Samsung Electronics Co Ltd began building a new memory chip production line in Xi'an, capital of Northwest China's Shaanxi province on Wednesday, as the tech giant ramps up efforts to boost NAND flash chip technology to meet future demand.

South Korea's tech behemoth said in August last year that it expected to invest $7 billion into the second phase of its chip plant in Xi'an, which will primarily produce advanced flash memory chips.

The first phase of Samsung’s plant in the Xi'an Hi-Tech Industries Development Zone went into operation in May 2014, with a total investment of $10 billion. The semiconductor project has attracted more than 100 supporting companies to the zone.

The construction of the new production line is also expected to strengthen Xi'an's role as a major semiconductor industry base and drive local economic growth.

Currently, Samsung holds a monopoly position in the field of memory storage chips. Its revenue from NAND in the fourth quarter of 2017 rose 9.8 percent from the previous quarter on the back of demand from smartphone and server markets, according to research provider Trendforce.