Samsung to Develop Components for Self-Driving Cars

Dec 11, 2015

Samsung Electronics Co. on Wednesday said it will establish a new team for developing next-generation auto parts, joining global technology heavyweights in betting on the automotive market to drive growth.

The new team will be separate from the company’s existing three business units and will focus on making components used in self-driving and Internet-connected cars, the South Korean company said. It didn’t elaborate on details.

Samsung, the world’s largest maker of smartphones, has a mobile unit, a components unit that makes chips and displays, and a consumer-electronics unit for televisions and washing machines.

The announcement is the company’s first official acknowledgment of its interest in the automotive business where information technology is expected to play an increasing role in the gradual shift toward next-generation cars including electric vehicles and self-driving cars. The move follows efforts by Google Inc. and Apple Inc. to develop futuristic cars of their own.

In the auto industry, traditional competitors are also stepping up efforts to develop electronic car parts.

South Korea’s largest auto maker, Hyundai Motor Co., on Wednesday said it is considering developing its own computer chips and sensors used in so-called smartcars. The company plans to spend two trillion won ($1.7 billion) on developing the vehicles and expects fully self-driving cars to be available in 2030.

General Motors Co. in October announced a strategic partnership with South Korea’s LG Electronics Inc. for supplying a majority of the key components used for powering the Detroit auto maker’s long-range electric vehicle, the Chevrolet Bolt.

Samsung Group, which is preparing for a power transfer to heir-apparent Lee Jae-Yong from his ailing father Lee Kun-hee, has been speeding up efforts this year to restructure its more-than 60 affiliates to streamline business areas and find a new profit driver.

Samsung Electronics, the conglomerate’s flagship unit, has been suffering from slowing growth at its key mobile unit. The company last week replaced its mobile chief, J.K. Shin, with one of his lieutenants, D.J. Koh, who has a strong background in mobile research and development.

Source: wsj.com