Samsung Electronics has begun construction of a new semiconductor line in its Hwaseong plant that will produce chips in 7-nanometers and smaller, the company said.
Samsung will invest $6 billion into the line that will be finished in 2019 and begin operations in 2020. The company will invest more depending on market situation when it begins operations, Samsung said.
Extreme ultra violet (EUV) lithography equipment will be installed in the plant, which will help Samsung maintain technological leadership in very large scale integrations, the firm said.
EUV light has a shorter wavelength compared to ArF lights currently in use and will allow drawing of more precise and detailed circuits needed for chips under 10 nanometers in scale.
The company will work to meet the demand for high-performance semiconductors in mobiles, servers, networks, and HPC and contract chip making clients.
Samsung's Hwaseong plant, along with others in Giheung and Pyeongtaek, forms its "semiconductor cluster" in South Korea. It also has plants in Austin, Texas and Xian, China.
The company is working with US chip giant Qualcomm on a 5G mobile chipset that will be made using the 7-nanometer process. Samsung developed a 8-nanometer process last October.
Samsung invested over $26 billion in semiconductor lines last year, its highest ever, due to record demand in memory chips.
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