Samsung Electronics to attend IAA Mobility 2023 in Germany for first time

[Image captured from IAA Mobility homepage]

Samsung Electronics Co. will participate in IAA Mobility 2023, the world’s leading trade fair for transport and mobility, being held in Munich, Germany, in September, for the first time, as it goes aggressive in investing in automotive electronics devices.

According to multiple sources from the electronics industry on Monday, Samsung Electronics is set to attend IAA Mobility 2023 being held from September 5 to 10.

IAA Mobility, formerly known as the Frankfurt Motor Show, is one of the four major auto shows in the world where global automakers and suppliers gather to showcase the latest innovative technologies and design the future of mobility.

At the upcoming exhibition, Samsung Electronics’ Device Solutions (DS) Division and Samsung Display Co. will introduce next-generation automotive semiconductor products and technologies.

As the automotive electrical and electronic equipment business gains prominence as a future growth area, the tech giant has been seeking to expand global presence in the field.

“The automotive industry (and the mobility sector more generally) is undergoing a period of significant and sustained change - Samsung memory technology will play a key role in this,” said Richard Walsh, vice president and head of memory marketing at Samsung Semiconductor Europe via its newsroom in July.

Samsung Electronics has been interested in the automotive electronic equipment business since 2016.

Recognizing the rapid growth of the smart car market, which combines automobiles with information and communication technology (ICT), Samsung Electronics acquired Harman International Industries Inc., a U.S. audio electronics company, to strengthen its electronic equipment business.

The acquisition drew much attention as it was the first merger and acquisition (M&A) conducted by Samsung Electronics Executive Chairman Jay Y. Lee who was vice chairman then after he became a registered director in September 2016.

It was also the largest acquisition of a foreign business by a Korean company in history. The tech giant acquired Harman for $8 billion at the time.

Harman’s performance has steadily grown, achieving record-high operating profit each year. The company posted an operating profit of 600 billion won ($457.14 million) in 2021 and 880 billion won in 2022, with securities analysts forecasting over 900 billion won in operating profit for this year.

The growth has been driven by increased profitability in the digital cockpit, or vehicle driver seat, and car audio markets.

“Harman, a global leader in automotive electronics solutions, accounts for more than 60 percent of sales in the automotive electronic business, including automotive infotainment and digital cockpits,” said Jung Min-kyu, an analyst at Sangsangin Investment & Securities Co.

“The in-vehicle experience market is expected to show an average annual growth rate of 10.4 percent, with the market size growing to $85 billion in 2028 from $47 billion in 2022.”

Harman has recently seen a significant increase in orders from major automakers in Europe and North America. In the second quarter of this year, the company secured its largest electronics order ever, according to Jung.

The company will be able to diversify its electronics business through synergies with other business units and further acquisitions, he added.