Samsung announces multi-billion dollar investment in AI, 5G, and more
11 Agosto, 2018, 03:56 | Author: Misty Newman
The KRW 180 trillion 3-year investment plan, which includes capital spending as well as research and development in chips and displays, marks a 6 percent increase from its spending over the past three years.
Samsung announced plans to boost investments in businesses expected to drive its future growth. Of the total, 130 trillion won ($116 billion) will be spent in Korea to create 40,000 jobs, twice as much as initially planned.
Samsung said it will spend the sum, amounting to 25 trillion won, on hiring artificial intelligence researchers, ensuring it will be a global player in next generation telecoms technology called 5G and deepening its involvement in electronic components for future cars.
By drawing on its well-established expertise in technology and start-up investments, Samsung will open up its venture incubation program to both external and internal start-up projects and provide software training.
The wave of cash will also beef up Samsung's biopharmaceutical wing, the company said.
Jay Lee, the vice chairman of Samsung Electronics, is appealing that conviction after being released from jail in February with a suspended sentence.
Chung said reformist President Moon Jae-in's campaign to clip the wings of the country's powerful family-run conglomerates, known as chaebols, appeared to be losing steam in the face of stonewalling business groups which are "wielding prospects for investment as their weapons".
Samsung said it will also bolster its mainstay chip business, which is already the major source of profit for the company. This will lead to the creation of an additional 15,000 jobs, Samsung said. The new investment plan follows the overhaul of the group's management at the end of 2017 and comes in the face of slowing sales at its biggest earner in recent years, smartphones.
Investors greeted Wednesday's news with cautious optimism, with Samsung Electronics' shares rising 0.21 per cent to close at 46,800 won.
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