The South Korean firm is taking on bigger rival Taiwan Semiconductor Manufacturing Co Ltd (TSMC) in the contract manufacturing business, where it competes for orders from customers such as Qualcomm Inc.
“This new production facility will expand Samsung’s manufacturing capabilities,” the company said in a statement on Thursday.
Samsung is targeting the second half of next year to start producing advanced 5 nanometre chips, using extreme ultraviolet (EUV) technology, on the added line in its plant in Pyeongtaek city, within a two-hour drive of the capital, Seoul.
