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A $22 billion bet on new tech — Samsung's next move
10 August 2018, 07:25 | Casey Mitchell
Samsung announces multi-billion dollar investment in AI, 5G, and more
South Korea's largest conglomerate Samsung Group is planning to invest about 25 trillion Korean won ($22 billion) over the next three years into new growth areas, led primarily by Samsung Electronics.
In the field of artificial intelligence, Samsung hopes to take its researcher base beyond the 1,000 mark across it global AI Centres.
As for the bio business, Samsung claimed that it wishes to foster the segment to become another major pillar of its portfolio like semiconductors. Samsung didn't immediately respond to a request for further comment. In addition to AI and 5G, Samsung will focus its efforts on automotive electronics parts and biopharmaceuticals. The area accounted for 78.1 percent of the combined operating profit in the second quarter.
The Korean tech giant also announced a set of initiatives aimed at building the ecosystem of innovative businesses for the digital economy.
Samsung's announcement came a month after President Moon Jae-in met the company's de facto head Lee Jae-yong in India.
Lee was released from prison with a suspended sentence in February. In 2010, under the leadership of Lee's father, Lee Kun-hee, who was then in charge of the group, Samsung had said it would spend 23 trillion won over the following 10 years on future businesses.
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Samsung also said it expects to create about 40,000 new jobs over the next three years. Samsung, hit hard by the financial crisis in the late 1990s, sold off its then five-year-old auto business to France's Renault Group back in 2000.
In order to beef up the competitiveness of local small and medium-sized firms, Samsung said it will assist local firms with adopting smart factory production solutions under cooperation with the Ministry of SMEs and Startups. Samsung wants to pump more money into the division in order to maintain its dominance in the market.
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The company said its programs to support subcontractors adds up to a whopping 4 trillion won. Samsung's target is to provide support for 300 external candidates and 200 internal projects in the next five years.
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