Response to disclosure inquiry regarding news

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

Date: May 29, 2017

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

Samsung is exploring various investment options in order to respond to the NAND flash memory market,

including but not limited to investment in Xi'an. However, 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 June 28, 2017.)

※ This disclosure is in response to a disclosure inquiry from the Korea Exchange (May 29, 2017).