Samsung plans $22 bln spending on new tech

Exactly how big are we walking?

Samsung Group to invest 25 trillion won ($22 billion) in the next three years in the development of technologies that will contribute to future growth of the company.

Samsung said it will spend the sum to hire AI researchers to be a global player in next generation telecoms technology and to boost its presence in electronics components for future cars. 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 wants to pump more money into the division in order to maintain its dominance in the market. 5G is the next frontier in wireless communication, and while widespread deployment is still years away, the groundwork is already being laid. It reflected Samsung's commitment to support youth employment, Samsung said in a statement.

For biopharmaceuticals, Samsung has seen strong growth from both its contract manufacturing and biosimilar businesses.

Lee has sought to expand Samsung's business into automotive electronics components.

The scion of the founding family, Lee was jailed past year for his part in the graft scandal that brought down former president Park Geun-hye.

The company said the investment made locally will have the effect of creating some 700,000 jobs, especially from the chip and display industries.

Of the total, KRW 130 trillion (around Rs. 7.97 lakh crores) will be spent in South Korea, and is expected to create 40,000 jobs, or 20,000 more than its previous hiring plans, Samsung said.

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. Samsung, hit hard by the financial crisis in the late 1990s, sold off its then five-year-old auto business to France's Renault Group back in 2000.