The technology giant said it would use 819.8 billion won ($872.1 million) to build new production lines of dynamic random access memory chips. DRAMs are used mainly for computer memory.
Samsung Electronics said it would also spend 990 billion won ($1 billion) in upgrading existing chip production facilities.
Samsung Electronics, the world's largest computer memory-chip maker, said last week that its fourth-quarter net profit fell 8.5 percent on-year despite record quarterly sales due to the strong local currency.
It is also the world's largest maker of LCD panels and third-largest maker of mobile phones.
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