Samsung’s most powerful executives are touring the United States as investors want. This is a sign that Samsung is trying to roll out $ 100 billion in cash.
Since President Moon Jae-in agreed in August, Lee Jae-yong’s third generation has gone on his first overseas trip. Early release from prison Because it was for the national interest.
Conglomerate cash reserves Lee was behind the bar to bribe Moon’s predecessor, Puts the potential of Mega Deal on par with SoftBank’s original vision fund, the High-Tech Investment Vehicle.
Samsung, which acquired the US automotive technology group Harman for $ 8 billion in 2016 and made the final major acquisition, has emerged from the trading boom that has reshaped the tech industry.
According to IC Insights, semiconductor company M & A totaled over $ 200 billion over the past four years, reaching a record $ 118 billion in 2020, while Nvidia said. $ 54 billion The deal to acquire British chip designer Arm is currently under threat from regulatory authorities.
SK Securities analyst Kim Young-woo said, “In recent years, there have been many M & As in the tech industry, but Samsung was not on the list.” “This is something the top manager should deal with, but Lee was busy dealing with his legal issues.”
Faced with another trial on suspicion of financial crime, Lee meets vaccine developer Moderna and CEO of US telecommunications carrier Verizon to secure more US business 17 billion. We will announce the US location of the dollar semiconductor facility.
Shortly after its release, Samsung announced a $ 206 billion three-year investment plan to expand its footprint in semiconductors, biopharmacy, artificial intelligence and robotics.
The world’s largest producers of memory chips and smartphones are optimistic that they will be able to trade “meaningful sizes” within three years, actively considering fast-growing areas such as AI, 5G and automobiles. It states that it is doing.
Samsung’s recent acquisition
Internet of Things Platform Company
Mobile payment solution company
Connected car solutions, infotainment, telematics
AI-based network and service analysis company
Camera technology and solution company
Network service provider
But investors are afraid that the company is losing to its rivals and lacking a clear growth strategy. Its cash pile reached $ 102 billion in the third quarter, below US rival Intel’s $ 7.9 billion and Taiwan’s chip giant TSMC’s $ 31 billion.
“Because net cash is over 100 trillion won, shareholders want to return more cash if Samsung doesn’t use it for expansion,” said one industry insider with the company’s knowledge. rice field.
Samsung’s share price has fallen by more than 10% this year amid concerns about memory chips. “They have too much cash to allocate capital efficiently,” said James Lim, an analyst at Dalton Investments, a US hedge fund.
“There are concerns that Samsung could lag behind in memory competition, but investors don’t seem to be convinced that Samsung can become a non-memory leader,” he said. I added by mentioning the tip.
Samsung declined to comment. However, those familiar with the company’s thinking said they were confident that the group had created sufficient shareholder value.
Samsung’s very cautious approach is partly due to Lee’s pursuit of stable management since he dominated the $ 357 billion company in 2014.
The company’s bitter experience in trading and concerns about potential antitrust issues also contributed to the company’s hesitation over large-scale acquisitions.
According to fund managers, Samsung’s acquisition of AST in 1995 burned management as it lost local talent in the struggle to integrate a US computer company into its corporate culture. Recently, Samsung has been struggling to turn around Harman’s depressed profitability.
According to analysts, Samsung needs an acquisition in the foundry sector, a profitable market for manufacturing non-memory processor chips for other companies that lag Taiwan’s rival TSMC. ..
“It’s very important for Samsung to buy a non-memory company. Samsung is a global leader in memory chips, but the non-memory market is much larger,” said Paul, head of research at Seoul brokerage firm CLSA. Choi says.
Investors also Advances made by Chinese companies in the field of memory chips, Samsung has ruled for decades.
In the areas of telecom and AI, Samsung could identify highly specialized technology companies that can help develop interoperability between wireless networks and home appliances, according to people familiar with the company’s strategy. I have.
However, Silicon Valley venture capital veterans who have consulted about the sale of multiple tech companies do not want their founders to integrate with companies with a conservative reputation like Samsung, and have the ability to reach deals. He told FT that it was more complicated.
“For many founders, a company’s VC is considered to be at the bottom of the barrel, even when the company has a really big name in a technology like Samsung,” he said.
“There is always concern that you don’t match the mothership and they really don’t really think much about how they want to use your technology in their big picture.”
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Samsung investors look for guidance on plans for $100bn cash pile Source link Samsung investors look for guidance on plans for $100bn cash pile
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