The move certainly seems in line with the South Korean company’s business plans. As Reuters reported, Samsung has attempted to break into the auto space for a while in hopes of creating “a new growth engine,” and back in November, the company announced plans to acquire connected car technology company Harman International Industries.
This new deal with Tesla, however, will serve as Samsung’s official debut into the automotive industry. According to the International Business Times, the South Korean company signed a contract with Tesla to construct an ASIC (Application-Specific Integrated Circuit) system, allowing the firm to build its own System on Chip (SoC) with Samsung semiconductors.
Tesla has long been in search of a partner to help the company perfect its self-driving technology, as the firm recently announced all its vehicles will be autopilot equipped.
“This is a long-term project that requires about 3 years for design, production of prototype, and mass-production.” said a Samsung representative. “Working with a leading company like Tesla will provide an opportunity to greatly increase capability of Samsung Electronics’ automotive field.”
So even if the firm needs to win back your trust when it comes to smartphones, you may want to give Samsung another chance when it comes to its new role in Tesla’s cars of the future.
