Samsung is betting big on artificial intelligence and 5G technologies to drive future growth (among a few other technology segments). Exactly how big are we walking? Well, the South Korean electronic giant announced plans to invest 25 trillion South Korean won (around $22.3 billion in US currency) over the next three years in AI, 5G, automotive component, and biopharmaceutical technologies.
The company said it "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."
As it pertains to AI, Samsung is looking to significantly expand its research efforts. Part of that entails hiring more advanced AI researchers—Samsung wants to have 1,000 of them spread across its global AI centers. It's a smart play, considering how AI is being injected into all kinds of categories, everything from smartphones and IoT devices, to healthcare and scientific research.
Samsung is also looking to be a front runner in the 5G race. The company said it will "invest aggressively" towards its goal of being a global player in advanced markets for 5G chipsets and related devices and equipment. 5G is the next frontier in wireless communication, and while widespread deployment is still years away, the groundwork is already being laid.
The massive investment in AI and 5G is just the tip of the iceberg. Overall, Samsung plans to spend 180 trillion KRW (~$160.8 billion) in the next three years on various technologies. Samsung has its tentacles in several different market segments, which has allowed it to weather dips in demand in certain categories, like smartphones.
"Samsung aims to lead efforts to foster a vibrant ecosystem for innovations and growth, leveraging its technology and decades of experiences in creating successful businesses," the company said.