Samsung to plug $160bn into new technology in major growth push
Aug 11 2018
Samsung Electronics is now the world's largest smartphone-maker but also boasts a very strong semiconductor business that supplies chips to the companies such as Apple.
It represents a six percent increase over the past three years.
It forms part of a broader strategy under which the Samsung group will invest KRW180 trillion ($160.7 billion) in total over the next three years in capital expenditure and research and development.
Although demand for its memory chips remains robust, the market for its smartphones appears to have hit a wall, prompting the company to search for fresh growth opportunities.
Along with the direct employment of Samsung, its investment in South Korea was forecast to help induce around 700,000 jobs in related industries and businesses, the statement noted.
It will also develop a range of system-on-chips for autonomous driving based on its semiconductor, telecoms and display technologies products, as well as build new chipsets to support AI, 5G and data centres.
Samsung is to invest 25 trillion won (£17 billion) in areas such as Artificial Intelligence (AI), 5G and components for connected cars as it seeks to protect itself against smartphone saturation.
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.
With about 130 trillion won of the total will be invested in companies in South Korea, and is expected to create 40 thousand jobs, which is 20 thousand more than planned before, said Samsung.
He has since been released after some of his convictions were quashed on appeal, and is now awaiting a Supreme Court decision.
Samsung Electronics said the announcement followed "many months of deliberations and review" by the group.
Samsung's second quarter profit dipped slightly to 11.04 trillion won, down from 11.05 trillion won a year earlier. This will lead to the creation of an additional 15,000 jobs, Samsung said.