Samsung Invests In Car Maker In China
Samsung has been able to establish its hold in the electronic market ever since the downfall of Nokia. However, it was never contended being engrossed only in the electronic market.
Expanding beyond its horizon of being confined to phone market, it has been in talk with Chinese electric car maker BYD. Samsung plans to buy shares from BYD in this mega tech-auto collaboration which will be a unique first for Samsung too.
In an official statement Samsung has said that this move is aimed at strengthening its semiconductor business for vehicle segment. The size of investment has not been disclosed so far and Samsung says that it will be done, once the deal is finalized. This move is the latest of partnership between technology company and any auto firm. Once implemented it will see the vehicles revamped with technology and connectivity.
Samsung says that this partnership will be a boost for its components businesses for smartphones and in particular electric cars. Samsung is the largest maker in the world for smartphones and memory chips.
Incidentally there were fears that this collaboration could affect supply deals of Samsung SDI, but this did not happen.
BYD here refers to “Build your Dreams” which is a part of Chinese companies which are likely to profit from the worldwide demand for wind and solar power, clean renewable energy and electric cars.
China as a potential investor
There has been a reason as to why China has been chosen as a potential investor by Samsung for electric cars. In the recent past China has been able to surpass United States as the largest market for electric vehicles. As per the estimates of China Association of Automobile Manufacturers, the number of new-energy vehicles has increased by 170,000 by the first half of this year. The country aims to cross sale figure of 3 million units of such vehicles by 2025.
The idea of BYD
BYD concept began as an idea developed by Wang Chuanfu who was a battery developer and began working on this concept in 1995. He along with 20 co- workers began working on this idea. This passionate team of people grew as suppliers for half of the global market for mobile phone batteries. Later this team expanded into electrical field market with purchase of small production unit of gasoline cars. This unit of gasoline cars was purchased by Wang Chuanfu in 2002 which was registered by the name of BYD Auto Ltd.
Samsung now plans to enter into collaboration with this BYD Auto Ltd. It has been a worthy journey for Wang Chuanfu so far and once the collaboration with Samsung materializes, his presence in world electronic market is likely to receive a boost. Samsung on the other hand will benefit equally too.