Analysis On The Performance Of Wingtech M & A Nexperia

With the development of Internet and 5G technology,AI,Io T and other technologies are becoming increasingly mature,promoting the rapid development of the global semiconductor market.China is the world’s largest semiconductor consumer market.In2021,the sales volume of integrated circuit industry is 1.15 trillion yuan,accounting for about 1/3 of the global total.However,in terms of supply,excluding imports and sales of foreign-funded enterprises in China,the global share of Chinese local enterprises is only 6%,showing a large gap between supply and demand.After 2017,semiconductor has surpassed crude oil,becoming China’s largest import industry.At the same time,the United States started a trade war to put pressure on China for various reasons and increased export control on China’s semiconductor technology,leading to a grim international trade environment.In this regard,China’s government has issued a number of policies to promote the development of the domestic semiconductor industry and strive to reduce the import dependence of semiconductor from 70% in 2020 to 30% in 2025.Domestic enterprises combined with their own characteristics actively layout,integration of resources through M&A.However,cross-border M&A is more risky than domestic M&A.Whether the "going out" enterprises can achieve their expected goals and improve their performance is the core issue that enterprises pay attention to.In view of this,it is important to analyze the case of cross-border M&A that has occurred and draw some conclusions from them.This dissertation will analyze the performance of Wingtech acquire nexperia by event study,financial Indicators and DEA.Part one is about the literature on the motivation and performance of M&A.The second part is mainly about the characteristics of China’s semiconductor M&A.Then,taking Wingtech acquires nexperia as the research case to analysis the purpose and process of M&A in detail.Part four mainly analysed the performance of M&A by event study,financial Indicators and DEA.Finally,based on the analysis,draw some conclusions and enlightenment for domestic enterprises M&A.Through analysis,this dissertation believes that the M&A has achieved part of the objectives of Wingtech,including strengthening the industry chain integration ability,improving innovation ability,customer structure optimization.At the same time,the M&A did not make Wingtech into a crisis,but to a certain extent to achieve financial and operational coordination.However,the two failed to achieve good management coordination in a short time.On this basis,this dissertation also gives some advises for domestic enterprises to "go global".The first one is to choose the acquisition object reasonably before the transaction to reduce the transaction risk;Second,in the process of merger and acquisition,diversified financing is needed to ensure the ability to pay.Thirdly,enterprises need to increase investment in R&D to improve competitiveness.