An Analysis On Synergic Effects Of Serial Mergers And Acquisitions In Semiconductor Industry

With the continuous pursuit of high-quality life and the rapid development of science and technology,people’s living standards have been continuously improved and are constantly moving towards the goal of more modernization and intelligence.The integrated circuit industry is the constituent basis of this modern intelligent life,and it is also an important thrust to continuously improve people’s living standards.However,driven by factors such as the SinoUS trade war and the epidemic situation,the trend of "anti-globalization" in the world is becoming more and more obvious,and the international division of labor and cooperation is becoming more and more difficult.China’s chip technology has suffered from a technical blockade.In addition,the external supply of various chip manufacturers is limited,and the phenomenon of "chip shortage" has already appeared in the world.At the national development level,the integrated circuit industry is the core hub of the modern industrial system,which is related to the security and modernization process of a country.From the "Eighth Five-Year Plan" to the "Fourteenth Five-Year Plan",China’s attitude towards CPU chips has changed from "strengthening development" to "focusing on development",and now to "aiming at strategic development in frontier fields",This means that the country’s requirements for chip development have gone through a process from promoting to requiring centralized resources,and then focusing on the forefront.From the perspective of achievements,China has made breakthroughs in some key areas by taking advantage of the new nationwide system and adopting both government and market forces to jointly promote the development of the semiconductor industry.However,there is still a large gap between China and the world’s advanced level.Through nearly ten years of continuous mergers and acquisitions,Uni Group has successfully broken through some technical barriers in the industry and grown into the largest semiconductor industry giant in China.However,this business strategy of rapid expansion and buying instead of research has triggered a debt crisis,which has led to the breakdown and restructuring of Uni Group.Appropriate continuous M&A can achieve rapid and continuous technology accumulation,but there are more uncertainties in continuous M&A compared with single M&A,such as the need to find suitable M&A opportunities,evaluate high-quality M&A targets,efficiently implement integration,and focus on capital sudden,so it is more difficult to achieve synergy compared with single M&A.This thesis takes Purple Light Group Co.,Ltd.,which is the leading company in the semiconductor industry,as a case company.First of all,it introduces the basic situation of Purple Light Group and its four major mergers and acquisitions in detail,and clarifies the time sequence of mergers and acquisitions and subsequent integration.Then,it concludes that the motives for promoting the merger and acquisition of Purple Light Group are to lay out the whole industry chain strategy,achieve rapid technology accumulation and respond to the call of the state,Try to break through the technical blockade.This thesis then makes an in-depth analysis of the case of the bankruptcy reorganization caused by the continuous merger and acquisition of Uni Group,roughly in the order of tracing from the result to the cause,and then clarifying the whole transmission process.First of all,this thesis starts with the synergy effect that can reflect the strength of the synergy effect,compares the expected synergy effect with the actual synergy effect of Uni Group according to the three aspects of operation,management and financial synergy,evaluates the degree of realization of the synergy effect,and draws the conclusion that the synergy effect of Uni Group does not meet the expectation;Secondly,by combining the specific implementation methods and implementation effects in the process of merger and integration of Uni Group,this thesis finds out the reasons for the failure of cooperation in operation,management and finance,sums up the transmission path of the failure of cooperation,and concludes that the transmission path of the failure of cooperation of Uni Group is as follows: first,the excellent external financing environment has induced the rapid expansion of rough and disorderly,burying the hidden danger of financial leverage;Secondly,the rapid expansion requires higher integration ability,but the low level of internal management of the group and the lack of attention to integration lead to low integration efficiency;Secondly,the financial leverage has accumulated financial pressure and formed the internal competition of the group;Finally,there is a strategic deviation.The group’s resources are more inclined to continue external mergers and acquisitions,further ignoring the daily operating profits,and finally triggered by matured debt.Finally,based on the synergy transmission mechanism obtained from the above research,this thesis puts forward constructive suggestions on how to simultaneously improve the synergy effect inward and outward after the bankruptcy and reorganization of Uni Group,and then brings some help to the continuous M&A and integration of the semiconductor industry and even all industries.In terms of the research methods adopted,this thesis mainly adopts qualitative and quantitative research methods,case study methods,literature study methods and event study methods to conduct the above research on the case company,so as to analyze the case comprehensively and ensure the reliability and accuracy of the above research conclusions.