Research On The Performance Of Continuous M&a Of Semiconductor Enterprises

Continuous mergers and acquisitions is a concept derived from mergers and acquisitions,which refers to the strategic behavior of enterprises to continuously acquire multiple companies within a period of time.Under the guidance of the country’s policy to encourage the vigorous development of the semiconductor industry,the semiconductor industry has set off a wave of mergers and acquisitions.Obtaining the R&D technology and market share of the target company through mergers and acquisitions is one of the main ways for semiconductor companies to achieve leap-forward development.Therefore,the research on how to clarify the motivation of their own mergers and acquisitions and improve the performance of mergers and acquisitions in the M&A activities of Chinese semiconductor companies has become a topic worthy of discussion.Based on the large-scale and successful typical cases of mergers and acquisitions in the semiconductor industry,this article uses Will Semiconductor Co.,Ltd,one of the leading semiconductor companies,as the starting point to analyze the continuous mergers and acquisitions of enterprises.This article first sorts out the frontier theoretical results of continuous mergers and acquisitions at home and abroad,and elaborates and summarizes its related concepts and applications.In the case introduction part,firstly,it systematically introduced the development status of the semiconductor industry and the layout of the industrial chain.Secondly,it combed the merger and acquisition history of Will Semiconductor Co.,Ltd and found that there was a correlation between mergers and acquisitions.Through horizontal mergers and acquisitions,the company added radio frequency chips,power management,and product lines such as image sensors and visual dynamic sensors,which improved the company’s competitiveness and influence in the midstream of the industry.At the same time,combined with its own distribution advantages,it will help establish a systematic industrial chain ecological structure.As a result,the company has obtained the industry’s cutting-edge research and development level,has significant competitiveness,and supports high valuations.There are two main reasons for promoting the company’s continuous mergers and acquisitions: one is the development law of the industry and the support of the national policy environment;the other is the company’s search for technology acquisition to enhance its core competitiveness.In the case analysis part,through the use of event research method,financial indicator analysis method,and economic added value analysis method,we systematically and comprehensively analyzed the value creation brought by mergers and acquisitions,including the announcement effect and wealth effect,and supplemented the non-performance evaluation system to construct a comprehensive performance evaluation system balances short-term interests and long-term development issues of the enterprise,and exposes the possible risks of continuous mergers and acquisitions.Finally,according to the results of the case study,it provides reference experience and relevant enlightenment for the development of my country’s semiconductor enterprises.The following conclusions are obtained through case analysis: continuous mergers and acquisitions have brought positive effects on Will Semiconductor Co.,Ltd,the wealth effect is significant,profitability and market position have been greatly improved,and value creation has been achieved;However,while realizing the company’s strategic layout,it may bring about a continuous increase in goodwill,and there are risks of goodwill impairment and capital turnover,which need to be guarded against.This article starts from the special current situation of the industry,takes the representative company Will Semiconductor Co.,Ltd as the main body of case study,and finally returns to the industry itself,and puts forward development suggestions: Under the background of increasingly fierce international competition,domestic semiconductor companies should closely follow the national policy.Actively carry out industrial integration in some areas,formulate a comprehensive company strategic layout,rationally select the target companies for mergers and acquisitions,guide the sound development of the entire industry,and accelerate the establishment of an "internal cycle" ecosystem based on the domestic chip supply chain system that meets the final domestic needs.