The car firm is backed by Warren Buffett’s Berkshire Hathaway Inc., which holds a 9 percent stake in BYD. It started as a battery maker for personal electronics before launching its automotive business that focuses on electric and hybrid vehicles.

This move follows a series of partnerships that have been formed between automakers and technology companies the past year. The race to develop electric, self-driving, internet-connected vehicles has created demand for more electronic components and software.

The Samsung investment is made through Chinese subsidiary Shanghai Samsung Semiconductor and gives the Korean firm a 1.92 percent stake in BYD, making it the ninth largest investor in the company.