Published: Sat, August 11, 2018
Electronics | By Shannon Stone

Samsung to invest 160 bln Dollars, hire 40,000 for next 3 years

Samsung to invest 160 bln Dollars, hire 40,000 for next 3 years

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 the funds for most of the investment.

Through such investments, Samsung plans to foster AI, 5G, biotechnology and electronic components as key future growth engines. Youth unemployment rates are at historic highs and exports, apart from the booming memory chip sector, have been slow to recover.

Including the latest plan, spending by Samsung Electronics and its affiliates on research and development and capital expenditures over the next three years will amount to 180 trillion won ($161 billion), Samsung said.

The company said a substantial slice of the overall investment pie will be earmarked for South Korea itself, and that overall the investment will create some 40,000 new jobs.

Samsung will also expand investments in manufacturing hubs, seeking to increase production of semiconductors and display screens as well as dominate new markets by developing technology to power self-driving cars.

The new strategy will entail an overhaul of Samsung's internal venture incubation program, said the company. Its de facto leader Lee Jae-yong was convicted of corruption past year, but released from prison in February.

He has since been released after some of his convictions were quashed on appeal, and is now awaiting a Supreme Court decision.

Samsung's announcement came a month after President Moon Jae-in met the company's de facto head Lee Jae-yong in India.

"Kim's visit to Samsung. showed the momentum for chaebol reform has been all but lost", he said. Samsung plans to allocate 25 trillion won in such fields.

On the education front, the company is setting up a number of software education centers in South Korea, offering training and "employment consulting" to about 10,000 students and job candidates.

Samsung Electronics shares were marginally down in afternoon trade against a flat Kospi index.

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