Analysis Of The Motivation And Performance Of M&A Of Semiconductor Companies In China

Semiconductor industry as the basis of electronic information industry,is one of the basic industries of modern economy,its technological progress and application,has given birth to a large number of new industries,and promote the development of the whole society.In recent years,the Chinese government has provided robust policy backing for the semiconductor sector by affirming its status as a national strategic emerging industry,bolstering support for semiconductor enterprises,and urging domestic entities to expedite autonomous research and development efforts to achieve the displacement of foreign chips,thereby promoting the advancement of the semiconductor industry.Semiconductor industry has the characteristics of high industry threshold,technical difficulty,China’s semiconductor industry is in its infancy,the lack of core technology and market share,facing the huge pressure of international market competition.In this situation,many domestic semiconductor enterprises actively seek breakthroughs,overcome difficulties,through mergers and acquisitions and industrial integration,etc.,to quickly obtain advanced technology and market resources,and constantly strengthen their competitiveness and market share in the industry chain,accelerating the speed of their own industrial upgrading and development.The paper takes the case of Beijing Junzheng’s M&A of Beijing Si C as an example of M&A in the semiconductor industry,and conducts a comprehensive study of the motivation and performance of this M&A,expecting to provide some reference and reference for the subsequent M&A activities in the semiconductor industry under the wave of chip localization.The paper first compiles the literature and basic conceptual theories of corporate M&A,followed by an introduction of the M&A parties and the M&A history,and an analysis of the motivation of Beijing Junzheng’s M&A of Beijing Si C.On this basis,the market performance of Beijing Junzheng after the M&A is evaluated through the event study method,and the operational performance of the M&A is analyzed from both financial and non-financial perspectives,respectively.From the financial perspective,the financial performance of the M&A was analyzed using the financial index method and factor analysis method,and it was found that the profitability,operating capacity and growth capacity of Beijing Junzheng improved and the debt servicing capacity decreased after the M&A.From a non-financial perspective,the non-financial performance of Beijing Junzheng was studied in terms of non-financial indicators such as corporate innovation performance,and it was found that Beijing Junzheng’s R&D investment and innovation performance,customer dimension dimension,and employee size and structure improved after the M&A.From the above study,it is concluded that Beijing Junzheng’s M&A has achieved better synergy effects,improved profitability and risk resistance,expanded technology and talent pool,M&A motives were basically realized,and M&A performance was improved overall.Finally,some suggestions are also made for the post-merger development of Beijing Junzheng,such as seeking supplier diversification to avoid excessive supplier concentration;doing a good job of post-merger integration to bring into play synergies;improving corporate governance;and paying close attention to foreign policies.