Samsung Electronics is strengthening its position in the rapidly evolving automotive technology sector with a $1.8 billion agreement to acquire the autonomous driving technology unit of Germany’s ZF Friedrichshafen. The move reflects the South Korean tech giant’s broader strategy to diversify beyond its core smartphone and memory chip businesses as vehicles become increasingly software-driven.
The 1.5 billion euro ($1.77 billion) deal will see the assets folded into Harman, Samsung’s automotive subsidiary best known for its audio systems. Through the acquisition, Harman will gain advanced driver assistance system (ADAS) technologies, including front-facing vehicle cameras and ADAS controllers, marking Samsung’s full-scale entry into the fast-growing driver assistance market.
ADAS technologies rely on cameras and sensors to monitor lanes, detect nearby vehicles and pedestrians, and assist drivers in avoiding accidents. Demand for such systems is rising sharply as automakers race to improve vehicle safety and move toward higher levels of automation.
Samsung said the global market for ADAS and central vehicle controllers is expected to grow from 62.6 trillion won ($42.18 billion) in 2025 to 97.4 trillion won by 2030, highlighting the long-term growth potential behind the acquisition.
Analysts note that while Harman’s audio business is already operating in a highly competitive environment, the real strategic value lies in expanding Samsung’s footprint in automotive electronics and telematics.
“As advanced driver assistance systems increasingly become 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.
The transaction is expected to close by 2026, Samsung said. It follows another major European acquisition announced in May, when the company agreed to buy German cooling system maker FlaktGroup for 1.5 billion euros.
ZF Friedrichshafen, one of the world’s largest automotive parts suppliers, reported revenues exceeding 41 billion euros last year. However, the privately held group has been under pressure from weak electric vehicle demand, global trade tensions, and a heavy debt burden stemming from past acquisitions. The company announced plans last year to cut up to 14,000 jobs in Germany.
The deal comes amid broader challenges for Germany’s auto sector, which has shed roughly 55,000 jobs since 2023, according to industry association VDA, with suppliers bearing the brunt of the downturn.
For Samsung, the acquisition underscores an accelerating push to secure new growth engines. Over the past year, the company has pursued a series of sizable deals spanning climate control systems, audio technologies, and healthcare services, signaling a long-term bet on diversification and industrial technology beyond consumer electronics.