Research On Horizontal Merger And Integration In Semiconductor Display Industry From The Perspective Of Enterprise Life Cycle

The 20 th National Congress of the Communist Party of China proposed to comprehensively promote the great rejuvenation of the Chinese nation with Chinese-style modernization.One of the essential requirements of Chinese-style modernization is high-quality development,and it is also the primary task of building a modern socialist country in an all-round way.At present,China is accelerating the construction of a new development pattern with domestic circulation as the theme and domestic and international dual circulation promoting each other.As a micro entity,enterprises play an important role as "vanguard" and "pioneer" in the process of high-quality economic development.At the same time,following the process of reform and opening up,it has experienced the start-up period,growth period,maturity period and then decline period of the enterprise life cycle in different ways.In the era of economic globalization,obvious international division of labor,and high technical barriers,a number of high-tech industrial clusters have emerged in China from scratch and from existence to strength,and the semiconductor display industry is one of them.The industry has experienced a long development process from a blank in China at the beginning of the twentieth century to the world’s largest production capacity.Based on the perspective of horizontal mergers and acquisitions in the life cycle of enterprises,based on the theory of enterprise life cycle,market power theory,economies of scale theory,and efficiency theory,this paper uses the case study method to explore: the same enterprise,in different enterprise life cycles,in different enterprise life cycles,what kind of merger and integration methods can achieve the optimal strategic goals of the enterprise after the merger,and then maximize the value of the enterprise.Firstly,a theoretical analysis framework of horizontal M&A integration based on enterprise life cycle is established as the theoretical basis of this paper.Secondly,along the analysis idea of M&A motivation-M&A integration-M&A integration performance evaluation under the characteristics of enterprise life cycle,the case company BOE focuses on the analysis of M&A integration in the start-up and growth stages.Finally,the analysis conclusions and recommendations are drawn.This paper finds that:(1)the characteristics of enterprise life cycle affect the motivation of horizontal M&A,the driver of horizontal M&A affects the choice of M&A integration mode,and the results of M&A integration method selection are reflected in the performance of M&A integration.(2)The same enterprise,in the start-up period of the enterprise life cycle,can adopt horizontal mergers and acquisitions and "light touch" mergers and acquisitions integration to achieve the purpose of quickly entering the industry threshold when the industry threshold is high.If an enterprise is in the growth period of the enterprise life cycle,if it has certain industry advantages,it can adopt horizontal mergers and acquisitions and "retouch" mergers and acquisitions integration to achieve the goal of rapidly expanding market scale and achieving economies of scale,and further consolidating the dominant position in the industry.(3)The embodiment of M&A integration performance results requires a process,which is affected to a certain extent by the life cycle of enterprises and the characteristics of the industry.The research contributions of this paper mainly include: First,it studies the M&A integration choices of enterprises in different periods from the perspective of enterprise life cycle,focusing on specific enterprises and focusing on the two horizontal M&A integration under different life cycles of enterprises,which is helpful to further understand the M&A integration path choices of enterprises based on their own development stages,which is conducive to enriching the theory of enterprise life cycle and the related research of M&A integration.Second,this paper constructs a set of analytical framework based on exogenous growth driving enterprise value realization in the dimension of enterprise life cycle,which can provide empirical enlightenment for enterprises to choose M&A integration methods on the road of pursuing value maximization.However,this paper also has the following shortcomings: First,it is limited to the characteristics of the development stage of the case company,and this paper only studies the merger and acquisition integration of the case company in the start-up and growth stages,and does not involve the research of the mature period and the decline period.Second,the semiconductor display industry selected in this paper has the dual characteristics of capital intensive and technical intensive,and the conclusions drawn may not be applicable to other industries.