The company's chips would likely show up in future BYD vehicles.
Samsung Electronics aims to become a bigger player in the automotive industry by buying a stake in the Chinese electric vehicle brand BYD. According to Reuters, the purchase might have already happened behind closed doors, but neither company has officially announced the investment.
Samsung would reportedly buy four percent of BYD for the equivalent of $449 million (406 million euros). According to Reuters, the automaker confirmed a stock sale had taken place but didn’t yet disclose the exact amount. The Chinese company also denied that the sale amounted to four percent of the business.
Samsung would reportedly use this deal with BYD to get more of its chips into cars. According to Reuters, the South Korean company sees the auto industry as the future because the smartphone segment is cooling down.
Samsung Electronics produces smartphones and memory chips. It’s one of the many companies under the giant Samsung conglomerate. Another of those firms is automotive battery maker Samsung SDI, but at least for now it wouldn’t supply components to BYD.
BYD is a player in China's EV market, including a partnership with Daimler on the Denza. It also produces hybrid vehicles like the Tang (above) crossover. The automaker has been working to grow into the United States and has even displayed vehicles at the North American International Auto Show.