Samsung‘s Electro-Mechanics arm has reportedly been looking for bidders to buy its Wireless Communication business. According to a report, the company might announce a preferred bidder as early as this month. And the deal surely has more than one benefit.
TheElec says that out of nine companies, Samsung Electro-Mechanics has recently narrowed down the bidders to two. It adds that the company will reportedly announce one of the bidders as the “preferred one” by this month whilst starting negotiations of the deal. Although the names of two shortlisted bidders are not known, the report says that they already produce components for Samsung Electronics.
And talking about the deal, as per KB Securities, Samsung is quoting over 100 billion won($89 million). In return, the bidder will get the company’s wireless business and 100 existing employees. Additionally, the preferred bidder can also enjoy a sweet deal of selling Wi-Fi modules to Samsung Electronics. This is a tempting offer as the company who signs the deal gets a 3x offer for one.
Who is Samsung Electro-Mechanics?
For the unware, Samsung Electro-Mechanics is a subsidiary of Samsung Group. Headquartered in Suwon, Gyeonggi-do, South Korea, the company makes electronic components. Accordingly, the list includes MLCCs(Multi-Layer Ceramic capacitors), RF-PCBs(Printed Circuit Boards). And others like Camera Modules, Network Modules, and semiconductor substrates.
That said, the wireless modules business, which is under its module solutions, reportedly is only 10% out of the company’s entire business. Still, it has been making Wi-Fi, and WiGig modules so far. Here, WiGig refers to a wireless standard that allows Wi-Fi devices to use the 60GHz mmWave for low-latency fast wireless connectivity.
Although we don’t know the real motive of the company for selling this business, we do know that it’s entering the mid-range camera segment after supplying premium smartphones for a while. Accordingly, the company will initially supply camera modules for Galaxy A52/A72, and other budget smartphones going into 2021.
