China's Electronics Industry, Technology-oriented Cross-border M & A Research

Recently there appear a lot of technology-based foreign direct investments aboardcases in the electronic industry in China. These transnational M&A cases have the samenature, that is, most of them are technology obtained oriented. Their motivation is to getthe advanced technologies from the developed countries enterprises.This paper summarizes the present situations and the types of thetechnology-based FDI-out cases. It focuses on the reasons from the angle of theinternational division of electronic industry and electronic industry upgrading.Nowadays, the electronic manufacturing industry has already shifted to mainland China.And the electronic industry is faced with an important transforming period which isrestricted by technology. To solve the technology problem, electronic enterpriseschoose the way of technology-based M&A.From the angle of practice, this paper points out two major problems in the M&Acases, that is, finance and technology conformity. To solve the finance problem, ourenterprises should take small-scaled M&A, and fully estimate the cost of M&A.Furthermore, our enterprises should also make a clear strategy and proactively improvethe ability of technology innovation and digesting.This paper also points out that the government should make legislations to supportthe technology-based M&A in electronic industry from the macro economicdevelopment. It also needs to prop up the key enterprises from the aspects like strategy,information and finance in order to help the electronic industry smoothly transfer totechnology based enterprises.