Wednesday, 26 September, 2018

Samsung announces multi-billion dollar investment in AI, 5G, and more

Samsung announces multi-billion dollar investment in AI, 5G, and more Samsung announces multi-billion dollar investment in AI, 5G, and more
Sherri Watson | 10 August, 2018, 19:25

The numbers being proposed are much higher than the 25,000 the company hired in the recent three years.

In particular, the South Korean group plans to invest in the development of artificial intelligence, mobile communications technology 5G, electronic components for automobiles and bio-pharmaceutical business.

The investment is part of a broader KRW 180 trillion (roughly Rs. 11 lakh crores) package South Korea's biggest business group is planning to spend over the period to create jobs and secure new growth areas, as its core semiconductor and smartphone businesses weaken. The plan, for instance, will boost Samsung's global roster of advanced AI researchers to 1,000.

The company then said it plans to cope with the rising demand due to computers and smartphones, and will expand investment in the local production line as the need for chips will soar down the road as progress is made in AI, 5G, data centers and automotive technologies. "It will continue to invest heavily in the businesses, including developing and manufacturing biosimilars", it said in a statement.

Aside from this focused investment, Samsung will actually be investing a total of $161 billion over the next three years.

Samsung's second quarter profit dipped slightly to 11.04 trillion won, down from 11.05 trillion won a year earlier.

Samsung is also looking to be a front runner in the 5G race. This will lead to the creation of an additional 15,000 jobs, Samsung said.

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.

The announcement sent shares in contract drugmaker Samsung BioLogics (207940.KS) up 7 percent.

The company said its programs to support subcontractors adds up to a whopping 4 trillion won. The trainees will be able to share the company's vast technology know-how.