Samsung acquires ZF Friedrichshafen’s autonomous driving unit for $1.8B, expanding Harman’s ADAS technologies and entering automotive electronics market

Samsung Electronics is strengthening its footprint in the automotive technology sector with a $1.8 billion agreement to acquire the autonomous driving technology unit of Germany’s ZF Friedrichshafen.

Also read: Konga Group CEO, Prince Nnamdi Ekeh, Wins Forbes, EuroKnowledge Global Awards In UK

The move forms part of the South Korean tech giant’s broader strategy to diversify beyond smartphones and memory chips as vehicles become increasingly software-driven.

The 1.5 billion euro ($1.77 billion) deal will integrate the assets into Harman, Samsung’s automotive subsidiary known for audio systems.

Through the acquisition, Harman will gain advanced driver assistance system (ADAS) technologies, including front-facing vehicle cameras and ADAS controllers, marking Samsung’s full-scale entry into the rapidly expanding driver assistance market.

ADAS technologies employ cameras and sensors to monitor lanes, detect nearby vehicles and pedestrians, and assist drivers in avoiding collisions.

The global market for ADAS and central vehicle controllers is expected to grow from 62.6 trillion won ($42.18 billion) in 2025 to 97.4 trillion won by 2030, underscoring the long-term growth potential behind the acquisition.

Jeff Kim, head of research at KB Securities, said, “As advanced driver assistance systems increasingly become the core technology underpinning telematics, the acquisition of an automotive electronics supplier focused on ADAS should be viewed positively.”

Analysts note that while Harman’s audio business faces intense competition, the strategic value lies in expanding Samsung’s presence in automotive electronics and telematics.

The transaction is expected to close by 2026.

It follows another major European acquisition announced in May, when Samsung agreed to purchase German cooling system maker FlaktGroup for 1.5 billion euros.

ZF Friedrichshafen, one of the world’s largest automotive parts suppliers, reported revenues exceeding 41 billion euros last year but has faced pressure from weak electric vehicle demand, global trade tensions, and a heavy debt burden from past acquisitions.

The company plans to cut up to 14,000 jobs in Germany, amid broader industry challenges that have seen roughly 55,000 positions lost since 2023.

For Samsung, the acquisition highlights an accelerating push to secure new growth engines.

Also read: Konga CEO, Prince Nnamdi Ekeh, Wins Forbes, EuroKnowledge Global Awards In UK

Over the past year, the company has pursued several major deals spanning climate control systems, audio technologies, and healthcare services, signalling a long-term strategy to diversify beyond consumer electronics and expand into industrial technology sectors.