Global semiconductor industry mergers and acquisitions emerge in an endless stream of active participation in Chinese capital is expected to win

According to the forecast, 2015 global semiconductor revenue will reach 348 billion US dollars, compared with 2014 increased by 2.2%, but lower than the previous quarter forecast of 4.0% growth target. From the transaction point of view, the first 10 months of 2015 had more than 136 billion US dollars, although the number of mergers and acquisitions have declined, the amount has reached more than 4 times last year. International semiconductor industry, "unified" trend, that is, from the lack of response to the status quo of revenue growth motivation, but also the future development of new areas of industry efforts.

However, due to the weak cycle of the semiconductor industry, resulting in an endless stream of mergers and acquisitions in recent years. M & A events in the global semiconductor industry in 2013 to 383, 2014, 472, the wave of mergers and acquisitions to reach a peak in 2015, according to incomplete statistics, as of October 2015, M & A events have reached 335, involving more funds Is amazing. As of October 2015, the total amount of semiconductor mergers and acquisitions has exceeded 100 billion US dollars. So intensive and capital of the amazing wave of mergers and acquisitions, in the semiconductor industry is indeed rare!

In addition, the emergence of large-scale mergers and acquisitions in 2015, the year the world's largest semiconductor industry, the biggest feature is the amount of mergers and acquisitions huge increase, such as NXP 11.8 billion acquisition of Freescale, Intel 16.7 billion acquisition of Altera, Avago370 billion acquisition of Broadcom, Lam Research $ 10.6 billion acquisition of KLA-Tencor.

At the same time, Chinese capital actively participated in overseas M & A. The acquisition of NXP's RF Power division in 2015 will be the most significant acquisition of CCT Capital, which is expected to have a potential for continued growth in cellular base stations and automotive electronic ignition. In fact, as early as 2013, the Chinese capital in the strong support of national strategy, and actively carry out overseas mergers and acquisitions, such as Unisplendour Group were 1.8 billion and 900 million US dollars acquisition of Spreadtrum and RDA, CEC to 700 million acquisition of Lan Technology, Long to 780 million US dollars acquisition of Star Branch Jinpeng, Qingxin Huacuang to 1.9 billion acquisition of OmniVision, Tung Fu Micro to $ 370 million acquisition of AMD part of the IC packaging and testing assets.

Although the government's initiative, the Chinese semiconductor integrated circuit industry has entered a golden stage of development. But the funds alone can really bring the development of China's semiconductor integrated circuit quality changes? Chinese enterprises to actively participate in overseas mergers and acquisitions tide, in the end is really able to buy real advanced technology?

M & A in the technology industry is very different. M & A with the advantages of both sides has created significant value. However, the integration of M & A may have adverse consequences. In addition, for Chinese enterprises, team building, product and project management will be more difficult than the general acquisition, because most of the work needs to be transferred from China to the world, and R & D and intellectual property transfer synergies are often more than manufacturing, Operating areas more difficult to achieve.

For China's current semiconductor industry, in the acquisition and acquisition process, has formed a capital and industry rhythm does not match the situation. China has become a semiconductor industry in the capital side of the country, but in the technical field, China is still far away! As for the industry, the hurry of capital does not solve the industry leader, lack of technology and other core elements. So the occasion of the occasion of the opportunity, the capital has shot quickly, but the growth rate of enterprises and industry is far behind, there may be formed at both ends of the phenomenon of imbalance.

Of course, from the semiconductor industry itself, whether it is upstream of the IC design side, or the middle reaches of the packaging and manufacturing side, China's semiconductor industry is expected to rise. The downstream terminal, in the global semiconductor industry downturn, it has become China's semiconductor industry, a major driving force for development!

In the design, the Chinese IC design industry is still a huge room for growth. According to IC Insights statistics, in 2014 the global Top50 IC design company, Chinese enterprises accounted for only 8% of total revenue, huge room for growth. At the same time according to ICWise forecast, China IC design sales from 2014 to 13 billion US dollars in 2017 to 21 billion US dollars, CAGR of 17%. Zigong and other companies are rapidly rising, and Ziguang Group through intensive capital operation, the acquisition of Spreadtrum, RDA, shares of the western data, is to create, including mobile CPU, RF, storage Including the "Chinese core" grand territory.

In the manufacturing sector, it is shocking that the same side of the core in the introduction of purple light at the same time, a huge amount of additional 800 billion yuan to invest in storage chips and acquisitions, of which 60 billion yuan for a total investment of 93.2 billion NAND Flash chip factory. Thus, in the field of memory chips, with the side of the core is bound to get. In particular, the current mobile terminals, flash memory chips and solid state drives have demand outbreak, the domestic market needs of domestic enterprises to provide the appropriate storage "core."

It is worth mentioning that SMIC, the total known, the domestic process behind two generations of foreign, but in 2015, SMIC 28nm process was a major breakthrough, gradually close to the overseas second-tier leader. Taiwan UMC in volume production in 2009 40nm process, SMIC in 2013 production; and to 28nm process, UMC in mass production in 2014, SMIC by Qualcomm together to be a major breakthrough in the 28nm process is expected in 2015 Will contribute to income, significantly narrowing the gap with the overseas second-tier leader. TSMC 20nm process is not suitable for high-performance chips, resulting in AMD, NVIDIA graphics cards have chosen to skip, stick to 28nm while quietly waiting for the new FinFET process. With the strong rise of Samsung and 14nm process will be authorized to GlobalFoundries (GF), TSMC felt the pressure of their own.

In the field of packaging, the mainland enterprises actively layout advanced packaging. Early, mainland enterprises are mainly confined to the low-end market, but beginning in 2015, such as long power, Huatian, Tong Fu and other major road IC packaging and testing enterprises have high-end market layout, which for the Chinese semiconductor industry in terms of packaging is a leap! Tung Fu Micro is also intended to $ 370 million acquisition of AMD Suzhou and AMD Penang 85% stake in Malaysia, and the introduction of "big fund" as a strategic investor.

For packaging, FlipChip (flip), Bumping (bump technology), WLCSP (Wafer Level Chip Scale Packaging, wafer-level package), 2.5D interposer / 3D TSV (Through SiliconVia, silicon through holes) and other advanced packaging technology Can not be ignored, is expected to benefit the depth of mobile intelligent terminals, wearable equipment, thin trend, and CIS, MEMS, RFID, fingerprint recognition chip innovation wave. Long power, Tong Fu, Hua Tian, ​​crystal side in these areas are advanced packaging layout.

From the downstream point of view, although the global semiconductor industry and prosperity, resulting in mergers and acquisitions events come and go. But for China, a strong downstream end market, has become the semiconductor industry to promote China through the "crisis" key elements. It is understood that in 2014 China's smart phone & Tablet PC, PC & Notebook, TV, car shipments accounted for 51% of the world, 29%, 32%, 27%, thus, China has become a truly global manufacturing base.

In particular, in recent years, the integrated circuit industry to support policy-intensive promulgation, financing, taxation, subsidies continue to offer, such as June 2014 introduced the "National Integrated Circuit Industry Development Outline", set the tone "design as the basis, manufacturing and equipment and Materials to support "to 2020,2030 for the growth cycle to promote the development of China's integrated circuit industry: the target by 2020, the annual output value of integrated circuits super-20%; by 2030, the main link of the industry chain reached the international advanced level, A number of enterprises to enter the international first echelon.

Overall, the semiconductor industry M & A trend is the trend of economic restructuring, Chinese companies are becoming the world's semiconductor industry, the main force of expansion, China's semiconductor industry will continue to grow the profound impact of the global semiconductor industry pattern. With the succession of mergers and acquisitions, the semiconductor industry will significantly reduce the number of enterprises, the next 5 years is the key to the development of integrated circuits, it is likely to become integrated circuit differentiation, restructuring, the industry structure adjustment period.

Throughout 2015, the global semiconductor industry development, Microchip COO GaneshMoorthy said: "2015 is an unprecedented semiconductor industry consolidation of the year, corporate mergers and acquisitions amounting to far more than 100 billion US dollars, even higher than the previous 10 years, the total amount of corporate mergers and acquisitions. Industry restructuring is fast, reflecting the fact that despite the lack of growth in the industry, it is maturing, and we expect more acquisitions in 2016, although the pace may be slower than 2015. "

Of course, with the electronic products export recovery from the international financial crisis, China's semiconductor market is expected to rebound in 2016, and further double-digit growth, while the Internet of Things will become a trillion-class super-communications industry, the technology There may be in 2 to 5 years to achieve industrialization. At present, all countries in the world are in the primary stage of development of low-carbon economy, China's IC design industry is expected to form at this stage of the trend of sustainable development.

Looking ahead 2016, the global semiconductor industry growth is still slow, but the "Internet of things, car networking, data security" and other sub-industry prospects, Chinese enterprises will continue to actively participate in them, as long as the terminal market core requirements, while keeping in mind the scientific and technological innovation For the important role of enterprise development, domestic enterprises in the international semiconductor industry in the wave of mergers and acquisitions will be able to Yong Li tide!