Harman International, a subsidiary of Samsung Electronics, has announced the acquisition of the Advanced Driver Assistance Systems (ADAS) business from Germany-based ZF Friedrichshafen AG, with the transaction valued at €1.5 billion. This move not only marks a significant breakthrough for Samsung in the field of autonomous driving technology but also signals a major shift in the automotive electronics industry landscape.

Since acquiring Harman International for $8 billion in 2017, Samsung Electronics has been steadily advancing in the automotive electronics sector. As a global leader in automotive audio and in-vehicle technology, Harman has experienced substantial growth in recent years, with its revenue increasing from 7.1 trillion won in 2017 to 14.3 trillion won in 2024. The acquisition of ZF's ADAS business marks Samsung's first large-scale foray into the automotive electronics field in eight years, aimed at further consolidating its position in autonomous driving and smart car technologies.

ZF's ADAS Business

ZF's ADAS business, with over 25 years of industry experience, currently holds a leading position in the global ADAS smart camera market. The business encompasses computing solutions, smart cameras, radar technology, and ADAS software functions, providing products and services to major global automakers. ZF collaborates with multiple System on Chip (SoC) companies to develop differentiated ADAS technologies, and its products are renowned for their high performance and reliability.

Acquisition Details and Strategic Significance

The acquisition is expected to be completed in the second half of 2026, subject to necessary regulatory approvals. Upon completion of the transaction, approximately 3,750 ZF employees will join Harman. Harman plans to integrate ZF's ADAS technology into its digital cockpit solutions to form a centralized computing architecture, offering smarter and safer vehicle solutions to automakers.

From a strategic perspective, this acquisition will position Harman more favorably in the Software-Defined Vehicle (SDV) domain. By integrating ZF's ADAS technology, Harman will be able to provide more comprehensive solutions to automakers, covering safety, perception, intelligence, connectivity, and in-vehicle systems, thereby establishing strong competitiveness in the automotive electronics field.

For ZF, the sale of its ADAS business is a significant step in its strategic adjustment. ZF plans to reduce financial liabilities through this transaction and focus resources on core areas such as chassis, powertrain, commercial vehicles, and industrial applications. Mathias Miedreich, CEO of ZF, stated, "The cooperation with Harman will fully unleash the growth and innovation potential of our ADAS business while providing better development prospects for employees."

Market Prospects

Once the acquisition is completed, Harman will leverage its integrated technological advantages to capture a larger share of the autonomous driving and smart car markets. As automakers' demand for software-defined vehicles increases, Harman's centralized computing architecture and ADAS technology will offer more competitive solutions to the market. Additionally, by selling its ADAS business, ZF will be able to focus more on its core technologies and business areas, further consolidating its leadership in commercial vehicles and industrial applications. This transaction not only brings financial improvement to ZF but also provides broader strategic development opportunities for its future.

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