Samsung Group which humiliatingly pulled out of auto-making is attempting the second trial in the sector through the self-driving vehicle and this time it hopes for better results as it would incorporate chip-making and electronics, an area it does best, and borrow specialized expertise from ventures home and abroad.

Samsung Venture Investment Corp., an investment arm of Samsung Group invested $90 million in the U.S-based self-driving car technology startup Quanergy Systems to add to its growing shopping list of investments in startups in the autonomous vehicle technology.

According to industry sources on Tuesday, Samsung Venture Investment invested $90 million in Quanergy Systems, a startup that makes light detecting sensors used in self-driving cars. The investment deal that was led by car sensor maker Sensata Technologies drew other investors including auto parts manufacturer Delphi Automotive. This is the second investment in Quanergy Systems by Samsung Venture Investment as the Korean investor injected $4.5 million in May 2014.

Quanergy Systems develops light-sensitive radar, known as LiDAR. The LiDAR uses laser beams to detect external environment of a self-driving car in three dimensions, and it is considered the key technology for autonomous driving that needs to be aware of the all real-time events happening around the car within a radius of several hundreds of meters.

The LiDAR delivers visual information as the eyes do for humans, and more LiDARs installed in a self-driving car, more accurate information is provided for better and safer driving. But the cost of the laser detection technology is still very expensive. Velodyne, the leader in the LiDAR technology, released its first prototype LiDAR at $80,000 per equipment and lately succeed to lower the cost to $8,000, nevertheless costly.

Quanergy Systems claims it can slash the unit price to $250 or even lower using its latest technology. It recently introduced S3 LiDAR sensors, and it expects to offer the S3 at $250 once the firm begins mass production early next year. The company said it also plans to release a smaller and simplified version of the S3 sensor at $100.

The car sensor maker is currently in negotiation with five automakers, and it expects to see self-driving cars equipped with Quanergy Systems’s LiDAR sensors in early 2018, said Quanergy Systems.

Amid the growing interests towards the LiDAR technology, more and more funds are attracted into the ventures developing the latest laser sensors for automobiles. Quanergy Systems, which was established in 2012, has already raised $150 million funds until recently, and it plans to use the latest funding of $90 million mainly in ramping up its production facility. Its rival Velodyne also received $150 million funding from American automaker Ford Motor Co. and Chinese search engine tycoon Baidu Inc.

Samsung Group has boosted its investment in ventures related to autonomous cars through Samsung Venture Investment. It already has made two investments in nuTonomy, a software developer for autonomous vehicles, and it actively is seeking investment in ventures that develop car batteries telecommunication parts.

By Lee Seung-hoon

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