Semiconductor mergers reshape China’s tech landscape

China’s semiconductor industry has seen a significant rise in merger and acquisition (M&A) activity in 2024, with 31 deals disclosed so far. Over half were announced after September, signalling a surge in activity during the latter part of the year. Nearly half of these transactions focused on semiconductor materials and analog chips, key areas driving innovation and growth.

Notable companies in the analog chip sector, such as Convert, Halo Microelectronics, BPS, and Novosense, played pivotal roles. For instance, BPS acquired controlling shares in Convenient Power to strengthen its power management chip offerings. This move highlights the growing synergy in product lines for mobile and automotive applications while expanding customer bases and supply chain networks.

Semiconductor materials companies also showed robust activity, with seven deals disclosed. Transactions included upstream silicon wafer manufacturers like Li-on and TCL Zhonghuan, as well as raw material providers such as Grandit. JCET, a major semiconductor packaging firm, made headlines with its acquisition of SanDisk Semiconductor and its subsequent control transfer to China Resources Group.

Digital circuits lagged behind in M&A activity, recording only two transactions. Among these, GigaDevice secured a 70% stake in Xysemi for RMB 580 million. Analysts note the dominance of analog chips and materials in reshaping China’s semiconductor industry.