Samsung has announced that it will invest $1.2 billion in the US over a four year period to improve the technologies behind the Internet of Things (IoT).
The company has decided to split its investment evenly between internal research and development and investments in startups innovating in the field. This is all a part of Samsung's larger initiative to embrace new partnerships and strategic investments in a way that it has never done in the past.
Last May, the company announced its first initiatives targeting IoT technology. However, Samsung's latest initiative is geared towards helping it compete against Intel, Qualcomm and other chip and hardware manufacturers in a race to corner the connected devices market. IDC has forecast the Internet of Things to be worth $1.7 trillion globally by 2020 and Samsung company does not want to lose the opportunity to get ahead of its competitors.
Samsung's investment will target a variety of IoT applications such as digital health, 'smart machines' including drones, robots and self-driving vehicles and the companies developing the necessary software to process the data that all of these devices will produce.
$600 million of the company's investment will be dedicated to internal investment and will be utilised at its two research facilities in Silicon Valley. There, Samsung will focus on developing chips and products that will power IoT devices.
The company had an annual budget of $14.1 billion in global R&D in 2015 so an investment of $1.2 billion is a clear indication of how important Samsung believes IoT technology and devices will be in the future.
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