Research On M&A Performance Of Semiconductor Companies Under Industrial Investment Fund Model

With the advent of the information age,artificial intelligence,5G communication,chip manufacturing and other electronic information industries continue to rise,the semiconductor industry as the foundation of the information age,has an important strategic value.Since the1990 s,the wave of cross-border mergers and acquisitions has emerged,and semiconductor enterprises can achieve the effect of complementary advantages and fully realize the synergy effect by reasonably integrating internal and external resources through cross-border mergers and acquisitions.In order to promote the development of the industry,how to improve the cross-border M&A performance of semiconductor companies has become an urgent issue to be solved.In order to promote the development of China’s semiconductor industry,the State Council established the National IC Industry Investment Fund(hereinafter referred to as "Industry Investment Fund")in 2014 to help China’s semiconductor companies solve the problem of M&A financing bottlenecks.While focusing on the return on investment,the Industrial Investment Fund also places more emphasis on the policy-oriented effect of investment and the promotion of industry development,which has its unique advantages compared with general investment institutions and can play a better role in supporting the completion of M&A.With the continuous development of industrial investment funds,it has certain theoretical and practical significance to play its best role in supporting M&A of enterprises.After deep excavation and study of related studies on industrial investment funds and M&A performance,we introduce a case of industrial investment fund contribution to help semiconductor companies’ M&A-the acquisition of AMD Suzhou and AMD Penang by Tongfu Microelectronics Co.,ltd,and first analyze the mechanism of industrial investment fund’s effect on corporate M&A,and then analyze the short-term market response of Tongfu Microelectronics Co.,ltd and the M&A We then analyze the short-term market reaction and long-term performance of the M&A.By analyzing the market reaction to the M&A events,the market and investors’ optimism towards the M&A events of Tongfu Microelectronics Co.,ltd are reflected by the changes in the stock price;by using the balanced scorecard combined with the entropy weighting method to analyze the long-term M&A performance,it is found that the long-term M&A performance scores of Tongfu Microelectronics Co.,ltd show a trend of decreasing,then stabilizing,and then increasing.A cross-sectional comparison analysis of the M&A performance evaluation indexes with Tianshui Huatian Technology Co.,Ltd.,a peer company with comparable strength in all aspects,reflects that the M&A activities have led to a decline in the performance of Tongfu Microelectronics Co.,ltd in the financial dimension,but a comprehensive consideration of the benefits of each dimension of the case company reveals that its customer dimension and learning and growth dimension have significantly improved,basically achieving Tongfu Microelectronics Co.,ltd’s M&A goals.Based on the research results,this paper concludes that industrial investment funds can help semiconductor companies reduce the risk of information asymmetry,obtain good and effective financing channels as well as financial support in M&A,accelerate the integration of M&A,and improve the performance of all aspects of M&A.