Response to disclosure inquiry regarding news

Response to disclosure inquiry on the news regarding potential Xi'an chip plant capacity expansion (Update)

Date: June 28, 2017

Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) ("Samsung") announced today that

Samsung is exploring various investment options in order to respond to increased NAND flash memory

demand, including investment in Xi'an, but no final decision has been made at this time.

Samsung will provide an update on this matter within one month or when more details become available.

(An updated disclosure is expected to be made on July 27, 2017.)

※ This updated disclosure is made following the announcement in response to a disclosure inquiry from the Korea

Exchange (May 29, 2017).