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Machine Learning

Samsung invests heavily in innovative technologies

Samsung launches a major offensive: Over the next three years, the South Korean company seeks to invest just under 140 billion euros in artificial intelligence (AI), 5G, components for autonomous vehicles, and biopharmaceuticals.

19 Aug. 2018
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Samsung invests heavily in innovative technologies (Photo: Samsung)

The electronics corporation’s plans include increasing the number of AI researchers to 1,000 and “invest[ing] aggressively” with the goal of becoming a global player for 5G chipsets and related equipment. It also intends to utilize its position as a leader in semiconductors, telecommunications, and display technologies to become prominent in the market for electronics components for autonomous cars. The majority of the investments will be made in South Korea, with the intention of revitalizing the local job market. Samsung expects to create up to 700,000 new jobs, both within the company itself and through associated businesses. The most jobs will be created in the fields of chips and displays.

The mega-investment is yet another piece of evidence pointing to the automotive-sector development that management consultants Horváth & Partners have previously described: “Competitors from outside the industry are entering the market and threatening to take over customer interfaces.” This would lead to a shifting balance of power. Legacy providers will need to readjust to the new competition – perhaps by initiating new cooperative projects.

Samsung cannot afford to tread water either. As heise.de reports , in the fourth quarter of 2017, smartphone sales declined for the first time ever. This has set off alarm bells for the company, which leads the market in terms of sales figures, that this market is gradually nearing its saturation point.