Samsung Electronics held a groundbreaking ceremony for the world's largest semiconductor factory in Pyeongtaek, Gyeonggi Province, Thursday. The company expects start production in the new plant in the first half of 2017. The company said it will invest 15.6 trillion won ($14.35 billion) in building the first manufacturing line by 2017.

"Based on the state-of-the-art semiconductor manufacturing cluster in Giheung, Hwaseong and now Pyeongtaek, we aim to become the largest semiconductor company in the world," said Samsung Electronics Vice Chairman Kwon Oh-hyun in a speech during the ceremony at the Godeok International New Town industrial complex.

According to global market researcher IHS, Samsung ranked in second spot in total semiconductor production last year with a 10.7 percent share, following Intel's 14.1 percent.

Samsung company said the investment is expected to generate industrial production worth 41 trillion won and create 150,000 new jobs. It also anticipated the new complex will facilitate related industries such as materials and manufacturing equipment.

Samsung Electronics is producing DRAM memory chips at its Hwaseong plant and system semiconductor products at facilities in Giheung and Austin in the United States. It is also manufacturing V-NAND memory products in its Xian plant in China.

The company said the Pyeongtaek line will play a key role in producing semiconductor products for the expanding mobile device and server equipment market as well as the rapidly emerging Internet of Things sector.

Kim confirmed that the new manufacturing line will increase the company's semiconductor production capacity by 10 percent once it starts operating in the first half of 2017.