BUSINESS Samsung to invest $22 billion on new technology

BUSINESS

Samsung to invest $22 billion on new technology

CGTN

07:02, August 09, 2018

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(Photo: CGTN)

Samsung Group will invest 25 trillion won (22 billion US dollars) over the next three years in artificial intelligence (AI), 5G mobile technology, electronic components for autos, and the biopharmaceutical business to drive future growth, Samsung Electronics said on Wednesday.

The investment is part of a broader 180 trillion won package that the business group is planning to spend over the period to create jobs and secure new growth areas, as its core semiconductor and smartphone businesses weaken.

Samsung Electronics, the world’s top maker of memory chips and smartphones and the group’s flagship company, did not provide a breakdown of the figures but said it will provide most of the investment.

It said the group plans to significantly expand AI research capability, increasing the number of advanced AI researchers to 1,000 across its global AI centers, and heavily invest in biopharmaceuticals.

“Samsung has seen strong growth from both its contract manufacturing and biosimilar businesses. It will continue to invest heavily in the businesses, including developing and manufacturing biosimilars,” it said in a statement.

The announcement sent shares in contract drugmaker Samsung BioLogics up more than five percent. Shares in the group’s information technology services affiliate Samsung SDS rose five percent.

Samsung Electronics stocks traded flat.

130 trillion of the 180 trillion won plan will be spent in South Korea, and is expected to create 40,000 jobs, or 20,000 more than its previous hiring plans, Samsung said.

The investment plan comes after South Korea’s finance minister met Samsung heir Jay Y. Lee on Monday and called for help in job creation.

Lee was released from jail earlier in 2018 after a year in detention on bribery charges, lifting hopes among some investors that Samsung will hike investments and create jobs.

Samsung Group has 62 affiliates, with a total asset of 399 trillion won, according to the country’s Fair Trade Commission.

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