Samsung announces three-year $160bn investment plans

Yolanda Curtis
August 10, 2018

Samsung is putting more than $22 billion toward artificial intelligence, 5G networks, biopharmaceuticals and electronic automotive parts over the next three years.

The remaining monies will go towards investment in display manufacturing facilities as well as fostering external start-up projects, creating up to 40,000 jobs in South Korea.

According to figures from IHS Markit, Samsung's shipments fell 10.8 per cent to 70.8 million during the most recent quarter as the Samsung Galaxy S9 failed to fend off competition from the likes of Huawei.

Samsung, South Korea's biggest conglomerate, plans to invest 180-trillion won ($161bn) to ramp up its ability to produce memory chips and other products vital to future growth, lending its support to President Moon Jae-in's efforts to shore up a slowing economy. The agreement is also expected to induce a further 700,000 jobs in related industries. The company also made a decision to directly hire 40,000 more employees in the cited period. (Nasdaq: INTC) and Qualcomm Inc.

Industry watchers said the company's latest investment plan is set to focus on building Samsung's capabilities in the chip segment, as global rivals, especially those from China, have been trying to catch up.

Want to know more about 5G? This will lead to the creation of an additional 15,000 jobs, Samsung said.

Samsung financing will be extended to a larger number of subcontractors, with KRW4 trillion ($3.6 billion) to be made available in total through supplier support programs.

Samsung will moreover forge ties with the Ministry of SMEs and Startups to raise 110 billion won over the next five years to help 2,500 companies adopt smart-factory solutions in their production lines.

The company is one of the largest employers in South Korea, and is seen as one of the nation's shining lights to the rest of the world - a reputation that was severely damaged previous year when company heir Jay Y.Lee was imprisoned on bribery charges.

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