Samsung Electronics said Monday it plans to invest some 15.6 trillion won (US$14.7 billion) to set up a new chipmaking facility in the northwestern part of the country to better meet the global demand for chips. Samsung said it will break the ground on the new plant in Pyeongtaek, some 70 kilometers south of Seoul, in the first half of next year, with the aim of starting its commercial production in 2017.

The plant will make either logic or memory chips, Samsung said, adding that a final decision on products had not been made yet.

"Our investment into the new fabrication plant will significantly influence the shaping of Samsung’s future semiconductor business," said Dr. Oh-Hyun Kwon, CEO and Vice Chairman of Samsung Electronics. "We sincerely thank Gyeonggi Province and Pyeongtaek for their full support."

Construction on the 790,000m2 site will begin during the first half of 2015, and operations are scheduled to begin sometime during the second half of 2017.