"Daughter" of Samsung buys ZF business and enters the market of unmanned auto electronics

Harman International, a subsidiary of Samsung Electronics, has struck a deal to acquire the driver assistance systems (ADAS) business of German auto supplier ZF Group for €1.5 billion ($1.8 billion), Harman said Dec. 23. Reuters points out that the deal reflects the South Korean tech giant's strategy to diversify its business beyond smartphones and memory chips.

Harman is acquiring a division of ZF, which makes driver assistance systems, including in-car computing solutions, smart cameras, radar and ADAS software, according to a Harman press release. The deal is valued at €1.5 billion and is expected to close in the second half of 2026.

"The industry is at a tipping point where security, intelligence and in-cabin experience must come together through a unified computing architecture," said Harman CEO and president of the company's automotive division Christian Zobottka (quoted in Business Wire).

Once the deal is finalized, Harman is expected to integrate ZF's ADAS capabilities into its Digital Cockpit product line (digital dashboard and in-vehicle infotainment systems), enabling automakers to deploy more scalable vehicle architectures with integrated safety systems, the company said in a press release.

The deal underscores Samsung's drive to diversify its business beyond smartphones and memory chips by strengthening its presence in the automotive electronics market, Reuters notes, emphasizing that the auto industry is now increasingly shifting its focus to managed software and sensors.

For ZF, the deal is important to reduce the company's debt burden. "This transaction makes an important contribution to reducing our company's debt and allows us to focus resources on key technologies in which ZF is a global leader," said ZF Group CEO Matthias Midreich (quoted by Business Wire). According to The Korea Times, ZF is one of the world's leading manufacturers of electronic auto components, with its ADAS business leading the global market for smart driver assistance cameras.

"Samsung has a successful history of strategic acquisitions that accelerate innovation," Harman Chairman and Senior Advisor to Samsung Electronics Young Sohn also noted (quoted in Business Wire).

Samsung acquired Harman in 2017 for $8 billion - making it the Korean company's largest overseas purchase. Since then, Harman's revenue has grown from $7 billion to more than $11 billion, the press release noted. According to The Korea Times, in the eight years since the acquisition, Harman's revenue doubled from 7.1 trillion won to 14.3 trillion won last year, and the company has also maintained a stable operating margin of 10 percent.

Automotive electronics is one of the priority growth areas for Samsung, The Korea Times notes. Samsung also announced a number of other acquisitions in 2025, including Germany's FlaktGroup in climate control, the audio business of the U.S. Masimo and the U.S. digital health company Xealth, the publication writes.

The global market for driver assistance systems (ADAS) and centralized controllers is estimated to grow from 62.6 trillion won ($42.2 billion) in 2025 to 189.3 trillion won by 2035, according to Samsung, The Korea Times reported.

This article was AI-translated and verified by a human editor