AFP, posted on Tuesday, May 24, 2022 at 12:30 pm.
With a $356 billion investment plan over the next five years announced on Tuesday, the Samsung Group aims to become a leader in a wide range of sectors, from semiconductors to life sciences.
This amount echoes and reinforces the $205 billion plan announced last summer. This also represents an increase of more than a third over the previous five years’ investment.
The South Korean tech giant is projecting to create 80,000 jobs by 2026, “mostly in core businesses including semiconductors and biopharmaceuticals,” Samsung said in a statement.
Samsung Group is the largest conglomerate in South Korea and its total revenue is equivalent to one-fifth of the national gross domestic product.
Through its flagship subsidiary Samsung Electronics, it is already the world’s largest smartphone maker.
The investment plan will provide “long-term growth in strategic sectors and help strengthen the global core technology industrial ecosystem,” Samsung said.
The group also assured that the investment will enable the “development of mass production of chips based on the 3nm process,” the latest technology to further reduce the size of semiconductors and increase their power.
Major investments will also be made in subsidiaries Samsung Biologics and Samsung Bioepis in this area.
– Biden’s visit –
About 360 trillion won from the 450 trillion won five-year plan will be invested in South Korea.
The announcement came just days after US President Joe Biden visited Samsung Electronics’ massive semiconductor plant in Pyeongtaek on his first tour of Asia.
The head of state highlighted the role of the South Korean company in ensuring the security of global microchip supply chains.
South Korea and the United States must work to “keep our supply chains resilient, reliable and secure,” Biden said, calling the semiconductors produced there a “wonder of the world,” “innovation” and critical to the global economy.
Biden was accompanied on the assembly line by the new president of South Korea, Yun Seok-yeol, and Lee Jae-young, the company’s vice president and the de facto leader of the Samsung conglomerate. The latter introduced his distinguished guests to the public in what was his most important public performance since his parole in August.
Mr. Lee has served half of a two and a half year prison sentence for bribery, embezzlement and other offenses in connection with a corruption scandal that ousted former South Korean President Park Geun-hye.
Samsung employs about 20,000 people in the United States and is building a plant in Texas, which is scheduled to open in 2024. This is an investment of $17 billion.
A major investment plan is announced two weeks after Mr. Yun’s inauguration as president of the country, a big supporter of family conglomerates called chaebols.
“This is a classic way for Korean companies to call on a new president,” Park Ju-gun, director of the Seoul-based Leaders Index research institute, told Bloomberg News, referring to an announcement from Samsung.
“Investors should check whether the promised amount of investment is actually fulfilled or not.”