Samsung to put USD 22 billion in artificial intelligence, autos

Doris Richards
August 10, 2018

Nearly three quarters of the investment will be made directly into South Korean businesses, and will create an estimated 40,000 jobs in the country.

"Considering the research lab is increasingly focusing more on mass-market technologies recently, Samsung seems to be speeding up the development of autonomous cars based on its artificial intelligence technology". Still, the company said its chip business continued to do well.

A new set of initiatives will see Samsung become a leading force in building and energising the ecosystem of innovative businesses for the digital economy, opening up a venture incubation programme to both external and internal start-up projects.

Lee kept a low profile after his release in February but has been emerging in his public role in recent weeks.

Samsung will put more than $22 billion toward tech like AI and 5G. Most of that investment - about 130 trillion won of the total - will be spent in South Korea, the company said without giving further breakdowns. The rest will likely be distributed to China, Vietnam and other production lines overseas.

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

"The latest investment reflects the company's belief that it may fall behind the competition if it takes its current position as a global leader for granted and is lax is making investments now", an official from Samsung said.

"The total investment size is not surprising". In 2010, under the leadership of Lee's father, Lee Kun-hee, who was then in charge of the group, Samsung had said it would spend 23 trillion won over the following 10 years on future businesses.

The government under South Korean President Moon Jae-in placed its top priority on job creation, especially among youths, unveiling supplementary budget to create decent jobs. But its profits have suffered from disappointing sales and slowing demand for some memory chips.

When Lee met Finance Minister Kim Dong-yeon earlier this week, the vice chairman said Samsung will focus on developing competitive technologies to make contributions to society.

Other reports by Iphone Fresh

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