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Samsung commits USD356B in investments with 80,000 new jobs

SEOUL (AFP) – Samsung Group yesterday unveiled a massive KRW450 trillion (USD356 billion) investment blueprint for the next five years aimed at making it a frontrunner in a wide range of sectors from semiconductors to biologics.

The new figure is an increase of more than a third over its investments spent over the past five years. The tech giant is South Korea’s largest conglomerate and its overall turnover is equivalent to a fifth of the national gross domestic product.

Samsung Electronics, its flagship subsidiary, is the world’s biggest smartphone maker.

The investment plan would bring “long-term growth in strategic businesses and help strengthen the global industrial ecosystem of crucial technology”, Samsung said in a statement. The 80,000 new jobs would be created “primarily in core businesses including semiconductors and biopharmaceuticals” through 2026.

It also noted the investment would “bring forward the mass production of chips based on the 3-nanometer process,” the latest technology to further shrink down the size of semiconductors and boost computing power. It will also invest heavily in biopharmaceuticals with its affiliates Samsung Biologics and Samsung Bioepis in the field.

The Samsung flag and South Korean national flag are seen outside the company’s Seocho building in Seoul. PHOTO: AFP

The new plan represents a 36 per cent increase in investment over its total investments over the past five years. Of the KRW450 trillion Samsung plans to spend over the next five years, it will commit KRW360 trillion to South Korea.

The announcement comes after United States (US) President Joe Biden toured Samsung Electronics’ massive Pyeongtaek semiconductor factory last Friday, underscoring the South Korean giant’s role in securing global supply chains of microchips, on his first Asia trip as US leader.

South Korea and the US need to work to “keep our supply chains resilient, reliable and secure,” Biden said, calling semiconductors manufactured there as “a wonder of innovation” and crucial to the global economy.

The firm’s Vice-Chairman and the de facto leader of the wider Samsung conglomerate Lee Jae-yong, escorted Biden and newly-sworn in South Korean President Yoon Suk-yeol inside the assembly line, and introduced the two to an audience in English in his highest-profile public appearance since his release on parole in August.