In an effort to capitalize on the security fears caused by Chinese brand Huawei, South Korea’s Samsung Electronics has decided to invest more resources into its network equipment used in telecommunications businesses.
According to company officials and other executives in the industry, Samsung has been moving numerous employees as well as high-performing managers from its handset division to the network division in order to direct focus towards the network side of things.
At the same time, Huawei is still battling various allegations by competitors regarding the supposed security breach of its equipment. Just recently, Huawei’s telecom network equipment was alleged to be allowing Chinese spies to access personal and private information. This has led to Western countries considering banning the use of Huawei’s 5G technology, despite its supposed higher speeds and new services. Huawei has repeatedly denied the allegations.
Samsung is wasting no time in seizing this rare opportunity. The company plans to invest a total of $22 billion in 5G technology, alongside other related fields, within the next three years. According to one source from Samsung, “We’re bolstering our network business to seize market opportunities arising at a time when Huawei is the subject of warnings about security.”
In an email to Reuters, the South Korean company also said, “Samsung is focused on building trust with our partners and leading the global 5G markets, regardless of other companies.”