Shara Tibken/CNET

Samsung Electronics has announced its plans to spend 15.6 trillion won (about $14.7 billion) to construct a new chip plant in South Korea.

The South Korean electronics giant said construction will begin next year in Pyeongtaek, south of Seoul, with the plant set to open in 2017, according to multiple news reports.

"Our investment into the new fabrication plant will significantly influence the shaping of Samsung's future semiconductor business," Kwon Oh Hyun, vice chairman and CEO of Samsung Electronics, said in a statement.

Samsung is set to announce guidance this week for its most recent quarter. In July, the company reported a 25 percent drop in operating profits for its second quarter -- the third straight quarter of profit declines. At the time, Samsung also warned that the second half of the year would as competition in the mobile market leads to lower device prices and hurts its results.

Shara Tibken contributed to this report.