Shown above is Samsung Electronics Vice Chairman Han Jong-hee. He talked about the company’s imminent M&A. Photo courtesy of Samsung Electronics

Vice Chairman Han talks about M&A

South Korea’s Samsung Electronics is striving to take over a company or companies, according to the tech giant’s Vice Chairman Han Jong-hee on May 31.

The senior official talked about the merger and acquisition (M&A) to reporters at the Hotel Shilla where the Samsung Award ceremony took place.

Asked about whether the M&A process is underway, he responded positively, noting, “You can say that.”

But he refused to elaborate on what company or companies are targeted or when the M&A will be announced.

During this year’s Consumer Electronics Show in Las Vegas, Han also commented that Samsung Electronics was striving for M&A in the semiconductor or home appliance businesses.

Back then, he said, “A good piece of news is just around the corner.”

Observers expect that Samsung will try to acquire a powerhouse in the semiconductor business.

“Samsung Electronics is required to secure a new growth engine in the foundry industry through an M&A,” Eugene Investment & Securities analyst Lee Seung-woo said.

A foundry refers to a chip fabrication plant. The foundry model is a business model consisting of a foundry and an integrated circuit design operation, each belonging to separate entities.

Samsung hopes to rack up a fast growth in the foundry business.

Relatively reluctant to aim for inorganic growth, Samsung Electronics was not proactive in the M&A market.

Under the leadership of Vice Chairman Lee Jae-yong, however, the corporation changed its stance.

For one, the Seoul-based outfit spent $8 billion in 2016 to acquire Harman, the market leader in connected car solutions. Tens of millions of vehicles are equipped with Harman’s connected car and audio systems.