Samsung intends to enter in auto-business, looking for growth options

Samsung Electronics Co., which is one of the leading smartphone manufacturers and sellers worldwide, wants to parlay that technology into automotive navigation and entertainment systems for an industry making more than 80 million vehicles a year, as reported by Bloomberg.

Now the biggest technology company in Asia is trying to go beyond the hardware that supported its growth. This week Samsung Electronics Co. is going to attend the International Consumer Electronics Show along with a record nine carmakers, some of which are the Audi unit of Volkswagen AG and General Motors Co.

If Samsung is provided with all the necessary components by businesses that reach from batteries and household appliances to memory chips, cameras and liquid-crystal displays, it can use them inside automobiles. Currently the company is maintaining a partnership with Intel Corp., which includes the so-called Tizen – an open-source software that can run smartphones, tablets, TVs and car systems. The software in question has become interesting to some of the biggest automakers in the world, such as Toyota Motor Corp.

Mark Skarpness, who is the director of systems engineering at Intels Open Source Technology Centre, said in November: “Tizen is all about building an open, skilled platform that can support a broad range of devices. Weve also been part of work supporting in-vehicle infotainment. So, really adapting Tizen to the specific needs of automotive use.”

One of the analysts working for IBK Securities Co. – Lee Seung Woo, said: “In the past, passengers just used cars for moving, but now they want to enjoy entertainment and access to the Internet. Its like a gigantic smartphone on wheels.” Mr. Lee also shared that he expects some new applications from Samsung, including transparent flat-panelled windows providing map displays and other information, as well as some sensors to monitor passengers health, or even select music according to the drivers mood or make suggestions for a most appropriate route.

According to an official e-mailed statement, the company refused to make any comments about its plans for the automotive sector. Nevertheless, in October last year, Samsung Electronics Co.s President Hong Won-Pyo explained that the company is ready to cooperate with some car makers, which could expand to include entertainment and navigation, as reported by Bloomberg. At the same time, Samsung faces the competition of companies focused on chip making, such as Freescale Semiconductor Ltd., Qualcomm Inc., Nvidia Corp. and Intel Corp.

According to Bloomberg, the current share price of Samsung Electronics Co. Ltd. Is 0.85% up, and its one-year return rate is 14.26% down.