The global semiconductor industry merger and reorganization, totaling more than $120 billion for 2015 m&a. Chinese companies (or capital) is also actively involved in this process, the qing xin hua gen $1.6 billion buying American Howe, Wu Yuefeng capital acquisition, long telegram semiconductors technology acquisitions star kejing friends, purple light group into western digital (ultimately unsuccessful), and other influential cases. However, perhaps because 2015 semiconductor m&a topic was too hot, so that caused some in the industry worry that a lot of people are beginning to post with words, the theory of mergers and acquisitions over - public opinion began to increase, to the sound of mergers and acquisitions to question now appear even on the "buy" will against, encounter "capital" will ridicule.

With rapid development of China's semiconductor industry is moving fast. In China in 2015 market size of integrated circuits, a record 1.1024 trillion yuan year-on-year growth of 6.1%, become the world's one of the few can still keep growing regional markets. Under the background of rapid development, our country emerge a batch of industry leading enterprises such as smic. In the whole chip foundry enterprises, smic has ranked fourth, currently in Shanghai, Beijing, shenzhen, tianjin has built large-scale fabs. Revenue of $2015 in 2.236 billion, up 13.53%, net profit of $253 million, up 65.66% from a year earlier, had 14 consecutive profitable quarters.

Now is China's integrated circuit industry transfer around the world, bring new development opportunities to China. Various enterprises such as smic even need to rapid expansion of power, "m&a" after the world's major competitors. Strengthen the semiconductor industry, technology, talent and the market is the core. Semiconductor companies in the process of access to these elements To the integrated use of independent research and development, international cooperation, acquisitions, and mergers and acquisitions is one of the means of quick and powerful, both should not rely too much on, or simply ignored.

First of all, calm view China's semiconductor mergers and acquisitions in 2015. Frequent mergers, although in 2015 the international semiconductor industry can have China to participate in mergers and acquisitions of m&a, actually did not imagine is so high. According to data provided by the tsinghua university professor shao-jun wei big learning microelectronics: launched by China in 2015 completed a total of seven main semiconductor m&a case, including the qing xin hua gen acquisition Howe, Wu Yuefeng capital acquisition, wide build capital charge for NXP semiconductors 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 is 6.285 billion yuan. In international merger and acquisition of proportion is not big. Therefore, said the 2015 international semiconductor merger is a fact, hot, said China's semiconductor m&a is less strongly than, let alone a merger excessive argument?

Second, semiconductor companies implementing mergers and acquisitions is necessary. The semiconductor industry is one of the most globalised industry, all production procedures of a single integrated circuit products distribution in different areas, often need to go through several countries to complete. Semiconductor manufacturers in order to attract enough of the design strength, meet the needs of enterprise development, several regions in the country and even around the world have research and development institutions. Every company has their own different advantages and characteristics, resources and capabilities, in the impact of market growth power weakening, seeking market share, enterprises have to bulk, integration of resources. In the case of foundries, it has a very high capital barriers and technical barriers. Along with the advance of technology process, technology intensive and capital intensive degree is higher and higher, the number of companies have the ability to compete less and less, operators are also more concentrated. According to industry estimates, 28 nm is research and development spending roughly $900 million to $1.2 billion, 14 nm of research and development spending in 1.3 billion to an estimated $1.3 billion. And the cost of the factory is more expensive. For 28 nm, a basic 35000 wafer factories, you need to cost $3.5 billion. So, this enormous investment for every enterprise, is a great challenge. The semiconductor industry is complexity is very high, can't do it well, a lot of investment will not generate enough sales. A period in the future, as the semiconductor industry matures, the development speed is slow, the industry competition is increasingly fierce, so the global semiconductor industry to "cooperate" or "complementary" short board, will become the only way.

Again, under the current background, China's semiconductor should be how to carry out mergers and acquisitions? It is need to emphasize, not can for mergers and acquisitions and mergers and acquisitions. Mergers and acquisitions often has its specific purpose, such as complementary technology, the development of production capacity, and occupy the market. Occurred after the international mergers and acquisitions, CSR and Wilocity, qualcomm m&a is Lord hopes to strengthen cell phone chips and peripheral networking chip technology ability; Avago Broadcom acquisition, both to consolidate market positioning in the field of cloud server, netcom, a iot era of end equipment cloth innings; NXP merged with Freescale, can strengthen the market position of micro controller (MCU), amplification products category, strengthen the layout on the Internet of things. Merger and integration is the enterprise to adapt to market changes, or for the future layout in advance, one of the means to do bigger and stronger, in a mature market, occurrence probability and many. Like smic scale and technology, in order to improve productivity in 2004 for $290 million Purchase the original MOTOROLA (China) electronics co., LTD in tianjin MOS17 chip factory, and the factory building, power, modification and expansion, production equipment, make the enterprise has been rapid development.

The future, China's semiconductor m&a should develop in two directions: on the one hand, we should strengthen between domestic enterprises mergers and acquisitions, restructuring, change the long-standing little tiny semiconductor domestic enterprises large number, homogeneity serious problems. On the other hand, to speed up the pace of "going out", this is the high level an important way to participate in the international division of labor cooperation.

China semiconductor companies overseas m&a should be from the enterprise long-term development strategy, a clear strategic positioning, looking for suitable for their own development needs of the enterprise as object of mergers and acquisitions, to reduce the blindness of the acquisition process and acquisition plan disorder, so as to accelerate the development of the enterprise, can also contribute to the investment in the host country, ultimately to achieve the effect of 1 + 1 > 2. At the same time, in the process of semiconductor companies mergers and acquisitions in China, the government should also be more policy support and encouragement measures, especially in foreign exchange, taxation, financing, etc to give policy support, improve relevant policies and related legal system, strengthen the focus on talent cultivation and introduction, etc., to further enhance the status of Chinese semiconductor companies in the global industrial chain, eventually to deepen the mutually beneficial and win-win and common development of all countries in China and the world.