South Korea's Samsung has announced plans to invest USD1.7 billion to expand the production capacity of its plant in Kunshan, Jiangsu province.

This plant was reportedly first constructed in 2008.

Samsung's move is in line with the implementation of its business diversification strategy and the enhancement of control over its production network in China. As one of the largest mobile phone, memory chip, and TV manufacturers in the world, Samsung has 250 suppliers in China. In addition, it is currently building a USD7 billion chip factory in Xi'an.

An insider revealed to the local media that the USD1.7 billion investment will be mainly used to build factory buildings, purchase equipment, and establish research and development units, to support projects related to chip carriers.