Research On Financial Strategy Optimization Of Listed Integrated Circuit Companies Based On Sustainable Growth

As the foundation and core of the information industry,the integrated circuit industry has developed rapidly in recent years,and its role in promoting China’s economic development and ensuring national security should not be underestimated,and it has a very high strategic position.Its products can be widely used in consumer electronics,smart home,automotive,industrial control and other fields of terminal markets.Accelerating the development of the integrated circuit industry is of great strategic significance for China to achieve a strong manufacturing industry and accelerate industrial transformation and upgrading.In order to seek sustainable development in the rapidly changing market competition,the integrated circuit industry needs to rely on enterprises to continuously adjust the overall strategy according to changes in the environment,and the financial strategy as the core of the company’s overall strategy,especially for the capital-intensive integrated circuit company,it is more necessary to stabilize and sufficient cash flow to ensure its good and healthy development,so the study of its financial strategy is crucial.To this end,this paper selects SMIC,a leading integrated circuit company,as a research case study on how to conduct an in-depth study of how to build a company’s financial strategy based on sustainable growth.In the course of research,taking financial strategy theory and sustainable growth theory as the starting point,this paper first analyzes the environment of the financial strategy of integrated circuit companies,the optimization of financial strategies under the financial strategy matrix based on sustainable growth,and the measures of integrated circuit companies to optimize financial strategies by using the strategic matrix;secondly,SMIC takes SMIC as a research case,analyzes the current situation of SMIC’s financial strategy,and uses the sustainable growth financial strategy matrix as an evaluation tool to evaluate its value creation and cash surplus.Comprehensively judge the shortcomings of SMIC’s financial strategy,and finally,put forward targeted suggestions for the optimization of SMIC’s financial strategy based on sustainable growth and enlightenment for the optimization of the financial strategy of icing listed companies.The research results show that:(1)integrated circuits are an industry that requires a lot of funds,and the return on investment period is usually long,so it is necessary to raise funds through multiple channels,form a diversified financing system,and reduce financing pressure;(2)due to the characteristics of the integrated circuit company’s own industry,it is determined that its investment type is medium and long-term investment,therefore,the investment strategy is manifested in prioritizing investment in core business,rationally allocating the proportion of diversified investment,and the internal investment is manifested in continuously increasing investment in R&D personnel,plant and equipment,etc.In order to meet the update and iteration of product technology;(3)because in the process of development,the upgrading of the equipment technology of the integrated circuit company is extremely fast,and it is easy to have a cash shortage,so in terms of profit distribution,the company generally chooses zero dividend,low dividend or residual dividend strategy,and tries to use stock dividends to pay dividends;(4)The financial strategy matrix can be used as a diagnostic tool for the financial strategy of the integrated circuit company,and the speed of enterprise development is corrected in time to achieve sustainable growth of the enterprise.Therefore,this paper puts forward three suggestions for the optimization of the financial strategy of integrated circuit listed companies,hoping to provide some help for other similar enterprises to formulate financial strategies.