Samsung Just Unveiled a $22 Billion Plan to Pursue New Technology

Samsung to invest $22 billion into new growth areas like A.I. and 5G

Samsung to invest $22 billion into new growth areas like A.I. and 5G

The South Korean giant has unveiled a three-year, 180 trillion won ($161bn) investment plan in a wide range of areas as it looks to bounce back from recent financial disappointment. But its profits have suffered from disappointing sales and slowing demand for some memory chips.

Samsung expects the additional investment to create 20,000 new jobs in the next three years, on top of expected hiring of 20,000 in its normal course of business over the same period.

Samsung has announced that it will invest 25 trillion Korean Won, or $22 billion into innovative industries such as artificial intelligence, 5G, automotive electronic parts, and biopharmaceuticals.

Samsung Electronics said it will invest aggressively in the fifth-generation network technology, which is anticipated to contribute to the growth of self-driving cars, Internet of Things solutions and robotics.

"Today's announcement shows Samsung is serious in its efforts to develop new growth engines" at a time when its semiconductor business and mobile sector are both facing mounting competition from Chinese rivals, Greg Roh of HMC Securities & Investment told AFP. Of the total, 130 trillion won ($116 billion) will be spent in Korea to create 40,000 jobs, twice as much as initially planned.

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.

On the education front, the company is setting up a number of software education centers in South Korea, offering training and "employment consulting" to about 10,000 students and job candidates. It will continue to invest heavily in the businesses, including developing and manufacturing biosimilars to combat chronic and difficult-to-cure diseases, the company said. Mr Lee, who has led Samsung since his father fell ill in 2014, denies wrongdoing and has appealed the ruling.

Samsung Electronics shares were little changed.

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