According to BusinessKorea, Samsung Electronics is considering increasing its investment in the second semiconductor foundry in Xi’an, China.

According to reports, Samsung Electronics plans to increase the capital expenditure of memory chips to 6.5 billion US dollars next year. It is expected that some of the increased funds will be used in its second semiconductor factory in Xi’an, China. According to industry sources, Samsung Electronics may announce this investment by the end of this year.

According to reports, although Samsung Electronics is fully operational in Xi’an’s first semiconductor factory, it still cannot meet the demand for NAND flash memory supply. The NAND flash memory market is gradually showing signs of recovery. Japanese media have pointed out that Samsung Electronics will introduce the most advanced NAND flash memory production equipment in its factory in Xi’an, mainly for the supply of smart phones such as Huawei.

BusinessKorea said that in the NAND flash market, Samsung Electronics, Toshiba, Western Digital, Micron, SK Hynix and Intel are highly competitive, although Samsung’s increased investment and expansion will not have much impact on the overall market, but can take advantage of this opportunity to gain more market share as other producers are reducing production.

The report also pointed out that Chinese enterprises are the largest customers of the memory chip industry. Samsung Electronics is therefore under pressure to complete the investment not only before August next year, but also to fully operate this new production line. It is worth mentioning that the Samsung’s new production line in Xi’an has been installed and it is expected to start mass production in February next year.