Published: Sat, August 11, 2018
IT | By Emmett Cole

Samsung to invest billions in artificial intelligence and 5G

Samsung to invest billions in artificial intelligence and 5G

The South Korean tech giant said it chose to expand investment to revitalize the national economy and foster new growth engines.

25 trillion won ($22 billion) out of the grand amount will be used for investments in artificial intelligence, 5G mobile technology, electronic components for autos, and the biopharmaceutical business.

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.

"Today's announcement follows many months of deliberations and review by the management and board of directors of different Samsung companies that will make the investments, including Samsung Electronics", said the company in a statement.

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

The South Korean giant has unveiled a three-year, 180 trillion won ($161bn) investment plan in a wide range of areas as it looks to bounce back from recent financial disappointment.

The investment includes capital expenditures and research and development.

Samsung Electronics said it will invest aggressively in the fifth-generation network technology, which is anticipated to contribute to the growth of self-driving cars, Internet of Things solutions and robotics.

"Samsung has seen strong growth from both its contract manufacturing and biosimilar businesses". The plan, for instance, will boost Samsung's global roster of advanced AI researchers to 1,000.

Samsung has announced a new three-year investment plan, set to be worth $160bn (approximately £124bn).

Samsung said it will also bolster its mainstay chip business, which is already the major source of profit for the company.

Samsung is also determined to take a leading position in the 5G next-generation communications standard, where it faces competition from USA chipmakers like Intel Corp. Samsung BioLogics, established in 2011, is the world's third-largest contract drug manufacturer.

The scion of the founding family, Lee was jailed previous year for his part in the graft scandal that brought down former president Park Geun-hye.

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