Samsung Electronics Co. Ltd., the world's top maker of smartphones and memory chips, is investing in the Chinese carmaker, BYD.
According to a report by Reuters, Samsung Electronics seek company growth and expansion in the automotive chip business through this tie up with BYD. Last December, it was also reported that they created a team that will develop car-related products. They see the automotive industry as the future of mobility and technology since the smartphone segment is starting to slow down.
The total stake bought amounts to $450 million or about 1.92% of BYD, which places the South Korean company as their 9th largest investor. This was made possible through a Chinese subsidiary, the Shanghai Samsung Semiconductor.
BYD, which is backed by Warren Buffett's Berkshire Hathaway Inc., is one of the big names when it comes to electric vehicles and green energy advocacy. The partnership would mean that we would be seeing more Samsung chips in their cars, or possibly new head units inside the cabin – a great benefit for both companies.
For more information about BYD and its vehicles, visit the AutoDeal Car Guide.