Samsung to invest billions in new tech to drive fresh growth

SEOUL: South Korea’s Samsung Group yesterday said it would invest $22 billion over the next three years in cutting-edge technology including artificial intelligence, self-driving cars and biopharmaceuticals, as it searches for ways to drive future growth. The investment will be primarily led by Samsung Electronics, the world’s biggest maker of memory chips, which has faced a string of setbacks in recent years, including a fall in smartphone sales and a corruption scandal that saw its vice-chairman Lee Jae-yong jailed last year.

Although demand for its memory chips remains robust, the market for its smartphones appears to have hit a wall, prompting the company to search for fresh growth opportunities. “Samsung expects innovations powered by AI technology will drive the industry’s transformation, while the next-generation 5G telecommunications technology will create new opportunities in autonomous driving, the Internet of Things (IoT) and robotics,” the company said in a statement.

The $22 billion is part of a total of 180 trillion won ($161 billion) that the group plans to invest over the next three years across its businesses, with more than 70 percent of the money to be spent in South Korea. Samsung will also expand investments in manufacturing hubs, seeking to increase production of semiconductors and display screens as well as dominate new markets by developing technology to power self-driving cars.

“Today’s announcement shows Samsung is serious in its efforts to develop new growth engines” at a time when its semiconductor business and mobile sector are both facing mounting competition from Chinese rivals, Greg Roh of HMC Securities & Investment said. The company said it expected to add 40,000 new jobs over the next three years, in news that will likely bring relief to South Korea’s government which is currently struggling with high youth unemployment. —AFP