WASHINGTON—Samsung Electronics Co. said Tuesday that it will invest $1.2 billion in the U.S. over four years to boost technologies aimed at adding computing power to everyday devices, a movement dubbed the internet of things.
But executives said the new funding represents an acceleration of the company s attempt to compete with Intel Corp., Qualcomm Inc. and others to create chips and other hardware that manufacturers can incorporate into gadgets to make them internet-connected.
Predictions vary widely, but IDC has forecast that the global internet of things market will be worth $1.7 trillion by 2020.
Samsung s investment will be aimed at a variety of internet-of-things applications, including digital health; smart machines such as drones, robots and autonomous vehicles; and companies making software to process the massive data produced by these devices, said Young Sohn, Samsung s president and chief strategy officer.
The $600 million in internal investment will go to Samsung s two U.S. research facilities in Silicon Valley, where it will focus on technology for powering the internet of things—such as chips and products—for existing markets.
Samsung s outlay for the internet of things is large by industry standards but a fraction of the electronics giant s $14.1 billion in global R spending in 2015, second only to Volkswagen AG s $15.3 billion R outlay, according to PricewaterhouseCoopers.