Samsung to plug $160bn into new technology in major growth push

Samsung to invest $22 billion into new growth areas like A.I. and 5G

Samsung to invest $22 billion into new growth areas like A.I. and 5G

To expand its AI capability, Samsung will be increasing the number of researchers to 1,000 across its global AI centers in the U.K., Canada, Russia, U.S. and South Korea.

The South Korean giant has unveiled a three-year, 180 trillion won ($161bn) investment plan in a wide range of areas as it looks to bounce back from recent financial disappointment.

Of the total, KRW 130 trillion (around Rs. 7.97 lakh crores) will be spent in South Korea, and is expected to create 40,000 jobs, or 20,000 more than its previous hiring plans, Samsung said.

Considering Samsung has been cautious about commenting on its reentry into the vehicle business, the report said, creating the new team could hint at a strategic shift at the Korean tech giant. The firm plans to take this action by making investments into businesses, and will look to deplete the fund over the next three years.

Today's update comes after the company reported an operating profit of KRW14.87 trillion ($13.3 billion) for its second quarter, down 5% sequentially but up 6% year-on-year.

Taliban launches brazen attack on strategic Afghan city of Ghazni
Defense ministry spokesman Mohammad Radmanish said the army helped the police and the city was under control of government forces. After a day of intense fighting, Afghan commandos and United States air strikes drove the group to the outskirts of the city.

No company in South Korea can match Samsung's scale in investment or job creation. In 2010, under the leadership of Lee's father, Lee Kun-hee, who was then in charge of the group, Samsung had said it would spend 23 trillion won over the following 10 years on future businesses.

But the expansion drive has since stalled after the political scandal that led to Lee's conviction and a shake up of top management.

Total sales for April-June fell 4.1 per cent year-on-year to 58.48 trillion won, with revenues for the company's mobile division plunging 22 per cent in the same period.

Samsung will moreover forge ties with the Ministry of SMEs and Startups to raise 110 billion won over the next five years to help 2,500 companies adopt smart-factory solutions in their production lines.

The announcement sent shares in contract drugmaker Samsung BioLogics (207940.KS) up 7 percent. The trainees will be able to share the company's vast technology know-how.

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