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New Business Growth Areas Like A.I. And 5G Would See $22 Billion Investment From Samsung

New Business Growth Areas Like A.I. And 5G Would See $22 Billion Investment From Samsung
Plans of investments worth 25 trillion Korean won ($22 billion) is being planned by South Korea’s largest conglomerate Samsung Group. Primarily led by investments by sister company Samsung Electronics, this huge amount of investments would be made over a period of three years into a number of new potential growth areas, the company announced.
The investments have bene planned to be made in the key growth sectors in the tech world which are artificial intelligence (AI), fifth-generation mobile network technology, electronic components for future cars and bio-pharmaceuticals, said the South Korean giant in an announcement on Wednesday.
In the Ai segment, the south Korean company plans to increase its capabilities through an increase in the number of researchers who would be engaged in active research work to about 1000 who would be working throughout the AI centers of the company globally – in the UK, Canada, Russia the US and in its home market of South Korea.
Despite being the largest manufacturer and shipper of smartphones in the world, Samsung is also a leading global name in the semiconductor manufacturing business segment and its manufactured chips are exported to companies like Apple for5 usage in its iPhones and iPads.
On the overall, a total of 180 trillion won ($161 billion) would be invested by Samsung over the nest three year., said the conglomerate and the breakup of the expenditure includes capital expenditures as well as research and development expenditure for its semiconductor business and for its displays businesses. While not providing much more detail about the investments, Samsung announced that South Korea would be the place where a large part of the investments – about 130 trillion won of the total — would be made, the company said.
Over the next 3 years, these investments would create the potential for about 40000 new jobs throughout its global centers, Samsung also said.
The company announced its lowest quarterly growth rate in profits for the second quarter of the current fiscal in over a year because of a slowdown in the international market for smartphones. However, the company also reported that its chip business had performed well during the same period.
Samsung Electronics shares were marginally down in afternoon trade against a flat Kospi index.

Christopher J. Mitchell

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