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Samsung Building New Memory Chip Line

Samsung Electronics is planning to build a new memory chip line in China, in a move to amp up NAND flash technology to meet future demand.

Speaking to Reuters, Trendforce says the rapidly growing data centre market is expected to underpin revenue growth and margins for Samsung’s NAND Flash business this year.

Last year the Korean company says it is expecting to invest US$7bn over the next three years expanding its NAND memory chip production in China’s northwestern city of Xi’an.

Its NAND revenue from Q4 in 2017 grew 9.8 per cent to US$6.17bn compared to the previous quarter due to smartphone and server demand.

According to Reuters, Samsung will formally begin the process towards the end of March at Xi’an, earmarked for NAND flash production.

Analysts say Samsung shares have grown 13 per cent since early March due to an improved outlook for the memory chip market, silencing rumours the recent chip boom will end.

Last year, Samsung overtook Intel as number one chip maker by revenue with its semiconductor unit delivering Q2 sales of US$15.7bn and operating profit of US$7.1bn compared to Intel’s , reported quarterly revenue of US$14.8bn billion and operating profit of US$3.8bn.

The South Korean giant posted a US$14bn Q4 operating profit for 2017, largely driven by the strength of its chip and display business.

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