$22bn investment and 40,000 jobs - Samsung's new technology pathway

Florence Fletcher
August 11, 2018

Samsung Group will invest KRW 25 trillion ($22 billion or around Rs. 1.47 lakh crores) over three years in artificial intelligence, 5G mobile technology, electronic components for autos, and the biopharmaceutical business, Samsung Electronics said on Wednesday.

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.

Last week, Samsung Electronics posted its slowest quarterly profit growth in more than a year following a slowdown in the global smartphone market. The company did not indicate how many of its 320,671 employees (as of December 2017) are now involved in AI.

Samsung has announced a new three-year investment plan, set to be worth $160bn (approximately £124bn).

Samsung is also determined to take a leading position in the 5G next-generation communications standard, where it faces competition from United States chipmakers like Intel Corp. In addition to investments for memory products, spending will go to non-memory and new advanced manufacturing equipment.

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No company in South Korea can match Samsung's scale in investment or job creation. The centres will train 10,000 students and job candidates, and provide employment consulting services for the next five years. As part of the plan, it will open up its venture incubation programme to external and internal start-up projects and provide software training.

More support for suppliers is also planned, with a total KRW 4 trillion available for extending financing to more sub-contractors in the lower-level supply chain and increasing incentive payments.

Lee was freed after almost a year in jail.

South Korea's leading business said the latest plan to revitalize the economy and create jobs will be aimed at contributing to the national economy through cooperation among Samsung, small firms and young people.

Jay Lee, the vice chairman of Samsung Electronics, is appealing that conviction after being released from jail in February with a suspended sentence.

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