Samsung Electronics Expands Into The Automotive Business, Explores Self-Driving Cars
Samsung Electronics has announced its plans to set up a team solely devoted to the development and manufacture of car components for futuristic vehicles, such as the self-driving car.
The new division will operate independently from Samsung's existing business units-home appliances, mobile and chip divisions-to focus primarily on car parts with self-driving capabilities as well Internet-connected cars, the Wall Street Journal reported Dec. 9
Although the company has announced that an executive from the consumer electronics division has been selected to head the automotive team, Samsung declined to elaborate about the specifics of its new venture.
According to The Korea Herald, sources said Tuesday that Samsung's top executives will back the company's latest attempt to renew its presence in the automotive market by presenting its plans at the forthcoming Consumer Electronics Show (CES) in Last Vegas next month.
Samsung CEOs Yoon Boo Keun and Shin Jong Kyun, who handles the firm's home appliance and mobile departments, are expected to participate in the event.
"Cars are expected to take the center stage at this year's CES. Samsung executives would not like to miss the crucial opportunity to appeal to carmakers," said an industry source.
Analyst say Samsung could use its strength in manufacturing chips, displays and rechargeable batteries as a pivotal advantage to boost its performance in the fast-growing automotive business.
"Samsung seems desperate to find a new growth engine. All their main businesses are quite mature and saturated," Daniel Kim told The Financial Times.
"Samsung is a department store of all the technologies. But Samsung is new and will have to compete against Apple and Google as well as the big existing carmakers."
The company's expansion into the production of car components, software and services will most likely be worth $500 billion.
While, some analysts believe Samsung could play to its strengths by incorporating its technologies into a single platform, some analysts point software development as a possible weakness for Samsung.
"Autonomous driving requires massive data, which only the 5G technology can provide," said Kim Young Woo at SK Securities. "The key for this new technology will again be an effective operating system to handle the complex data for safe driving. So it won't be an easy game for Samsung."