Research On The Performance Of Reverse Cross-Border M&A Performance Based On Integration Strategy Of Wingtech

The importance of high-tech industry to national economic development is becoming increasingly apparent,but Chinese semiconductor industry is still in the primary stage of development,core technology is controlled by others,import dependence is obvious,and domestic substitution is imminent.In recent years,more and more emerging economies initiate mergers and acquisitions with developed countries for the purpose of acquiring technologies,brands and other resources which is known as reverse cross-border mergers and acquisitions.This type of M&As is also known as a "snake swallowing elephant" or "small fish eating big fish" because the acquirer is usually weak.However,it is not enough to acquire the right of control.Based on the high failure rate of M&As,it is the key to integrate the acquired resources to create value after M&A.Existing literature seldom pays attention to the impact of integration strategy on enterprise performance,and there are not many reverse transnational mergers and acquisitions in China’s semiconductor industry.Therefore,this paper hopes to provide reference for other Chinese semiconductor enterprises to implement reverse transnational mergers and acquisitions through the case analysis of the largest M&A in the history of Chinese semiconductor--the acquisition of Nexperia by the Wingtech.Different from the general approach of absorption and integration being used in traditional M&As from developed country to developing country,reverse cross-border M&As usually adopts the integration strategy of "light contact","Wu Wei paradigm" or "supportive partners" with strong sense of boundary maintenance.This paper introduces the characteristics of the above three types of reverse transnational M&A integration strategies,pays attention to the two influencing factors of organizational identity gap and resource correlation to clarify the applicable situations of various strategies,and also introduces the value creation mechanism of integration strategies.Combined with the macro background of the global and Chinese semiconductor industry,the case analysis is carried out to identify the integration strategy and explore the motivation from the specific integration measures and strategies of enterprises.It is found that Wingtech adopts the "light contact" integration strategy.Then,from the dimensions of short-term market response,financial and non-financial performance,the enterprise performance after the merger is analyzed,so as to explore whether the integration strategy has a positive impact on enterprise performance.It is found that the "light contact" integration strategy is conducive to the communication and cooperation between Wingtech and Nexperia.The two companies can complement each other well in terms of resources,perform well in terms of operating synergy and achieve obvious results in R&D investment,but at the same time,the management synergy and financial synergy under the "light contact" mode are not good.Accordingly,this paper summarizes the relevant suggestions and enlightenment.