SOUTH KOREAN technology giant Samsung Electronics Co. on Friday said it is in talks to acquire a stake in Shenzhen-based automaker BYD Co. to boost its chip business for electric cars.

    In December, Samsung Electronics, the world’s top maker of smartphones and memory chips, created a team to develop automotive-related businesses, seeking a new growth engine as the global smartphone industry is slowing.

    Automakers and technology companies have formed a series of partnerships in recent years as the race to develop electric, self-driving, Internet-connected vehicles has created demand for more electronics components and software.

    “The latest investment aims at strengthening electric vehicle parts and smartphone parts businesses for the two companies,” Samsung said in a statement. “We plan to discuss cooperation in various businesses going forward.”

    Samsung said it has not finalized how much it would spend to buy the stake, nor how big a holding it would take in BYD, which specializes in electric vehicles and is backed by Warren Buffett’s Berkshire Hathaway Inc.

    The Korea Economic Daily reported earlier Friday that Samsung agreed to buy new shares worth 3 billion yuan (US$449 million) in BYD, which would give Samsung a 4 percent stake in the automaker.

    BYD confirmed in a stock exchange filing that Samsung Electronics had participated in their non-public issuance, but did not disclose the amount of its investment as the offering had yet to close. The automaker, however, denied Samsung Electronics would buy a 4 percent stake as reported in the Korea Economic Daily. (SD-Agencies)