|Samsung Electronics is planning to spend $22B on auto components and artificial intelligence / Photo by 123rf.com|
South Korean multinational company Samsung Electronics is planning to spend $22 billion for the next three years on auto components, AI, and other future businesses as they are mapping their strategy under Vice Chairman Lee Jae-yong’s leadership.
In a report published by the Washington Post, Samsung will spend the sum, which amounts to 25 trillion won, to employ artificial intelligence researchers. The South Korean company said that the move will help the company to be a global player in 5G. Also, the AI researchers will help them deepen their involvement in electronic components which the company will use in future automobiles.
The other funding will go to the biopharmaceutical business of Samsung as they have been beefing up their drug-making operations to counter the decline in their electronic businesses.
Aside from their latest plan of spending on research and development, the company will also create 20,000 more jobs in the next three years, not including the previously announced 20,000 new jobs.
The announcement made by Samsung Electronics highlights the country’s decade-old reliance on big business for investments and jobs. Moreover, this dependence is unlikely to end soon since South Korea lacks a strong pool of medium and small-sized companies located in Germany or Japan, continued WSJ.
Samsung scion Lee kept a low profile after he was released from prison in February. The South Korean court previously convicted him for bribery. Recently, though, he has been emerging in his public role, such as meeting country’s President Moon Jae-in in India. It was also there that Samsung announced their plan of expanding their smartphone production.