Samsung apparently wants to enter the semiconductor auto parts industry extensively by acquiring companies and merging with other companies. Recently, the company’s chief financial officer, Choi Yoon-ho, recently denied delays in his plans due to the arrest of the company’s heir, Lee Jae-yong, and said that Samsung was advancing its plans.
The Koreans have not yet named a specific company to buy or merge with, but according to a report Korean News Agency, Samsung is considering three companies. These companies include NXP, Texas Instruments and Ronas Electronics. These companies have experience in the automotive semiconductor industry, and Samsung can benefit from them.
The total market value of these three companies is less than $ 221.8 billion, which makes Texas Instruments more valuable than other companies. Given that the final cost of acquiring these companies will be less than this amount, and Samsung had more than $ 104 billion in liquid assets at the end of the third quarter of 2020, it can acquire any of these companies.
Samsung seems to be aware of the growth of the semiconductor car market and wants to make such a purchase. The Koreans have entered some of the semiconductor market segments and now want to experience more growth in the automotive market.
The average price of semiconductor parts in the automotive market in 2018 was $ 400, but this amount is increasing and is expected to reach more than $ 1,000 as electric vehicles enter the market more widely.
Samsung has not yet officially announced the acquisition of any of these companies, and market analysts have predicted such deals. However, given the significant increase in demand for electric vehicles, as well as the possibility of a shortage of parts in this part of the market, such a forecast seems reasonable.
If the Koreans can enter this segment of the market, they will have a stronger presence in the semiconductor market, and maybe one day in the future most cars will be equipped with parts.