The latest name looking to join this growing list is Samsung Electronics; the technology giant said it is in talks to acquire a stake in Chinese automaker BYD to aid its "chip business for electric cars". The South Korean company has expressed considerable interest in the automotive industry, as the "smartphone industry is slowing". To that end, Samsung established a team to develop automotive-related businesses in December as it seeks new avenues for growth engine.
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BYD specializes in electric vehicles and is backed by Warren Buffett's Berkshire Hathaway Inc. With that said, the Chinese company makes a wide range of gasoline, hybrid, and electric vehicles. It also has a joint venture with Daimler AG, which develops and manufactures luxury electric cars under the purview of the Denza brand.
Samsung said, "The latest investment aims at strengthening electric vehicle parts and smartphone parts businesses for the two companies. We plan to discuss cooperation in various businesses going forward."
While media reports claim Samsung will buy a 4 per cent stake in BYD worth 3 billion yuan (USD 449 million), Samsung clarified it has yet not finalised how much it would spend to buy the stake, nor how big a holding it would take in BYD.
