Samsung purchases a US$449 million stake in BYD

byd-tang-1

Last week, it was reported that Samsung was in talks to purchase a stake in BYD, China’s largest EV manufacturer. The deal has now been concluded, with a unit of South Korea’s largest chaebol purchasing a US$449 million (RM1.83 billion) stake in the Chinese automaker.

The buy-in, accomplished via Shanghai Samsung Semiconductor, will offer the Korean electronics giant a key access point to China’s booming electric-vehicle market, Bloomberg reports. Samsung pursued the stake in the Chinese carmaker after its affiliate was among foreign battery makers left off a list of suppliers approved by China, and said that the investment in BYD will also bolster its semiconductor business for cars.

In a statement, BYD said it will use the proceeds obtained to fund an expansion in battery production and research and development into new-energy vehicles for the Chinese market, which surpassed the United States last year to become the global EV market leader.

China has big ambitions for its EV market – its government wants sales of its “new-energy vehicles” to exceed three million units a year by 2025. According to the China Association of Automobile Manufacturers, deliveries of such vehicles have already doubled to around 170,000 units in the first half of the year.

The report added that in Samsung’s case, the move into the auto industry is a way to help make up for declining growth in hardware businesses such as televisions and smartphones. As automakers continue to utilise more electronics and displays in their push for automated vehicles, electronics makers are looking to tap into the automotive business.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Kunta Kinte on Jul 26, 2016 at 12:38 pm

    Samsung should purchase Proton up or some China company should purcase Proton up. Proton needs the discipline of Koreans or China.

    Then we can get rid of the 12,000 bloated staff who believe sleeping during work hours is their right and that going to kantin 8x one day to minum teh and makan kuih lapis and karipap is our right.

    Already Perkasa and MAS has told us it is our culture to sleep during work hours and no mat salleh can understand our work culture.

    Like or Dislike: Thumb up 14 Thumb down 2
    • camtakpro on Jul 26, 2016 at 4:07 pm

      The workers in Proton are too slow and incompetent compare to China/Korea ones. Purchasing Proton will just excite local barbarians due to the needs to fire all of those workers.

      Meanwhile VW could buy stakes in Proton since both brands are similar and often need to go SC.

      Like or Dislike: Thumb up 3 Thumb down 0
    • P1 says dun wan Samseng. Sked later battery explode

      Like or Dislike: Thumb up 0 Thumb down 0
      • camtakpro on Jul 26, 2016 at 7:48 pm

        Probably the real samseng is the workforce under Proton. Or rather, Samsung is more afraid of Campro Turbo bocor.

        Like or Dislike: Thumb up 0 Thumb down 0
  • RavenAii (Member) on Jul 26, 2016 at 12:57 pm

    The BYD vehicle looks like an RX body mixed with a Veloster headlights and air intake with Sorento grille…

    Like or Dislike: Thumb up 1 Thumb down 0
  • mader on Jul 26, 2016 at 3:08 pm

    no… samsung should not buy proton.

    xiaomi is. Put toyota engine, nissan transmission, body from proton, handling from lotus, windscreen from gorilla glass, infotaiment from miui, camera sensor from sony. BAM!

    mi car 01

    Like or Dislike: Thumb up 0 Thumb down 0
  • panjang on Jul 27, 2016 at 8:31 am

    Its no surprise as Samsung cannot compete with experience component manufacturer for EV.So, they had to ‘buy in’ their way into the game.EV market is super strong in China.
    Good strategic business move by Samsung.
    However,i feel bad abt the worker of Samsung Senawang as the plant there closes.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Sam Loo (ori1) on Jul 27, 2016 at 11:13 pm

    With injection of Korean DNA into chinese car, the RV of this manufacturer will even be lower

    Like or Dislike: Thumb up 0 Thumb down 0
 

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