Samsung Eyes Chinese Flourishing Market for Chip Plant

Samsung Eyes Chinese Flourishing Market for Chip PlantThere is no doubt that Chinese market is ideal for chip manufacturing, and that is why it has been getting the attention of many such companies. Eyeing growth in the same segment, Samsung Electronics Co. would soon be venturing there to open a flash memory chip plant.

It has even got green light from the government for the same. There is rising hope for growth in flash memory chips market and that is what has made China as among the best to invest in. There are reports from research firm Gartner which revealed that as of now, China is getting using half the global flash market for various purposes and the proportion is expected to shoot to 55% by 2015. With the rise in demand for the same, there is no surprise that such offers are being made by the companies.

A huge contribution has been made by Chinese manufacturers such as Huawei Technologies and ZTE Corp. With the inclusion of Samsung Electronics in the market, there are chances of fierce competition in the global flash market, which is said to be priced at $29 billion this year.

It is being believed that the new facility would have cutting-edge 20-nanometer-class or below processing technology which would be able to produce 100,000 wafers per month. There are chances that the production would start by the end of 2013.

However, there would be steps taken in the regard of ensuring that there is no leakage of technology and for that, a committee would be formed. This has been confirmed by the South Korean Ministry of Knowledge and Economy.

“Its smartphone business is now a main growth driver, and has also lifted growth of its component business. But the biggest challenge is whether it can hold onto its smartphone market share against rivals”, said Lim Do-ri, an analyst at Solomon Investment & Securities.