Samsung Electronics is accelerating efforts to secure future growth engines, having executed four large-scale mergers and acquisitions (M&A) just last year. Based on this, expectations are rising for the establishment of a hyper-scale AI ecosystem connecting smartphones, smart homes, and smart cars.

KRW 6 trillion-scale acquisitions for ‘four new growth engines’

In May last year, Harman International, Samsung Electronics’ automotive and audio subsidiary, acquired the audio division of U.S. medical device company Masimo for USD 350 million (about KRW 500 billion). This was a major M&A deal concluded eight years after Samsung Electronics acquired Harman in 2016.

Through this acquisition, Harman secured a number of well-known audio brands, including Bowers & Wilkins (B&W), the high-end brand of Masimo’s audio division. Together with its existing brands such as JBL, Harman Kardon, and AKG, Harman has effectively completed a global audio portfolio. This is expected to generate significant synergies for Samsung Electronics’ overall business, as high-quality audio solutions can now be applied across all product categories, including TVs, smartphones, and soundbars.

Samsung Electronics also acquired Germany’s FlaktGroup, the largest HVAC (heating, ventilation and air conditioning) company in Europe, for EUR 1.5 billion (about KRW 2.5 trillion). As the AI data center market grows, this move is aimed at swiftly expanding its presence in the global HVAC market. This was followed by the acquisition of digital healthcare company Xealth in July and the ADAS (Advanced Driver Assistance Systems) business of Germany’s ZF Friedrichshafen in December last year.

In particular, through the acquisition of ZF’s ADAS business, Samsung has secured technologies and products that play a key role in automotive driving assistance, such as forward-facing cameras and ADAS controllers, and is expected to make a full-scale entry into the fast-growing ADAS market. The plan is to expand its role from an in-vehicle electronics manufacturer that implements in-cabin information to areas that recognize and assess driving conditions. Until now, Harman has grown its automotive electronics business around digital cockpits, infotainment, and car audio.

Samsung Electronics is estimated to have spent about KRW 6 trillion solely on M&A deals last year. Based on the disclosed transaction amounts, it invested about KRW 5 trillion in total for the acquisitions of FlaktGroup and ZF’s ADAS business, each valued at EUR 1.5 billion, and spent USD 350 million (about KRW 500 billion) on the acquisition of Masimo’s audio division. The acquisition price for Xealth has not been disclosed.

This acquisition strategy is also aligned with the future growth engines highlighted by Samsung Electronics. Roh Tae-moon, President and CEO of Samsung Electronics and head of the Device eXperience (DX) Division, named four “new growth engines”—HVAC, automotive electronics, medical technology, and robotics—at a press conference held in Las Vegas on the eve of CES 2026, the world’s largest home appliance and information technology (IT) exhibition. Most of last year’s M&A deals fall into these categories. In robotics, Samsung had already begun acquiring shares in Rainbow Robotics in 2023.

The ‘AI empire’ envisioned by Samsung… Further M&A expected

Samsung Electronics’ M&A drive can be seen not as simple expansion of scale, but as a structural strategy to seize leadership in the future infrastructure market centered on AI and data. If each business progresses smoothly, the company is expected to move closer to its goal of becoming a “comprehensive AI IT company.” As automotive electronics technologies are added to Samsung’s core businesses such as semiconductors, displays, cameras, smartphones, and home appliances, expectations are building that a single ecosystem spanning smartphones, smart homes, and smart cars will be established.

Roh also stated, “We will equip all Galaxy smartphones, premium TVs of 4K and above, and home appliances with Wi-Fi connectivity with AI,” adding, “This year we are targeting total shipments of 400 million AI-applied new products.” At the “Samsung Galaxy Unpacked” event in July 2024, Samsung had declared that it would apply “Galaxy AI” to 200 million units and subsequently delivered on that pledge; the new target announced about a year later is double that figure.

Industry observers expect Samsung Electronics to continue pursuing large-scale M&A this year as well to secure future growth engines. This is because the company established an M&A team within its Business Support Task Force in November last year. In addition, based on its third-quarter business report, Samsung holds approximately KRW 53 trillion in cash and cash equivalents, and its current assets total KRW 230 trillion, leading to the assessment that it has ample financial firepower.

There is particular continued interest in M&A in the semiconductor sector. To date, Samsung Electronics’ M&A activity has been centered on non-semiconductor businesses. This appears to be due to a combination of factors such as global antitrust regulations and the scarcity of acquisition targets. However, competitors such as Intel are expanding through M&A. Although ultimately shelved, Samsung Electronics had sought to acquire Dutch semiconductor company NXP to strengthen its automotive semiconductor business.

Additional M&A in the robotics field is also anticipated. Roh stated at CES 2026 that the company is “reviewing investments in multiple companies to strengthen competitiveness in the robotics business.” Samsung has also begun moves to secure talent in robotics. According to industry sources, Samsung is recruiting research personnel in robotics and embedded intelligence at Samsung Research America, its R&D base in the United States. The annual salary for a principal researcher can reach up to about KRW 530 million, roughly KRW 200 million higher than that of principal researchers in the memory area, underscoring the company’s strong commitment to the robotics business.

‘Semiconductor supercycle’… Driving Korea’s first KRW 100 trillion in operating profit

In parallel, the Device Solutions (DS) Division, which is responsible for Samsung Electronics’ core semiconductor business, is entering a supercycle.

Samsung Electronics announced that, on a preliminary basis, it recorded revenue of KRW 333.6059 trillion and operating profit of KRW 43.6011 trillion last year. On an annual basis, revenue reached the highest level on record. Operating profit was the fourth highest ever, following 2018 (KRW 58.89 trillion), 2017 (KRW 53.65 trillion), and 2021 (KRW 51.63 trillion).

Both fourth-quarter revenue and operating profit reached record highs. Revenue came to KRW 93.8374 trillion and operating profit to KRW 20.0737 trillion, surging 23.8% and 209.2% year-on-year, respectively. The DS Division’s performance was particularly notable. Fourth-quarter DS revenue increased 46% to KRW 44 trillion, while operating profit soared 465% to KRW 16.4 trillion. Given that total fourth-quarter operating profit was about KRW 20 trillion, the DS Division accounted for roughly 80%.

This appears to have been heavily influenced by the surge in AI demand, which led to shortages even in general-purpose DRAM such as Double Data Rate (DDR)5. According to market research firm Counterpoint Research, Samsung’s fourth-quarter 2025 memory revenue reached USD 19.2 billion (about KRW 28 trillion) for DRAM and USD 6.7 billion (about KRW 9.8 trillion) for NAND flash, ranking first in the global market in both categories.

The high bandwidth memory (HBM) business is also starting to bear fruit. As HBM3E revenue expanded belatedly, the market estimates that Samsung’s fourth-quarter HBM-related revenue likely reached KRW 6 trillion–7 trillion. With DRAM prices continuing to rise and sales of HBM4 entering full swing, some forecasts suggest that Samsung Electronics’ annual operating profit could exceed KRW 100 trillion this year, a first for a Korean company. Counterpoint Research noted, “Samsung’s new smartphone line-up, the Galaxy S26 series, is about to be launched, and it is also expected to smoothly pass NVIDIA’s HBM4 quality tests, so record results are anticipated next quarter as well.”

Samsung Electronics expects the growth trend in the semiconductor business to continue in the first quarter of this year, driven by demand for AI and servers. Accordingly, the DS Division plans to lead the market through mass production and shipment of HBM4 products, including those with speeds of 11.7Gbps.

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