Samsung is opening a new division responsible for manufacturing self driving car components for other self driving carmakers in the market. It seems that it is a sustainable business as most of the components which are found in self driving cars are also found in smartphones, such as the GPS, battery technology, mobile computing as well as the touch screen technology. Samsung has been producing smartphones for years now. The company will be making touch screens as a start.
This movement is also can be seen as Samsung effort in order to get the knowledge transfer from other self driving carmakers in case if the company plans to make its own self driving car in the future. Samsung is reported to have tried to make cars back in the 90s however, it is not successful. Samsung Motors launched in 1994 and was actually making cars, however, due to Asian financial crisis; some of the company’s share was sold to Renault. Currently, Samsung still have 19.9 percent stake in the firm and has control over use of the name.
The announcement came at a time where Samsung’s smartphone business is struggling. Recently Samsung Electronics, a subsidiary of Samsung, replaced its mobile chief, J.K.Shin, with D.J. Koh, who hopefully able to revive the business with his strong background in mobile research and development.
Samsung’s rival, LG, has formed a vehicle components division in 2013 and it is preparing to make components for car companies.