Samsung: Investing 22 billion US dollars in artificial intelligence and 5G in the next three years.
Samsung Group announced that the company would invest more than 22 billion dollars in the target areas – such as artificial intelligence and automotive technology components in the next three years because the company hopes in mobile phones and Seeking new growth drivers outside of memory chips.
Much of this investment will be used for Samsung Electronics, the group’s Pearl and the world’s number one smartphone, semiconductor and TV manufacturer. The company said it intends to invest heavily in four critical areas by 2020: automotive technology; artificial intelligence; new fifth-generation or 5G cellular technologies, all of which are encompassed by the company’s large organization. Other funds will be used in the group’s emerging pharmaceutical companies, which focus on contract manufacturing and biosimilars.
Samsung is Korea’s most significant business empire, with 62 subsidiaries spanning everything from life insurance to theme parks. The Samsung Group did not provide specific details of the new investment. But these expenses represent Samsung’s most extensive investment in new business areas since 2010.
Overall, with the previously announced investment, the company will spend 180 trillion won (approximately $161 billion) over three years, including spending on semiconductors and display. According to estimates by Standard & Poor’s Global Market Intelligence, roughly $100 billion will be spent on capital expenditures. In 2017, Samsung was the most expensive capital expenditure for listed companies.
According to people familiar with the matter, Samsung’s actual leader, Lee Jae-Yong, has made innovation a top priority for the entire group. In October, Samsung Electronics Chairman Kwon Oh-Hyun said the company is facing an “unprecedented crisis” and “it is difficult to find new growth areas.” The company subsequently replaced all three CEOs in March.
Last year, due to Li Zaijun’s involvement in the corruption investigation, the group’s leadership was in a vacuum, and Samsung did not take any bold moves. After Li’s probation was released in February, he appealed to the Supreme Court.
On Monday, he made his first public appearance in South Korea after he was released from prison. He met with the Korean Finance Minister at the Samsung Semiconductor Factory in Pyeongtaek. During the visit, Finance Minister Kim Dong-Yeon said that Samsung played an essential role in reshaping the Korean economy. The South Korean president’s text despises job creation, especially to create employment for young people who are fully employed, and is the country’s top priority. He said that this problem will not be solved and will lead to a national crisis.
Samsung, therefore, said that these investments would directly bring 40,000 jobs in the next three years.
Samsung is also stepping up its pace in automotive technology: At the end of 2016, the company announced the acquisition of Harman International for $8 billion. Industry (the most significant purchase ever); last year the company launched a $300 million automotive technology investment fund.
Samsung is also actively developing its AI capabilities: in May, new research centers were opened in Cambridge, Toronto, and Moscow. The company plans to build an internal team of at least 1,000 AI engineers and researchers by 2020. At that time, Samsung hopes to integrate AI functions and Internet connectivity into all of the company’s products.
Samsung last announced that the group’s major investment plan for the new business is in 2010 when it plans to invest more than 20 billion US dollars in the fields of medical equipment, rechargeable batteries for electric vehicles and bio-pharmaceutics in the next decade.