updated 03:00 pm EDT, Sat September 14, 2013
Samsung to open packaging and testing facility in China
South Korean tech giant Samsung will invest $500 million to build a facility in Xi'an, an industrial city in Northwest China. Reuters reported on Saturday that the new facility will be focused on packaging and testing. The expenditure is Samsung's latest in a string of capital projects that stretch back through last year.
The $500 million plant is in the city that Samsung built a $7 billion chip complex in 2012. Also last year Samsung spent $1.7 billion to improve its operations in the manufacturing hub Kunshan. These movements were all part of a $41.4 billion capital expansion Samsung engaged in last year.
Due to the success of its mobile phone segment, Samsung has been flush with cash -- it posted $8.58 billion in profit in the second quarter. The tech conglomerate has been moving to turn those cash holdings into a larger operations base. The firm already has more than 250 manufacturers in its Chinese supply chain network alone.
Construction on the new packaging and testing facility will commence in January of 2014, with work on the site likely to be complete by the end of that year.