South Korean tech giant Samsung has announced that it will raise the value of its spending to support businesses ranging from chips to pharmaceuticals over the next five years.
According to Forbes, the Samsung Group will raise the value of its investment by more than 30% to 450 trillion won (about 360 billion dollars) until 2026.
The group, whose units such as Samsung Electronics and pharmaceutical company Samsung Biologics dominate the Korean economy, pledged in a statement to create 80,000 jobs by 2026, mostly in semiconductors and biopharmaceuticals, according to Bloomberg.
These investments are expected to help drive long-term growth in strategic areas such as the chip business, and Samsung has pledged aggressive investments in biopharmaceuticals, bringing its success to the same level as its chip business.
Samsung, the world’s largest memory chip maker, did not give a detailed report on how the numbers would be distributed, but it did say 80% of the investment will be made in South Korea and that Tuesday’s announcement included a pledge to invest 240 trillion won ($19 billion) announced in August. August 2021.
Samsung did not list electric car batteries as a driver of future growth in the ad.
The importance of Samsung in South Korea
Run by the scion of one of Korea’s oldest and richest families, Samsung is a major company outlining investment plans as the country’s new president takes office. President Yoon Seok Yeol, who began a five-year term on May 10, has been a staunch supporter of big business, making them a mainstay in his economic growth plans.
The group focuses particular attention on Samsung Electronics, which represents a sprawling multi-billion dollar empire spanning shipbuilding, technology, healthcare and finance.
The world’s largest maker of smartphones, displays, memory chips and consumer devices revealed plans last year to invest $151 billion through 2030 to delve deeper into the advanced chip industry, with much of that earmarked for the semiconductor division, which is rapidly expanding in an effort to compete with other companies. Examples include Intel and Nvidia.
Samsung Electronics
Samsung Electronics manufactures a wide range of consumer and industrial electronic equipment and products such as semiconductors, personal computers, peripherals, monitors, televisions, and household appliances including air conditioners and microwave ovens.
Operating profit reported by Samsung Electronics for the quarter ended March 31 was about $11.1 billion, up 51% year on year, which was the company’s highest profit in the first quarter since 2018, according to Archyde.com.
Samsung Pharmaceuticals
On April 27, Samsung Biologics announced strong financial results for the first quarter of fiscal year 2022, as customer demands for the company’s services continued.
Accordingly, the revenues of the first quarter of this year increased by 96% over the same period of the previous year, due to the expansion in product sales and the increase in exchange rates.
Operating profit for the first quarter of this year was KRW 176.4 billion ($14 million), up 137 percent from the same period a year earlier due to steady growth in sales and an increase in the plant’s operating rate.