Samsung Electronics Co., the world’s top smartphone maker, said on Tuesday that it will invest $1.2 billion into the US over the next four years, especially focus on the so-called Internet of Things (IoT) technologies.
IoT is a new technology that would be broad enough in our daily lives, which enables everyday objects such as mobile phones and vehicles to communicate with each other, as a new source of revenue as growth for mainstay products such as smartphones slows. IoT also covering various areas, such as agriculture, manufacturing, healthcare, the home and infrastructure.
Samsung’s investment will be aimed at a variety of internet-of-things applications, including digital health; “smart machines” such as drones, robots and autonomous vehicles; and companies making software to process the massive data produced by these devices, said Young Sohn, Samsung’s president and chief strategy officer.
Samsung is planning to invest half of the $1.2 billion into IoT-related startups, which these startup companies will use Samsung’s technology further, especially in its components business. The other half fundings would be towards internal research and development for the market coming out of its US facilities, which include a massive $14 billion chip fab in Austin, Texas and its Strategy and Innovation Center in Palo Alto, California.
Samsung is the world’s leading manufacturer of smartphones, televisions and memory chips. In recent years, Samsung has emerged as a giant chip supplier — number two by sales in the world – and IoT is a big part of the future of that business. In order to completing with Intel Corp., Qualcomm Inc. and other hardware and chips maker in future technology market, Samsung invests in the latest internet-connected technology and develops this chip components further, which IDC has forecast that the global internet of things market will be worth $1.7 trillion by 2020.
Samsung is planning to make this announcement at its inaugural “Internet of Things – Transforming the Future Conference” being held in Washington DC Tuesday morning. The Samsung-driven event brings together a bunch of companies in the industry as well as academics and politicians to promote the benefits of this technology.
Samsung also thinks the US government should become a customer of its IoT business. “The government shouldn’t be a late adopter,” said Sohn.