BEIJING Jan 27 South Korean electronics giant
Samsung plans to invest $1.7 billion in expanding
and fitting out its operations in Kunshan, a fast-growing
manufacturing hub west of Shanghai, the Xinhua news agency said
Samsung's expansion comes as the world's largest maker of
handsets, memory chips and televisions attempts to diversify its
clients and exert greater control over its sprawling
manufacturing network, which includes 250 supplier factories in
The company is already building a $7 billion chip complex in
Xi'an, an industrial city in northwestern China.
The Kunshan investment will be used to build workshops,
purchase equipment and set up research institutes operated by
Samsung Electro-Mechanics Co., to support a chip
carrier related project, Xinhua said, citing sources with the
Kunshan municipal government.
Manufacturing in China is rapidly expanding, with
electronics assembly lines displacing low-margin producers of
textiles and toys.
Samsung's growing presence in China has earned it the
attention of labor activists more accustomed to scrutinizing
rival electronics manufacturing giant Foxconn.
Foxconn, the trading name of Taiwan's Hon Hai Precision
Industry, conducted an internal audit and pledged to
address issues at its supplier factories, after a report in 2012
found it had hired underage workers.
The Kunshan plant was originally set up in 2008.
(Reporting By Lucy Hornby; Editing by Alison Birrane)