Published: Fri, August 10, 2018
Tech | By

Samsung to invest billions in new tech to drive fresh growth

Samsung to invest billions in new tech to drive fresh growth

The company's move came as the sector calls for top-notch chip and display technologies, in which Samsung enjoys an edge over rivals.

Samsung has announced a new three-year investment plan, set to be worth $160bn (approximately £124bn). "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 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 now struggling with high youth unemployment.

The electronics giant revealed such plans on Wednesday as part of measures to revitalize the economy and create jobs. "It will continue to invest heavily in the businesses, including developing and manufacturing biosimilars", the statement said.

The injection of money will be made over the coming three years and will be part of an overall $161 billion investment plan.

Today's update comes after the company reported an operating profit of KRW14.87 trillion ($13.3 billion) for its second quarter, down 5% sequentially but up 6% year-on-year. This will lead to the creation of an additional 15,000 jobs, Samsung said.

Samsung Electronics said the announcement followed "many months of deliberations and review" by the group.

In order to beef up the competitiveness of local small and medium-sized firms, Samsung said it will assist local firms with adopting smart factory production solutions under cooperation with the Ministry of SMEs and Startups.

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.

The company said the program will be provided in around five cities throughout the country, starting with a thousand students in the first year.

Talented students will receive opportunities to work at overseas research centers under cooperation with Samsung.

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