Tech

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

Samsung will boost its investment into tech businesses by $160bn (£123.6bn) over the next three years, in an effort to prop up South Korea's place in industry while advancing its profit.

Samsung Electronics will primarily fund $22bn of that investment to underpin research into artificial intelligence (AI), 5G connectivity, electronic components for automotives and biopharmaceuticals.

The remaining $138bn will be utilised for investment into semiconductor chip and display manufacturing technology and facilities, in what the group said will foster "high-value, differentiated products amid rising competition in the industry".

The news comes after Samsung Electronics, the group's prized jewel, forecasted its first profit decline in seven quarters last month as a result of a global downturn in demand for smartphones.

Read more: 'Sluggish' smartphone sales drag down Samsung

Almost three quarters of the investment will be made directly into South Korean businesses, and will create an estimated 40,000 jobs in the country. The agreement is also expected to induce a further 700,000 jobs in related industries.

"Samsung has seen strong growth from both its contract manufacturing and biosimilar businesses. It will continue to invest heavily in the businesses, including developing and manufacturing biosimilars," it said in a statement.

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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