On December 11, recently, Samsung Electronic flash memory chip project phase II, phase II, with an investment of US $8 billion, was officially launched. It is reported that Samsung Electronics has invested US $10.8 billion in phase I and completed Samsung Electronics storage chip project and packaging test project; The total investment of phase II project is US $15 billion, mainly manufacturing flash memory chips.

Among them, the investment in the first phase is about US $7 billion, which will be completed and put into operation in March next year; The second phase, with an investment of US $8 billion, will be completed in the second half of 2021. After the completion of phase II project, it will increase the production capacity by 130000 pieces per month, increase the output value by 30 billion yuan, solve the employment of thousands of people, and drive a number of supporting electronic information enterprises to settle down, making Xi’an the highest level and largest flash memory chip manufacturing base in the world.

In 2012, Xi’an high tech Zone successfully introduced Samsung electronic memory chip project, which has become the largest investment project in Samsung’s overseas investment history. Phase I of the project was completed and put into operation in May 2014, and phase II of the project was officially started in March 2018, of which $7 billion was invested in phase I. According to the “three-year agreement”, Samsung must complete its investment before August next year and fully operate the production line of the second factory in Xi’an. It is understood that the new production line equipment of Samsung Xi’an No. 2 factory has been installed and has begun trial operation. It is expected to achieve mass production in February next year. After the completion of phase II project, it will increase the production capacity by 130000 pieces per month, increase the output value by 30 billion yuan, solve the employment of thousands of people, and drive a number of supporting electronic information enterprises to settle down, making Xi’an the highest level and largest flash memory chip manufacturing base in the world. With the continuous improvement of the business environment in our city, Schneider Electric, CBRE, Savills and other world top 500 enterprises have recently expanded their investment or settled in Xi’an.

In addition, according to sources, Samsung Electronics plans to increase the capital expenditure of memory chip facilities to US $6.5 billion (46.2 billion yuan) next year, and some of the increased funds are expected to be used for its second semiconductor factory in Xi’an. In addition, Samsung Electronics will announce the investment plan at the end of the year.

Industry insiders believe that Samsung Electronics’s additional investment plan will bring more uncertainty to the current oversupply NAND flash memory market, and may become a differentiation strategy in the increasingly competitive NAND market.

Unlike DRAM, NAND flash memory market is gradually showing signs of recovery. According to dramexchange, at the end of last month, the price of 128GB multi-level unit (MLC) NAND flash memory product was US $4.11 (4918 won), little change compared with last month. The figure rose for the first time in two years at the end of July and increased by more than 2% in August.

The report points out that at present, in the NAND flash memory market, there is fierce competition among Samsung Electronics, Toshiba, Western Digital, micron, SK Hynix and Intel. However, although Samsung Electronics’s overweight investment and expansion of production will not have a great impact on the market, on the one hand, Samsung Electronics can also obtain more market share because other companies are reducing production.

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