Samsung Electronics Expands Commitment to Autonomous Driving Technology

Samsung creates $300 million fund to build on a number of earlier
investments in auto-related startups and technologies.

Samsung and HARMAN jointly launch a new Autonomous/ADAS Strategic
Initiative, focused on developing innovations for next-generation,
smart, connected vehicles.

FRANKFURT, Germany & MENLO PARK, Calif.–(BUSINESS WIRE)–Today, Samsung Electronics Co. Ltd., established the Samsung Automotive
Innovation Fund, a new $300-million fund focused exclusively on the
automotive market. The Samsung Automotive Innovation Fund will focus on
connected car and autonomous technologies, including smart sensors,
machine vision, artificial intelligence, high-performance computing,
connectivity solutions, automotive-grade safety solutions, security, and
privacy.

In addition to the fund, HARMAN, which was acquired by Samsung earlier
this year, has established a new Autonomous/ADAS Strategic Business Unit
(SBU). The new HARMAN SBU, which will report to HARMAN’s Connected Car
division, will work with the Samsung Strategy and Innovation Center
(SSIC) Smart Machines team to develop key technologies for safer,
smarter, connected vehicles. The SSIC Smart Machines team is an advanced
automotive engineering group dedicated to enabling next-generation
mobility solutions.

“During this period of extraordinary transformation in the automotive
industry, we are excited to play a leadership role in supporting and
shaping the future of smarter, more connected vehicles,” said Young
Sohn, President and Chief Strategy Officer of Samsung Electronics and
Chairman of the Board of HARMAN. “The Autonomous/ADAS Strategic Business
Unit and automotive fund reflect the company’s commitment to the values
of open innovation and collaboration. In partnership with OEMs and
startups, we will make the driver and passenger experience safer, more
convenient, and more enjoyable.”

According to the World Health Organization, road injuries are among the
top 10 causes of death worldwide.1 In the U.S. alone, the
most recent data suggests that there are more than 35,000 fatal crashes
each year.2 Samsung’s goal in the automotive market is to
tackle this challenge by bringing to market technologies, from sensors
to data-processing solutions, that will help make cars safer while
creating a more comfortable and convenient mobility experience.

To address the increasing demand for integrated solutions, particularly
those for automated driving, Samsung and HARMAN will focus on
engineering, high-performance computing, sensor technologies,
algorithms, artificial intelligence, as well as connectivity and cloud
solutions that enable Advanced Driver Assistance Systems (ADAS) and
automated driving.

“There is already a high demand for ADAS solutions, and that demand is
rapidly growing with the advancements in connected cars and autonomous
driving,” said Dinesh Paliwal, President and CEO of HARMAN. “This
strategic business unit demonstrates Samsung’s and HARMAN’s commitment
to answer that call – to be the definitive partner for seamless and
integrated technologies. It also reflects the incredible power that
Samsung and HARMAN, as a collective force, will bring to our OEM
customers as we combine Samsung’s scale and resources with HARMAN’s deep
automotive experience and networks. Together, we are driving the future
of automotive.”

Industry veteran John Absmeier has been appointed Senior Vice President
of the new HARMAN SBU, and will also retain his current role as Vice
President of Smart Machines for SSIC. As a leader in both organizations,
John Absmeier will ensure seamless collaboration to bring Autonomous and
ADAS solutions to the market.

The first strategic investment of the Samsung Automotive Innovation Fund
will be in TTTech,
a leader in functional safety, deterministic networking, real-time
systems, and complex software integration for ADAS and automated driving
platforms. Earlier investments by Samsung’s existing investment funds
have included stakes in automotive startups, including AImotive
and Renovo
for automated driving; Quanergy,
TetraVue,
and Oculii
for sensors; Autotalks
and Valens
for connectivity; and Graphcore
for high-performance computing.

To date, Samsung has secured licenses for on-road testing of autonomous
driving software and hardware under development in Korea and California.
Samsung will not enter the car-manufacturing business, remaining focused
on working with automakers and mobility enablers to develop the next
generation of automotive innovation.

About Samsung Electronics Co., Ltd.

Samsung inspires the world and shapes the future with transformative
ideas and technologies. The company is redefining the worlds of TVs,
smartphones, wearable devices, tablets, digital appliances, network
systems, and memory, system LSI, foundry and LED solutions. For the
latest news, please visit the Samsung Newsroom at http://news.samsung.com.

About HARMAN

HARMAN (harman.com) designs and engineers connected products and
solutions for automakers, consumers, and enterprises worldwide,
including connected car systems, audio and visual products, enterprise
automation solutions; and services supporting the Internet of Things.
With leading brands including AKG®, Harman Kardon®, Infinity®, JBL®,
Lexicon®, Mark Levinson® and Revel®, HARMAN is admired by audiophiles,
musicians and the entertainment venues where they perform around the
world. More than 50 million automobiles on the road today are equipped
with HARMAN audio and connected car systems. Our software services power
billions of mobile devices and systems that are connected, integrated
and secure across all platforms, from work and home to car and mobile.
HARMAN has a workforce of approximately 30,000 people across the
Americas, Europe, and Asia. In March 2017, HARMAN became a wholly-owned
subsidiary of Samsung Electronics Co., Ltd.

1 http://www.who.int/mediacentre/factsheets/fs310/en

2 https://crashstats.nhtsa.dot.gov/Api/Public/ViewPublication/812348

Contacts

Samsung Strategy & Innovation Center
Daniel Yoo, +1 408-544-4262
dan.yoo@samsung.com
or
Darrin
Shewchuk, +1 203-328-3500
Senior Director, Corporate Communications
darrin.shewchuk@harman.com