Samsung invests $1.1 billion in a new innovation center
This is what I like to hear, even though Samsung was the most successful smartphone manufacturer last year they aren’t content. In a press release issued yesterday, Samsung has indicated that it is putting some of its profits back into the company in an effort to spur future innovation and keep themselves ahead of the pack.
The $1.1 billion investment will be split into a $100 million Samsung Catalyst Fund, which will focus on developing new components. The other $1 billion is to be spent on the Samsung Ventures America Fund, which will be supporting new technological innovations and expanding its business model. Samsung appears keen to focus on cloud infrastructure, mobile privacy, “internet of things”, human interface, and mobile health, as well as continuing to expand its product line-up.
To kick start the Catalyst Fund, Samsung is pairing up with the SSIC Innovation and Technology Fellows to hold the SamsungCreate Challenge, which aims at encouraging artists, engineers and entrepreneurs to come up with some visionary uses for technology. The winners will receive a $10 million investment and support from the SSIC and Samsung’s R&D department, so it’s a pretty serious contest.
It’s great to see that a company as large and profitable as Samsung isn’t content with the current state of affairs, and still wants to push the boundaries even further. Good on them.
MENLO PARK, Calif.–(BUSINESS WIRE)–Samsung Electronics Co., Ltd., a global leader in digital convergence technologies and advanced semiconductor solutions, today introduced its vision for a global engine to accelerate innovation and to drive new business creation for Samsung’s Device Solutions businesses. The new Samsung Strategy and Innovation Center (SSIC), new $100 million Samsung Catalyst Fund, $1 billion Samsung Ventures America Fund, and Samsung’s international R&D centers create a powerful platform for igniting global innovation. Samsung Electronics will leverage these organizations in global innovation hotspots to create new businesses and build open ecosystems through research and development, investments, strategic alliances, and M&A.
“We see tremendous opportunities and transformations over the next five years driven by Big Data centered around mobility, cloud, and the Internet of Things, and Samsung will be a significant part of this revolution”
The new Samsung Strategy and Innovation Center headquartered on Sand Hill Road in Menlo Park and with offices in Korea and Israel is led by Young Sohn, President and Chief Strategy Officer of Device Solutions, Samsung Electronics. “We see tremendous opportunities and transformations over the next five years driven by Big Data centered around mobility, cloud, and the Internet of Things, and Samsung will be a significant part of this revolution,” said Sohn. “This is an exciting opportunity for us to engage with entrepreneurs and innovators and empower them to leverage Samsung’s technology and global brand presence to bring our collective visions to market.”
This new model creates a mutually beneficial foundation for Samsung and innovators to explore new opportunities and drive future growth related to Samsung’s components businesses. Initial focus areas include cloud infrastructure, mobile privacy, Internet of Things, human interface, and mobile health. Entrepreneurs and innovators will gain access to Samsung’s unique ecosystem and resources including:
Strategy and technology mentorship from SSIC Innovation and Technology Fellows, along with other industry experts within Samsung R&D centers, to advance their developments and businesses
Samsung’s global technology and product platforms, and opportunities to partner with Samsung’s Device Solutions business units and Samsung’s international R&D centers for product development, go-to-market strategies, and channel development. The early-stage $100 million Samsung Catalyst Fund focused on components and subsystems together with the $1 billion Samsung Ventures America Fund, to fuel innovative technologies and business models through all stages of business
Strategic alliance and merger and acquisition opportunities throughout Samsung Electronics’ Device Solutions businesses
To jumpstart the $100 million Samsung Catalyst Fund, SSIC is holding a competition, SamsungCreate Challenge, launching later in 2013. The program will encourage artists, engineers, entrepreneurs, and other innovators to leverage Samsung’s Device Solutions Architecture Platform. Aimed at identifying and nurturing visionaries seeking to use technology to improve our lives, the contest will award $10 million in seed investments for winners and will also include incubation and support from SSIC’s Innovation and Technology Fellows and partnerships with Samsung R&D technologists. Additional details on the SamsungCreate Challenge will be announced at a later date.