XI'AN - Total investment by Samsung in the second phase of its chip plant in Xi'an, capital of Northwest China's Shaanxi province, will exceed $14 billion, sources with Samsung China Semiconductor Co Ltd said Friday.
The construction of the second phase of Samsung's chip plant in Xi'an started in March 2018 and will be completed in July. It is expected to begin mass production in the first quarter of 2020, according to the company.
Hyunki Ji, vice president of Samsung China Semiconductor Co Ltd, said the chip plant project consisted of two stages. During the first stage, the company invested a total of $7 billion. Though the detailed plan of the second stage has not been rolled out, investment is estimated to surpass $7 billion.
The investment in the second phase of chip plant project reflects Samsung's confidence in China's economy, according to Hyunki Ji.
Samsung signed an agreement with the Shaanxi provincial government on Aug 30, 2017 to start the second phase of the chip plant to expand chip production capacity.
The first phase of the plant at the Xi'an Hi-Tech Industries Development Zone went into operation in May 2014, with a total investment of $10 billion.
The opening of Samsung's semiconductor project has attracted more than 100 supporting companies to the zone, and its expanded capacity is expected to strengthen Xi'an's role as a major semiconductor industry base.