Samsung intends to acquire automotive chip factory
Samsung Electronics’ semiconductor sales in the second quarter of this year surpassed Intel to become the world’s number one. However, officials are still full of tension and are expected to continue to expand the size of the empire.
In a conference call with investors after the recent earnings report, Samsung executives stated that the company is preparing for larger acquisitions in the next few years. Although they did not make a potential list, analysts said that Samsung will pay close attention to entities focused on foundry and entities related to automotive components.
Korean media “businesskorea” quoted industry insiders as revealing that Samsung Electronics is likely to acquire a car chip maker. “Candidates include NXP, Texas Instruments and Microchip Technology. Sources said that although the current profit of automotive chips is lower than that of smartphones, computers and server chips, with the development of self-driving cars, profit margins may soar in 2024.
According to media reports such as the Wall Street Journal, Samsung’s semiconductor division’s sales in the second quarter were US$19.7 billion, surpassing Intel’s US$19.6 billion and becoming the world’s first. Intel’s sales also include sales from the NAND division that recently decided to sell to SK Hynix. Excluding this item, Intel’s sales are $18.5 billion.
It is worth noting that Samsung’s cashable assets in the first quarter totaled 111.2 billion U.S. dollars, while Intel and TSMC’s cashable assets were 23.8 billion U.S. dollars and 28.1 billion U.S. dollars, respectively.
TSMC is expected to invest 28 billion U.S. dollars this year, and Intel is preparing to invest 20 billion U.S. dollars to build two foundries in Arizona.
Semiconductor competition is intensifying. Market research agency Jibang said that in the first quarter of this year, TSMC and Samsung accounted for 55% and 17% of the foundry market, respectively. Intel, which is supported by the US government and large technology companies, said last month that it has secured Qualcomm and Amazon as client companies. Qualcomm is one of Samsung’s main customer companies.
One of the reasons for Samsung’s current lack of big moves is the absence of the young master Li Zaiyong. Korean media “Korea Times” reported that industry insiders said that once he is released from prison, decisions involving major investments may speed up. August 15 is the “Recovery Day” in South Korea. It is reported that Lee Jayong has a chance to be released on parole or pardon that day.