Samsung acquired Harman for $8 billion for self-driving vehicles

Samsung Electronics Co Ltd acquired Harman International Industries for US$8 billion. The giant Suwon made a very strategic decision to seize future mobility and become a major player in the autonomous vehicle business by acquiring audio suppliers and spare parts headquartered in Stamford, Connecticut.

Tinuku Samsung acquired Harman for $8 billion for self-driving vehicles

The announcement on Thursday also mentions the establishment of a business unit for the development of autonomous and advanced driver assistance services (ADAS) and prepares up to US$300 million to invest in start-up and automotive technology.

"It's time to communicate our intentions to enter the autonomous driving market. Samsung has been incubating this business for a long time," said Young Sohn, president and chief strategist of Samsung Electronics.

Intel Corp. and Qualcomm Inc. as Samsung's biggest competitor have also entered the connected car market over the past year with more funds. Intel last month acquired Mobileye for US$15.3 billion, while Qualcomm is making a US$47 billion deal to buy NXP Semiconductors NV.

Harman is famous for speakers and gets 65 percent of sales from the automotive business. The company provides navigation services, on-board entertainment systems and vehicle networks. John Absmeier, a former executive at Delphi Automotive Plc, has been appointed senior vice president of Samsung's automotive business unit.

Sohn said ADAS's business unit will recruit hundreds of engineers who already have engaged in autonomous drive technology. The new unit will sit in Harman's connected car business as Samsung's independent subsidiary.