By Heekyong Yang
SEOUL, Dec 23 (Reuters) – Samsung Electronics announced on Tuesday a $1.8 billion deal to acquire Germany’s ZF Friedrichshafen’s autonomous driving technology unit to combine it with its audio business and offer next-generation in-car platforms.
Samsung said the 1.5 billion euro ($1.77 billion) deal will allow Harman to secure advanced driver assistance system-related technologies and products, including front-facing vehicle cameras and ADAS controllers, marking a full-scale entry into the fast-growing driver assistance market.
ADAS technologies use cameras and sensors to detect the surrounding environment, including lanes, the distance to vehicles ahead and pedestrians to assist safe driving.
The deal underscores Samsung’s push to diversify beyond smartphones and memory chips by strengthening its exposure to vehicle electronics, as cars become increasingly software and sensor-driven.
Samsung said the market for ADAS and central vehicle controllers is expected to expand in size from 62.6 trillion won ($42.18 billion) in 2025 to 97.4 trillion won in 2030.
Analysts said Harman’s audio business is already highly competitive, but the more important factor is the continued growth of the global telematics market.
“As advanced driver assistance systems are increasingly becoming the core technology underpinning telematics, the acquisition of an automotive electronics supplier focused on ADAS should be viewed positively,” said Jeff Kim, head of research at KB Securities.
Samsung said the transaction is expected to close within 2026. The acquisition is Samsung’s latest major deal this year, after it announced a 1.5 billion euro agreement to buy German cooling system maker FlaktGroup in May.
ZF Friedrichshafen, based in southwestern Germany, is one of the world’s largest car parts suppliers, and last year reported revenues of more than 41 billion euros.
The unlisted group announced plans last year to eliminate up to 14,000 positions in Germany as the auto industry struggles with weak electric vehicle demand and global trade tensions. ZF also has a high debt burden from past acquisitions.
Germany’s auto sector has shed about 55,000 jobs since 2023, according to German industry association VDA, with suppliers hit the hardest.
Samsung Electronics has stepped up investment to secure future growth drivers, carrying out a string of sizable acquisitions this year ranging from air conditioning and heating systems to audio business and healthcare services.
($1 = 1,484.1500 won)
($1 = 0.8495 euros)
(Reporting by Heekyong Yang in Seoul; Additional reporting by Christina Amann in BerlinEditing by Ed Davies, Shri Navaratnam and Frances Kerry)
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