Written by Jonny Williamson
The world’s largest memory chip maker stated that a $2.3bn investment would initially be needed, with further amounts being gradually invested over the next five years. The plant will predominantly produce chips used in smartphones, tablets and MP3 players, for Samsung themselves and other global electronics brands.
Samsung has already secured a government approval needed to build the plant earlier this year, and it is thought the project will be completed and plant production commencing by the end of 2013.
Many of the products which use Samsung’s chips are already manufactured in China, so a presence in the country would allow the company to save costs on distribution and storage, as well as being able to provide swifter delivery times.
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As well as being a hub for electronics manufacturing, China has also seen a steep rise in income levels across the country, providing the nation with a greater amount of disposable income. Accordingly the domestic market has seen considerable growth over recent years, especially for high-end electronic goods.
Having a stronger presence in China will allow Samsung to tap into one of the fastest growing gadgets markets and maintain a competitive edge over its competitors.