Marbridge Daily

<- April 17, 2012 ->

Samsung Denies Rumor of RMB 20 Bln in Xi'an Subsidies

Guangzhou Daily, 4/17/12

On April 16, a spokesperson for Samsung denied reports that the Xi'an municipal government had committed to at least RMB 20 bln in subsidies and tax breaks in order to secure a Samsung flash memory plant project for the city. The spokesperson said that the only figure he could confirm at present was that Samsung would invest "USD 7 bln" in constructing a memory chip production line in Xi'an, adding that details of the investment were still under discussion.

Details of subsidy and tax break deals between Samsung and the Xi'an municipal government are also under discussion, the spokesperson said. While these will include land and logistics arrangements, as reported earlier, the spokesperson said that no details could be revealed at present. The spokesperson noted that Samsung had previously built plants in Tianjin, Suzhou, Shenzhen, Huizhou, and other regions of China, all of them subject to certain subsidies or tax breaks from local governments - but that going by the precedents of these cases, the details of the subsidies and tax breaks in the case of the Xi'an plant are unlikely to be made public.

Editor's Note: For more background on this topic, please see "Rumor: Xi'an Woos Samsung Flash Plant with Billions in Subsidies" MD 4/16/12 issue.

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