Hi-Tech

Samsung's next move: A $22 billion bet on new tech

Samsung's next move: A $22 billion bet on new tech

"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". "But Samsung can be more active in M&As to do better at AI or 5G, when Lee is fully back to his business", Greg Roh, an analyst at Hyundai Motor Securities, said. The area accounted for 78.1 percent of the combined operating profit in the second quarter.

The electronics company, which is also to explore biopharmaceuticals as part of its new plans, said it would double the number of employees it planned to hire over the next few years to 40,000.

Areas that will be targeted for investment include the company's manufacturing hubs, as well as existing memory and display businesses.

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

No company in South Korea can match Samsung's scale in investment or job creation.




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.

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.

This still gives it a market share of 20.6 per cent, but even Samsung acknowledged in its results that sales of its newer devices hadn't been as good as excpected.

Samsung also vowed to lend its support to fostering the country's software industry and providing education programs to 10,000 students over the next five years. The students will be provided with subsidies as well.