Samsung to invest billions in artificial intelligence and 5G

Isaac Cain
August 10, 2018

Samsung is to invest 25 trillion won (£17 billion) in areas such as Artificial Intelligence (AI), 5G and components for connected cars as it seeks to protect itself against smartphone saturation. Samsung Electronics Vice Chairman Lee Jae-yong has requested that the government ease regulations on the bio segment.

A new set of initiatives will see Samsung become a leading force in building and energising the ecosystem of innovative businesses for the digital economy, opening up a venture incubation programme to both external and internal start-up projects.

Lee was freed after almost a year in jail but former President Park Geun-hye and a close associate remain imprisoned for bribery and other charges. Of that total, 130 trillion won will stay in South Korea, the company said.

Along with the direct employment of Samsung, its investment in South Korea was forecast to help induce around 700,000 jobs in related industries and businesses, the statement noted.

According to figures from IHS Markit, Samsung's shipments fell 10.8 per cent to 70.8 million during the most recent quarter as the Samsung Galaxy S9 failed to fend off competition from the likes of Huawei.

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Chung said reformist President Moon Jae-in's campaign to clip the wings of the country's powerful family-run conglomerates, known as chaebols, appeared to be losing steam in the face of stonewalling business groups which are "wielding prospects for investment as their weapons". This will lead to the creation of an additional 15,000 jobs, Samsung said.

Samsung made the announcement days after its de-facto chief, Lee Jay Y, met with finance minister Kim Dong-yeon, at a chip factory south of Seoul. A total amount of 110 billion won will be raised for the program, with Samsung accounting for 60 billion won.

The announcement sent shares in contract drugmaker Samsung BioLogics up more than 5 percent.

The Samsung institute secured a test-run license of self-driving cars in Korea in May a year ago, the first Korean firm to do so.

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