Samsung Electronics said Monday it will more than triple investment in capital spending and research and development this year to a record 26 trillion won ($22.7 billion), betting on future growth despite questions about the global economic outlook.
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Samsung said the investment in new production facilities means it expects to hire 10,000 new workers this year.
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The world’s biggest manufacturer of memory chips and flat screen TVs will spend about 18 trillion won on facilities — 11 trillion won for semiconductor manufacturing and 5 trillion won to increase production capacity for liquid crystal display panels. It will also spend 8 trillion won for RD, it said in a release.
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The total dwarfs the approximately 8 trillion won the company spent last year, according to a figure provided by Samsung spokeswoman Lee Soo-jeong.
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Although the global economic environment and business conditions remain changeable and uncertain, if we invest aggressively in expanding facilities and in hiring then these circumstances also present Samsung an opportunity for future growth and to stimulate the economy, Chairman Lee Kun-hee said in the release.
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Lee spoke at a groundbreaking ceremony attended by about 500 Samsung executives for a new memory chip plant in the city of Hwaseong, just south of Seoul.
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Monday’s announcement came after the broader Samsung Group conglomerate said last week said plans to invest 23.3 trillion won over the next decade in technologies including solar cells and medical devices in a bid to boost sales and expand its work force.
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Samsung Group, which consists of dozens of companies in areas including electronics, shipbuilding, finance and fashion, said the money would be spent in five areas: solar cells, rechargeable cells for hybrid electric vehicles, LED, or light emitting diode, technologies, biopharmaceuticals and medical devices.
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Moody’s Investors Service hailed last week’s announcement as showing the kind of vision needed to support growth.
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The strategic…