Samsung did not say how many people would be in the new team.
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But Samsung’s decision to attack the vehicle business makes plenty of sense, as the company is struggling to find a new growth driver now that its mobile division isn’t performing as well as in the past few years. The division will work with other Samsung teams to develop technologies that could be used in self-driving cars in the near future.
Still, the Samsung Group clearly said that its participation in the automotive electronic parts sector does not mean that it re-enters the automobile industry.
Samsung Electronics on Wednesday announced it will set up a new team specialising in automotive parts to speed up its expansion into the lucrative market in an era of electric mobility.
Another reason Samsung is jumping in the driverless technology is a growing number of technology companies which are also entering the automotive and space industry.
It’s too early to tell when a Samsung vehicle will hit the road, but Samsung will initially provide components to carmakers that are also working on smarter cars.
“With Hyundai Motor and LG strengthening their partnership, Samsung’s joining would offer a boon for Korea to lead futuristic automotive technologies”, said Shin Jung-gwan, a senior analyst at KB Securities. Roh points out that auto electronics like advanced semiconductors, vehicle audio and sensors represent 30% of the total smart auto market.
As part of the announcement, Samsung cited a report from industry analysts Gartner Inc. that the global automotive semiconductor market will grow to $32.7 billion in revenue in 2016 and the automotive memory market will hit $1.5 billion in 2016. The move follows efforts by Google Inc. and Apple Inc.to develop futuristic cars of their own.
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LG Electronics announced that it would be providing 11 systems for the new Bolt, General Motors Co.’s electric vehicle, including the electric-drive motor, charger, batteries.
