A Case Study On The Motivation And Performance Of The Acquisition Of OmniVision Technologies

Semiconductor has now become the most valued industry in China.It is one of the national strategic emerging industries and meantime the core industries in the 2025 Plan.China’s "Fourteenth Five-Year Plan" puts forward a development plan for the digital economy,focusing on strategic areas such as integrated circuits,focusing on tackling the "bottleneck" technology,promoting the self-reliance and self-reliance of the semiconductor industry,and laying a solid foundation for the development of China’s electronic industry.The semiconductor industry has become the most promising industry.In order to vigorously develop the semiconductor industry,China has increased policy support and encouraged enterprises to carry out M&A activities.At the same time,it has also advocated localization substitution and independent control of the industrial chain,setting off a wave of strategic mergers and acquisitions of semiconductor enterprises.This paper selects the typical cases of the successful mergers and acquisitions of Omni Vision Technologies,Specco and Sixinyuan in the semiconductor chip industry,and explores the effects of the merger and acquisition of Weir shares by taking the changes in the market and financial performance of the acquirer before and after the merger and acquisition as the entry point.This paper mainly uses the event research method,financial index analysis method and economic value added index research method to conduct in-depth evaluation of market and financial performance,and focuses on the impact of this merger on the concentration of industrial chain and R&D capability.The results show that: firstly,the capital market responded well to the merger and acquisition,resulting in the long-term and short-term rise of Weir’s share price,and the wealth effect is relatively obvious;Secondly,the overall trend of financial performance indicators is good,and high-quality assets have been acquired and the enterprises have carried out full post-merger integration,which has promoted the extension and upgrading of their own industrial chain,improved their R&D capabilities,and brought synergy effects in operation,management and finance to enterprises.However,there is still room for improvement in terms of growth and operational capacity.Finally,this paper summarizes the successful experience of the merger and acquisition of Weir shares and puts forward relevant suggestions.This paper complements the case study of domestic semiconductor chip design enterprises in recent years,and also provides reference for semiconductor enterprises planning to carry out industrial transformation,upgrading and integration through mergers and acquisitions to accelerate the optimization of decision-making efficiency.