Full-scale Entry into the ADAS Market
Expanding Beyond Home Appliances and Smart Homes to Automobiles
Samsung Secures Future Growth Engines
Samsung Electronics has strengthened its automotive electronics business by acquiring the ADAS (Advanced Driver Assistance System) division of Germany's ZF Friedrichshafen AG through its subsidiary Harman.
According to Samsung Electronics on December 23, the acquisition of ZF's ADAS business is valued at 1.5 billion euros (approximately 2.6 trillion won), marking the company's first automotive electronics acquisition in eight years since it acquired Harman in 2017.
This year, Samsung Electronics has actively pursued investments to secure future growth engines through large-scale mergers and acquisitions, acquiring companies in HVAC (Germany's FlaktGroup), automotive electronics (Germany's ZF), audio (USA's Masimo), and digital health (USA's Zelis). The company plans to continue its innovation by combining its leadership in mobile, TV, and home appliances with Harman's automotive technology, providing an AI-based hyperconnected mobility experience that integrates smartphones, smart homes, and smart cars into a single ecosystem.
Founded in Germany in 1915, ZF is a global comprehensive automotive electronics company with over a century of history and technological expertise, spanning a wide range of businesses including ADAS, transmissions, chassis, and electric vehicle drive components. The ZF ADAS business acquired by Harman is the global leader in the smart camera sector for ADAS, backed by over 25 years of experience. By collaborating with various SoC (System on Chip) companies, it has developed differentiated ADAS technologies and supplies ADAS products to major global automakers, leading the market.
Image of the ADAS (Advanced Driver Assistance System) product line by German company ZF. Samsung Electronics.
Through this acquisition, Harman will secure key ADAS-related technologies and products, such as front-facing vehicle cameras and ADAS controllers, which play a crucial role in driver assistance. This marks Harman's full-scale entry into the rapidly growing ADAS market.
Recently, automobiles have evolved into software-defined vehicles (SDVs) by integrating IT and software, shifting toward a centralized controller structure where the digital cockpit and ADAS are integrated. With this acquisition, Harman will be able to integrate ADAS into its flagship digital cockpit products using a centralized controller architecture, gaining the capability to lead rapidly changing automotive trends and establishing a foundation to drive the SDV market, which is expected to transform the future automotive industry.
The centralized controller architecture allows new software features to be easily updated via OTA (Over the Air) wireless vehicle software updates, providing customers with richer and more flexible experiences and feature upgrades. Its systematic software structure design also simplifies maintenance and can shorten the overall development period, including both products and related software.
Samsung Electronics acquired the ADAS business of German company ZF through its subsidiary Harman on the 23rd. From left to right: Mathias Miedreich, CEO of ZF; Youngkwon Son, Chairman of Harman's Board; Christian Sobottka, CEO of Harman and President of the Automotive Division. Samsung Electronics.
The ADAS and centralized controller market is expected to grow from 62.6 trillion won in 2025 to 97.4 trillion won in 2030, and to 189.3 trillion won by 2035, driven by factors such as safety and convenience.
Christian Sobottka, CEO of Harman and President of the Automotive Division, stated, "By adding the ADAS business to Harman's product portfolio through this acquisition, we have established a strategic foothold to supply centralized integrated controllers in the automotive electronics market, which is at a technological inflection point with the integration of digital cockpits and ADAS."
He added, "By combining Harman's expertise in automotive electronics with Samsung's leadership in IT technology, we will actively support automakers' transition to SDVs and next-generation centralized controllers."
Mathias Miedreich, CEO of ZF, said, "Harman is the ideal partner to unlock the potential of the ADAS business, and we expect ZF's ADAS division to continue its growth and innovation together with Harman in the future."
Youngkwon Son, Chairman of Harman's Board, emphasized, "Samsung Electronics has continuously built a track record of accelerating innovation and delivering new value to customers through strategic M&A. This acquisition will further solidify Harman's leadership in driving the transformation of the mobility industry, while clearly demonstrating Samsung Electronics' long-term commitment to future mobility."
The acquisition process for the ADAS business is expected to be completed within 2026.
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