Research On The Motivation And Effect Of Wingtech’s Cross-Border M&A Of Nexperia

The 20 th Party Congress proposed that the overall goal of China’s development is the substantial improvement of economic strength,scientifictechnological strength,and comprehensive national power;to promote the development of strategic emerging industries integration clusters,build a new batch of growth engines,achieve a high level of scientific-technological self-improvement and self-sufficiency,and enter the forefront of innovative countries.How to promote the development of high-tech industry and achieve technological innovation is the current concern.Semiconductor industry is the highest technology content industry in the domestic electronic information industry chain,a large number of non-semiconductor companies in China follow the development trend and actively explore how to enter the semiconductor industry through merging and acquiring high-quality semiconductor companies,and M&A is one of the means to quickly obtain high-quality resources.Therefore,this paper selects Wingtech as the case study object,mainly analyzes the motivation,action path and implementation effect of Wingtech ’s M&A,and summarizes the experience to provide reference for subsequent enterprises.Firstly,this paper briefly defines the concepts of M&A and cross-border M&A,and composes the existing literature on cross-border M&A.Secondly,this paper bases on innovation theory,synergistic effect theory,diversified operation theory and market power theory,constructing three major paths of cross-border M&A for enterprises,to promote innovation efficiency,integrate enterprise resources and improve industrial chain layout.Then,the current development status of China’s semiconductor industry is briefly sorted out.Next,the company basic information of Wingtech and Nexperia and the M&A process are introduced.Finally,this paper studies the motivation and action paths of Wingtech’s cross-border M&A through case studies,and evaluates the effect in terms of market response,financial indicators and comprehensive performance.Through a comprehensive analysis of the cross-border M&A of Wingtech,first of all,three action paths of cross-border M&A are derived: firstly,to promote corporate innovation efficiency and form core competitiveness;secondly,to integrate corporate resources and strengthen corporate brand building;thirdly,to improve corporate industrial chain layout and enhance industry status.Then,from the three aspects of market response,financial indicators and comprehensive performance,it is found that the short-term market value of Wingtech has increased;profitability,solvency and development ability have been improved to different degrees;and comprehensive performance has been improved.Therefore,this paper concludes that the cross-border M&A of Wingtech helps to improve the overall business performance of Wingtech.Finally,this paper combines the theories of previous enterprises cross-border M&A studies and specific cases,and draws the following three research insights: first,pay attention to industry policy guidance and choose suitable target companies;second,formulate reasonable M&A strategies and choose multiple payment methods;third,scientifically integrate M&A resources and bring into play M&A synergy effects.