News Column

Samsung's top technology mass-produced in Xi'an's tech zone

May 14, 2014

Xu Xiao

The Samsung China Semiconductor Inc held a ceremony to celebrate its new production base in Xi'an on May 9.

The company will start mass-production of high-end flash memory chips in the Xi'an High-tech Zone in the capital of Northwest China'sShaanxi province.

"In the past, the Silk Road that started from Xi'an had an important role in the communication of Eastern and Western civilizations. We hope the Samsung China Semiconductor Inc founded by both China and South Korea will become the start of a new Silk Road of the 21st century," said Kwon Oh-hyun, CEO of Samsung Electronics at the ceremony.

The company's new site was a vast farmland 20 months ago. Now the facility covers an area of 1.14 million sq meters with some 230,000 sq m of floor area for the production of 10-nanometer flash memory chips (V-NAND) aimed at serving market needs both in China and abroad.

The $7 billion first phase of the semiconductor factory employed about 1,300 local staff and 700 South Korean staff.

"Thanks to the support of governments at all levels and excellent local talented people, such a high-end semiconductor factory can be built in such a short time," said Park ChanHoon, chairman of Samsung China Semiconductor Inc.

Samsung is the only electronic company to mass-produce V-NAND in the industry, said Kim Ki-nam, director at the memory chip department of Samsung Electronics.

He said compared with previous products, the V-NAND is two times faster at reading and writing data and it can prolong semiconductor life by 10 times with 50 percent less electricity consumption.

"To produce this top-notch product in Xi'an has significant meaning, because high-end talents form both China and South Korea will jointly work for the new-generation semiconductor technologies," Kim said.

The company aims to become a leader not only in the semiconductor field, but also in environment protection, said executives.

Kwon Oh-hyun told reporters that Samsung Electronics has taken environmental safety as a top priority.

To guarantee a safe working environment the Xi'an based Samsung Semiconductor factory established an accident precaution system to react to emergencies at any given time.

The company also built an automatic cut-off system and a 24-hour emergency reaction system.

The most energy-efficient production and pollution treatment equipment, which is upheld to higher safety standards than both the Chinese and South Korean laws mandate, are used, said Kwon.

Kwon said the above-mentioned operations were approved by industry professionals and will be taken on by senior technology experts in the company.

A $500 million investment will help create a semiconductor sealing and packaging facility, which is due to be completed by the end of 2014.

As well as the semiconductor productions two R&D centers from Samsung Electronics and Samsung Digital began operation in Xi'an on Sept 12, 2013.

More than 60 related companies have settled in the Xi'an High-tech Zone and it is expected that this will grow to form an industry accumulation in the area.

More involvement

Samsung is also actively involved with community activities in Shaanxi province.

It signed a memorandum with the Shaanxi provincial government on Sept 12, 2013 to jointly promote enterprise social responsibility cooperation.

The Samsung CSR Shaanxi Pilot Area was officially opened on March 27, 2014.

In 2013, Samsung had good operations in China, said Chang Won Kie, president of Samsung China.

"However, as our main target market - the high-end segmentation is nearly full, it is expected that we will meet some obstacles in 2014," Chang said.

He said the company would strengthen the operation of customer experience centers by improving post services to cater to the changing market.

The company plans to expand its business from electronics to finance, medical care and urbanization in China.

It will also initiate programs including Hope schools and intelligent classrooms to support China's youth education, Chang said.


Samsung executives and guests at the ceremony to mark the opening of the company's new facility in Xi'an, Shaanxi province. Photos provided to China Daily


Researchers at the Samsung facility in Xi'an. The company's new site covers 1.14 million square meters and will produce V-NAND flash memory chips.

(China Daily05/15/2014 page13)

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Source: China Daily: Hong Kong Edition

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