The semiconductor industry is currently undergoing rapid development and transformation. Amidst a cyclical downturn and intensifying market competition, many companies are leveraging mergers and acquisitions (M&A) to bolster their competitiveness. Valuations of certain semiconductor assets have become more rational following industry fluctuations, prompting mature platform enterprises to pursue growth through strategic acquisitions.- LookWhole Insight
Semiconductor Discrete Devices Market Analysis
In 2025, the global semiconductor industry's mergers and acquisitions (M&A) landscape remains steady, characterized by strategic realignments rather than a surge in deal volume. Major players are focusing on optimizing portfolios and strengthening core competencies. For instance, Intel's divestiture of a majority stake in its programmable chip division, Altera, to Silver Lake Capital reflects a strategic shift to reallocate resources towards next-generation chip manufacturing. Similarly, AMD's sale of ZT Systems' server manufacturing business to Sanmina for $3 billion aims to bolster its AI hardware capabilities within an onshore supply chain. These moves indicate a trend where companies are refining their operations to better align with evolving technological demands and geopolitical considerations.
The following are some of the company M&A activities in April and May 2025:
Recent Global Semiconductor M&A Activities (April–May 2025)
|
Date |
Acquirer / Seller |
Target / Action |
Deal Value |
Strategic Rationale |
|
Apr 14, 2025 |
Intel / Silver Lake |
Sold majority stake in Altera |
~50% of original $17B value |
To reallocate resources for next-gen chip manufacturing strategy. |
|
Early Apr |
Qualcomm |
Considering acquisition of Alphawave (UK) |
£1 billion (valuation) |
To enhance chip design capabilities; news led to a 47% rise in Alphawave's stock. |
|
Apr 2025 |
HORIBA STEC KOREA |
Acquired EtaMax (Korea) |
Undisclosed, Estimated at $22 million |
To strengthen semiconductor business layout. |
|
May 19, 2025 |
AMD / Sanmina |
Sold server business of ZT Systems |
$3 billion |
To establish AI hardware partnership and support onshore chip production. |
|
May 22, 2025 |
SEALSQ (WISeKey subsidiary) |
Acquiring 100% of IC’ALPS (France) |
€12.5 million (€10M in cash) |
To enhance IC design and supply capabilities. |
Source: LookWhole Insight, 2025
Acceleration of Semiconductor M&A in China
Contrasting the global steadiness, China's semiconductor industry is experiencing an accelerated pace of M&A activities, driven by policy support and the imperative for technological self-sufficiency. Especially since the release of the "Opinions on Deepening the Reform of the Merger and Acquisition Market of Listed Companies" (hereinafter referred to as the "Six Mergers and Acquisitions" policy) by the China Securities Regulatory Commission in September 2024, the merger and acquisition reorganization boom has been superimposed on the explosion of AI (artificial intelligence) demand, and the semiconductor industry has become a hot track in this round of mergers and acquisitions.
According to LookWhole Insight, there were about 47 mergers and acquisitions and reorganizations in the semiconductor field (including cross-border cases) in China in 2024 (based on the first disclosure date), of which about 28 acquisitions were first released after the "Six Mergers and Acquisitions" policy; from 2025 to date, there have been nearly 20 mergers and acquisitions related to the semiconductor industry. If the "Six Mergers and Acquisitions" policy is used as a watershed, the semiconductor industry has had a total of about 48 acquisitions or reorganizations in the past six months, almost one every four days, with a significant acceleration. At the same time, the number of failed mergers and acquisitions has also increased, including many cross-border mergers and acquisitions.
The following is a summary of mergers and acquisitions in the first quarter of the Chinese semiconductor industry:
China's Q1 Semiconductor M&A and Restructuring Cases
|
Company Name |
Latest Disclosure Date |
Initial Disclosure Date |
Restructuring Event |
Transaction Target |
|
Primarius |
27-Mar-25 |
27-Mar-25 |
Primarius Technologies plans to acquire a controlling stake in Ruicheng Micro via share issuance and cash payment |
Ruicheng Micro controlling equity |
|
Empyrean Technology |
30-Mar-25 |
17-Mar-25 |
Empyrean Technology plans to acquire a controlling stake in CoreSemi via a private placement |
CoreSemi controlling equity |
|
Shanghai Yct Electronics |
17-Mar-25 |
17-Mar-25 |
Shanghai Yct Electronics Group plans to acquire a partial equity stake in Shanghai Classcom |
Shanghai Classcom partial equity |
|
Yangjie Technology |
19-Mar-25 |
13-Mar-25 |
Yangjie Technology plans to acquire a controlling stake in Bethe Electronics via a private placement |
Bethe Electronics controlling equity |
|
Bright Power |
12-Mar-25 |
12-Mar-25 |
Bright Power plans to acquire a 19.19% equity stake in Lingxiang Creation |
Lingxiang Creation 19.19% equity |
|
NAURA Technology |
21-Mar-25 |
11-Mar-25 |
NAURA Technology plans to acquire a 9.49% equity stake in Advanced Semiconductor Manufacturing held by Advanced Manufacturing via agreement, and participate in a 17.90% equity offering of Advanced Semiconductor Manufacturing |
Advanced Semiconductor Manufacturing 17.90% equity |
|
GRINM Semiconductor |
5-Mar-25 |
5-Mar-25 |
GRINM Semiconductor plans to acquire a 60% equity stake in High-Frequency Beijing |
High-Frequency Beijing 60% equity |
|
TCL Technology |
21-Mar-25 |
4-Mar-25 |
TCL Technology plans to acquire a 21.53% equity stake in Shenzhen Huaxing Semiconductor |
Shenzhen Huaxing Semiconductor 21.53% equity |
|
New Vision Microelectronics |
15-Mar-25 |
4-Mar-25 |
New Vision Microelectronics plans to acquire a 100% equity stake in Aixi via a private placement |
Aixi 100% equity |
|
Injoinic Technology |
11-Mar-25 |
4-Mar-25 |
Injoinic Technology plans to acquire a controlling stake in Himax via a private placement |
Himax controlling equity |
|
Wenzhou Hongfeng |
20-Mar-25 |
24-Feb-25 |
Wenzhou Hongfeng plans to acquire a 23.09% equity stake in Hongfeng Semiconductor via a private placement |
Hongfeng Semiconductor 23.09% equity |
|
National Silicon Industry Group |
8-Mar-25 |
22-Feb-25 |
National Silicon Industry Group plans to acquire a 48.78% equity stake in New Sunwa Crystech and a 6.47% equity stake via a private placement, totaling a 49.12% equity stake in New Sunwa Crystech |
New Sunwa Crystech 48.78% equity and 49.12% equity |
|
Aisen |
15-Mar-25 |
24-Jan-25 |
Aisen plans to acquire a 70% equity stake in Genox New Materials via a private placement |
Genox New Materials 70% equity |
|
Southchip Semiconductor |
22-Feb-25 |
22-Jan-25 |
Southchip Semiconductor plans to acquire a 100% equity stake in Sheng Micro via a private placement |
Sheng Micro 100% equity |
|
Oriental Semiconductor |
18-Jan-25 |
18-Jan-25 |
Oriental Semiconductor plans to acquire a 54.55% equity stake in Electrontech via a private placement |
Electrontech 54.55% equity |
|
Cixing Co., Ltd. |
6-Feb-25 |
14-Jan-25 |
Cixing Co., Ltd. plans to acquire a controlling stake in Wuhan Minson via share issuance and cash payment |
Wuhan Minson controlling equity |
|
Nata Opto-electronic |
13-Mar-25 |
10-Jan-25 |
Nata Opto-electronic plans to acquire a 16.54% equity stake in Quanjiao Nanda via a private placement |
Quanjiao Nanda 16.54% equity |
|
Huawei Design Co., Ltd. |
25-Jan-25 |
8-Jan-25 |
Huawei Design plans to acquire a 51% equity stake in Jiujiang Zhengqi |
Jiujiang Zhengqi 51% equity |
Source: LookWhole Insight, 2025
As one of the key areas of global semiconductor production capacity, China's semiconductor industry M&A activities present three major characteristics: First, technology reinforcement, companies quickly acquire key technologies such as advanced processes, chip architecture, and AI chip design through mergers and acquisitions; second, vertical collaboration, companies use active M&A strategies to open up the entire chain of "design, manufacturing, packaging, and testing" to reduce external dependence; third, ecological construction, leading companies form a virtuous cycle of "technology, industry, and finance" through mergers and acquisitions of upstream and downstream companies.
Global Impact and Strategic Outlook
The global semiconductor M&A landscape in 2025 reflects a period of strategic realignment as companies focus on core competencies and adapt to technological and geopolitical changes. In contrast, China’s accelerated M&A activity highlights its concerted efforts to consolidate the industry, advance technological capabilities, and achieve greater self-sufficiency. These different strategies highlight the different tactics that global companies are taking in the complex and evolving semiconductor ecosystem.
In the current semiconductor industry cycle, stakeholders are still best advised to keep a close eye on these developments for strategic planning and investment decisions. Companies should evaluate potential partnerships, acquisitions, or investment opportunities to remain competitive in this rapidly evolving industry.
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