Performance Analysis Of Successive Mergers And Acquisitions In Shanghai Beiling

In the new generation of information technology revolution represented by the Internet of Things,5G communication,etc.,information has shown ubiquitous characteristics.Therefore,semiconductors are considered to be the basic system of the information age,as the basic information processing equipment.The control of the semiconductor supply chain and grasp of the technological has also become one of the manifestations of the comprehensive strength of a country and region.Also,the semiconductor industry has become a key area of trade friction between China and the U.S as well.Recent years,it’s really critical and special period that semiconductor industry faces risks from the global supply chain and intense domestic competition,and benefits from national and international demand for the rapid growth of integrated circuits.In the semiconductor industry,M&A has become the main way of rapid expansion of enterprises and an inevitable choice to accelerate the development domestic chips instead of the import under the trade friction between China and the U.S.Shanghai Beiling,as one of the leading enterprises in the field of chip design,has followed the trend and made several M&As after 2017 under the continuous M&A development strategy formulated by China Electronics and UW Semiconductors.Due to limited time,this paper mainly analyzes the M&A performance of two of them.The performance of Shanghai Beiling’s consecutive M&As is studied through two dimensions: financial performance and non-financial performance.Based on the synergy theory,the financial performance of the enterprise can be divided into three dimensions of operational,managerial and financial synergy performance,which makes the vertical and horizontal comparisons per 15 financial indicators.Having analyzed the comprehensive,operational,management and financial synergistic performance based on the entropy weighting method,and done further comparative analysis between the industry leaders and comparable enterprises after done comparison with the industry average,it is concluded that there is a positive impact of consecutive mergers and acquisitions on Shanghai Beiling.Having analyzed the comprehensive,operational,management and financial synergistic performance based on the entropy weighting method,and done further comparative analysis between the industry leaders and comparable enterprises after done comparison with the industry average.In the horizontal comparison,operating synergy performance is significantly higher than the average and leading industry,management synergy performance is equal to the industry average but lower than the industry leader,and financial synergy performance is significantly lower than the industry average and the leader.It is found the overall improvement is still positive after excluding the influence of industry cycle.The non-financial performance dimension is based on market power theory and resource-based theory,and analyzes the enterprise’s market share,financial resources,innovation resources,human resources and customer resources,concluding that M&A makes the enterprise more competitive in the market and improves the quality of their resources,but there is a problem of insufficient utilization of resources and a large gap between them and the industry leaders.To make Shanghai Beiling better adapt to the market competition,expand market share,achieve rapid and high-quality growth,and meet the strategic need of chip domestic replacement,the paper puts forward five suggestions per above analysis.Firstly,to optimize the product structure,meet the diversified market demand and explore new performance growth points;secondly,to build a unified management platform to improve management efficiency and reduce management costs;again,to increase investment to reduce cash on hand and improve capital utilization efficiency;The third is,to increase investment in R&D,introduce highly educated and high technology talents and improve the technical strength of the enterprise;finally,to establish the technical coordination mechanism between upstream and downstream of the supply chain,and upgrade and iterate the technology timely follow the guidance of market demand.