Chip Push

While Samsung is the world’s second-largest semiconductor maker, it still could make acquisitions in this area to boost its capabilities.

Last week, people with knowledge of the matter said Samsung will use its own chips in the next Galaxy S smartphone and drop a Qualcomm Inc. unit. That’s a sign Samsung wants more control of the processors in its products, Morningstar’s Baker said. San Jose, California-based Atmel, which has a market value of $3.5 billion, and the $7.9 billion Freescale, are both feasible chipmaking targets for Samsung, he said.

Atmel is among chipmakers focusing on the Internet of Things, developing technologies that help machines talk to each other and building wireless-radio capabilities. Atmel’s chips power washing machines and cookers as well as car doors and windows. Freescale’s semiconductors are used in everything from space hardware to household goods.

A representative for Atmel declined to comment on whether it’s been approached by buyers or has explored a sale. A representative for Austin, Texas-based Freescale didn’t respond to a phone call or e-mail seeking comment.