Samsung mulls investment in China's BYD

The move could help Samsung expand its reach in the automotive semiconductor segment.

Samsung has confirmed ongoing talks to invest in BYD, a China-based automaker best known for its focus on hybrids and electric vehicles.

A Korea Economic Daily report claims the parties have already worked out an agreement for a four percent stake, however Samsung and BYD told Bloomberg the negotiations are not yet finalized.

Samsung is said to view the acquisition as part of a broader strategy to expand its reach in the automotive semiconductor segment.

Despite the official statement pointing to a limited partnership, the purchase will undoubtedly fuel speculation that Samsung is considering a deeper foray into the automotive segment. The Korean giant is arguably Apple's biggest rival, and the iPhone maker is widely believed to be working on its own EV. As smartphone sales plateau in many critical markets, both companies may view cars are a potential way to maintain growth.

Backed by Warren Buffet's Berkshire Hathaway, BYD in 2014 kicked off an initiative to enter the US market. The plan has not yet come to fruition.