Samsung to invest billions in artificial intelligence and 5G

Through such investments, Samsung plans to foster AI, 5G, biotechnology and electronic components as key future growth engines.

Its de facto leader Lee Jae-yong was convicted of corruption past year, but released from prison in February.

Samsung said it wanted to build "an innovation ecosystem" for the coming years.

Samsung will boost its investment into tech businesses by $160bn (£123.6bn) over the next three years, in an effort to prop up South Korea's place in industry while advancing its profit. "Considering the research lab is increasingly focusing more on mass-market technologies recently, Samsung seems to be speeding up the development of autonomous cars based on its artificial intelligence technology". "But Samsung can be more active in M&As to do better at AI or 5G, when Lee is fully back to his business", Greg Roh, an analyst at Hyundai Motor Securities, said.

It said the group plans to significantly expand artificial intelligence (AI) research capability, increasing the number of advanced AI researchers to 1,000 across its global AI centers, and heavily invest in biopharmaceuticals.

Samsung Group, South Korea's biggest family-controlled conglomerate, said Wednesday that it will invest 180 trillion won (about 160 billion USA dollars) and hire 40,000 more employees for the next three years. This will include capital expenditure and R&D costs for semiconductors and display businesses.

The investment plan comes after South Korea's finance minister met Samsung heir Jay Y.Lee on Monday and called for help in job creation.

The announcement follows many months of deliberations and review by the management and board of directors of different Samsung companies that will make the investments.

The announcement has had little impact on Samsung's share price but should be welcomed by investors anxious about the lack of strategic direction since the conviction of group heir Jay Lee on bribery charges previous year.