Since August, there has been a significant increase in mergers and acquisitions in the domestic semiconductor industry. According to incomplete statistics, as of September 10th, nearly 20 listed companies in the semiconductor industry have announced merger and acquisition plans or progress, covering multiple key links in the industry chain such as wafer foundry, chip design, semiconductor equipment, and precision components. On the secondary market, according to data from Oriental Wealth, the semiconductor sector has seen an increase of over 10% since August. Industry insiders say that the core driving force behind the active mergers and acquisitions in the semiconductor industry is the sustained recovery of industry prosperity, significant improvement in corporate profitability, and the urgent need to strengthen the resilience of local industrial chains in a complex international environment. From technological breakthroughs at the "point" to collaborative development on the "chain", a series of capital operations reflect that the industry is seeking high-quality development through resource integration driven by multiple factors such as artificial intelligence (AI). The integration of leading enterprises is accelerating in this round of mergers and acquisitions, and the strategic integration of industry leading enterprises is particularly noteworthy, especially in the field of wafer foundry. Recently, the leading integrated circuit wafer foundry company SMIC disclosed its trading plan, planning to purchase 49% equity of SMIC North Integrated Circuit Manufacturing (Beijing) Co., Ltd. (referred to as "SMIC North") through issuing shares to five counterparties including the National Integrated Circuit Industry Investment Fund Co., Ltd. (referred to as "National Integrated Circuit Fund"). After the completion of this transaction, the company will hold 100% equity of SMIC North, which will become a wholly-owned subsidiary of the listed company. After the completion of this transaction, the shareholding ratio of the listed company in the target company will increase from 51% to 100%, which is conducive to further improving the asset quality of the listed company, enhancing business synergy, and promoting the long-term development of the listed company. ”SMIC stated. On August 31st, Huahong Company, also a leading semiconductor foundry enterprise, disclosed its restructuring plan. The company plans to purchase 97.4988% equity of Shanghai Huali Microelectronics Co., Ltd. from four counterparties including Shanghai Huahong (Group) Co., Ltd. through issuing shares and paying cash, and intends to issue stocks to no more than 35 specific eligible individuals to raise matching funds. Huahong Company stated that through this transaction, both parties are expected to generate synergies in process optimization, yield improvement, device structure innovation, etc., accelerate technological innovation iteration, and jointly enhance technical barriers and core competitiveness in the fields of logic processes and characteristic processes. In addition, listed companies will achieve integrated management through integrated control, achieving deep integration in internal management, process platforms, customized design, supply chain, and other aspects, achieving economies of scale through cost reduction and efficiency improvement, and enhancing the company's market share and profitability. In addition to the two major chip foundry giants, leading enterprises in other links of the industry chain have also made important moves. On September 1st, Huahai Chengke, a leading enterprise in the field of semiconductor packaging materials in China, announced that it plans to purchase 70% equity of Hengshuo Huawei Electronics Co., Ltd. and raise matching funds through issuing shares, convertible corporate bonds, and paying cash. The transaction has been approved by the Shanghai Stock Exchange Mergers and Acquisitions Review Committee. Along with the deep integration of leading enterprises in industrial mergers and acquisitions, horizontal or vertical mergers and acquisitions in other links of the semiconductor industry chain are also showing a trend of "multi-point flowering", aiming to build more comprehensive industrial capabilities. In the upstream IP core field of chip design, Xinyuan Corporation is planning to purchase the equity of Xinlaizhirong Semiconductor Technology (Shanghai) Co., Ltd. (referred to as "Xinlaizhirong") through issuing shares and paying cash, and raise matching funds. Xinyuan Holdings currently holds 2.99% equity in Xinlai Zhirong and intends to acquire all equity or controlling stake in Xinlai Zhirong through this transaction. In the field of semiconductor equipment and core components, related mergers and acquisitions are also being carried out simultaneously. On August 25th, semiconductor equipment supplier Jingsheng Co., Ltd. announced that it is planning to purchase a controlling stake in Beijing Zhizhun Intelligent Technology Co., Ltd. (referred to as "Zhizhun Intelligent") by issuing shares and paying cash, while also raising supporting funds. Jingsheng Co., Ltd. stated that both the company and Weizhun Intelligent's main business revolve around the semiconductor industry chain. Through this transaction, the listed company can extend its industry chain from the upstream "starting point" to specific terminal product application fields, completing the vertical integration of the industry chain. The investment boom in the semiconductor industry has also attracted active participation from cross-border capital. Software service provider Keppel Cloud released a restructuring plan on the evening of August 24th, intending to acquire 70% equity of Nanning Tech Semiconductor Co., Ltd. through cash payment and enter the storage product business field. In recent years, Wantong Development, a real estate company seeking strategic transformation, has also set its sights on the semiconductor industry. On August 11th, the company announced that it is planning to invest a total of 854 million yuan through capital increase and equity transfer to acquire 62.98% equity of Beijing Shudu Information Technology Co., Ltd. The equipment track is most optimistic about the continuous improvement of industry fundamentals, which provides a solid foundation for corporate mergers and acquisitions. According to the research report released by Dongguan Securities, the overall business situation of the semiconductor industry will show a significant improvement in the first half of 2025. The total operating revenue of the industry reached 318.609 billion yuan, a year-on-year increase of 15.54%; The net profit attributable to the parent company was 24.159 billion yuan, a significant increase of 32.41% year-on-year. Dongguan Securities believes that the semiconductor industry entered an upward cycle in the first half of the year, driven by artificial intelligence and independent controllability, which led to year-on-year growth in revenue and net profit attributable to shareholders in the second quarter, and improved profitability. Looking ahead to the second half of the year, the demand for artificial intelligence remains strong, and domestic wafer fabs continue to expand their advanced processes. The independent and controllable processes in equipment, materials, AI computing power, storage, and other fields are expected to continue to deepen. Leading enterprises are expected to accelerate resource integration through mergers and acquisitions and H-share listings, further enhancing their comprehensive competitiveness. The research report of Tianfeng Securities also pointed out that in 2025, the global semiconductor industry will continue its growth trend, and the downstream growth trend driven by AI will be obvious. Especially in the equipment and materials sector, top manufacturers have shown impressive performance in the first half of the year. Supported by strong fundamentals, multiple factors have jointly catalyzed this wave of mergers and acquisitions. Zhu Keli, founding director of the National Research Institute for New Economy, told Economic Reference Daily that the recent surge in mergers and acquisitions in the semiconductor industry is driven by the joint efforts of policy, market, and technology. In addition, with the intensification of global semiconductor competition, domestic enterprises urgently need to integrate resources through mergers and acquisitions, reduce external dependence, and enhance the independent and controllable capabilities of the industrial chain. Xing Xing, Director and Chief Investment Advisor of Boxing Securities Research Institute, believes that the recent M&A activity in the semiconductor industry is essentially the result of industry, policy, and valuation resonance. From an industrial perspective, AI、 The outbreak of emerging demands such as automotive electronics has forced companies to shift from single product competition to full industry chain collaboration, and mergers and acquisitions have become the optimal solution for quickly building ecological barriers. Top enterprises can expand their market share through horizontal integration, connect upstream and downstream through vertical mergers and acquisitions, and quickly enter new tracks through cross-border acquisitions. At the same time, the industry valuation has fallen back to a reasonable range, and the relaxation of policies on hard technology mergers and acquisitions has further reduced transaction costs. Among them, the semiconductor equipment track is regarded by industry insiders as a key focus for future integration. In the next 2 to 3 years, the integration potential and investment value of the semiconductor equipment track will be most prominent. Zhu Keli believes that currently, domestic equipment companies have achieved key breakthroughs in etching, thin film deposition, cleaning and other links, but still rely on imports for lithography machines, high-end detection equipment, etc. Through mergers and acquisitions, technology can be quickly acquired, shortcomings can be filled, and domestication rates can be improved. Xing Xing also stated that the equipment track will be the core battlefield for future integration, and its value lies in the logic of independent innovation and market expansion. The equipment track has strong synergy with emerging fields such as advanced packaging and third-generation semiconductors, and mergers and acquisitions can achieve a "1+1gt; 2" effect. In contrast, there is severe homogenization in the field of chip design, and the material track is constrained by upstream resources, resulting in significantly lower marginal benefits of integration compared to the equipment stage. (New Society)