© Samsung Electronics Production | August 08, 2018
Samsung to invest billions in AI, 5G € automotive electronics parts
The South Korean company is stepping up its investments and is looking for growth. Samsung plans to invest USD 22.35 billion in AI, 5G, automotive electronics parts and biopharmaceuticals.
Samsung has announced plans to boost investments in businesses that will drive its future growth, committing to a KRW 25 trillion (USD 22.35 billion) investment over the next three years, primarily led by Samsung Electronics, in the areas of artificial intelligence (AI), 5G, automotive electronics components and biopharmaceuticals. The company also announced a set of initiatives to become a leading force in building and energizing the ecosystem of innovative businesses for the digital economy. By drawing on its 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. The background of this push is that Samsung expects innovations powered by AI technology will drive the industry’s transformation, while the next-generation 5G telecommunications technology will create new opportunities in autonomous driving, the Internet of Things (IoT) and robotics, the company writes in a press release. In AI, Samsung plans to significantly expand its research capability, increasing the number of advanced AI researchers to 1’000 across its global AI Centers. It will also invest aggressively to become a global player in the advanced markets for 5G chipsets and related devices and equipment. At the same time the company wants to become a driving force in electronics components for future cars such as system-on-chips for autonomous driving, utilising its knowhow in semiconductors, telecommunications and display technologies. For biopharmaceuticals, Samsung has seen strong growth from both its contract manufacturing and biosimilar businesses. It will continue to invest heavily in the businesses. Overall, Samsung plans to invest a total of KRW 180 trillion (USD 160.7 billion) over the next three years, including the KRW 25 trillion on future growth businesses. The amount includes capital expenditures and R&D investments, and KRW130 trillion out of the total will be spent in Korea, the press release reads. In semiconductors, Samsung will expand investments in manufacturing hubs, including in Pyeongtaek, to maintain its global position and meet significant new demand from applications in AI, 5G, data centers and automotive electronics. In addition to investments for memory products, spending will include those for non-memory and new advanced manufacturing equipment. Together with the new investment, Samsung expects to create 40’000 new jobs over the next three years. This includes generating up to 20’000 additional new jobs on top of previous hiring plans.