Samsung Group will invest KRW 450 trillion (about Rs 27,60,920 crore) over the next five years to accelerate the growth of semiconductors, biopharmaceuticals and other next-generation technologies, Samsung Electronics said.
The major South Korean conglomerate said on Tuesday that investments through 2026 should help Samsung drive long-term growth in strategic areas such as the chip sector, while promising aggressive investments in the biopharmaceutical sector to make it as successful as its chip business.
Samsung Electronics, the world’s largest memory chipmaker, did not provide a breakdown of the numbers, though it added that 80% of investment will be in South Korea and Tuesday’s announcement includes 240 trillion. of KRW (about Rs. 14,72,610 crore) investment promise made in August 2021.
Samsung did not include electric vehicle batteries as a driver of future growth in the announcement.
Samsung SDI, the group’s battery unit, and Stellantis, Chrysler’s parent company, are expected to announce their new battery plant in the US state of Indiana on Tuesday.
Securing domestic chip and bio supply chains will be of strategic importance and will be important to South Korea’s economic security, Samsung said in the announcement.
The investment of KRW 450 trillion (about Rs 27.60,920 crore), which is expected to create 1.07 million jobs, is more than 30% higher than the KRW 330 trillion (about Rs 20,25,110 crore) invested by Samsung over the five years to 2021.
Recently, the South Korean tech giant posted a 58.57% increase in its first-quarter net profit, largely on the back of steady demand for memory chips and buoyant smartphone sales. The world’s largest memory chipmaker is the flagship subsidiary of giant Samsung Group, by far the largest of the family-controlled empires known as the chaebols that dominate business in South Korea, Asia’s fourth-largest economy .
The conglomerate is crucial to the economic health of the South – its aggregate revenue is equivalent to one-fifth of the national gross domestic product.
The company said net profit for the January to March period was KRW 11.32 trillion (about Rs 68,155 crore), up 58.57% from the same period a year earlier. .
© Thomson Reuters 2022