Samsung to supply new advanced auto chip to Volkswagen

The logo of Samsung Electronic is seen at its headquarters in Seoul, South Korea, April 4, 2016.

Samsung Electronics (005930.KS) on Tuesday revealed new auto chips targeting demand for advanced chips in cars, including one mounted in Volkswagen's (VOWG_p.DE) infotainment system developed by LG Electronics (066570.KS).

Demand is rising for "high-tech" automotive chips that can handle more entertainment consumption and increased electrical components in cars, Samsung said in a statement, saying that it plans to actively respond to the growing demand.

The chips, developed by Samsung's logic chip design business System LSI, include a chip enabling 5G-based telecommunications for downloading high-definition video content during transit, and a power management chip for stable electricity supply.

A third chip, an infotainment processor that can control up to four displays and 12 cameras at once, has been mounted in Volkswagen's high-performance computer called In Car Application Server (ICAS) 3.1, developed by LG Electronics' vehicle components business, Samsung said.

Samsung and cross-town rival LG Electronics have both targeted the expansion of the global electric vehicle market and the rapid electrification of cars as opportunities to sell more high-tech chips and sophisticated components, analysts said.

Source: Reuters / Reporting by Joyce Lee; Editing by Leslie Adler