Promoting Automotive Electronics
Samsung Electronics will invest US$300 million (340.8 billion won) to improve the technology competitiveness of automotive electronics that are needed in future cars, including autonomous vehicles. The company, which has acquired automotive audio manufacturer Harman to expand its automotive electronics business, is planning to become a market leader at a stroke by investing in promising automotive electronics technology firms.
Samsung Electronics announced on September 14 that it has decided to create the Samsung Automotive Innovation Fund worth US$300 million (340.8 billion won). The fund will focus on securing autonomous driving and connected car technologies, such as smart sensors, machine vision, artificial intelligence, connectivity solutions and security. The Samsung Automotive Innovation Fund will be operated by Samsung Strategy and Innovation Center (SSIC).
The first to receive funding – 75 million euros (US$89.16 million or 101.29 billion won) – was TTTech, a Vienna-based firm with specialty in automated driving platforms and Advanced Driver Assistance Systems (ADAS) technologies. In addition, HARMAN, a subsidiary wholly owned by Samsung Electronics, has established a new Autonomous/ADAS Strategic Business Unit (SBU). The new HARMAN SBU, which will report to HARMAN’s Connected Car division, will work with the SSIC to develop key technologies for safer, smarter, connected vehicles. Some industry sources believes that Samsung’s latest investment is part of its plans to overcome its disadvantages as a late mover in the automotive electronics sector. For instance, LG has been making an investment to promote its automotive electronics business since 10 years ago. Samsung, which has a relatively weak foundation, have no choice but to make a massive investment and seek merger and acquisition (M&A) in order to dominate the market quickly.
Meanwhile, HARMAN will unveil automotive cybersecurity solutions co-developed with IBM at the Frankfurt Motor Show in Germany without its own booth. The company has also entered into the partnership on infotainment systems with Renault Group.