Samsung Breaks Ground for Memory Manufacturing Complex in China

XI'AN, China--(BUSINESS WIRE)--Samsung Electronics Co., Ltd., a global leader in memory semiconductor technology, today 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.

Samsung Electronics Vice Chairman and CEO Dr. Oh-hyun Kwon 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.

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

Dr. Kwon said in his remarks during the ceremony, "It is a great honor to announce our groundbreaking at Xi'an, a city of tremendous historic and academic significance, as we celebrate the 20th anniversary of diplomatic relations between Korea and China. At this time, our memory semiconductor business also marks its 20th consecutive year as the leader of the memory industry. The new Samsung China Semiconductor fab will lay a solid foundation for continued supply of leading memory components, enabling Samsung to further spearhead the advancement of the IT industry and enhanced user experiences."

With the groundbreaking, the Samsung China Semiconductor complex has a target timeline for achieving full-fledged operation in 2014. Initially, Samsung is investing US$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.

About Samsung Electronics Co., Ltd.

Samsung Electronics Co., Ltd. is a global leader in semiconductor, telecommunication, digital media and digital convergence technologies with 2011 consolidated sales of US$143.1 billion. Employing approximately 222,000 people in 205 offices across 71 countries, the company operates two separate organizations to coordinate its nine independent business units: Digital Media & Communications, comprising Visual Display, Mobile Communications, Telecommunication Systems, Digital Appliances, IT Solutions, and Digital Imaging; and Device Solutions, consisting of Memory, System LSI and LED. Recognized for its industry-leading performance across a range of economic, environmental and social criteria, Samsung Electronics was named the world’s most sustainable technology company in the 2011 Dow Jones Sustainability Index. For more information, please visit www.samsung.com.

Samsung and the stylized Samsung design are trademarks and service marks of Samsung Electronics Co., Ltd. Other trademarks are the property of their respective owners.

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