Samsung to invest $4.5 billion in new R&D centers

July 4, 2013
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    samsung galaxy s4 top back side aa

    It seems that the most common complaint about the Galaxy S4, if you have one, is that it’s not really a significant leap ahead of the last generation’s Galaxy S3. “Samsung is turning into Apple” seems to be a not uncommon comparison these days, but perhaps the fact that Samsung is building five new research and development centers will help put these concerns to rest.

    Samsung has outlined its plan to spend 5 trillion won, which works out to roughly $4.5 billion, on five new R&D centers, which are to be built on its home turf in Korea. One of the first of these centers will be built in southern Seoul and will open in late 2015, costing the company the first $1 billion of its budget.

    This site is expected to employ around 10,000 people and will be focusing primarily on design research, which could apply to any number of Samsung products, including smartphones potentially. The other R&D centers will look at other arms of Samsung’s business, including materials and component development. Two facilities set to be built in Hwaseong and Pyeongtaek will be dedicated to Samsung’s chip and processor divisions, and its various display technologies, which are set to go online sometime in early 2014.

    In the increasingly competitive electronics industry, additional spending on developing will help set a company apart form the competition in the coming years, or at least allow it to keep pace with its competitors, and Samsung knows this:

    Given heated competition in the consumer electronics market, odds can be in favor or against us depending on how to prepare and cope with it,

    This is clearly a pretty expensive endeavour, but we know that Samsung isn’t afraid to splash the cash. Earlier in the year Samsung announced that it was investing $25 million in a new patent company to help protect its intellectual property in the US, and company spent a hefty $10.5 billion on R&D in 2012, a $1.4 billion increase in spending from 2011.

    It doesn’t look like Samsung will be slowing down on the development front any time soon, bring on the new products.

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