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

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

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

"Today's announcement follows many months of deliberations and review by the management and board of directors of different Samsung companies that will make the investments, including Samsung Electronics", said the company.

Samsung said it will spend the sum, amounting to 25 trillion won, on increasing the number of artificial intelligence researchers to 1,000 at its artificial intelligence centers around the world, ensuring it will be a global player in next-generation telecoms technology called 5G and on deepening its involvement in electronic components for future cars. "It will continue to invest heavily in the businesses, including developing and manufacturing biosimilars", it said in a statement. Of the total, 130 trillion won ($116 billion) will be spent in Korea to create 40,000 jobs, twice as much as initially planned.

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

In the field of AI, which is becoming a priority for almost every technology company on the planet, Samsung said its aim was to increase its number of AI researchers to about 1,000 globally. A new KRW110 billion ($98.2 million) fund, to be set up with the South Korea government, will provide funding for as many as 2,500 small and midsized enterprises for the next five years.

The group especially pinned high hopes on its bio business, including biosimilar development and contract manufacturing, with aims to nurture the "next semiconductor" business as its key growth engine. That news sent shares in contract drugmaker Samsung BioLogics up some 5%.

Lee was freed after almost a year in jail.

Investors greeted Wednesday's news with cautious optimism, with Samsung Electronics' shares rising 0.21 per cent to close at 46,800 won. The figure translates into around 43 trillion won annually, which is similar to Samsung's record high facility investment of 43.4 trillion won made previous year.

The investment is also part of a bigger 180 trillion won three-year plan to create jobs and secure fresh revenue streams, providing the first hint of direction for Samsung since group heir Jay Y. Lee was released from jail in February on a suspended sentence following a conviction for bribery.

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