Samsung Group to spend US$45bln on R&D over five years

SEOUL (Reuters) - Samsung Group, the parent of the world's biggest memory-chip maker, will spend 47 trillion won (US$45 billion) over the next five years on research and development, the conglomerate said on Tuesday.

Samsung, South Korea's largest business group, would spend the majority of the funds to maintain its technology lead and develop new products in the semiconductor, displays, mobile communications and electronics sectors, it said in a statement.

Samsung declined to provide a breakdown of the spending by company or industry when contacted by Reuters. For 2005, its R&D spending is estimated at 7.3 trillion won, and sales are expected to total 139.5 trillion won.

"By investing in the areas which would become future growth engines, Samsung aims to grow group-wide annual sales to 270 trillion won in 2010 with 30 trillion won in pre-tax profits," Samsung said.

The group's flagship, Samsung Electronics, which is the world's leading producer of memory chips and flat screens as well as being the third-largest mobile phone producer, said last week it aimed to more than double its annual sales by 2010 from last year's 57.6 trillion won.