Samsung Electronics unveiled a blockbuster investment plan 10 days after Lee Jae-yong, the head of Samsung Electronics'(Samsung Electronics), was released on parole. Samsung Electronics said on Tuesday that it would invest 240 trillion won ($205.64 billion) over the next three years to expand its influence in areas such as biopharmaceuticals, artificial intelligence, semiconductors, telecommunications and robotics.
The South Korean technology giant hopes to use the investment to consolidate its leading position in chips while seeking more growth opportunities in new areas such as next-generation telecoms and robotics.
The 240 trillion won investment will directly create 40, 000 jobs, of which 180 trillion won will be used in South Korea.
It is worth noting that Samsung Electronics's new three-year investment plan is much higher than the previous three years. From 2018 to 2020, the company invested about 180 trillion won in capital expenditure and research and development.
Samsung Electronics said the increased investment was aimed at making the company a leader in strategic industries and preparing for "major changes in industry, international order and social structure that may occur after the novel coronavirus epidemic".
Samsung Electronics shares closed up 3.1% on Tuesday on the news.
There is a fierce battle in the semiconductor industry.
In the semiconductor sector, Samsung Electronics said it would invest in advanced processes to maintain its leading position in memory chips and become a leader in logic chips. Considering the current global environment, the semiconductor industry needs "active investment".
At present, the global semiconductor industry is full of competition: the United States plans to spend more than $50 billion to develop the chip industry, and the European Union aims to reach 20% of the global chip market by 2030. China plans to increase its R & D budget for advanced technologies, including semiconductors, by more than 7 per cent a year by 2035.
Samsung Electronics said that semiconductors are the "safety net" of South Korea's economy, accounting for 19.3% of South Korea's exports in 2020, and active investment is South Korea's "survival strategy."
The company pointed out that the epidemic has restructured the global chip supply chain, especially Intel (Intel) and TSMC (TSMC) have increased spending on contract manufacturing.
Samsung did not provide any details about its $17 billion investment in a chip plant in the United States. The company is considering building a chip foundry in Williamson County, which will create 1800 new jobs, according to a document submitted to Texas officials.
