We’re starting to hit peak smartphone, and tech companies are on the hunt for alternative revenue streams.
Samsung has announced plans to develop “next-generation auto parts”, according to a new report.
The South Korean tech giant will set up an entirely new business division focused on automotive research, development, and manufacturing, as revealed by the Wall Street Journal.
The report says Samsung will “focus on making components used in self-driving and internet-connected cars”.
Samsung Electronics Co. is currently the world’s largest smartphone manufacturer, courtesy of its dedicated mobile business.
It also has a components manufacturing unit that builds chips and displays, as well as a consumer electronics outfit that works on TVs and home appliances.
This will be the first time the company has publicly declared interest in the automotive industry, however.
Samsung isn't a lone example of a technology company has segued into vehicles though; Google has a long-standing project in the self-driving car space.
Apple is also widely rumoured to be developing an autonomous electric vehicle, although it hasn’t publicly acknowledged such a project.
Related: Apple Car news
While Samsung has made no mention of developing a car of its own, this latest business ploy could help pave the way for such a vehicle.
Just as Samsung uses its own chips in many of its flagship smartphones, it could potentially use in-house automotive components in a custom-built vehicle.
Do you think Samsung is planning an eventual move into car manufacturing? Let us know in the comments.