Samsung Electronics plans to spend $22 billion over the next three years on artificial intelligence, auto components and other future businesses as the company maps out its strategy under the restored leadership of Vice Chairman Lee Jae-yong after he was freed from prison.
As for the bio business, Samsung claimed that it wishes to foster the segment to become another major pillar of its portfolio like semiconductors.
"Samsung's brimming with cash right now", said Kwon Sung-ryul, an analyst at DB Financial Investment in Seoul. It will continue to invest heavily in the businesses, including developing and manufacturing biosimilars to combat chronic and difficult-to-cure diseases, the company said.
Last week, Samsung Electronics posted its slowest quarterly profit growth in more than a year following a slowdown in the global smartphone market.
Samsung added that 4 trillion won will be spent on seeking shared growth with subcontractors.
The South Korean tech giant said it made a decision to expand investment to revitalize the national economy and foster new growth engines. The company also will expand C-Lab, its internal venture incubation program, and work with the Korean government to establish and run software education centers across the country.
Samsung said it plans to create 40,000 new jobs over the next three years.
Samsung Electronics said the announcement followed "many months of deliberations and review" by the group.
The three-year investment plan, announced shortly after Samsung Electronics Co.
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. A total amount of 110 billion won will be raised for the program, with Samsung accounting for 60 billion won. That news sent shares in contract drugmaker Samsung BioLogics up some 5%.
Samsung is also looking to be a front runner in the 5G race. The students will be provided with subsidies as well.
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