Application Research Of Industrial Investment Funds In M&A Of Semiconductor Industry

In recent years,China's industrial structure has gradually escalated.The market competition is intensifying.If enterprises want to be invincible in the fierce competition,they must grow on the scale of development,and mergers and acquisitions will gradually become a large-scale enterprise,improve profitability and open up markets.The main means,and one of the main conditions for completing the merger is to find the right financing method.Compared with previous use of internal funds,debt financing and equity financing,industrial investment funds have their unique advantages as a new financing method,and are also popular in some industries,such as the semiconductor industry.In the critical period of the industrial chain transfer of the semiconductor industry,mergers and acquisitions integration cases emerge one after another.The Chinese government has set up the National Integrated Circuit Industry Investment Fund as the implementation body of the policy to support the development of the industry,and implemented the operation between the upstream and downstream of the semiconductor industry.Industrial investment funds,as a special financing method for enterprises,have a role in the mergers and acquisitions of enterprises.What are the advantages of other financing methods compared with other financing methods? What effect does the enterprise have on the mergers and acquisitions after obtaining the industrial investment funds to support the completion of the merger? Is the focus of this analysis.This paper defines the scope of the semiconductor industry by sorting out relevant literature on industrial investment funds and mergers and acquisitions,and conducts basic research on the development characteristics of the industry and the role of industrial investment funds in M&A in the semiconductor industry;The fund enters the industry's first classic case of M&A--Changke Technology's M&A Stark Jinpeng,to analyze the specific role of the industry investment fund in M&A and the specific impact on the M&A after the completion of the merger.The case revelation hopes to provide reference for the use of industrial investment funds in relevant industries.This paper first introduces the development status of China's semiconductor industry and the reasons for the establishment of the national integrated circuit industry investment fund.Then it introduces the status quo of industrial investment funds after their establishment in the industry,and summarizes the industrial investment funds in the semiconductor industry.Specific application case.Then I selected the classic case of “Small and Big” to acquire Xingke Jinpeng,and analyze the role of industrial investment funds in the overseas mergers and acquisitions of enterprises,mainly including financial support,risk control and resource integration..After the completion of the merger and acquisition,by analyzing the financial indicators of the acquirer,it is concluded that the overall profitability and growth ability of Changjiang Electronics Technology has been improved.Although the asset-liability ratio is at a relatively high level in the same industry,the debt level is continuously consolidated through mergers and acquisitions.The decline has been made,the financial risks have been effectively controlled,and the industrial chain layout of Changjiang Electronics Technology has become more complete.On the other hand,because the target company of the merger,Xingke Jinpeng,was in a loss state at the time of the merger,the profit of the consolidated statement after the completion of the merger was always negative,and the shareholding distribution of the merger before the merger was more dispersed due to the merger.In the process of financing and mergers after mergers and acquisitions rather than open-ended private placements to raise funds,Changjiang Electronics Technology has fallen into the situation of no actual controller.From the perspective of completion of mergers and acquisitions,the industrial investment fund participates in the merger and acquisition effect is better,the acquirer obtains the market and technology of the target company through mergers and acquisitions,and the industrial chain layout is improved;the profit level and the enterprise from the merger level after merger and acquisition In terms of control,the completion of the merger did not achieve the expected results.Finally,it is concluded that the establishment of the industrial investment fund has opened up a new financing method for enterprise M&A development.Enterprises should combine their actual design and feasible financing plan to ensure the original position of the controlling shareholder,and By using industrial investment funds to carry out horizontal mergers and acquisitions to expand the scale of enterprises,it is also possible to move toward the innovation chain through vertical mergers and acquisitions to improve the market competitiveness of enterprises.