Samsung Electronics making an acquisition: Vice Chairman Han

Samsung Electronics Vice Chairman Han Jong-hee speaks during a shareholders meeting on March 16 at the Suwon Convention Center in Suwon, Gyeonggi. [NEWS1]

Samsung Electronics is making an acquisition, according to Samsung Electronics Vice Chairman Han Jong-hee.

His comments are in line with previous statements from company officers and come as Samsung Electronics faces challenges along a number of fronts, including those related to chip manufacturing yields and smartphone sales.

Han, who is a member of the company's board and heads smartphone and consumer appliance divisions, was attending the Samsung Ho-Am Prize ceremony late Tuesday when he was asked whether Samsung Electronics was in the process of making an acquisition.

He responded "yes, a review is underway," quickly adding that neither the timeframe nor the target could be identified.

In January during CES, Han said that the company will soon make "a great announcement" regarding an acquisition.

Chief Financial Officer Choi Yoon-ho noted last year that the company "has a positive view on the possibility of meaningful M&A in the upcoming three years."

Samsung Electronics had 107.8 trillion won ($85.4 billion) in cash as of the first quarter, according to a filing.

Potential takeover targets include NXP, Texas Instruments, Microchip Technologies and Analog Devices, according to multiple analysts including JJ Park, an analyst at J.P. Morgan.

Some investors are betting that local robotics companies are among the options.

Hyulim Robot, a Kosdaq-listed intelligent robot maker, went up by 24.87 percent to 4,920 won Tuesday, while Haisung TPC, a maker of reducers used in the operation of robots, rose by 16.21 percent to close at 9,820 won.

The electronics maker hired a veteran investment banker in April.

Marco Chisari was named executive vice president of the Samsung Semiconductor Innovation Center (SSIC) and the foundry business in the United States, following stints at Bank of America Merrill Lynch and Credit Suisse, where he advised on semiconductor deals.

"Mr. Chisari will bring his expertise in both investment banking and buyside, with particular focus on the semiconductor industry — an area in which he accrued over 25 years of experience with global Fortune 500 organizations, such as Bank of America Merrill Lynch, Credit Suisse, Mubadala, GlobalFoundries, J.P. Morgan, and STMicroelectronics," Samsung Electronics said in a statement.

The last major purchase by Samsung Electronics was of Harman, an American audio electronics company, in 2017.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]