Samsung bets big on smart cars [2016/11/30 13:06]

Samsung Electronics Vice Chairman Lee Jae-yong surprised the market by acquiring Harman International Industries for $8 billion in mid-November, pushing forward the tech giant’s ambitions in the connected car business.

The deal, which came less than a month after his boardroom debut, appears to have been carried out under Lee’s vision to shift Samsung’s focus from the declining smartphone business to high-value-added future businesses such as auto components and biopharmaceuticals.

The acquisition of the US firm, the No. 1 player in the infotainment and telematics market, is expected to help Samsung to adjust to the automotive market as a latecomer.

Citing Samsung’s strength in chips, display and telecommunication industries, market analysts said the possibility is high that the South Korean company will take a lead in the connected car business.

“The acquisition should allow Samsung Electronics to diversify into and gain a solid presence in the connected car solutions industry, which has good growth prospects,” said Joe Morrison, a Moody’s vice president and senior credit officer, in a report.

The size of the in-vehicle components market is expected to grow from $54.2 billion last year to $186.4 billion by 2025.
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