Samsung to invest an additional $8 billion for China chip plant-media

The logo of Samsung Electronics is displayed at the company’s plant in Tijuana, Mexico, on June 1, 2019. REUTERS/Jorge Duenes

SHANGHAI (Reuters) – Samsung Electronics will be investing in the chip factory in China, from $8 billion to boost production of NAND flash memory chips, Chinese media reported on Tuesday.

The South Korean group’s investments, as the memory market is expected to rebound next year, because of a limited supply and a growing demand for its fifth-generation devices and networks.

Samsung is the world’s largest maker of NAND flash memory chips, which can be permanently and can be found in mobile devices, memory cards, USB flash drives and solid state drives.

By 2017, Samsung has also announced that it would invest $7 billion over three years in the Xi’an plant for NAND flash memory chips.

The investment, in phases, following an earlier $10.8 billion of investment in a testing and packaging plant in Xi’an.

Samsung declined to comment.

Samsung’s competitors in NAND flash memory, are a Korea’s SK Hynix (000660.KS), US-Micron Technology, Inc. (MU.(O) and Toshiba Corp (6502.(T)

A number of Chinese companies that have tried to set the memory to the sector, although none have been successful enough to compete with their foreign rivals.

Last fall, the Yangtze, a Memory technology Company (YMTC), announced that it would start mass production of a 64 layer 3D NAND chips, and so on, is the benchmark for most of the leading players in the industry.

Editing by Nick Macfie

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