Samsung invests billions in 5G and AI

Samsung invests billions in 5G and AI

Samsung invests billions in 5G and AI

"Considering the research lab is increasingly focusing more on mass-market technologies recently, Samsung seems to be speeding up the development of autonomous cars based on its artificial intelligence technology".

"Samsung has seen strong growth from both its contract manufacturing and biosimilar businesses".

The announcement has had little impact on Samsung's share price but should be welcomed by investors anxious about the lack of strategic direction since the conviction of group heir Jay Lee on bribery charges past year.

Lee kept a low profile after his release in February but has been emerging in his public role in recent weeks.

Overall, Samsung's investment plan is set to create 40,000 jobs across its various businesses.

With his case to be reviewed by the Supreme Court, coupled with incumbent President Moon Jae-in's drive to impose tougher restrictions on family-controlled conglomerates, industry watchers said Lee sought to recover the group's public reputation and build a better relationship with the government through the investment. The plan, for instance, will boost Samsung's global roster of advanced AI researchers to 1,000.

With 130 trillion won of the combined 180 trillion won meant to be invested at home, Samsung said around 700,000 jobs will be created overall here following its move. The new investment is expected to indirectly lead to about 700,000 jobs in related industries and businesses in South Korea, Samsung said without giving a time frame.

Samsung highlighted that the investment focuses on helping subcontractors and other smaller companies that actually hire the bulk of the country's workforce. But even by Samsung's standard, the size of the investment announced Wednesday was huge.

Samsung's share price has fallen about 8% in South Korea so far this year.

The company's investment announcement came two days after the finance minister visited a Samsung computer chip factory, where he touted Samsung's importance in Asia's fourth-largest economy.

Related news