Samsung to invest $1.9 billion in new semiconductor line

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Samsung Electronics, the world's largest memory chip maker, said on Thursday it would invest about $1.9 billion in building a new non-memory chip line to address booming demand for mobile processors.

The company said its new 2.25 trillion won line, to be built by the end of next year in Hwaseong south of Seoul, would mainly produce advanced mobile application processors.

It will help meet the expanding demand for smart mobile solutions, Samsung said in a statement.

Samsung said in January it would spend a total of 25 trillion won in capital expenditure this year, with 15 trillion won going to its chip business.

According to market research firm Gartner, global demand for system semiconductor chips for use in smartphones and tablets will grow from $23.4 billion in 2011 to $59.4 billion in 2016.