Samsung Electronics will build a plant in China to manufacture next-generation NAND flash memory chips used in smartphones, tablet PCs and other mobile devices. Samsung said it has submitted an application to the Ministry of Knowledge Economy to construct the facility.

The new plant will use 10 nanometer processing technology that Samsung is now developing. Once perfected, it would enable the firm to produce 50 percent more chips than its current 20 nm technology.

There are no flash memory factories in China, making Samsung a pioneer in the area. But China is the biggest market for flash memory chips in the world. This could prompt Beijing to provide attractive incentives.

It would be Samsung's second semiconductor plant overseas after Austin, Texas. Samsung said it wants to build the Chinese plant to "respond to the demands of local customers more quickly and efficiently." China produces 37 percent of the smartphones and 96 percent of tablet PCs sold around the world. However, Samsung can expect no tax breaks, since no country in the world applies tariffs on semiconductor imports.

Samsung plans to start building the plant next year and have it running by 2013. Negotiations with the Chinese government over the site will begin soon.

Source: The Chosunilbo