Samsung to put $22 billion in Artificial Intelligence, autos and other businesses

  • Samsung to put $22 billion in Artificial Intelligence, autos and other businesses

Samsung to put $22 billion in Artificial Intelligence, autos and other businesses

Samsung has been one of the most profitable tech companies on the planet in recent years. The company has reportedly made a decision to invest up to $20 billion in futuristic technologies which include artificial intelligence and 5G.

Overall, Samsung plans to spend 180 trillion KRW (~$160.8 billion) in the next three years on various technologies.

There are plans to increase the number of advanced AI researchers at its AI centres to 1,000 while there will also be an expansion of its semiconductor manufacturing capabilities to cope with demand for AI, 5G, data centre and connected auto components.

Samsung Electronics will primarily fund $22bn of that investment to underpin research into artificial intelligence (AI), 5G connectivity, electronic components for automotives and biopharmaceuticals. Alongside direct employment, the investment is expected to help create 700,000 new jobs in related industries and businesses.

The wave of cash will also beef up Samsung's biopharmaceutical wing, the company said. Those areas are seen as Samsung's new growth engines. The area accounted for 78.1 percent of the combined operating profit in the second quarter. Samsung wants to pump more money into the division in order to maintain its dominance in the market. The figure translates into around 43 trillion won annually, which is similar to Samsung's record high facility investment of 43.4 trillion won made previous year.

"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.

In total, Samsung expects to create 40,000 jobs over the next three years.

The company said its programs to support subcontractors adds up to a whopping 4 trillion won. The students will be provided with subsidies as well.