Samsung to spend $A30 billion on AI

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

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.

Industry watchers said the company's latest investment plan is set to focus on building Samsung's capabilities in the chip segment, as global rivals, especially those from China, have been trying to catch up.

The new strategy will entail an overhaul of Samsung's internal venture incubation program, said the company.

Samsung said in a statement that it will invest 25 trillion won (22 billion US dollars) in promising business areas of artificial intelligence (AI), 5G, automotive electronics components and biopharmaceuticals over the next three years.

The remaining monies will go towards investment in display manufacturing facilities as well as fostering external start-up projects, creating up to 40,000 jobs in South Korea.

In flagging specific areas of investment, the plan is the first of its kind for the conglomerate and suggests more emphasis than usual on expanding into new segments as its core semiconductor and smartphone businesses show signs of weakness. He is appealing the conviction. "It will continue to invest heavily in the businesses, including developing and manufacturing biosimilars", the statement said.

Samsung's announcement came a month after President Moon Jae-in met the company's de facto head Lee Jae-yong in India. Mr Lee, who has led Samsung since his father fell ill in 2014, denies wrongdoing and has appealed the ruling.

The company then said it plans to cope with the rising demand due to computers and smartphones, and will expand investment in the local production line as the need for chips will soar down the road as progress is made in AI, 5G, data centers and automotive technologies.

The announcement sent shares in Samsung's contract drugmaker Biologics and in its IT affiliate SDS up five per cent. Samsung Electronics' share price closed this morning flat.

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