What Display Daily thinks: Family businesses are usually subject to the same vicissitudes of life as family dinners and family relationships. Is Continental. essentially the Schaeffler family businss, in trouble or is it just not where it needs to be to keep its owners happy?
Who cares. The display and electronics business should be on fire right now, but it seems like it is only up for a fire sale. If these rumors are true, it’s good news for Samsung, and it makes little sense for Continental as a brand and player in the automotive business.
And if Samsung really wants to accelerate its market position in the automotive business then maybe it should take some of that sweet MicroLED tech it has and start applying it to the market. Unlike some analysts, I am less gung ho on OLED in automotive than I am on MicroLED as a future tech, but I am also sober enough to know that MicroLED companies are bound by so many issues that they are not ready to take full advantage of the opportunities. I don’t think this is a technical issue so much as a product issue.
Samsung may be the best positioned company to take MicroLED to the automotive market and dull the edge that LG has in that market right now.
Ironically, even though I do so badly want the MicroLED industry to make displays that are relevant to me (ie, nothing to do with headsets and smart glasses), when asked by an investor recently whether he should invest in MicroLED companies – having been inundated with requests – I said, no way. Unless the MicroLED company begging at your door has an end product goal then forget it, and most startups in the sector don’t have an end product goal, preferring to look for a niche with a big company like, you guessed it, Samsung. Or just rambling on about AR and VR and Apple.
Samsung Rumored to Be Acquiring Continental Electronics Business
According to a report in Business Korea, Samsung Electronics is rumored to be in discussions to acquire parts of the automotive electronics segment from Continental, a Germany-based global automotive electronics company. This potential acquisition is being considered after Samsung’s last major merger and acquisition event in 2017, when it acquired Harman.
The segments under consideration for acquisition include Continental’s Advanced Driver Assistance Systems (ADAS) and automotive displays. Continental has been exploring the sale of various business divisions, including ADAS and displays, due to challenges in achieving profitability in its future mobility business, despite substantial investments in manpower and resources.
Harman, a subsidiary of Samsung Electronics focusing on automotive businesses, has shown interest in enhancing its competitiveness in areas like ADAS and supports the idea of acquiring Continental’s automotive electronics segment. The final decision on this acquisition lies with the top executives of Samsung Electronics, but the involvement of key Harman board members, who have historically influenced Samsung’s investment decisions, suggests a significant possibility of the acquisition proceeding.
While Samsung Electronics has paused most of its merger and acquisition activities, Harman has continued to expand by acquiring several companies, including Savari in 2021; Apostera and CAARESYS in 2022; and Flux and Roon in 2023. Continental, established in 1871, is among the top 10 global automotive parts companies and is a leading company in the global tire market based on sales revenue.
