Samsung invests $7bn to build memory chip factory in China

PanARMENIAN.Net - Samsung Electronics, the world's biggest memory chip maker, has unveiled plans to invest $7bn to build its first chip factory in China, BBC News reported.

Samsung will initially invest $2.3bn in the plant, which will make chips for smartphones, tablets and MP3 players, and increase its investment gradually.

The firm has been looking to tap into the lucrative Chinese market, but there have been fears of technology leaks.Samsung won government approval to build the plant earlier this year.

In an emailed statement to the BBC, Samsung said the new facility would help it "rapidly respond to meet the fast-growing demand from customers and further strengthen competitiveness in the memory industry". The plant is expected to start production by the end of 2013.

Over the years, China has become a leading manufacturing hub for consumer electronics. Contract manufacturers such as Foxconn, have been making gadgets ranging from smartphones to tablet PCs for leading global brands.

Many of these products use memory chips manufactured by Samsung. Analysts said having a production facility in China would help Samsung to further strengthen its position with its customers