Samsung Electronics announced on the 23rd that its subsidiary Harman International (Harman) will acquire the ADAS (Advanced Driver Assistance System) business of Germany’s ZF Friedrichshafen AG (hereafter ZF). The transaction is valued at EUR 1.5 billion (approximately KRW 2.6 trillion) and is seen as a strategic move by Harman to expand its automotive electronics portfolio and strengthen its competitiveness in the global market.

Harman’s acquisition of ZF’s ADAS business marks Samsung Electronics’ first major automotive electronics acquisition in eight years, following its purchase of Harman in 2017. This year alone, Samsung Electronics has pursued significant M&A activities across various sectors—including HVAC (FlaktGroup), audio (Masimo), and digital health (Xealth)—as it expands the technology base for future industries.

ZF is a leading German automotive electronics company with a history of more than 100 years and a broad product portfolio that includes transmissions, chassis, and electric vehicle driveline components. The ZF ADAS division being acquired by Harman has supplied products to global automakers for over 25 years and holds the No. 1 global market share in the smart camera segment.

Through this acquisition, Harman will secure key technologies that support vehicle driving, such as front cameras and ADAS controllers, and will make a full-scale entry into the rapidly growing ADAS market.

The automotive industry is recently being reorganized around IT technologies and evolving into SDVs (Software-Defined Vehicles). In this process, a centralized controller architecture that integrates the vehicle’s digital cockpit (a digitalized driver interface) with ADAS is emerging as a core structure.

Harman plans to leverage this acquisition to integrate its flagship digital cockpit products with ADAS technologies and establish itself as a key supplier accelerating the transition to SDVs. This architecture enables convenient enhancement of vehicle functions via OTA (Over the Air) wireless updates, offering the advantage of flexibly expanding the user experience.

According to market research, the ADAS and centralized controller market is projected to expand from approximately KRW 62.6 trillion in 2025 to KRW 189 trillion in 2035. With an average annual growth rate of 12%, it is regarded as a next-generation growth sector for the automotive industry.

Christian Sobottka, CEO of Harman, stated, “With this acquisition, Harman has laid the groundwork to secure leadership in the centralized controller market at a pivotal moment of technological change, where digital cockpits and ADAS are converging.”

Mathias Miedreich, CEO of ZF, also commented, “Harman is the optimal partner to maximize the potential of ZF’s ADAS business.”

Young Sohn, Chair of the Board of Directors of Harman, said, “This acquisition is the result of combining Samsung Electronics’ innovation DNA with Harman’s automotive electronics capabilities, and it will serve as a catalyst to strengthen long-term leadership in the future mobility market.”

Samsung Electronics plans not only to execute large-scale M&A through its Harman Collaboration Team, but also to create synergies between the diverse IT, software, and AI technologies of Samsung and the automotive and audio technologies of Harman, thereby further reinforcing its position as the No. 1 global automotive electronics and audio company with annual sales exceeding USD 20 billion by 2030. The acquisition of ZF’s ADAS business is expected to be completed by 2026.

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