On Friday, South Korea’s Samsung Electronics Co. Ltd. said it has not decided on additional investment in a second chip production line in the Chinese city of Xian, denying a report from China’s Xinhua news agency.
Earlier, Xinhua had quoted Ji Hyun-ki’s vice president as saying the group would spend more than $ 14 billion in the second phase of investing in his Xian memory factory.
The world’s largest memory maker in 2017 announced it would invest $ 7 billion over the next three years at the Xian factory that produces NAND flash flash memory chips.
South Korean technology giant in a statement to Reuters in response to Xinhua’s report said: “The amount of second-stage investment in the second line of production has not been set and will depend on market conditions.”
Samsung has scored the worst profit in more than two years in the first quarter, hit by the fall in chip prices.
Many NAND chip vendors that have seen big prices fall since last year are slowing down expansion plans and declined production cuts to limit supply, TrendForce’s Trend Research firm said in a report earlier this month./Investing.com