenton and Emelia Sithole-Matarise