Samsung Electronics is expected to build its second overseas NAND Flash manufacturing plant in Xian, Shaanxi province, after signing an agreement with the regional government late Wednesday.

Samsung, the world’s top memory chip maker, will hold working-level talks with the government of Xian, which the Korean IT behemoth picked as its preferred candidate city, after getting the green light from the Korean government to construct a memory chip plant in China last December.

Samsung currently has one overseas memory chip manufacturing plant in Austin, Texas, established in 1996. NAND Flash memory chips are widely used in wireless devices such as smartphones and tablet PCs.

It selected Xian because the city has sound industrial infrastructure such as water and electricity supply and can supply a talented workforce, company officials said. The city has a number of universities and research and development centers for IT firms.

While planing to complete the construction of all NAND Flash manufacturing lines by the end of the year, it expects to begin production in the latter half of next year.

For now, Samsung plans to produce 10-nano NAND Flash memory chips at the new Chinese manufacturing plant as it aims to begin the production at its Korean plant by June.

“With the increase in demand that derives from the rising number of smartphones, tablets and ultra-slim laptops, Samsung Electronics will manufacture the 10-nano NAND Flash this year and lead the global premium memory market,” said a Samsung official.

“We also plan to conquer the Chinese market by producing the 10-nano NAND Flash in China next year.”

By Cho Ji-hyun (sharon@heraldcorp.com)