Samsung has a big plan to hire over 80,000 new workers. Find out why the company is adding so many new roles.
Samsung recently announced that it would be stepping up its hiring initiatives. The cellphone and television provider will be investing $350 billion into businesses to generate thousands of jobs for potential employees. Samsung hopes to make room for more than 80,000 new hires over the next five years.
While many large companies are scaling back on their employees, Samsung takes a different approach. This might not be the best economic time for extending employment opportunities, but the company believes that this will bring in new profits. Samsung’s money will directly fund chipmaking and biopharmaceutical companies, which is 30% higher than its investments over the past five years.
The insufficient number of chips has played a significant role in supply chain hang-ups during the pandemic. The US government has tried investing in local companies to accelerate production for these chips, but many technologies that require them are still backed up. The computer chip shortage has been felt by industries ranging from tech to automotive to cellphones. Samsung attempts to reverse this struggle by investing more in local chipmaking factories, which will also open up new employment opportunities.
Since Samsung is a Korean company, most of the funds will be directly allocated to South Korean businesses. Money invested in South Korean companies will be approximately $285 billion of the $350 billion Samsung is proposing to administer. It’s unclear where the rest of the money will be distributed, but it’s likely to be invested in other transnational corporations.
Other than the accelerating production of computer chips, Samsung hopes these lofty investments will create thousands of jobs over the next five years. According to a recent press statement, the cellphone provider intends to open “16,000 positions annually.” This is slightly less than Samsung’s previous promise of creating 40,000 jobs between 2021 and 2023. Still, the company’s attitude towards generating job opportunities is commendable in a precarious economic situation.
Though Samsung’s primary headquarters are in South Korea, the company has business entanglements all over the globe. Many should expect new job openings in other countries Samsung has research and development centers in, like the Philippines, Canada, UK, and United States.
Samsung has been one of the leading suppliers of smartphones globally, but it has been expanding its technological repertoire. Samsung has begun selling state-of-the-art televisions and laptops, which has led the company to gain large yearly profits. But now, the company is focusing on semiconductor production. The worldwide chip shortage that started during the pandemic galvanized the tech company to invest more in semiconductor manufacturing and constructing their necessary facilities. This would aid other companies in their technological production and accelerate Samsung’s manufacturing of all its new products.
Specifically, Samsung has been producing something called Memory Chips as an alternative semiconductor. In its last fiscal quarter, Samsung saw a rise of 50% from 2021 in its overall profits. This remarkable climb has been attributed to the company’s Memory Chip success. As of April 2022, these chips were up 40% from last year, accumulating $15.8 billion in total sales. The powerful chip gained immediate attention and profits due to the abysmal state of chip production currently.