Samsung will invest $22 billion in AI, 5G, chips, displays, and more

Samsung will put more than $22 billion toward tech like AI and 5G.                  Jung Yeon-je  AFP  Getty Images

Samsung will put more than $22 billion toward tech like AI and 5G. Jung Yeon-je AFP Getty Images

Overall, Samsung plans to invest a total of KRW 180 trillion over the next three years, including the spending on future growth businesses.

As for the bio business, Samsung claimed that it wishes to foster the segment to become another major pillar of its portfolio like semiconductors.

The company said it "expects innovations powered by AI technology will drive the industry's transformation, while the next-generation 5G telecommunications technology will create new opportunities in autonomous driving, the Internet of Things (IoT) and robotics".

The Korean giant is the world's leading manufacturer of smartphones and memory chips but slowing demand in more developed markets has seen it seek other sources of growth.

Samsung also said Wednesday that it plans to create 20,000 more jobs over the next three years, on top of a previously announced 20,000 new jobs.

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Along with the direct employment of Samsung, its investment in South Korea was forecast to help induce around 700,000 jobs in related industries and businesses, the statement noted.

Samsung added that 4 trillion won will be spent on seeking shared growth with subcontractors. The numbers being proposed are much higher than the 25,000 the company hired in the recent three years.

The company said it expected to add 40,000 new jobs over the next three years, in news that will likely bring relief to South Korea's government which is now struggling with high youth unemployment.

Samsung's announcement came a month after President Moon Jae-in met the company's de facto head Lee Jae-yong in India. A total amount of 110 billion won will be raised for the program, with Samsung accounting for 60 billion won.

The announcement sent shares in contract drugmaker Samsung BioLogics up more than 5 percent. Samsung will also increase the scale of its Smart Factory program, which provides automation assistance for small and medium enterprises' manufacturing facilities. The trainees will be able to share the company's vast technology know-how. The students will be provided with subsidies as well.

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