South Korea's top tech firm Samsung Electronics Co. said Wednesday that it will establish an automotive electronics division, a move seen to diversify its business portfolio.
  

In its early stage, the division will focus on infotainment and an autonomous driving system, and strengthen cooperation among affiliates, the company said.
  

The move came as Samsung, whose business portfolio ranges from handset, semiconductor to refrigerator and other home appliance, is suffering a setback in its mainstay business -- mostly high-end smartphones.
  

Samsung, also a leading global chipmaker, has been increasing its presence in the automotive semiconductor chip market, as global automakers are rushing to produce high-tech vehicles such as electric cars equipped with infotainment systems and wireless networking.
  

Samsung believes chip demand from automakers will grow fast as cars of late are built with high-end infotainment systems, powertrain control systems, in-vehicle networking, high safety levels and high fuel-efficiency.
  

Samsung's local rival, LG Electronics Inc., has already launched a similar business division called the Vehicle Components Business Division in 2013, seeking to nurture a new growth engine.
  

LG Chem Ltd., the group's chemical unit, had forged a series of deals with the world's major carmakers such as GM, Hyundai Motor Co. and Ford Motor Co. to provide batteries for their electric vehicles.
  

In October, LG Electronics said it will be selling key vehicle components to General Motors for its new electric vehicle due to be mass-produced starting in late 2016.
  

Under the deal, LG will be the provider of 11 key components to GM, including the driving motor, inverter, in-vehicle charger, electric compressor and battery packs. (Yonhap)