Samsung Electronics Co Ltd has revealed that it is negotiating with Chinese automaker BYD in an effort to secure an interest in the company.

Samsung did not disclose how much of a commitment it would make in BYD, in terms of either its outlay to acquire the stake or the level of controlling interest. Earlier on Friday, The Korea Economic Daily reported that Samsung had agreed to buy $449 million worth of shares in BYD, giving the South Korean electronics giant a 4 percent stake in the automaker.

High-tech companies and automakers have increasingly formed partnerships to meet the demand for electronics components and software used in the development of battery-powered, self-driving and interconnected vehicles.

Samsung maintains that the move is part of an effort to develop emerging opportunities in the automotive sector as the long-term prospects for its smartphone industry begin to wane.

Update: Shanghai Samsung Semiconductor has acquired 52.3 million BYD shares at 57.4 yuan per share, giving the company a 3 billion-yuan ($449 million) stake in the Chinese automaker.