▶주메뉴 바로가기

▶본문 바로가기

The Korea Herald
검색폼

THE INVESTOR
March 29, 2024

Samsung

Samsung, LG upbeat on automotive tech

  • PUBLISHED :September 15, 2017 - 15:59
  • UPDATED :September 15, 2017 - 16:34
  • 폰트작게
  • 폰트크게
  • facebook
  • sms
  • print

[THE INVESTOR] Korean tech giants Samsung Electronics and LG Electronics are ramping up their efforts to secure an upper hand in the emerging self-driving car sector.

Samsung recently announced that it would create a US$300 million fund to reinforce its automotive parts business. The Automotive Innovation Fund will be used for acquiring cutting-edge automotive technologies, such as smart sensors, machine vision, artificial intelligence solutions, connectivity systems and security software, which are deemed essential in autonomous cars.




As its first investment from the fund, Samsung has decided to invest 75 million euros (US$89.34 million) in TTTech, an Austria-based firm which develops automated piloted driving systems. The European company’s safety solutions, developed jointly with carmaker Audi AG, power a piloted platform installed in the 2017 Audi A8.

“TTTech has demonstrated a remarkable ability to innovate and build world-class technologies and platforms. This is a crucial moment for Samsung and our fund, and we look forward to working with leading OEMs like Audi and the entire TTTech team to set a new standard for automotive-safety technology,” said Sohn Young, president of Samsung and the chairman of the board for connected car technology firm Harman, in a statement.

The creation of the fund and latest investment come on the heels of Samsung’s US$8 billion acquisition of Harman in March this year.

The automotive parts business is considered one of Samsung’s core future businesses, including biotechnology and Internet of Things.

Not to be outdone, its hometown rival LG Electronics is also increasing its bets on the automotive business. Along with other affiliates of LG Group, including LG Chem and LG Hausys, it is participating in the ongoing Frankfurt Motor Show to showcase vehicle components, such as cameras for piloted driving systems and batteries for electric cars.

Battery maker LG Chem supplies batteries for electric vehicles made by General Motors, Volkswagen and Renault.

LG is also rumored to take over ZKW, an Austrian automobile lighting system company, for 1 trillion won (US$882 million)

Although the company has denied the acquisition rumors, industry sources say negotiations for the deal are underway.

LG’s shares, which reached a one-year high of 91,500 won on Sep. 15, have been on the upward trend since August thanks to market expectations for the growth of the firm’s automotive component business.

“Increased competitiveness and growth potential of the vehicle component business of LG will be able to drive up the value of the entire company,” said Koh Jung-woo, an analyst from NH Investment Securities.

By Kim Young-won (wone0102@heraldcorp.com)

EDITOR'S PICKS