Samsung Electronics has acquired US-based digital health platform Xealth to expand its mobile healthcare offerings. The move supports Samsung’s strategy to diversify beyond semiconductors and smartphones amid challenges in its AI chip business.

Samsung Electronics said Tuesday that it has reached a deal to buy the US-based healthcare platform Xealth in an attempt to increase the number of mobile healthcare services it offers. The South Korean business kept the transaction's worth a secret.

Samsung stated that the two businesses aimed to establish a synergy between Xealth's digital health platform, which maintains data connecting patients and care providers, including over 500 US hospitals, and Samsung's cutting-edge wearable technology.

The purchase is in line with Samsung's accelerated efforts to expand its operations outside of its primary semiconductor and smartphone industries. Samsung is focusing on the medical sector as a key development area in addition to robotics, consumer audio, and heating and cooling technology.

In an attempt to satisfy the rising demand for cooling data centers used for AI projects, Samsung Electronics agreed to pay 1.5 billion euros ($1.68 billion) in May to acquire Germany's FlaktGroup. At a shareholder meeting in March, led by Jay Y. Lee, Samsung Chairman, announced plans to pursue significant partnerships this year to drive growth, following setbacks in capitalizing on the Nvidia-driven AI chip boom.

Due to poor sales of AI chips, Samsung earlier on Tuesday predicted a much worse-than-expected 56% decline in second-quarter operating profit, raising investor concerns about the tech giant's capacity to turn around its faltering semiconductor division.