Global semiconductor market declines in 2015 paralysed the overall market environment, China's integrated circuit the size of the market in 2015 is still maintained a fast growth. According to the China semiconductor industry association statistics, in 2015 China's integrated circuit industry sales is 3609 nt $one hundred million, up 19.7% from a year earlier.
Overseas m&a all climax of semiconductor industry
In recent years the market performance of China's semiconductor industry strong and my strength unprecedented national semiconductor industry policy are inseparable. In 2014 with the national integrated circuit industry development promote the outline of the release, China's capital market is very active, an upsurge in the semiconductor industry overseas m&a boom.
According to the rhodium consulting data show that in 2015, a total of 7 involving Chinese investors in the semiconductor industry mergers, including qing xin hua gen acquisition Howe, Wu Yuefeng capital acquisition, wide build capital acquisition semiconductors grace wisdom pu RF/star Power, long telegram technology acquisition kejing friends, rich micro electric buy-outs AMD encapsulation subsidiaries, tianshui huatian FCI, purple light group into ZiZhongGuo Taiwan into force, the total amount of about $6.285 billion.
More than two months ago, China's semiconductor industry welcomed this year's biggest deals. On June 14, grace wisdom pu (NXP) announced the $2.75 billion (18.1 billion yuan) to the Chinese capital to build wide road assets and intellectual capital to sell its standard products business. After completion of the deal, en standards of pu products business will become a independent company, named Nexperia built wide assets and intellectual capital have in common the full ownership of the company. In addition to the design department, the deal also includes two of pu is located in the UK and Germany wafer manufacturing factory and located in China, Malaysia, the Philippines three testing plant, involving about 11000 employees, and all patent and intellectual property rights relating to the standard products business, the transaction is expected to be completed in the first quarter of 2017.
Overseas mergers and acquisitions: money is not the problem, the integration is the problem
In the policy, driven by the semiconductor industry mergers and acquisitions, developed markets such as Europe and the United States is most favoured by Chinese firms. Investment in developed countries, the local and domestic different rules of the game can make a big challenge.
Chinese enterprises in overseas mergers and acquisitions have eaten a lot. Lenovo acquisition of IBM's PC business in 2004, established the lenovo personal PC business in the leading position, but the win-win multinational acquisition took three years to the final integration is complete; After last year, lenovo's acquisition of MOTOROLA's mobile phone business, lenovo mobile performance fell sharply, mobile phone sales has dropped out of the global top five, struggling; Long telegram technology acquisition in the field of closed beta star chippac, staged an reality version of the snake swallow like, just you excited long telegram of celebration among the world's first four seal test, because post-acquisition integration problems brought about by the huge losses is indisputable fact that star division chippac massive debts and the lack of an effective management team is one of the biggest problems facing the takeover; Purple light last year because of aggressive investment in western data, finally caused the examination and approval, not declared failed bid.
Overseas m&a can bring technology, also can develop the market, benefits, but also the difficulty of the international merger and acquisition for local companies is very large. Presumptuous may lead to buy not success; Without professional acquisition may lead to spent a lot of money to buy a lot of "junk"; Do not know the game rules of the international market, enterprise merger and acquisition of integration will give endless pain, and even into the abyss. "Low key", "professional", "when in Rome, do as the Romans do" is becoming the Chinese capital is the key to successful acquisition, be short of one cannot.
To build wide acquisition er chi pu standard business much joy much sorrow?
To have a look at this year's biggest overseas acquisition China "built wide grace wisdom pu standard products to acquire the assets of the business", although the deal was in the industry is generally seen as a successful acquisition, but the question is still a lot of sound. Build wide assets as as zhongjian investment of the holding company of state-owned enterprises, well-funded, can also low-key style. If not built wide assets following last year's $1.8 billion acquisition success again after grace wisdom pu rf power business acquisition of wisdom pu's business and has been known.
Grace wisdom pu according to official data, its standard products business in the field of discrete devices, logical devices and PowerMOS industry-leading, focus on the automotive, industrial, computing, consumer goods and wearable equipment market with semiconductor products. Collection of piconets understand, er of pu products are mainly oriented to the field of industrial and automotive semiconductor, more than 1 m customers. In fiscal year 2015, year of pu standard products business operating income of $1.2 billion, pre-tax profit - $200 million or more.
From the point of operating conditions, as a mature industry, the business profit margins is low, and the number of customers more than 1 m, explain its customers more scattered, does not rely too much on one client, management risk is low. Relative to consumer electronics semiconductor products, has more than kinds of industrial and automotive semiconductor products, single characteristics of small volume, high price, iterations, slow, high barriers to domestic enterprises at present stage is difficult to access. Built wide assets the win as well think pu dozens of production line and thousands of products, will greatly fill the domestic blank, promotes the upgrading of Chinese domestic IC industry iteration.
Why give up this part of good business profit, the explanation is the pu on, since last year after a merger with freescale, future business will be more focused on the high power of mixed signal products business, will further promote the development of "intelligent life, safety link" strategy, and therefore sold including radio frequency (rf), a number of standard products such as business.
In fact, even though the acquisition process is very smooth, after the acquisition is still exist many uncertain factors, enterprise integration problem is to build the biggest challenge. Change is PE investment, not a strong management team, how to guarantee the stability of the management team, retain the customer is the problem of acquisition.
Data shows, according to the transaction agreement, including by Frans Scheper, led by the management team, and by the grace of about 11000 employees, including pu standard products to division Nexperia all transferred to the new company. Simple, build wide PE identity makes the deal more is the change in the equity, management team will not change, so in the short term will not exist after the acquisition of the management team will face the problem.
But in the future, to build broad asset of your goal is with the grace of the previously acquired pu combination of rf power business, more than in the upstream and downstream layout, hope to achieve synergies, the formation of industrial cluster development. Wide to build assets, deputy general manager zhang xy said, "this acquisition includes the original favor of pu business development, marketing, sales and other complete business system, during the year will revolve around the business for 2 ~ 3 times of around $100 million in mergers and acquisitions, ecological construction to improve the industry."
Buy if can finish, build wide assets is expected to become the largest and most profitable semiconductor industry of our country of IDM enterprises.
Grace wisdom pu thunder, chief executive Richard were think this is a win-win deal, he said: "the deal will be a win-win all related party. Trading to continue to focus on high power grace wisdom pu mixed signal products business, further promote the us' life wisdom, security links' development strategies. After establishing a new company Nexperia, built wide road assets and intellectual capital will focus global investment to support the standard products further growth of the business, this will benefit our customers."
Response of pu is promoted the industry confidence in this transaction. Grace wisdom pu Zheng Li greater China President, said: "through this deal will promote grace wisdom pu with Chinese partners in semiconductor technology and talent exchanges. Believe it will be China's semiconductor industry development and make positive contributions."
China is an integral part of the global semiconductor industry, with the rise of the consumer electronics market and artificial cost advantages, global IC industry center continues to shift to China. At present Chinese enterprises in the production of semiconductor or design are relatively weak and to enlarge China's semiconductor industry, technology, talent and the market is the core, which is one of the means of rapid and stronger. In the past five years, Chinese overseas mergers and acquisitions have been obtained from the early production factors mainly into access to technology, market and brand, the future of China and the global semiconductor industry chain cooperation will from the aspects of mergers and acquisitions to more.
Grace wisdom pu, for example, its development in China for 30 years, with China's enterprises and institutions of cooperation have also been covered to the Internet in the field of automobile, content coupling end of security aspects. It is worth mentioning, grace wisdom pu is very keen on local talent cultivation in China. Data shows, in June 2016, grace wisdom pu has established 200 combined with China's 150 colleges and universities laboratory, services in colleges and universities electronic classes and students' practical innovation activities. In addition, the grace wisdom pu also have cooperated with for ten consecutive years of college students "wisdom pu" smart car cup competition. Cooperation between enterprises in addition to promotes the upgrade of China's semiconductor industry brought about by the commercial interests is also very handsome, is more for the enterprise is a kind of pure market behavior, focusing on the cultivation of the local talent is a global vision of a more long-term cooperation mode.
