On February 11, Tianshui Huatian Technology Co.,Ltd. announced its plan to acquire a 100% stake in Huayi Microelectronics Co., Ltd. through a combination of share issuance, cash payment, and a supporting capital raise. The total transaction value is as high as 2.996 billion yuan. This move signifies a crucial step for Huatian Technology towards becoming a comprehensive semiconductor packaging and testing group.
According to a review, by February 12, several listed semiconductor companies, including HUA HONG SEMI, Shanghai Bright Power Semiconductor Co.,Ltd., and Unigroup Guoxin Microelectronics Co.,Ltd., have disclosed merger and acquisition plans or progress updates since the beginning of the year.
An analysis of M&A cases involving listed semiconductor companies since the start of the year reveals that strengthening supply chains and achieving synergistic efficiencies have become an industry consensus. Companies' M&A strategies are closely aligned with addressing weaknesses in their core businesses and meeting long-term development needs, precisely targeting improvements in their industrial chain layouts.
Specifically, Huatian Technology's acquisition of Huayi Microelectronics primarily aims to address its shortcomings in power semiconductor packaging and testing, rapidly enhancing its core packaging and testing business layout to form a comprehensive service portfolio covering integrated circuits, discrete devices, and other segments. Hua Hong Semiconductor Limited intends to acquire a 97.4988% stake in Shanghai Huali Microelectronics Corporation, focusing on boosting its 12-inch wafer foundry capacity. This will enable deep complementarity between its own advanced processes and the target's platform, jointly building a more extensive and technologically comprehensive wafer foundry and supporting service matrix. Shanghai Bright Power Semiconductor Co.,Ltd. plans to acquire a 100% stake in Sichuan Yichong Technology Co., Ltd., leveraging the target's technological expertise in wireless charging and general-purpose charging chips to consolidate its position in the consumer electronics market while steadily expanding into automotive-grade power supply chip business. Unigroup Guoxin Microelectronics Co.,Ltd. aims to acquire a 100% stake in Runeng Semiconductor Technology Co., Ltd., seeking to quickly address weaknesses in the manufacturing segment and perfect its semiconductor industry chain layout by integrating power semiconductor product lines.
"The core motivation for most M&A activities by listed semiconductor companies is to strengthen their core businesses, expand product lines, enhance technological capabilities, and increase market share," said Lin Xianping, an associate professor at Zhejiang University City College, in an interview. Professor Lin added that post-merger, companies are expected to benefit in multiple dimensions: enhanced R&D capabilities, accelerated product innovation and iteration, expanded market share, optimized supply chain costs, and improved operational efficiency, ultimately leading to stronger overall risk resilience.
"The rapid development in sectors like consumer electronics, automotive electronics, artificial intelligence, and the Internet of Things has generated massive demand for semiconductor products, while simultaneously imposing higher requirements for chip performance, functionality, and reliability," said Yuan Shuai, Deputy Secretary-General of the Zhongguancun IoT Industry Alliance, in an interview. "This prompts semiconductor companies to continuously adjust their product structures and R&D directions to meet market demands. Faced with intense market competition and technological changes, companies resort to M&A and other methods for resource integration and complementary advantages, which helps increase industrial concentration, optimize industrial structure, promote technology sharing, accelerate the transformation of innovation outcomes, and drive the semiconductor industry towards a higher level of development."
"Driven by both policy guidance and market demand, companies' willingness to address technological gaps and achieve economies of scale through M&A has significantly increased," said Wang Wentao, Director of the Higher Education Research Office at the Development Planning Department of Chongqing University of Technology, in an interview. He noted that the need for a self-reliant and controllable industrial chain is becoming another core driving force.
On the policy front, in April 2024, the State Council issued guidelines proposing to intensify reforms in M&A and restructuring and take multiple measures to invigorate the M&A market. In September 2024, the China Securities Regulatory Commission released opinions on deepening the reform of the M&A market for listed companies. In May 2025, the CSRC published a revised administrative measures for major asset restructuring of listed companies, making clear arrangements for innovative transaction tools and streamlined review procedures. In January of this year, the CSRC's annual work conference proposed stimulating vitality in the M&A market, improving whole-chain supervision of restructuring, and taking multiple measures to promote the high-quality development of listed companies.
Simultaneously, persistently strong market demand has injected robust momentum into M&A activities. With the iteration of large AI models, the expansion of data centers, the acceleration of Industry 4.0, and upgrades in consumer electronics, the global semiconductor industry maintains medium to high growth rates. On February 6, the Semiconductor Industry Association released annual sales data for the global semiconductor industry in 2025, showing global semiconductor sales reached $791.7 billion, a year-on-year increase of 25.6%. The SIA forecasts that global semiconductor sales will reach approximately $1 trillion in 2026, representing a growth of about 26%.
Fu Yifu, a special researcher at Sushang Bank, stated in an interview that emerging demands from areas like artificial intelligence and automotive electronics are transitioning from proof-of-concept to large-scale implementation phases. Leading manufacturers need to use M&A to quickly complete their technology maps and seize market opportunities. At the same time, intensified industry competition and the accelerated exit of small and medium-sized capacities provide opportunities for leading companies to integrate high-quality targets. M&A is expected to continue being an important tool for optimizing resource allocation and enhancing industrial resilience in 2026, with activity levels likely to remain high.
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