Samsung Has No Plans To Start Making Cars, Dismisses Rumors

Samsung Electronics has no plans to become a car manufacturer at any point in the future, the company said earlier today, The Korea Herald's Investor reports. The Seoul-based conglomerate hence dismissed a number of recent rumors about its supposedly growing ambitions in the transportation segment, categorically denying any effort aimed at developing electric or self-driving vehicles, or acquiring firms that would allow it to gain a foothold in either market.

The latest rumors suggesting Samsung is eyeing an automotive push emerged after the company announced intentions to invest an extra $22 billion into emerging technologies such as artificial intelligence and 5G over the course of the next three years. While some industry watchers speculated that fund may also end up backing new transportation solutions, Samsung now clarified that any ambitions in the automotive segment it might pursue moving forward will be solely tied to connectivity technologies and chips designed for contemporary navigation and autonomous driving, not vehicles themselves. One source close to the company claims Samsung's public statement on the matter was meant to ease concerns among its major automaker clients that the chaebol is eyeing a move into their territory, suggesting car manufacturing may not be outside of the realm of the tech giant's ambitions in the long term.

For the time being, the firm's mobility plans remain tied to computing hardware such as the 256GB UFS 3.0 chip that's been in flow production since February. A more comprehensive push into transportation could allow Samsung to diversify its operations and make them more sustainable, consequently unlocking additional shareholder value for investors, something it has repeatedly been asked to do over the last several years. One of Samsung's newest major partnerships in the automotive industry was announced in early 2017 after Volkswagen's Audi started ordering Exynos chipsets for its contemporary vehicles. The collaboration in question is being expanded this year, with a wider variety of 2019 VW models being expected to feature Samsung-made silicon.

You May Like These
More Like This:
Android Headlines We Are Hiring Apply Now