Samsung to invest $22 billion into new growth areas like A.I. and 5G
SeongJoon Cho | Bloomberg | Getty Images
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.
Those investments would be made in four key areas: artificial intelligence (AI), fifth-generation mobile network technology, electronic components for future cars and bio-pharmaceuticals, the company said on Wednesday.
To expand its AI capability, Samsung will be increasing the number of researchers to 1,000 across its global AI centers in the U.K., Canada, Russia, U.S. and South Korea.
Samsung Electronics is currently the world's largest smartphone-maker but also boasts a very strong semiconductor business that supplies chips to the companies such as Apple.
Overall, the conglomerate said it planned to invest a total of 180 trillion won ($161 billion) over the next three years, which will include capital expenditures as well as research and development in its semiconductors and displays businesses. Most of that investment — about 130 trillion won of the total — will be spent in South Korea, the company said without giving further breakdowns.
Samsung also said it expects to create about 40,000 new jobs over the next three years.
Last week, Samsung Electronics posted its slowest quarterly profit growth in more than a year following a slowdown in the global smartphone market. Still, the company said its chip business continued to do well.
Samsung Electronics shares were marginally down in afternoon trade against a flat Kospi index.