Samsung to Pump $22.3B Into AI, 5G, New Tech

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Samsung to Pump $22.3B Into AI, 5G, New Tech

Samsung Electronics, the world's top maker of memory chips and smartphones and the group's flagship company, did not provide a breakdown of the figures but said it will provide most of the investment.

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

Samsung said it will spend the sum, amounting to 25 trillion won, on hiring artificial intelligence researchers, ensuring it will be a global player in next generation telecoms technology called 5G and deepening its involvement in electronic components for future cars.

The firm plans to take this action by making investments into businesses, and will look to deplete the fund over the next three years.

"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.

The electronics company, which is also to explore biopharmaceuticals as part of its new plans, said it would double the number of employees it planned to hire over the next few years to 40,000.

Lee was released from jail earlier in 2018 after a year in detention on bribery charges, lifting hopes among some investors that Samsung will hike investments and create jobs.

The 130 trillion won investment in the nation is expected to have an effect of creating 700-thousand jobs.

Samsung has been one of the most profitable tech companies on the planet in recent years.

Areas that will be targeted for investment include the company's manufacturing hubs, as well as existing memory and display businesses. The most notable appearance was in India, where Lee met with President Moon Jae-in and Samsung announced plans to expand its smartphone production there. This will lead to the creation of an additional 15,000 jobs, Samsung said.

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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