Samsung will soon announce large-scale M&A deals for Infineon or NXP as the targets for acquisitions

Image source: businesskorea

According to The Korean media businesskorea, it is expected that Samsung Electronics will announce a large-scale merger and acquisition (M&A) transaction in the near future, and the company will list Infineon and NXP as acquisition targets in order to develop non-memory business.

Han Jong-hee, vice president of Samsung Electronics' DX business unit, said at CES 2022 about the possibility of mergers and acquisitions (M&A): "If we can complete M&A deals 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 produce microcontrollers (MCUs) and power management integrated circuits (PMICs) for automotive.

It is reported that Samsung Electronics launched general-purpose flash memory for automobiles in 2017, and after that, it provided the car processor "Exynos Auto 8890" to German automaker Audi. The company also supplied the "Exynos Auto V9" to Hyundai Motor in 2019. Since the end of last year, high-performance solid-state drives (SSDs) and graphics DRAM have been offered to overseas automakers.

Samsung Electronics said early last year that it would advance meaningful M&A within 3 years. The company has more than 100 trillion won in cash. According to Samsung Electronics' financial statements for the third quarter of 2021 (July to September), Samsung Electronics' net cash (cash and realisable assets) was 101.4 trillion won.

However, industry insiders believe that supply chain competition may become a variable of Samsung Electronics M&A, due to the spread of the epidemic, semiconductor supply has been insufficient, therefore, countries are to ensure chip security as the primary task, do not want to sell their own chip companies to foreign countries.

An industry insider said: "Europe will not allow Infineon or NXP to sell to companies in other countries. ”

(Proofreading/Kapok)