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Integrated Circuit Industry Ushers Consolidation

Authorities in June this year introduced the "Outline of the integrated circuit industry to promote the development of" made ​​in 2020, the gap with the international advanced level in the IC industry gradually narrow, industry-wide sales of more than 20% average annual growth rate, corporate sustainability development is enhanced. To focus on the role of market mechanisms to guide and promote the integrated circuit design enterprises mergers and acquisitions. It is understood that the semiconductor industry mainly in the design, manufacture, packaging, testing and other aspects. Over the past 10 years, under the strong policy support and end-market demand for dual power-driven, design industry to achieve sustained rapid growth, becoming the fastest growing semiconductor industry chain, a ring. Subsequently, the growth of China's semiconductor industry focus to fabless design patterns. According to the China Semiconductor Industry Association statistics, in 2013 China's IC industry sales of 250.851 billion yuan, an increase of 16.2%, including the design industry 80.88 billion yuan, an increase of 30.1%, 19.9%, much higher than the manufacturing and packaging and testing industry 6.1 %.Despite the rapid development of China's integrated circuit industry, but because of years of industrial layout too scattered, small-scale enterprises, the domestic top ten chip design companies do not add up to one-third of the total output value of Qualcomm. Today, the purple group mergers and acquisitions in the design industry will change this situation. Through the acquisition of communication baseband chip design companies Spreadtrum Communications and RDA communications chip design companies, the Group has been sitting on the purple top three domestic chip design companies in two. In this regard, SW [0.66%] researcher Zhang luk that, if successful merger Spreadtrum and RDA, then the simple addition of 2013 consolidated revenue was $ 1.42 billion, will go beyond the violet Huawei Hass has become the largest integrated circuit (IC ) designers in the world, routed No. 11. Spreadtrum and RDA combination will achieve complementary advantages. Spreadtrum powerful software development, but the IC R & D strength is weak, RDA is strong and the lack of software development efforts in IC development. In addition to three foreign companies through mergers and acquisitions to benefit from China's semiconductor industry will thus be greatly affected. "The semiconductor industry in order to rapidly expand, acquisition is a very important tool." Industrial and Technical Director of the International Center for Economic Cooperation Ministry of Information GONG Xiaofeng told reporters that the development of the integrated circuit industry requires a lot of money, without a certain scale is difficult seize market opportunities, such as chip design company, do $ 1 billion in revenue only have enough ability to resist risks; rather short time to upgrade technology and improve the quality of talent, formed a certain scale, the merger of existing competitive enterprises is undoubtedly effective way. "In the future, similar to the M & A events in the field of integrated circuits will be more and more." GONG Xiaofeng said.

    
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