Memory chipmaker Nanya Technology on Tuesday announced it will build a $10 billion chip plant intended to alleviate a severe global semiconductor shortage and capture growing demand for 5G-related components.

The 300 billion New Taiwan dollar ($10.69 billion) facility will be in the northern Taiwanese city of New Taipei and will be the company's largest new plant in more than a decade.

"The investment will come over the next seven years and create at least 2,000 new jobs," Chairman Wu Chia-Chau told reporters on Tuesday. "Construction will start by the end of 2021, and the plant will be completed in 2023 with mass production is set to start in 2024."

Nanya is the world's fourth-largest maker of DRAM, behind Samsung, SK Hynix and Micron. The announcement comes as Taiwanese and global chip makers rush to expand production capacity to address the worsening global chip crunch, which has spread from automakers to consumer electronics manufacturers.

Nanya's planned facility will use the most advanced production technology available for memory and logic chips, so-called 10-nanometer production tech, the company said in a stock exchange filing on Tuesday.

The chip shortage has underscored the importance of semiconductor components, which serve as the hearts and brains of almost all electronic devices. As a result, the U.S. and EU are each pushing hard to increase local chip production, with the White House on April 12 hosting a virtual CEO summit to address the matter. The U.S. government is also looking at a $50 billion fund to boost advanced chip production and research development, to help America regain its chip manufacturing leadership.China is also hoping to boost its chip self-reliance by beefing up chip manufacturing.