[이코노믹리뷰=최진홍 기자] While Samsung Electronics has strengthened its strategic investment for three years, it is attracting attention by suggesting the possibility of mergers and acquisitions of semiconductor companies. It was said that Samsung Electronics’ core strategy will turn to the defensive due to Vice Chairman Lee Jae-yong’s arrest, but it is explained that Samsung Electronics is exploring various possibilities through aggressive investments.
As the global semiconductor market is fierce, such as AMD’s acquisition of Xilinx and Nvidia’s cancer, it is predicted that Samsung Electronics will also enter into a fierce M&A battle. As of the third quarter of last year, Samsung Electronics has a total cash assets of KRW 11.6 trillion, which is raising the expectations of the industry.
Samsung Electronics announced on the 28th that it recorded 61.5 trillion won in sales and 9.5 trillion won in operating profit through the 4th quarter of last year. Sales decreased 8.1% QoQ due to intensifying competition for set products and lower memory prices, and increased 2.8% YoY due to improved parts demand. It is explained that the operating profit decreased slightly compared to the previous quarter, and the operating margin fell to 14.7%.
A slight decline attracts attention, but it is evaluated that it was saved in a special situation called Corona 19.
In that extension, Samsung Electronics suggested an aggressive investment plan. This is because Yoon-ho Choi (CFO), CEO of Samsung Electronics’ Management Support Office, explained the shareholder return policy at a conference call and said, “We will actively utilize our resources to expand facility investment and promote mergers and acquisitions.” President Choi said, “It is true that the mergers and acquisitions were not properly implemented during the shareholder return policy period from 2018 to 2020,” he said. “It is difficult to specify the timing, but we will start a new shareholder return policy and try to merge and acquisitions.”
This indicates various possibilities including mergers and acquisitions by investing enormous capital over the next three years when the new shareholder return policy is applied. It is the first time that Samsung Electronics has officially mentioned a merger and acquisition after the case of Harman acquired in 2017.
The industry is paying attention to the possibility of a new merger and acquisition by Samsung Electronics. In the current situation, the most promising M&A target is semiconductor.
While Samsung Electronics is currently operating the No. 1 strategy in system semiconductors, it is investing enormous amounts of money into the semiconductor process while advancing its memory semiconductor strategy. However, in terms of foundry, it is showing a significant gap with TSMC of Taiwan, which is the number one global market.
Driven by momentum, TSMC is already expanding its factory by investing a huge amount of capital worth 3 billion dollars in the situation of strengthening close cooperation with local fablesses through the expansion of factories in the United States. While there is a high possibility that a fierce foundry order battle will take place, Samsung Electronics is also raising the possibility of investing at a comparable level or entering into mergers and acquisitions.
Prior to this, Bloomberg reported on the 21st (local time) that Samsung Electronics is constructing a semiconductor plant in Texas, US by investing 10 billion dollars. Intel is still pushing for 7-nano process self-production, but the possibility of consignment production is still open, and the probability of Samsung Electronics taking out meaningful M&A cards in the system semiconductor and foundry markets through huge investments is increasing.