Samsung investing $29 billion CAD in AI, 5G and automotive

The investment is expected to create 40,000 new jobs over the next three years

Samsung logo on wall

Samsung is investing 25 trillion won (roughly $29.15 billion CAD) to expand new growth areas. Specifically, the company is investing in artificial intelligence, 5G technology, electronics for automobiles and biopharmaceuticals.

The move puts some emphasis on moving into new areas as Samsung’s core businesses, semiconductors and smartphones, show signs of weakness.

The investment comes as part of an approximately 180 trillion won (roughly $209.74 billion CAD) investment over the next three years.

This spending is expected to help create jobs and secure fresh revenue streams for the South Korean electronics giant.

Samsung will spend the majority of the investment in South Korea, which it says should create about 40,000 jobs. Additionally, Samsung expects the Korean investment will induce 700,000 jobs in related industries.

The investment plan marks a six percent increase in spending over the past three years, according to Reuters.

Samsung hopes to significantly expand its AI research capability, by increasing its number of AI researchers to 1,000 globally.

Additionally, the company is expanding its venture incubation program C-Lab. The program helps innovators develop projects before spinning them out into their own companies.

The announcement comes before the company’s August 9th, 2018 Unpacked event. Samsung is expected to use the event to announce its upcoming Galaxy Note 9 device.

However, if the S9 and S9+ are any indication, the Note 9 may not sell as well as expected.

Source: Samsung Via: Reuters