South Korea's Samsung will invest 25 trillion Won ($22.3 billion) in technologies including artificial intelligence (AI) and 5G as it tries to fend off the challenge from global rivals and address investor concern about its long-term prospects.
It will also develop a range of system-on-chips for autonomous driving based on its semiconductor, telecoms and display technologies products, as well as build new chipsets to support AI, 5G and data centres.
With 130 trillion won of the combined 180 trillion won meant to be invested at home, Samsung said around 700,000 jobs will be created overall here following its move.
Samsung Electronics plans to spend a whopping $22 billion over the next three years on artificial intelligence, auto components and other future businesses as the company maps out its strategy under the restored leadership of Vice Chairman Lee Jae-yong after he was freed from prison. AI seems to be the main concern. With its investment in AI, it will increase its own capability, increasing the number of researchers to 1,000 across its global AI Centers.
Samsung Electronics is now the world's largest smartphone-maker but also boasts a very strong semiconductor business that supplies chips to the companies such as Apple. It will continue to invest heavily in the businesses, including developing and manufacturing biosimilars to combat chronic and difficult-to-cure diseases, the company said.
Samsung has been one of the most profitable tech companies on the planet in recent years.
"Samsung has seen strong growth from both its contract manufacturing and biosimilar businesses".
The announcement sent shares in contract drugmaker Samsung BioLogics (207940.KS) up 7 percent.
Samsung Electronics shares were marginally down in afternoon trade against a flat Kospi index.
The investment plan comes after South Korea's finance minister met Samsung heir Jay Y.Lee on Monday and called for help in job creation.
South Korean voters tired of scandals and critical of big businesses like Samsung elected President Moon to replace Park after she was ousted.