A new report claims that Samsung Electronics Co Ltd (OTCMKTS:SSNLF) will provide chips to Tesla Motors Inc (NASDAQ:TSLA).
The new report comes from the Electronic Times in South Korea. The publication cites unnamed individuals as the source of this information. The publication didn’t reveal any financial details of the deal.
Samsung Electronics Co Ltd has been pushing into the automotive industry with a move to acquire Harman International Industries Inc (NYSE:HAR) for $8 billion. SSNLF is likely hoping to gain extra revenue by supplying chips to the automotive company, reports Fortune.
According to the reports, Samsung Electronics Co Ltd will be providing chips for Tesla Motors Inc’s self-driving cars. This will be the first time that SSNLF has acted as a provider of chips for an automotive company.
Samsung Electronics Co Ltd providing chips to automotive companies could be a way for it to bounce back after recent disappointments. The company took a hit after its huge Samsung Galaxy Note 7 recall. There has also been talk that rival smartphone maker Apple Inc. (NASDAQ:AAPL) will stop using SSNLF as one of its providers for its smartphone chips, 1redDrop notes.
Samsung Electronics Co Ltd hasn’t commented on the report, but its obvious that the company has an interest in the automotive industry. The recent report also claims that these chips will come directly from the tech company and not from Harman International Industries Inc.
Samsung Electronics Co Ltd isn’t the only tech company interested in automobiles. Apple Inc. is rumored to be working on a self-driving car project. However, it has hit some road bumps and may have been pulled back to just being a self-driving software system.
