Exactly how big are we walking?
South Korea's Samsung will invest 25 trillion Won ($22.3 billion) in technologies including artificial intelligence (AI) and 5G as it tries to fend off the challenge from worldwide rivals and address investor concern about its long-term prospects.
AI is set for a particularly high investment, with Samsung set to expand the number of researchers in its various research centres across the world to over 1,000. Samsung said KRW130 trillion (€100.13 billion) of this bonanza will be spent in its native Korea. 5G is the next frontier in wireless communication, and while widespread deployment is still years away, the groundwork is already being laid.
Samsung said it plans to directly employ 40,000 employees over the next three years, hovering above the company's average employment of roughly 25,000 over the past three years. Samsung has its tentacles in several different market segments, which has allowed it to weather dips in demand in certain categories, like smartphones.
"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 (IoT) and robotics", the company said in a statement. Those areas are seen as Samsung's new growth engines.
In addition to components for devices, Samsung also sees 5G as a chance to transform its network equipment division into a major player that can compete with Ericsson, Huawei and Nokia. Its de facto leader Lee Jae-yong was convicted of corruption past year, but released from prison in February.
Today's update comes after the company reported an operating profit of KRW14.87 trillion ($13.3 billion) for its second quarter, down 5% sequentially but up 6% year-on-year.
The company has been hit by a series of scandals in recent years.