“Promoting corporate mergers and acquisitions and strengthening alliances is an effective way to increase the overall competitiveness of local IC companies and improve the industrial chain. In the next 5-10 years, the domestic IC market will start a 'big' merger and 'small' situation. It is very popular and it is a trend in China,†said Yilin Li, director of the Shanghai New Semiconductor Project.
In recent years, local IC design companies have faced difficulties in survival due to the serious lack of funds and talented people's support for local IC design and serious homogeneity issues. Industry consolidation and merger have become an effective way to rescue the crisis.
According to Wei Dong, the sales director of Shenzhen Xinhai Technology Co., Ltd., it is very dangerous for a company to have only a few product lines. However, it is very difficult to develop new products. It is necessary to integrate resources. “We look at Europe, America, and Taiwan. For example, MediaTek, Hetai, Yilong, etc., their product lines are relatively neat, and local companies generally have only a few models, a single product line, the competitiveness is relatively weak If you can unite different product lines with different strengths, you can enhance overall strength, which requires consolidation." Wei Dong said.
However, according to the author's understanding, the current domestic IC design companies face several major problems and it is difficult to implement them if they are not resolved. The industry analysts analyzed the reasons for this. First, the lack of domestic IC core technologies and related patents has caused a lack of motivation for mergers between companies. Second, domestic IC design companies lack huge financial support and the merger lacks capital leverage; again, companies Internal employees' 'escape' business is serious and there is a lack of human resources support after the merger. Some people in the industry are not worried.
Cai Ren'an, general manager of Shenzhen Naxinwei Technology Co., Ltd., said: “The integration requires the mind and vision of leaders. The reason for the inability to integrate is the redistribution of various interests and the repositioning of corporate executives. The business model of IC design companies The survival model is also deeply rethought and adjusted. The future merger will have the following characteristics: First, mergers of the same type; Second, complementary advantages, strong combination; Third, the integration of products and solutions."
Wen Maoqiang, chief technical officer of Shenzhen Changyuntong Optoelectronics Technology Co., Ltd., said that mergers and acquisitions are absolutely benign, and that good technologies and resources will be integrated to facilitate long-term development. When the author asked whether there would be a monopoly, Wen Maoqiang expressed that he would not appear. He even hoped that there would be a monopoly in domestic ICs, because achieving monopoly is a manifestation of great strength. With the current strength of local IC companies in China, it is still far from enough.
In recent years, local IC design companies have faced difficulties in survival due to the serious lack of funds and talented people's support for local IC design and serious homogeneity issues. Industry consolidation and merger have become an effective way to rescue the crisis.
According to Wei Dong, the sales director of Shenzhen Xinhai Technology Co., Ltd., it is very dangerous for a company to have only a few product lines. However, it is very difficult to develop new products. It is necessary to integrate resources. “We look at Europe, America, and Taiwan. For example, MediaTek, Hetai, Yilong, etc., their product lines are relatively neat, and local companies generally have only a few models, a single product line, the competitiveness is relatively weak If you can unite different product lines with different strengths, you can enhance overall strength, which requires consolidation." Wei Dong said.
However, according to the author's understanding, the current domestic IC design companies face several major problems and it is difficult to implement them if they are not resolved. The industry analysts analyzed the reasons for this. First, the lack of domestic IC core technologies and related patents has caused a lack of motivation for mergers between companies. Second, domestic IC design companies lack huge financial support and the merger lacks capital leverage; again, companies Internal employees' 'escape' business is serious and there is a lack of human resources support after the merger. Some people in the industry are not worried.
Cai Ren'an, general manager of Shenzhen Naxinwei Technology Co., Ltd., said: “The integration requires the mind and vision of leaders. The reason for the inability to integrate is the redistribution of various interests and the repositioning of corporate executives. The business model of IC design companies The survival model is also deeply rethought and adjusted. The future merger will have the following characteristics: First, mergers of the same type; Second, complementary advantages, strong combination; Third, the integration of products and solutions."
Wen Maoqiang, chief technical officer of Shenzhen Changyuntong Optoelectronics Technology Co., Ltd., said that mergers and acquisitions are absolutely benign, and that good technologies and resources will be integrated to facilitate long-term development. When the author asked whether there would be a monopoly, Wen Maoqiang expressed that he would not appear. He even hoped that there would be a monopoly in domestic ICs, because achieving monopoly is a manifestation of great strength. With the current strength of local IC companies in China, it is still far from enough.