According to Korean media businesskorea, Samsung Electronics is expected to announce a large-scale merger (M&A) transaction in the near future. In order to develop non-memory businesses, the company has listed Infineon and NXP as acquisition targets.
Han Jong-hee, vice president of Samsung Electronics' DX business unit, said at "CES 2022" on the possibility of mergers and acquisitions (M&A): "If M&A transactions can be completed faster, we will choose them instead of going it alone. I think there will be good news soon."
Some analysts believe that Samsung Electronics may acquire automotive semiconductor companies. Candidates include Infineon and NXP, which make microcontrollers (MCUs) and power management integrated circuits (PMICs) for automobiles.
It is reported that Samsung Electronics launched a general-purpose flash memory for automobiles in 2017, and then supplied the automotive processor "Exynos Auto 8890" to German carmaker Audi. The company also supplied the "Exynos Auto V9" to Hyundai in 2019. Since late last year, it has supplied high-performance solid-state drives (SSDs) and graphics DRAMs to overseas automakers.
Samsung Electronics said early last year that it would advance meaningful M&As within three years. The company has more than 100 trillion won in cash. According to Samsung Electronics' financial statements for the third quarter of 2021 (July-September), Samsung Electronics' net cash (cash and realizable assets) was KRW 101.4 trillion.
However, industry insiders believe that supply chain competition may become a variable for Samsung Electronics M&A. Due to the spread of the epidemic, semiconductor supply has been insufficient. Therefore, all countries regard ensuring chip safety as their top priority and do not want to sell their domestic chip companies to foreign countries.
"Europe will not allow Infineon or NXP to sell to companies in other countries," an industry source said.
It is rumored that Samsung will announce a large-scale M&A transaction in the near future, Infineon or NXP are the acquisition targets
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