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Samsung Will Invest $206 Bln Through 2023 Aimed At Growth After Pandemic Ends


08/24/2021


Samsung Will Invest $206 Bln Through 2023 Aimed At Growth After Pandemic Ends
South Korea’s tech conglomerate Samsung Group plans to expand its business presence in biopharmaceuticals, artificial intelligence, semiconductors and robotics after the end of the Covid-19 pandemic and has earmarked an investment of 240 trillion won ($206 billion) for this purpose over a period of the next three years, Samsung Electronics Co Ltd said.
 
The investment that would be carried out till 2023 will be instrumental for South Korea's biggest conglomerate to further strengthen its position and global standing in key industries such as chip-making while also enabling the group to look out for growth opportunities in new segments such as robotics and next-generation telecommunications, Samsung Electronics which is amongst the most profitable units of the conglomerate, said on Tuesday.
 
The aim of the group is to seal its leadership position in the technology sector through investments and through mergers and acquisitions, said the largest memory chip maker in the world, Samsung Electronics.
 
The company however did not offer any breakdown of the investment figures.
 
The company also did not clarify whether the announced investment over the next three years includes its already reported investment of $17 billion for the development of a new semiconductor chip making facility in the United States. 
 
This latest announced investment plan of the company is 30 per cent larger than the previous three year investment plan that was announced by it in 2018. The group has also decided to increase investments so that it is able to retain technological leadership, particularly during "emergency situations" at home and abroad.
 
"The chip industry is the safety plate of the Korean economy... Our aggressive investment is a survival strategy in a sense that once we lose our competitiveness, it is almost impossible to make a comeback," Samsung Electronics said in a statement.
 
Rivals of the company in the semiconductor chip making industry segment such as Taiwan Semiconductor Manufacturing Co Ltd and Intel Corp have also announced large investments in the sector for expansion even while there is a global chip shortage along with an intensified completion among the companies to develop and build more advanced chips.
 
With 59 affiliate companies, the total assets of the Samsung Group have been valued at about 457 trillion won, according to South Korea's Fair Trade Commission.
 
This latest investment plan announced by the conglomerate comes just about a week after the Samsung Group leader Jay Y. Lee was released from jail on parole while serving a jail sentence on bribery and embezzlement charges.
 
(Source:www.economictimes.com) 


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