Samsung’s gigantic investment plans include 5G / 6G

Samsung has decided that now is the time to invest massively – very heavily – to ensure its role as the global tech superpower, announcing its intention to spend 240 trillion Korean won ($ 205 billion) over the years. next three years in a wide range of sectors, notably telecoms and in particular 5G / 6G, so that it can “drive post-Covid industrial restructuring”.

Much of the investment, 75% in fact, will be concentrated in South Korea, where it aims to create tens of thousands of jobs, especially for young people, and to meet the needs of small and medium-sized businesses.

In terms of focus areas, strengthening its R&D capabilities in AI, robotics, supercomputers, displays, devices and communication networks will be key to Samsung’s future, he said. he noted in this ad.

And much of its product development will focus on chips, of which (as most companies now know) there is a severe shortage currently.

“As the 4th Industrial Revolution accelerates due to network technological innovation such as AI and 5G / 6G, semiconductors are emerging as a core industry that influences the competitiveness of all industries, including including the automobile beyond computing, and the competition for hegemony between countries over semiconductors is increasingly fierce,” noted Samsung, which plans to consolidate its dominance in memory chips and to become the world leader in system semiconductors, where it plans to expand its focus from mobile chips to AI and data center products.

Samsung notes in its announcement plans in the United States (new foundry service from Intel, investment from TSMC) and in Europe, which wants to produce 20% of the world’s semiconductors by 2030, to increase the production of chips and China’s growing efforts to become a more powerful semiconductor factory.

The company also referred to international trade tensions and the ‘reorganization of the global value chain’, as well as the growing importance of the biopharmaceutical sector in a world with an increasingly aging population, as key drivers of its investment strategy.

And the plan involves inorganic as well as organic growth. “Samsung plans to ensure its leadership in strategic business by increasing its investments, and plans to strengthen its technological and commercial leadership through bold mergers and acquisitions,” he noted.

While this is likely only a small portion of overall investment plans (Samsung has yet to identify specific financial allocations), it’s clear the company is stepping up its infrastructure ambitions. international telecommunications, building on the 5G business it won from operators such as Verizon. (This of course complements its leadership position in the smartphone industry, even though it is under pressure from Xiaomi).

Now, it plans to “focus on building software capabilities for the advancement and intelligence of communication networks,” and plans to expand its systems development beyond the virtualized and open radio access network and core platforms in other areas of communication equipment and “next generation network operating solutions.” “

And key to its efforts is a plan to become a leader in 6G, having already opened its booth last year with a white paper and 6G activities in its Advanced Communications Research Center: this plan also has the support from the South Korean government, which does not want to cede the perception of 6G leadership to China (or anyone for that matter).

The inclusion of 5G and 6G in its short-term investment ramps confirms that Samsung takes global opportunities in communications networks seriously: it helps ensure that the results of its 5G efforts come to fruition as Huawei is moving away as a global player and as the industry evolves further. towards a new era of more computing and cloud-centric network infrastructure that opens the door for seasoned tech players with large pockets to challenge Ericsson, Nokia and Cisco.

If any of its “bold mergers and acquisitions” are in the telecommunications sector, the industry could experience accelerated tectonic change. OLTNEWS