Tech

Samsung eyes $22B spending on new tech to drive growth

Samsung eyes $22B spending on new tech to drive growth

Total sales for April-June fell 4.1 per cent year-on-year to 58.48 trillion won, with revenues for the company's mobile division plunging 22 per cent in the same period.

The South Korean conglomerate released a bumper statement on Wednesday which outlined its vision to create 40,000 new jobs within three years through heavy spending on advanced technologies such as artificial intelligence and 5G.

The investments, which will be primarily led by Samsung Electronics, will be used for the company to add artificial intelligence researchers, to be a global player in next generation telecoms technology and to boost its presence in electronics components for future cars.

Considering Samsung has been cautious about commenting on its reentry into the auto business, the report said, creating the new team could hint at a strategic shift at the Korean tech giant.

For biopharmaceuticals, Samsung has seen strong growth from both its contract manufacturing and biosimilar businesses. "But Samsung can be more active in M&As to do better at AI or 5G, when Lee is fully back to his business", Greg Roh, an analyst at Hyundai Motor Securities, said.

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With 130 trillion won of the combined 180 trillion won meant to be invested at home, Samsung said around 700,000 jobs will be created overall here following its move. The area accounted for 78.1 percent of the combined operating profit in the second quarter.

The injection of money will be made over the coming three years and will be part of an overall $161 billion investment plan.

"The latest investment reflects the company's belief that it may fall behind the competition if it takes its current position as a global leader for granted and is lax is making investments now", an official from Samsung said.

Samsung made the announcement to help revitalize the South Korean economy and foster new growth engines, Xinhua reports.

The company said the program will be provided in around five cities throughout the country, starting with a thousand students in the first year.