Samsung has revealed plans to build a Flash memory chip factory in China as the lucrative smartphone and tablet computer markets continue to grow.
Samsung has revealed plans to build a Flash memory chip factory in China as the smartphone and tablet computer markets continue to grow.
The Korean electronics giant will spend upwards of 5 trillion won ($4.5 billion) on the new plant, which will produce 20nm Flash memory chips. The exact location of the facility has yet to be decided.
The move signals a vote of confidence in the Chinese market, which many see as an increasingly pivotal region for electronic goods. Samsung is already investing in China with plans to build a factory that will produce flat-screen TVs, one of its strongest industries.
The plans will need to be approved by the South Korean government, which monitors foreign investment made by Korean firms. However, it appears likely that it will be given the go-ahead.
Samsung is a major player in the memory market, producing Flash chips for a number of portable devices, including Apple's highly successful iPhone and iPad ranges. The expansion into China will help secure deals with Huawei and ZTE, both of which are increasing tablet and smartphone output.
Samsung has also increased chip production at its other plants, including its only foreign facility in Austin, Texas, and a new $10 billion factory in South Korea. It hopes to have its Chinese plant open by 2013.