Samsung Reported to Spend USD$22 Billion on New Technology in Push for Growth

According to a report by The Thomas Reuters, South Korean-based conglomerate firm; Samsung Group will invest 25 trillion won (approximately USD$22 billion , UGX82.5 trillion) over three years in artificial intelligence, 5G mobile technology, electronic components for autos, and the bio-pharmaceutical business.

The investment is part of a broader 180 trillion won (approximately UGX593.7 trillion , USD$160.7 billion) package South Korea’s biggest 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, 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 artificial intelligence (AI) research capability, increasing the number of advanced AI researchers to 1,000 across its global AI centers, and heavily invest in bio-pharmaceuticals.

“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 5%. Shares in the group’s information technology services affiliate Samsung SDS rose 5%.

Samsung Electronics stocks traded flat.

The 180 trillion won (approximately UGX593.7 trillion , USD$160.7 billion) won 3-year investment plan, which includes capital spending as well as research and development in chips and displays, marks a 6% increase from its spending over the past three years.

Of the total, 130 trillion won (approximately UGX428.6 trillion , USD$116 billion) won will be spent in South Korea, and is expected to create 40,000 jobs, or 20,000 more than its previous hiring plans, the company 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.[related-posts]

source: The Thomson Reuters 2018


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