Samsung Electronics, one of the world's largest maker of chips and a leading maker of consumer electronics,  this week announced plans to build a new fabrication line in Hwaseong, South Korea, to meet the growing demands for logic products. The new plant will produce chips using 14nm and 20nm process technologies and will go online late next year.

Samsung will invest $1.9 billion (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. The new fabrication line will mainly produce highly advanced mobile application processors on 300mm wafers at 20nm and 14nm process nodes. Along with Lines 9 and 14, which have been converted to chip fabrication earlier this year, the new line will help supply to the expanding need for smart mobile solutions.

“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,” said Stephen Woo, president of Samsung Electronics’ system LSI business.

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 hopes to balance its global semiconductor fabrication prowess.

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.

Tags: Samsung, Semiconductor, 14nm, 20nm, 300mm