Samsung’s 2019 research and development spending hit a record high of $16.5 billion

BEIJING, Feb. 26 (Afp) – Samsung Electronics Co. said Wednesday that its research and development spending last year hit a record high of 20.1 trillion won ($16.5 billion) as it tries to focus on tapping into emerging growth momentum,media said Wednesday. That’s up 8.3 percent from 2018, according to the South Korean tech giant’s annual report. Despite Samsung Electronics’ poor earnings, research and development spending is still growing.

Samsung's 2019 research and development spending hit a record high of $16.5 billion

Last year, Samsung’s sales fell 5.5 per cent year-on-year to 230.4 trillion won, while operating profit fell 52.8 per cent year-on-year to 27.76 trillion won.

However, Samsung’s share of research and development spending as a share of sales reached 8.8% in 2019, up 1.1 percentage points from a year earlier, according to the report.

It is estimated that most of Samsung’s research and development spending has been spent on system chips and next-generation display panels.

The world’s largest memory chip maker announced in April that it would spend 133 trillion won to become a leader in system chips by 2030.

In October, Samsung said it would invest 13 trillion won to produce quantum dot (QD) display panels, of which 3.1 trillion won will be used to develop new display technologies. Meanwhile, Samsung said corporate tax spending last year was 8.6 trillion won, down 48.3 percent from a year earlier, due to poor earnings.