Samsung Electronics has reduced 13 subsidiaries in 2021. This was the biggest drop in five years, following the 2016 acquisition of car electronic audio company Harman and the reduction of 18 subsidiaries in 2017. Some analysts believe that Samsung Electronics liquidates or sells underperforming subsidiaries before conducting large-scale mergers and acquisitions.
Samsung Electronics' "2021 Audit Report" released on the 22nd shows that as of the end of 2021, Samsung Electronics has a total of 228 subsidiaries. That's 13 fewer than the 241 at the end of 2020. Its subsidiaries have been declining after reaching a peak of 270 in 2017.
Samsung Electronics has liquidated Stellus Technologies, a company that manufactures and sells semiconductor storage systems for servers, and Sigmast Communications, a developer of Rich Communication Services (RCS) considered the next-generation SMS standard. In 2021, ZiiLabs, next-generation network traffic and quality of service analysis solutions company, and Harman Connected service, a Harman subsidiary, will be closed. Samsung Display's LCD factory in Suzhou, China, has been fully sold in early 2021 and has been excluded from the subsidiary. Viv Labs, an artificial intelligence platform company in Silicon Valley, and Prismview, an American LED company, were excluded from their subsidiaries through acquisitions.
Industry insiders believe that Samsung Electronics is likely to close down underperforming subsidiaries and have used existing cash assets for large-scale mergers and acquisitions. According to previous reports, Samsung Electronics intends to acquire automotive semiconductor companies in the near future, and Infineon and NXP are on the shortlist.
While liquidating underperforming subsidiaries, Samsung Electronics added some new companies to its list of subsidiaries. These include Samsung Venture Capital (SVIC) Funds 52, 55 and 56 established by Samsung Electronics to invest in new technology ventures.
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