Samsung's Harman Acquires ZF's ADAS Business for 2.6 Trillion Won, Advancing as a Comprehensive Automotive Electronics Company

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 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). This marks Samsung’s first automotive business acquisition in eight years since it acquired Harman in 2017.

Concept image of ADAS (Advanced Driver Assistance System). Samsung Electronics.

This year, Samsung Electronics has actively pursued investments to secure future growth engines by completing large-scale mergers and acquisitions (M&A) in HVAC (Germany’s FlaktGroup), automotive (Germany’s ZF), audio (U.S. Masimo), and digital health (U.S. Zelis). The company plans to continue innovating by combining its leadership in mobile, TV, and home appliances with Harman’s automotive technology, aiming to deliver an AI-powered hyperconnected mobility experience that links smartphones, smart homes, and smart cars into a single ecosystem.

Founded in Germany in 1915, ZF is a global comprehensive automotive company with over 100 years of history and technological expertise, offering a wide range of products from ADAS and transmissions to chassis and electric vehicle drive components. The ZF ADAS business acquired by Harman has established itself as the global leader in the smart camera segment of the ADAS industry, backed by more than 25 years of experience. Through collaborations with various SoC (System on Chip) companies, it has secured differentiated ADAS technologies and leads the market by supplying ADAS products to major global automakers.

Image of the ADAS (Advanced Driver Assistance System) product line by German company ZF. Samsung Electronics.

With this acquisition, Harman will secure key ADAS-related technologies and products, including vehicle front cameras and ADAS controllers, which play a crucial role in driver assistance. This will allow Harman to make a full-fledged entry into the rapidly growing ADAS market.

Recently, vehicles have evolved into Software-Defined Vehicles (SDVs) with the integration of IT and software, leading to a shift toward a centralized controller architecture that integrates the digital cockpit and ADAS. Through this acquisition, Harman will be able to integrate ADAS into its core digital cockpit product as a centralized controller, thereby gaining the capability to lead rapidly changing automotive trends and establishing a foundation to lead the SDV market, which is expected to transform the automotive industry paradigm.

The centralized controller architecture allows for easy updates of new software features via OTA (Over-the-Air) wireless vehicle software updates, offering customers a richer and more flexible experience and feature upgrades. The 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 in 2035, driven by factors such as safety and convenience.

Christian Sobottka, CEO of Harman and President of the Automotive Division, stated, "With this acquisition, we are adding the ADAS business to Harman’s product portfolio, establishing a strategic foothold to supply centralized integrated controllers at a technological inflection point where the digital cockpit and ADAS are converging in the automotive electronics market."

He added, "By combining Harman’s expertise in automotive electronics with Samsung’s leadership in IT technology, we will actively support automakers in transitioning to SDVs and next-generation centralized controllers."

Mathias Miedreich, CEO of ZF, commented, "Harman is the ideal partner to unlock the potential of the ADAS business, and we expect ZF’s ADAS division to continue to grow and innovate 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&As. This acquisition will further solidify Harman’s leadership in driving the transformation of the mobility industry and clearly demonstrates Samsung Electronics’ long-term commitment to future mobility."

The ADAS business acquisition process is expected to be completed within 2026.