A Chinese newspaper reported that Samsung Electronics Co Ltd would be making a USD 500 million investment in China. Official state paper China Daily said the South Korean firm would use the funds to construct a packaging and testing plant in Xi'an in the northwestern part of the country. Xi'an is one of China's industrial cities.

Reuters reported that Samsung had been expanding its reach in the mainland. Last year, Samsung built a chip complex in Xi'an worth USD 7 billion. The company also invested USD 1.7 billion in January this year to boost its operations in Kunshan, another industrial hub located west of Shanghai. 

Samsung is the biggest maker of memory chips, handsets and television sets around the world. Reuters reported that the company wanted to diversify its customer base. It also wanted to wield more control for its manufacturing segment. Samsung currently has 250 supplier factories in China that form part of its manufacturing network.

The newspaper also reported that the packaging and testing facility would begin construction in January next year. Target date for completion is by the end of 2014.