Analysis Of The Motivation And Performance Of Cross-border M&A In China's Semiconductor Industry

Since 2013,the Chinese government has actively promoted the “The Belt and Road” initiative,encouraging Chinese companies to accelerate foreign investment,achieve an international business strategy,and promote industrial upgrading.Driven by the government's encouragement and the company's own development needs,China's cross-border M&A volume has increased year by year.In 2016,it exceeded 200 billion US dollars.Although the total amount in 2017 decreased slightly,the volume still remained at 150 billion US dollars.Last year,the Chinese government further clarified the guidance of foreign investment policy,encouraged the reduction of irrational foreign investment,and gradually shifted to the high-tech industry.The semiconductor industry is the most technologically advanced industry in China's electronic information industry chain,and its development has been actively supported by the national strategy.At present,China's semiconductor companies still have problems such as small volume,insignificant scale effect,and weak R&D strength.With the landing of China's integrated circuit industry fund and the slowdown of global integrated circuit development,China's semiconductor companies should follow the development trend,select high-quality M&A targets,and achieve external growth through overseas mergers and acquisitions to further promote the industry.development of.Therefore,how to identify the reasons for mergers and acquisitions in China's semiconductor companies to achieve better integration effects and improve their M&A performance has become a problem worthy of discussion.Research of this paper is focused on semiconductor enterprises cross-border M&A in our country,the first combed the domestic and foreign about the basic theory of cross-border M&A,cross-border M&A motivation,cross-border M&A performance as well as the semiconductor industry related literature,and analysis current situation of the development of China's semiconductor industry,then from mergers and acquisitions subject,regional distribution and the field distribution and the way of M&A in our country is combing of transnational merger and acquisition of semiconductor.Study found that the M&A motivation of semiconductor enterprises in China mainly comes from the access to overseas high technology and new technology,formed the scale effect,industry chain extension,expand the international market share in four aspects,using the event study method to short-term performance of the semiconductor industry to carry on the empirical analysis,found that in the short term,cross-border M&A has brought 7.3% excess returns for shareholders,better performance,merges the cumulative excess yields the highest,and the acquired party host country economic development situation and the management ability and short-term M&A performance has positive correlation.In the case study of JCET,event study method,financial index method and DEA method were used to analyze the M&A performance of JCET.It was found that the short-term performance increased significantly after the M&A,while the long-term performance decreased slightly,which needed to be reflected by further integration effect.Finally,the paper summarizes the conclusions and puts forward some Suggestions to promote the future cross-border M&A activities of Chinese semiconductor enterprises.