Samsung To Invest $22 Billion In New Tech To Drive Fresh Growth

Samsung To Invest $22 Billion In New Tech To Drive Fresh Growth

The 180 trillion won plan includes capital spending as well as research and development in chips and displays and marks a 6 percent increase from its spending over the past three years.

Consumption has slowed, unemployment is rising and investment has cooled since he came to power past year.

Samsung said in a statement that it will invest 25 trillion won (22 billion USA dollars) in promising business areas of artificial intelligence (AI), 5G, automotive electronics components and biopharmaceuticals over the next three years.

Samsung also said it expects to create about 40,000 new jobs over the next three years.

The wave of cash will also beef up Samsung's biopharmaceutical wing, the company said.

"Today's announcement shows Samsung is serious in its efforts to develop new growth engines" at a time when its semiconductor business and mobile sector are both facing mounting competition from Chinese rivals, Greg Roh of HMC Securities & Investment told AFP. Its de facto leader Lee Jae-yong was convicted of corruption a year ago, but released from prison in February.

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With 130 trillion won of the combined 180 trillion won meant to be invested at home, Samsung said around 700,000 jobs will be created overall here following its move.

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

The Korean giant is the world's leading manufacturer of smartphones and memory chips but slowing demand in more developed markets has seen it seek other sources of growth.

Samsung's announcement came a month after President Moon Jae-in met the company's de facto head Lee Jae-yong in India. The numbers being proposed are much higher than the 25,000 the company hired in the recent three years. Mr Lee, who has led Samsung since his father fell ill in 2014, denies wrongdoing and has appealed the ruling.

Investors greeted Wednesday's news with cautious optimism, with Samsung Electronics' shares rising 0.21 per cent to close at 46,800 won.

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