Published: Sat, August 11, 2018
Hi-Tech | By Kristin Zimmerman

$22bn investment and 40,000 jobs - Samsung's new technology pathway

$22bn investment and 40,000 jobs - Samsung's new technology pathway

Samsung Electronics is now the world's largest smartphone-maker but also boasts a very strong semiconductor business that supplies chips to the companies such as Apple. But its profits have suffered from disappointing sales and slowing demand for some memory chips.

The company will spend KRW 25 trillion (EUR 19.2 billion) over the next three years, primarily led by Samsung Electronics, in the areas of artificial intelligence, 5G, automotive electronics components and biopharmaceuticals.

"Samsung aims to become a leader in electronics components for future cars such as system-on-chips for autonomous driving, utilizing its leadership in semiconductors, telecommunications and display technologies", stated the Samsung investment announcement.

With about 130 trillion won of the total will be invested in companies in South Korea, and is expected to create 40 thousand jobs, which is 20 thousand more than planned before, said Samsung.

The injection of money will be made over the coming three years and will be part of an overall $161 billion investment plan. However, it told Reuters that "it will provide most of the investment".

The announcement has had little impact on Samsung's share price but should be welcomed by investors anxious about the lack of strategic direction since the conviction of group heir Jay Lee on bribery charges previous year.

He has since been released after some of his convictions were quashed on appeal, and is now awaiting a Supreme Court decision. "It will continue to invest heavily in the businesses, including developing and manufacturing biosimilars", the statement said. The most notable appearance was in India, where Lee met with President Moon Jae-in and Samsung announced plans to expand its smartphone production there.

"Kim's visit to Samsung. showed the momentum for chaebol reform has been all but lost", he said.

The company has been hit by a series of scandals in recent years.

Samsung Electronics shares were little changed.

Like this: