Electronics giant Samsung has announced that it will be spending $20 billion in emerging technologies such as biopharmaceuticals, artificial intelligence, electric components for cars, and 5G networks over the next three years. This includes capital expenditures and research and development for its display businesses and mobile technologies.
The investment will also include the hiring of 1,000 artificial intelligence researchers across the United States, Canada, United Kingdom, Russia, and South Korea. And the investments are expected to lead to the hiring of 40,000 new employees as a whole. Aside from direct employment, Samsung’s investment in Korea is expected to induce about 700,000 jobs in related industries.
“Samsung also announced a set of initiatives to become a leading force in building and energizing the ecosystem of innovative businesses for the digital economy,” said the company in a statement. “By drawing on its well-established expertise in technology and start-up investments, Samsung will open up its venture incubation program to both external and internal start-up projects and provide software training.”
And Samsung’s semiconductor division will be a focus as it has been driving a major portion of the company’s revenues over the last few years. Samsung plans to become much more competitive in the DRAM and flash memory business.
“In semiconductors, Samsung will expand investments in manufacturing hubs, including in Pyeongtaek, to maintain global technology leadership and meet significant new demand from applications in AI, 5G, data centers and automotive electronics,” added Samsung. “In addition to investments for memory products, spending will include those for non-memory and new advanced manufacturing equipment.”
In terms of biopharmaceuticals, Samsung is going to invest in drugs for treating “chronic and difficult-to-cure diseases.”
Specifically, Samsung is going to be spending 25 trillion won (over $20 billion) in the next three years as part of a total 180 trillion won (over $160 billion) plan. This announcement comes on the heels of Samsung’s earnings report from last week. That quarter was Samsung’s slowest in more than one year due to “slow” Galaxy S9 sales.