Samsung Electronics announced Thursday that it will newly invest 2.25 trillion won ($1.92 billion) to build a new production line for system semiconductors at its plant in Hwaseong, Gyeonggi Province.

In a regulatory filing, the company decided to go ahead with the new production line due to rising demands for system semiconductors.

It plans to manufacture mobile application processors that have applied the 20-nanometer and 14-nanometer advanced technologies through the 300-millimeter wafer fabrication line, according to its officials.

The firm will invest to develop the production line from Thursday until March 31, 2014.

Market research reports have indicated that the global system semiconductor market is estimated to reach an annual growth rate of 20 percent for the next five years benefiting from the increasing popularity of smartphones and tablet PCs.

By Cho Ji-hyun  (sharon@heraldcorp.com)