Samsung Electronics Company Ltd says it plans to invest about $18 billion in South Korea to extend its lead in memory chips and next-generation displays for smartphones.
Samsung's investment announcement coincides with the start of mass chip production at its Pyeongtaek facility.
Demand for 64-layer V-NAND chips is growing at an explosive rate due to the recent trends of the Internet of Things, artificial intelligence, big data and connected vehicles.
In addition, Samsung's plans to construct a second semiconductor fabrication line in Xi'an, China, site are also under review. The fourth generation chip, according to Samsung, transmits data 50 percent faster than its predecessor, the 48-layer V-NAND chip.
The plant will be positioned as a cutting-edge hub for NAND flash memory, assuming mass production of 3-D chips with memory cells stacked vertically to increase storage.
"With the dedication and support of our employees, customers and partners, our new Pyeongtaek campus represents a new chapter in Samsung's semiconductor operations", said Kwon Oh-hyun, vice chairman and CEO of Samsung Electronics, at the ceremony.
Apart from facility expansion in Pyeongtaek, Samsung Electronics will invest 6 trillion won ($5.22 billion) in its facility in Hwaseong, Gyeonggi, by adding a new line for extreme ultra violet (EUV) equipment.
The factory in Pyeongtaek, 70 kilometres (44 miles) south of Seoul, is the world's biggest and has recently started production after Samsung Electronics spent 15.6 trillion won over the past two years to build it.
Samsung Display is reviewing plans to establish a new organic light-emitting diode manufacturing site in Asan, South Chungcheong Province, by 2018.
Samsung said that it aims to secure competitiveness in the components sector by promoting large investments in its semiconductor and display production lines while at the same time contribute to creating jobs in the country and developing overall IT industry. Samsung's first semiconductor line in Xi'an, which was completed in 2014, is now in full operation.
China is trying to grow its own memory chip producers but it may take several years before Chinese companies can compete with existing makers.