Groundbreaking for memory manufacturing complex in China

Samsung Electronics held a groundbreaking ceremony for a major new memory fabrication line in Xi’an, China. Once completed, the new facility will make use of advanced 10-nanometer (nm)-class* technology in producing NAND flash memory chips, a critical component powering IT and mobile applications for high-speed and large-density data storage.

Dr. Oh-hyun Kwon, Vice Chairman and CEO at Samsung Electronics, hosted the event, which welcomed 600 attendees including government dignitaries such as Zhao Leji, secretary of provincial party committee and director of provincial People’s Congress Standing Committee, and Kyu Hyung Lee, Ambassador of the Republic of Korea to China. Other honored attendees included Sang-Jick Yoon, vice minister for Industry and Technology at the Ministry of Knowledge Economy, as well as hundreds of Samsung suppliers and customers.

Li Keqiang, Vice Premier of State Council of the People’s Republic of China, congratulated the event through a personal letter, noting that the project will move the partnership between the two countries forward within the IT field.

With the groundbreaking, the Samsung China Semiconductor complex has a target timeline for achieving full-fledged operation in 2014. Initially, Samsung is investing $2.3 billion in the Xi’an fab. Samsung China Semiconductor will mark the single largest investment by Samsung in China with a phased total investment of US$7 billion.

The capital of multiple dynasties spanning over a thousand years, Xi’an is at the center of development of advanced electronics technology as a primary location in China’s Western Region Development. Xi’an’s industrial landscape supports all key considerations in the production of advanced IT infrastructure such as basic resources including water and power, and a solid employee base for IT research, development and manufacturing.

 Xi’an is home to 37 universities and 3,000 R&D centers focused on advanced IT technology. Samsung has also kicked off a program for close academic collaboration with several renown local universities, which will include scholarships to nurture skilled talent locally.

Just one year after commencing operations at its Line 16 in Hwaseong, Korea, the new Xi’an production facility will help to balance Samsung’s global production network. Reinforcing the company’s support for its customers worldwide, the China facility will improve Samsung’s global supply chain, making it easier for many of its customers to expand in the region.

*10nm-class means a process technology node somewhere between 10 and 19 nanometers.