Samsung wants a bigger share from the car components business image

Samsung Electronics will focus on autonomous driving, information and entertainment components for cars, as it seeks to increase sales in the auto parts business.

Samsung, one of the leaders in consumer electronics, plans to intensify its efforts to become more involved in the automotive market. The consumer electronics business has been hugely profitable for Samsung in past years, but the recent demand is not as high as it once was. Therefore, Samsung are looking for ways to expand its business are the automotive industry is the right place to look. Other electronics giants like Apple, Panasonic or LG are already involved in the automobile business, a market with huge potential as all carmakers are committing to develop autonomous vehicles that are to be fitted with a multitude of electronic sensors and displays. In its direction towards this new goal, Samsung named Park Jong Hwan, executive vice president, to head the effort. Park will coordinate participation of the group’s affiliates such as battery maker Samsung SDI Co. and software services provider Samsung SDS Co.

“Samsung just can’t leave this huge market untapped,” said Greg Roh, an analyst at HMC Investment Securities Co. in Seoul. He said car electronics such as advanced semiconductors, car audio and sensors account for about 30 percent of the total smart car market. Samsung made a partnership with Audi to supply memory chips for the brand’s dashboard, infotainment and advanced driver assistance applications, the South Korean company said last month. The research firm Gartner Inc. estimates the automotive semiconductor market will grow 5 percent next year, to about 32.7 billion dollars. Samsung’s electronic rival, LG, already has an agreement with General Motors and reported over 406 million dollars in revenue from vehicle components for the September quarter.

Via Bloomberg