Published: Sat, August 11, 2018
Tech | By Anita Cain

Samsung invests billions in 5G and AI

Samsung invests billions in 5G and AI

"Samsung aims to lead efforts to foster a vibrant ecosystem for innovations and growth, leveraging its technology and decades of experiences in creating successful businesses", the company said in a statement Wednesday.

Now keen attention is being paid to whether the mega investment plans could soothe the sour relationship between Samsung and the government since the liberal president whose key campaign pledges include chaebol reforms took office in May previous year.

Samsung said in a statement that it will invest 25 trillion won (22 billion USA dollars) in promising business areas of artificial intelligence (AI), 5G, automotive electronics components and biopharmaceuticals over the next three years.

The company has been hit by a series of scandals in recent years. It is only recently that Lee has started activities in Korea, including his first meeting with President Moon last month when Samsung opened a new smartphone plant in India.

For biopharmaceuticals, Samsung has seen strong growth from both its contract manufacturing and biosimilar businesses.

The semiconductor business is a particularly lucrative division of Samsung as it has been driving the bulk of its revenues over the past few years.

The company said a substantial slice of the overall investment pie will be earmarked for South Korea itself, and that overall the investment will create some 40,000 new jobs.

In AI, Samsung plans to significantly expand its research capability, increasing the number of advanced AI researchers to 1,000 across its global AI Centers. Samsung Electronics Vice Chairman Lee Jae-yong has requested that the government ease regulations on the bio segment.

"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 will moreover forge ties with the Ministry of SMEs and Startups to raise 110 billion won over the next five years to help 2,500 companies adopt smart-factory solutions in their production lines.

The new strategy will entail an overhaul of Samsung's internal venture incubation program, said the company.

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