Samsung Electronics has begun work on a sixth domestic contract chip production line, the company said, to make logic chips for mobile phones and computers as it looks to cut reliance on the volatile memory chip sector.
The South Korean firm is taking on bigger rival Taiwan Semiconductor Manufacturing (TSMC) in the contract manufacturing business, where it competes for orders from customers such as Qualcomm.
"This new production facility will expand Samsung's manufacturing capabilities," the company said in a statement.
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.
TSMC, the world's biggest contract chipmaker, plans to build a $12 billion (roughly Rs. 90,660 crores) factory in the U.S state of Arizona, it said last week.
Samsung now operates five foundry lines in South Korea and one in the United States.
Asianet.in/News Desk: Asianet Online