South Korean tech giant Samsung Electronics Co. broke ground on a new chip-production line on Thursday, aiming to further expand its clout in the semiconductor sector amid its ailing smartphone business.

The 15.6 trillion won (US$14.4 billion) chip line in Pyeongtaek, some 70 kilometers south of Seoul, is scheduled to be ready to start production in the first half of 2017. It marks Samsung's largest-ever investment in a single production line.