Samsung starts chip production in north west China

Samsung Electronics Co., announced on Friday its first semiconductor plant in China, in the northwestern city of Xi'an, has begun mass production of advanced flash memory chips. With investment of 7 billion U.S. dollars, construction of the new plant started in the capital of Shaanxi Province in September 2012. It represents the biggest single foreign investment since China's opening and reform began in 1978. The chip "V-NAND" uses a 10-nanometer process technology. "With the mass production of V-NAND memory chips in China, which serves as a production base for global information-technology firms and accounts for 50 percent of global demand for NAND flash memory chips, Samsung is able to more effectively cope with clients and the market," the company said in a statement. Provincial governor Lou Qinjian said the Samsung operation in Xi'an will help the ancient capital build a large semiconductor industry, and to grow into a leading information industrial base. Samsung Electronics CEO Kwon Oh-hyun hoped the plant becomes the "starting point of the 21st century Silk Road" linking Asia and Europe, during a ceremony to mark the completion of the plant