Samsung considers increasing memory chip production capacity at its China plant

To cash in on the industry-wide boom for memory chips, Samsung is reportedly considering to increase the production capacity at its plant in China. The semiconductor giant could increase the memory chip production at its Xi’an plant in the Shaanxi Province in central China, but no specifics have been reported as of now. Samsung had already invested $7 billion in its Xi’an plant for manufacturing 3D NAND chips

The company’s spokesman did not divulge any information about potential investment amount or what products would be made using the additional resources at its chip plant in Xi’an. However, South Korean media is reporting that the company is in advanced talks with Chinese authorities to add 3D NAND chip production capacity and that the construction could begin before the end of this year.

Samsung and other memory chip companies are expected to enjoy record revenue and profits, thanks to the booming demand for processing, storage, and memory chips used in consumer electronics such as smartphones, wearables, and other connected devices. Research firm IHS expects this year’s memory industry revenue to jump 32 percent to reach as much as $104 billion. However, memory chip production is still likely to struggle to keep up with the demand.