With the recent shortage of global automotive chips, and the global automotive industry desperately needs the support of automotive electronics suppliers, Samsung is now focusing on automotive electronics. According to the Korean media “businessKorea”, Samsung CFO Choi Yunho officially announced at the earnings meeting on January 28 that the company plans to actively conduct mergers and acquisitions, and will focus on the automotive semiconductor market for mergers and acquisitions.
The report pointed out that the automotive semiconductor companies currently favored by Samsung, including NXP of the Netherlands (NXP), Texas Instruments (TI) of the United States, Renesas Semiconductor of Japan, etc., are all because of their expertise in the field of automotive electronics. Therefore, it is becoming a target favored by Samsung. According to relevant investment bankers in South Korea, Samsung has actually conducted relevant financial investigations on NXP and Texas Instruments in 2019. Moreover, there have been market rumors that Samsung is considering acquiring NXP Semiconductors.
The report emphasized that the current automotive semiconductors have huge growth potential, making Samsung also hope to enter. Semiconductors in a single car were worth about $400 in 2018, according to market research firm Gartner, but are expected to be worth more than $1,000 in 2024 when self-driving cars start to flourish. US dollar, a full 250% growth.
At present, the three major automotive semiconductor manufacturers named by the media currently have strengths in the market.
Texas Instruments is the world leader in analog semiconductors, mainly producing high-voltage power semiconductors, which are also key components for electric vehicles.
Renesas Semiconductor is a leading manufacturer of microcontrollers (MCUs), with the largest share of the automotive semiconductor market accounting for 30% and a 31% market share in the global MCU market, keeping pace with NXP. In addition, it acquired semiconductor design company IDT in 2018 to further enhance its capabilities in the field of self-driving semiconductors.
On the NXP side, it has dazzling technical capabilities in vehicle application processors (AP) and infotainment. Once it can be acquired, it is expected to produce strong synergies with Samsung’s past and recent acquisition of Harman, so the probability of being selected is high.
In terms of market value, Texas Instruments’ current market value is nearly $160 billion.
NXP is $48 billion.
Picture Renesas Semiconductor the least, but also about $21.1 billion.
The current market value of Texas Instruments (TI) is nearly $160 billion. If Samsung wants to acquire TI, it really makes people feel that the appetite is too big! However, based on the total cash held by Samsung at the end of the third quarter of 2020, which is about 104 billion US dollars, if you add stock replacement and other methods, it should be more than enough to acquire any of the above-mentioned automotive semiconductor companies, but it should not be necessary to acquire TI. Wishful thinking.
In addition, Samsung announced that it will become the world’s largest (surpassing TSMC) company not only in the memory business but also in the non-memory business by 2030. At present, this goal is impossible to achieve by expanding the sales of existing products, so large Large-scale mergers and acquisitions are essential.
With the recent shortage of global automotive chips, and the global automotive industry desperately needs the support of automotive electronics suppliers, Samsung is now focusing on automotive electronics. According to the Korean media “businessKorea”, Samsung CFO Choi Yunho officially announced at the earnings meeting on January 28 that the company plans to actively conduct mergers and acquisitions, and will focus on the automotive semiconductor market for mergers and acquisitions.
The report pointed out that the automotive semiconductor companies currently favored by Samsung, including NXP of the Netherlands (NXP), Texas Instruments (TI) of the United States, Renesas Semiconductor of Japan, etc., are all because of their expertise in the field of automotive electronics. Therefore, it is becoming a target favored by Samsung. According to relevant investment bankers in South Korea, Samsung has actually conducted relevant financial investigations on NXP and Texas Instruments in 2019. Moreover, there have been market rumors that Samsung is considering acquiring NXP Semiconductors.
The report emphasized that the current automotive semiconductors have huge growth potential, making Samsung also hope to enter. Semiconductors in a single car were worth about $400 in 2018, according to market research firm Gartner, but are expected to be worth more than $1,000 in 2024 when self-driving cars start to flourish. US dollar, a full 250% growth.
At present, the three major automotive semiconductor manufacturers named by the media currently have strengths in the market.
Texas Instruments is the world leader in analog semiconductors, mainly producing high-voltage power semiconductors, which are also key components for electric vehicles.
Renesas Semiconductor is a leading manufacturer of microcontrollers (MCUs), with the largest share of the automotive semiconductor market accounting for 30% and a 31% market share in the global MCU market, keeping pace with NXP. In addition, it acquired semiconductor design company IDT in 2018 to further enhance its capabilities in the field of self-driving semiconductors.
On the NXP side, it has dazzling technical capabilities in vehicle application processors (AP) and infotainment. Once it can be acquired, it is expected to produce strong synergies with Samsung’s past and recent acquisition of Harman, so the probability of being selected is high.
In terms of market value, Texas Instruments’ current market value is nearly $160 billion.
NXP is $48 billion.
Picture Renesas Semiconductor the least, but also about $21.1 billion.
The current market value of Texas Instruments (TI) is nearly $160 billion. If Samsung wants to acquire TI, it really makes people feel that the appetite is too big! However, based on the total cash held by Samsung at the end of the third quarter of 2020, which is about 104 billion US dollars, if you add stock replacement and other methods, it should be more than enough to acquire any of the above-mentioned automotive semiconductor companies, but it should not be necessary to acquire TI. Wishful thinking.
In addition, Samsung announced that it will become the world’s largest (surpassing TSMC) company not only in the memory business but also in the non-memory business by 2030. At present, this goal is impossible to achieve by expanding the sales of existing products, so large Large-scale mergers and acquisitions are essential.
