Seeking new growth drivers, Samsung plans US$22b spending on new tech

5 stunning stats about Samsung

5 stunning stats about Samsung

Now keen attention is being paid to whether the mega investment plans could soothe the sour relationship between Samsung and the government since the liberal president whose key campaign pledges include chaebol reforms took office in May a year ago.

The firm has said that $21bn (£17bn) will be invested over the next three years in the areas of artificial intelligence (AI), 5G, automotive electronics components and biopharmaceuticals in a bid to aid future growth.

Overall, Samsung's investment plan is set to create 40,000 jobs across its various businesses.

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.

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.

There are plans to increase the number of advanced AI researchers at its AI centres to 1,000 while there will also be an expansion of its semiconductor manufacturing capabilities to cope with demand for AI, 5G, data centre and connected auto components.

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Samsung added that 4 trillion won will be spent on seeking shared growth with subcontractors. "It will continue to invest heavily in the businesses, including developing and manufacturing biosimilars", it said in a statement.

Samsung said it will spend the sum to hire AI researchers to be a global player in next generation telecoms technology and to boost its presence in electronics components for future cars. Alongside direct employment, the investment is expected to help create 700,000 new jobs in related industries and businesses.

Vice-chairman Mr Lee met Mr Moon at the Indian factory's opening this year, his first meeting with the nation's leader since Mr Lee was released in February on a suspended jail sentence for a graft conviction.

Investors greeted Wednesday's news with cautious optimism, with Samsung Electronics' shares rising 0.21 per cent to close at 46,800 won.

South Korean voters tired of scandals and critical of big businesses like Samsung elected President Moon to replace Park after she was ousted.

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