The rise of smart phones, has brought the semiconductor industry short glory, but in the past two years, the semiconductor industry after entering market saturation state of confusion.

In 2014, nvidia, Ericsson and other companies has announced his retirement from mobile phone chip market. In July 2015, the world's largest mobile chip maker qualcomm announced that considering the reform of corporate structure and 15% cut. In April this year, the global leading semiconductor chip maker Intel announced job cuts more than 10000 people, and will conduct business transformation.

Investment nearly thirty years in the field of semiconductor walden international, for investment in the field of semiconductor insisted that still has not changed. Walden international why focus on China's investment in the field of semiconductor? This area market opportunities? In earlier, walden international investment of sina, dangdang, Meituan, large Internet companies such as xinjiang innovation, science and technology company, its investment is logic?

Once relatively active walden international, in the first two years almost no voice in the market, "through" again, again how can bring industry information and thinking?

Deep semiconductor industry for nearly thirty years

Qing huang joined the walden international in 2005, started his investment in the field of semiconductor, the walden international managing director, he thinks, walden nearly 30 years focus on the reason for this is that China's semiconductor industry market capacity is enough big, even accounted for half of the global market.

"Nearly 30% of the global communications equipment manufactured by Chinese manufacturers such as zte, huawei, China's auto production has more than two thousand each year, the industry production requires semiconductor do support." He held on May 26, in the second China (hefei) equity investment peak BBS, said the public lecture.

"Semiconductor companies also need to be localized docking and service industry, there are many famous on the international semiconductor company, but I can't so fast reaction rate for Chinese customers. Such as huawei will hope in shenzhen local semiconductor company to cooperate, distance is not easy to provide service at any time." He told reporters after the meeting.

In North America, Europe, therefore, under the condition of semiconductor markets are falling, the Chinese market is also affected by the environment, but due to the large number of market to China, China can still outshine others in the global semiconductor industry.

"Before we invest in semiconductor basic idea is to fill the blank of the market, what China needs of semiconductor, can do nothing semiconductor, walden is what investment. But with the change of market environment, the semiconductor companies now face is millet, more high-end products such as huawei, needs of customers, we also will choose to invest in leading, truly valuable company." Qing huang said.

He introduced walden portfolio in the field of semiconductor, such as Shanghai's new tao technology, then sold for $85 million at the United States semiconductor giant IDT mergers and acquisitions, and smic, mega easy technology, micro, silicon lijie, in 2016 and has just been listed on the shenzhen national symbols, etc.

"We will choose the company, have certain ability to fight the battle may not be very big, but must grow enough company itself. Can make people through the study, in five or six years later do greater things. We threw some companies is good, can even participate in the international market competition, including hangzhou silicon lijie, zhao yi semiconductor, etc. They also have landed in hefei, these companies have considerable ability to manage a larger plate, with strength as the main body to mergers and acquisitions mergers and acquisitions." Qing huang told reporters.

Industry merger integration opportunities

Qing huang believes that the current of the semiconductor industry mergers and acquisitions is a good chance, merger, acquisition and reorganization will become a trend. "Ten years ago China's lack of ability to do mergers and acquisitions of companies, but now there are some Chinese enterprises to develop into a certain scale, has begun to grow through acquisitions. Such as silicon lijie done after listed four mergers and acquisitions, capital markets on this matter is very recognition."

He said, before everyone to do the boss, but with the boss have a lot of necessary conditions. Some companies can do innovative products, but Simon is very large, lack of management ability. Some companies have management capabilities, but without the passion of innovation. Mergers and acquisitions is needed for the advantage of the company or the innovation management, played out.

In the past two years, in the global semiconductor market also exists the trend of m&a integration. In last year alone, grace wisdom pu $11.8 billion acquisition of freescale anwar high $37 billion acquisition of broadcom, Intel's $16.7 billion takeover of Altera such case.

Walden international in silicon valley and Asia at the same time to invest in the field of semiconductor, qing huang believes that silicon valley project is relatively high technical content, the team experienced some of China's relatively young entrepreneurial team. As a result, the plight of China's semiconductor industry mainly lies in the fact that technical and management personnel while increase from year to year, but still relatively weak. Can do the surrounding of the semiconductor market, but in the main, domestic companies are still relatively difficult.

Many Chinese companies trying to through the way of overseas mergers and acquisitions, enhance the technical strength, but in the sea are often encountered in the process of audit. In February this year, China's leading enterprises in the semiconductor purple light group announced that due to the foreign investment commission review process (CFIUS), the company terminate the 15% stake of western data acquisition. On January 22nd, jinsha $3.3 billion acquisition of philips LED business deals also terminated by CFIUS opposition.

"I think the negotiations both sides disputed parts, can be divided to go out, this kind of thing early communication is a good idea, of course, there are some things which is more sensitive, it may be destined to take." Qing huang said. He thinks, a lot of the target company valuation is not high, in foreign countries in China's price will be much higher. China's stock market is high, give the short history of Chinese sea brought opportunity.

Truly successful project is what you know

Startups are often not profit in the field of TMT, can have very high valuations, semiconductor company takes nearly ten years to pay off. To this, qing huang says the basic principles of walden, investment have to figure out the project.

"If you don't understand, you should not cast. Have professional investment, investors should be grovelling, not to blindly chasing perfection. We also had some chasing things, found that the real success is what you know." He said.

"Is our most dedicated, good at electronic industry chain and be familiar with the field, walden's investors are also on the industrial chain of companies, including qualcomm and other international giants, so we focus on industrial chain resources to invest in these companies." Qing huang told reporters that some areas with cheek by jowl with electronic industry chain, such as automotive electronics, electronic medical walden will intervene, walden also invested in sina, dangdang, Meituan, etc.

Three years ago, walden invested xinjiang innovation. "We invested when they have been quite profitable, their demand for our major is a technical resources to help them grow up," qing huang introduced to invest in the big background of xinjiang, walden had invested in the six years ago a company doing sports camera GoPro, because sports camera video is cool, GoPro quickly becomes a favorite, can do billions of dollars in sales in a year.

"We see big xinjiang with GoPro patterns have similarities, but at that time, the company scale is smaller, and according to the experience of GoPro to give them advice, how to start from the market, become a worldwide component companies, how to protect our market and so on." He said.

He also will take xinjiang unmanned aerial vehicle (uav) and Google AlphaGo in artificial intelligence, qing huang think AlphaGo on the ground, have enough time. But drones fly is in real time, need to control at any time, is in the zero point for a few seconds to respond. In addition, the operation of unmanned aerial vehicle (uav) system are concentrated in a small piece of the chip, also has more strict requirements for power consumption.