Samsung to invest billions in new tech to drive fresh growth

Helen Aguilar
August 11, 2018

The investments will be focused on artificial intelligence, 5G network technology, electric components for cars of the future, and biopharmaceuticals.

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 the funds for most of the investment.

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.

The company said: "Samsung expects innovations powered by AI technology will drive the industry's transformation, while the next-generation 5G telecommunications technology will create new opportunities in autonomous driving, the Internet of Things (IoT) and robotics".

The company has been hit by a series of scandals in recent years. The plan, for instance, will boost Samsung's global roster of advanced AI researchers to 1,000.

Samsung said most of the new investments will be injected in its key businesses such as semiconductors and displays in order to develop value-added premium products and further widen gaps with runner-ups, especially those of China.

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It is noted that these attachments are part of the three-year investment plan with a total volume of 180 trillion won, aimed at creating new jobs and providing new sources of growth.

The announcement sent shares in contract drugmaker Samsung BioLogics up more than 5 percent.

The injection of money will be made over the coming three years and will be part of an overall $161 billion investment plan. The company also will expand C-Lab, its internal venture incubation program, and work with the Korean government to establish and run software education centers across the country.

The announcement has had little impact on Samsung's share price but should be welcomed by investors anxious about the lack of strategic direction since the conviction of group heir Jay Lee on bribery charges previous year.

Samsung Electronics shares were marginally down in afternoon trade against a flat Kospi index.

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