| In recent years,driven by the national policy support and market demand,China’s integrated circuit industry is growing rapidly,but China’s integrated circuit enterprises in the core technology compared with foreign advanced level there is a large gap,in the whole industry in the market competition in a disadvantageous position.In order to survive and achieve long-term development in an increasingly competitive industry,more and more IC companies in China are adopting mergers and acquisitions to expand their production and operation scale and enhance their competitive advantage in the industry,the integrated circuit industry,mergers and acquisitions have become an important means to overcome the fierce competition.The integrated circuit industry is an important component of the new generation of information technology in China’s strategic emerging enterprises,and the wave of mergers and acquisitions in this industry has an important impact on the future development of the entire industry.Therefore,it is worth studying whether the performance of enterprises can be improved after the implementation of M＆As and whether the M＆As have a positive impact on the development of enterprises.In this paper,the case of Giga Device’s M＆A of Silead is selected as the object of study.Firstly,this paper elaborates on the basic overview of both parties,the process and plan of M＆A,and focuses on the motivation of Giga Device’s M＆A of Silead and the corresponding specific M＆A objectives.Secondly,this paper adopts the event study method,the financial indicators method and the non-financial indicators method to conduct a comprehensive analysis of the performance of Giga Device’s acquisition of Silead.In stock price analysis,it is found that the market was positive towards the M＆A event during the event window and the M＆A increased the wealth of the shareholders of Giga Device.In financial metrics analysis,it was found that Giga Device had generated certain synergistic effects after the acquisition of Silead,which enhanced the company’s debt service,profitability and growth capacity in the year of the acquisition,but the positive impact on the company’s financial performance was not sustainable at this time.In terms of non-financial performance analysis,three nonfinancial indicators,namely market share,R＆D and innovation capability and strategic layout,were analyzed and found to have a positive impact on the nonfinancial performance of Giga Device.Then,based on the above analysis,we evaluate the achievement of the performance objectives of Giga Device’s M＆A of Silead.Eventually,based on the results of the case study,we hope to provide recommendations on how to improve the performance of Giga Device after the merger and acquisition,and to provide lessons for other companies to improve their chances of success. |
