Research On SINO-MICROELECTRONICS Financial Risk Management

As the Sino-U.S.trade frictions intensify,the U.S.has begun to restrict chip exports to China.It is China’s insufficiency in chip manufacturing that allows the United States to see an opportunity to suppress China,and China is indeed affected by the actions of the United States.In order to break this predicament,local chip companies have begun to switch to selfsufficiency.Because of the scarcity of chips,both the chip manufacturing industry and the electronic component manufacturing industry to which it belongs have brought huge opportunities and challenges.Firstly,this paper expounds the background and significance of the topic selection,the research status of domestic and foreign scholars on financial risk identification,related financial models and entropy weight TOPSIS models,as well as related concepts and theories of financial risk,and consolidates the research foundation of this paper.Secondly,it expounds the general situation of China Microelectronics,including the business scope and development process of China Microelectronics,and awakens its preliminary financial risk identification through financial statements.Thirdly,by using the financial index evaluation system including financing,investment,operation and distribution,the financial risk of China Microelectronics is calculated and analyzed.The result of the analysis is that China Microelectronics has insufficient solvency and cost control ability Poor,the cash recovery is poor,and the allocation risk is high.Finally,this paper puts forward some suggestions in terms of improving solvency,strengthening cost control,promoting capital recovery,and reducing allocation risks,in order to provide some reference and inspiration for Huawei Electronics and other companies in the same industry to improve their risk management capabilities.