South Korea's Samsung Group has announced its investment plans for the next three years. As the company has hit a wall in the market for its smartphones, it's focusing on areas more likely to create future growth.
South Korea's Samsung Group said Wednesday it would invest $22 billion (€18.9 billion) over the next three years in cutting-edge technology including artificial intelligence, self-driving cars and biopharmaceuticals as it searches for ways to drive future growth.
The conglomerate has faced a string of setbacks in recent years, including a fall in smartphone sales and a corruption scandal that saw its vice chairman, Lee Jae-yong, jailed last year.
The planned investments will be primarily led by Samsung Electronics, the biggest maker of memory chips.
"Samsung expects innovations powered by AI technology will drive the industry's transformation, while the next-generation 5G telecommunications technology will create new opportunities in autonomous driving, the internet of things and robotics," the company said in a statement.
Focus on domestic investment
Officials added that more than 70 percent of the funds would be spent in South Korea where the company would expand manufacturing hubs in an effort to increase production of semiconductors and display screens as well as dominate new markets by developing technology to power self-driving cars.
Samsung said it expected to add 40,000 new jobs over the next three years.
The company's second-quarter profit dipped slightly year on year. Total sales for the April-June period dropped 4.1 percent, with revenues for the company's mobile division plunging 22 percent in the same period.
hg/tr (AFP, Reuters)