Samsung is looking to enter aggressively into the automotive semiconductor industry, as part of its ongoing mergers and acquisitions plans. That’s based on a recent conference call, with CFO Choi Yoon-ho reportedly revealing that any rumor of delays in those efforts due to the incarceration of Vice Chairman Lee Jae-yong is false. In effect, the company plans to move forward with its plans regardless of that controversy.
Now, Samsung did not detail exactly what companies it might merge with or acquire as part of those efforts. But industry watchers cited by local media have called out three top candidates in the industry.
What companies might Samsung snap up in the automotive industry?
Specifically, there are three companies Samsung will most likely be looking at. Those are NXP, Texas Instruments, and Renesas, each with extensive automotive semiconductor experience and clientele Samsung could take advantage of.
Collectively, the three companies in question have market capitalization amounts at around 247.2 trillion won — equating to just under $221.8 billion. That’s split with Texas Instruments’ market capitalization at 173.68 trillion won, NXP at 51.22 trillion won, and Renesas at 22.34 trillion won. Since the merger and acquisition costs would be lower than those figures, Samsung’s current assets do put any of the three companies in reach. The company had 116 trillion won — just over $104 billion — in cashable assets by the end of Q3 2020.
What does this potentially mean for consumers and for Samsung?
Samsung will reportedly aim to push its merger and acquisition deals into the automotive semiconductor industry because that’s the area where it could see the most growth. The company has already been making headway in several other areas of the chip market. With more than enough potential to grow significantly there as well.
The average value of semiconductors in a car was around $400 in 2018. But that figure is growing. Market watchers expect the emergent electric vehicle market to push that number to above $1000. Although, again, nothing is set in stone at this point. All of the potential mergers or acquisitions are simply market watcher predictions. All based on Samsung’s aim to enter the industry more aggressively.
If the company does enter that space, Samsung semiconductors may very well power future automotive technology. Samsung itself could stand to gain a good segment of the overall semiconductor market, in line with that market’s growth.