Mergers of chip companies set a record in 2020 but Samsung was notable by its absence (see Mergers of chip companies set a record in 2020). During a conference call with investors on January 28, Choi Yoon-ho, CFO of Samsung Electronics, said that while a lot of preparations for M&As have been in progress there will also be massive facility investments, according to a Korea Times report.
Automotive semiconductors is a high growth sector where Samsung has little chip presence. It is also one where chips are currently in short supply and likely to be subject to large price increases in the short-to-medium term (see Report: Chipmakers raising prices 10 to 20 percent) prompting speculation that Samsung may make a play for one of the leaders in the automotive chip market.
At the same time reports have said it may try to acquire Globalfoundries to increase its economies of scale in the foundry business where it lies in second place to TSMC in terms of technology. Mubadala, the sovereign wealth fund of Abu Dhabi that owns Globalfoundries, has been rumoured to be in sales discussions on several occasions in the past but the plan of record is for Globalfoundries to go public in late 2022.
Next: Plenty of cash