China Reports 31 Semiconductor M&A Deals in 2024: Analog Chips and Materials Lead
China’s semiconductor industry is seeing a surge in mergers and acquisitions (M&A) in the second half of 2024. A recent report from Yicai Global reveals that 31 semiconductor M&A deals were announced for the first time this year, with more than half of them coming to light after September 20. Among these deals, 14 were focused on semiconductor materials and analog chips.
The report highlights that seven acquiring companies in these new deals are from the analog chip sector. Key players like Convert, Halo Microelectronics, BPS, and Novosense have been active in these acquisitions. These analog chip companies specialize in areas such as power management, signal chains, and power ICs.
For example, BPS made headlines on October 22 when it acquired controlling shares in Convenient Power through a private placement. Both BPS and Convenient Power are known for their expertise in power management chips. This move allows BPS to expand its product offerings for mobile and automotive applications while gaining advantages in customer base and supply chain integration.
In addition to analog chips, seven M&A deals in 2024 were initiated by semiconductor materials companies. Three deals involved upstream silicon wafer manufacturers like Li-on, TCL Zhonghuan, and Grinm Semiconductor Materials. Other deals were led by providers of raw materials for semiconductor manufacturing equipment, including Grandit and AESM.
JCET, a prominent Chinese semiconductor packaging and testing firm, was involved in two significant M&A deals. In March, JCET acquired an 80% stake in SanDisk Semiconductor (Shanghai) for RMB 4.5 billion. Shortly after, China Resources Group (CRC) took control of JCET for RMB 11.7 billion.
In contrast, the digital circuit sector saw fewer M&A activities, with only two reported deals involving GigaDevice and Intellifusion. GigaDevice, along with its co-investors, acquired a 70% stake in Xysemi for RMB 580 million.
It’s clear that the semiconductor industry in China is experiencing a dynamic period of growth and change, particularly in the realm of mergers and acquisitions. The landscape of the industry is evolving rapidly, and these developments are worth keeping an eye on for anyone interested in the world of semiconductors.
