Foreign Tech Firms launch R&D centers in wider range of cities
25.5.2015 - Jeffrey Wouters
Foreign technology companies are moving into second-tier cities and developing research centers after taking advantage of preferential policies. Xi'an in Northwest China is among the hottest locations for research and development centers owned by overseas tech firms.
Samsung Electronics Co is one of these tech firms. They have opened two research centers in Xi'an less than two years ago. The South Korean giant's data research facilities came with a $7 billion flash memory chip plant, which is also in the city's High Tech Industries Zone.
Kim Ki-nam, general manager of Samsung's semiconductor division, said the talent pool and a major supply chain were the key reasons behind the company's decision to set up an innovation base.
Xi'an is looking to strengthen its hold in the information technology sector over other inland cities by providing low-cost land, tax cuts and human resources to overseas firms. Its annual IT output is the largest in northwestern provinces, according to statistics from the local government.