Samsung Electronics bets on US medtech with Element Biosciences stake, signaling M&A push

Samsung becomes largest shareholder in Element Biosciences with $175 million investment; flush with 147 trillion won in cash, the company is expected to accelerate acquisitions in HVAC, automotive, medtech and robotics

Samsung Electronics' Digital City campus in Suwon [Samsung Electronics]

Samsung Electronics has emerged as the largest shareholder in Element Biosciences, a US genetic analysis equipment company, drawing fresh attention to the tech giant's mergers and acquisitions strategy. The move showcases Samsung's progress in medtech, a sector it has identified as a future growth engine, and analysts say it could accelerate further acquisitions aimed at securing new business lines.

The company has already been active on the deal front. Last year it acquired German HVAC manufacturer Flakt Group outright, and through its subsidiary Harman it agreed to take over the advanced driver assistance systems business of Germany's ZF Friedrichshafen AG. Both deals were valued in the trillions of won.

Senior leadership has signaled a strong appetite for more. Roh Tae-moon, president and head of Samsung Electronics' DX (Device eXperience) division, publicly called for aggressive M&A at CES 2026 earlier this year, suggesting the company will continue scouting acquisition targets to drive DX division growth.

Sonio, Zealth acquisitions mark medtech push

Samsung Electronics recently invested $175 million (about 270 billion won) in Element Biosciences' Series E funding round, according to industry sources Friday. The investment follows Samsung's participation in Element's Series D round in 2024, making this its second bet on the San Diego-based firm — and enough to lift it to the position of largest shareholder. The stake does not, however, give Samsung management control.

Founded in 2017 in San Diego, Element has developed DNA sequencing technology that achieves a genomic analysis accuracy of 99.99 percent — among the highest in the industry — while dramatically lowering the cost of analysis. DNA sequencing reads the sequence of base pairs in an organism's DNA to identify genetic variations and characteristics.

Samsung is particularly interested in Element's next-generation gene sequencing technology and its multiomics capabilities. Multiomics is a precision medicine analytical approach that integrates data on DNA, RNA, proteins and cellular information to identify the causes of disease and underlying biological mechanisms.

Samsung plans to combine Element's DNA and multiomics analysis technology with AI and information technology to pursue new business opportunities such as next-generation genetic diagnostics. Industry observers widely expect Samsung to commercialize DNA-based personalized health management and disease prediction services through its Samsung Health platform in a mobile environment.

Samsung has designated medtech as a core growth driver and has been steadily building out its portfolio, seeking acquisition targets that can generate synergies with its existing medical device and digital health technologies.

In 2024, Samsung Medison acquired French AI startup Sonio for about 130 billion won, and last July Samsung took a 100 percent stake in US digital healthcare company Zealth.

Sonio specializes in AI-powered reporting technology for obstetric ultrasound diagnostics, while Zealth delivers integrated digital healthcare solutions through a single platform. Samsung plans to use the Zealth platform to connect biometric data collected from wearable devices with professional medical services through a connected care offering.

Semiconductor boom fills war chest for new deals

Beyond medtech, Samsung has already demonstrated its capacity for large-scale M&A in other growth areas. The company closed two trillion-won-class deals last year alone.

In May last year, Samsung acquired 100 percent of German HVAC company Flakt Group for 1.5 billion euros (about 2.6 trillion won, approximately $1.74 billion) to build out its heating, ventilation and air conditioning business. In December of the same year, it announced that Harman would acquire the ADAS business of Germany's ZF Friedrichshafen AG — also for 1.5 billion euros.

Samsung has ample firepower for further deals. Riding a memory chip boom, the company has been accumulating tens of trillions of won in cash every quarter this year. Its consolidated cash and cash equivalents stood at 126 trillion won at the end of last year and climbed to 147 trillion won by the end of the first quarter.

Even on a standalone basis — excluding subsidiaries — Samsung's immediately accessible cash is substantial. Its separate-basis cash and cash equivalents reached 40 trillion won at the end of the first quarter, up 60 percent from 25 trillion won at the end of last year.

Roh Tae-moon, president and head of Samsung Electronics' DX division, speaks at a press conference held at CES 2026 in Las Vegas in January. [Samsung Electronics]

Industry analysts say M&A could be the key to reversing a profit slide in the DX division. While the division has maintained steady top-line growth through smartphone, television and home appliance sales, sustaining profitability has become increasingly difficult.

Rising component costs — including semiconductors — and fierce price competition from Chinese rivals have squeezed margins. The DX division posted first-quarter sales of 52.7 trillion won and operating profit of 3 trillion won. Compared with the same period a year earlier — sales of 51.71 trillion won and operating profit of 4.7 trillion won — revenue grew about 2 percent while operating profit fell nearly 40 percent.

Roh himself has said M&A can serve as a foundation for growth. At a press conference ahead of CES 2026 in January, he said Samsung would "pursue M&A in four new growth areas — HVAC, automotive electronics, medtech and robotics."

jeongwan@heraldcorp.com