Samsung Group will invest 25 trillion won or $22 billion in artificial intelligence (AI), 5G mobile technology, electronic components for autos, and the biopharmaceutical business, Reuters reported.
The South Korean mobile technology company is making investment in new areas as its core semiconductor and smartphone businesses show signs of weakness.
The investment is also part of a bigger 180 trillion won three-year plan to create jobs and secure fresh revenue streams.
“The total investment size is not surprising. But Samsung can be more active in M&As to do better at AI or 5G,” Greg Roh, an analyst at Hyundai Motor Securities, said.
Samsung, 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 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 biopharmaceuticals.
“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,” the statement said.
The 180 trillion won plan includes capital spending as well as research and development in chips and displays and marks a 6 percent increase from its spending over the past three years.
Of the total, 130 trillion won will be spent in South Korea, and is expected to create 40,000 jobs, or 20,000 more than its previous hiring plans, Samsung said.
Samsung Group has 62 affiliates, with total assets of 399 trillion won, according to the country’s Fair Trade Commission.
