The hottest overseas acquisition cools down, and l

2022-08-18
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Overseas acquisitions cool down large-scale semiconductor mergers and acquisitions tend to be flat in the future

as the largest acquisition in semiconductor history, Qualcomm's $44billion acquisition of NXP officially ended this year, and large-scale mergers and acquisitions in the entire industry fell into relative silence

the data also confirms this point. According to IC insights, the total experimental machine of the semiconductor market acquisition case in the first half of this year should have automatic alarm and shutdown devices worth about $9.6 billion, less than 9% of the total transaction volume in 2015. The top eight acquisitions in the industry also occurred in the past three years. IC insights predicts that the possibility of large-scale semiconductor mergers and acquisitions will become less and less in the future due to factors such as the high turnover of semiconductor mergers and acquisitions, the complexity that the stress on the fusion skeleton of large-scale enterprise mergers and acquisitions is not entirely borne by implants, and stricter scrutiny

under the environment of cooling industrial acquisitions, Chinese overseas acquisitions also showed a large-scale contraction this year. According to the inventory, overseas acquisitions of large semiconductors were concentrated in the first three years. At that time, the valuation of high-quality semiconductors listed overseas was generally low, and it was profitable to put them into the domestic capital market after the acquisition. In addition, the state issued policies to vigorously encourage the development of integrated circuits, which gave birth to a wave of acquisition boom

according to the statistics of Jibang consultants, from 2015 to 2017, there were 42 mergers and acquisitions in China's semiconductor industry, with a total amount of about US $19.44 billion, which is still far behind the global merger and acquisition amount of about US $285.7 billion in recent three years, but showing an increasing trend year by year. From the perspective of the industrial chain, semiconductor design mergers and acquisitions account for nearly 60%, such as the acquisition of NXP standard device business (i.e. ANSYS semiconductor) by China Construction and broadcasting assets, and the acquisition of Howell technology by Chinese funded consortia, all of which are above the order of $1 billion

according to insiders, compared with integrated circuit manufacturing, equipment and other links, the cost of catching up from the design link and entering the new market is relatively small, and it is more likely to be favored by capital

however, this investment situation is gradually changing. With the end of overseas high-intensity and large-scale acquisitions, the lack of optional high-quality targets, coupled with the tightening of the investment policy environment, has also increased the difficulty of acquisitions

at the beginning of this year, the United States considered cracking down on China's investment in sensitive technology industries, including the use of national emergency PVC door and window fixing sheets jg/t 132 ⑵ 000. However, as a leading innovator in the world, the US side later softened its attitude, saying that it would abandon restrictions and set up an institution to examine whether foreign investment posed a threat to national security

executives of listed companies said that it was more difficult to acquire in the United States, and the next step would be to find leading targets in the segmented industry in the European market. However, some industry investors said that good targets are becoming more expensive. A non European and American semiconductor company originally negotiated the price. Seeing the boom of developing integrated circuits in China, it sat down and raised the price, and finally had to give up

domestic semiconductor investment is enthusiastic under the birth of policies, which also causes professional investors to worry. Sunyuwang, President of SMIC Juyuan, said recently that some semiconductor targets are now popular with funds and their valuations are rising, but the financial inability to support them will inevitably affect the next financing plan. If faced with a shortage of funds for refinancing, they can only be forced to reduce the valuation financing, which will have a greater impact on enterprises

in addition to the fierce competition in the subject matter and the inflated valuation, another problem that cannot be ignored is that the money in the market is no longer easy to get, and the difficulty of raising funds has become an increasingly common dilemma for equity investment

Zero2IPO Research Center recently released data that in the first half of this year, a total of 1021 private equity investment funds in China's private equity market completed raising, a year-on-year decrease of 8.8%. Among them, 978 funds that disclosed the amount of raising were raised in total, 296.7 billion yuan, and the scale of funds raised in place decreased significantly compared with the first half of last year

behind this, the new asset management regulations are considered to be a major policy factor. You Jinbo, President of Yida capital, also expressed a similar view. After the introduction of the new asset management regulations, bank funds could not be released, which had a severe impact on the equity investment industry

Chen Datong, the managing director of Huashan capital, who participated in a number of overseas semiconductor acquisitions, said at the Jiwei semiconductor summit a few days ago that the new regulations have led to great restrictions on the equity investment of banks, removing a considerable part of the capital chain of various VC and PE from the source. As in previous years, it is difficult to invest a large amount of money, and companies that want to finance will not have so much money. However, Chen Datong also predicted that the valuation of the semiconductor industry will gradually become rational

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