Samsung will spend $1.9 billion to build a new fabrication line in Hwaseong, South Korea to make processors for mobile devices and meet the growing demands for logic products.
Samsung will invest 2.25 trillion Korean won in the new fabrication line, which will break ground this month with a target timeline for completion by the end of 2013 or early 2014.
The new fabrication line will mainly produce advanced mobile application processors on 300mm wafers at 20nm and 14nm process nodes.
Along with Lines 9 and 14, which have been converted to System LSI fabrication earlier this year, the new line will help supply to the expanding need for smart mobile solutions.
With the new investments, as well as the addition of Line 16 in Hwaseong last September and plans to build a new NAND Flash plant in Xi'an, China, Samsung looks to balance its global semiconductor fabrication prowess.
Mr. Stephen Woo, president of Samsung Electronics' System LSI Business, said, "With the construction of our new System LSI fabrication line, Samsung will be able to respond to the demand of the global IT industry and strengthen our ability to support our customers? requirements even further."
According to market research firm Gartner, the demand for system semiconductor chips for use in smartphones and tablets will grow more than 20 percent on average from $23.4 billion in 2011 to $59.4 billion in 2016.
The investment plan follows Samsung's recent decision to build its first chip manufacturing plant in China to make NAND type flash memory chips.
Seperately, Samsung named Kwon Oh Hyun, head of the company's display and chip business, as chief executive officer after his division led the company out of an industry downturn.
Kwon, who was promoted to vice chairman in December, will handle broader corporate matters in addition to running its component business, Samsung Group, parent of the electronics maker, said in a statement today. Outgoing CEO Choi Gee Sung will lead the group?s strategy office, according to the statement from the company.