Samsung Electronics plans to build a new chip plant in South Korea, and has announced that it will invest 15.6 trillion won (close to $14.7 billion) in the new facility.
The goal for the South Korean tech giant is to increase chip production by a "low double digit percentage" after production for the factory starts, according to ZDNet. The only detail the company provided about the kind of chips that will be made is that the plant will focus on meeting demand for advanced semiconductor products.
Whether the plant will focus on making logic or memory chips has yet to be revealed.
Samsung said it will begin construction for the factory in 2015 in Pyeongtaek, south of the capital city Seoul, and open the facility in 2017, CNET reported.
"Our investment into the new fabrication plant will significantly influence the shaping of Samsung's future semiconductor business," said Kwon Oh Hyun, vice chairman and CEO of Samsung Electronics.
The announcement comes just days before the company will announce guidance for its most recent quarter. Samsung reported a 25 percent decrease in operating profits in July for its second quarter, which is the third quarter in a row in which the company has seen a drop in profit.
Samsung is expected to have an operating profit of 5.6 trillion won ($5.2 billion) in its third quarter, ZDNet reported.
While Samsung is currently the biggest handset maker in the world, it has been facing stronger competition in China this year in the form of Xiaomi, Lenovo, and other local brands. Taiwan Semiconductor Manufacturing (TSMC) is also presenting a challenge, having made 70 percent of the A8 processors for Apple's iPhone 6 and 6 Plus while Samsung supplied 30 percent. Despite TSMC's success, Samsung could regain its place in the chip market thanks to a contract it reportedly has with Apple that will make it the next chip to come out after A8.
