Zhong Guo Jing Ying Bao·2025-06-13 18:14Core Viewpoint - The recent mergers and acquisitions in the semiconductor sector, driven by regulatory reforms, are aimed at enhancing the domestic supply chain and achieving self-sufficiency in China's semiconductor industry [1][2][3]. Group 1: Recent Mergers and Acquisitions - Haiguang Information's merger with Zhongke Shuguang will create a "computing power giant" with a market value of nearly 400 billion yuan, addressing chip shortages in the intelligent computing sector [2]. - Guokewei's acquisition of Zhongxin Ningbo will transform it into a chip company with its own wafer fab, enhancing industry synergy [2]. - Beifang Huachuang's acquisition of Chip Source Microelectronics will facilitate the integration of domestic semiconductor equipment [2]. - Gekun Electronics' acquisition of Ruicheng Chip and Huada Jiutian's acquisition of Chip and Semiconductor are seen as critical battles for the integration of China's EDA industry [2]. Group 2: Regulatory Environment - The "Eight Measures for Deepening the Reform of the Sci-Tech Innovation Board" and the "Six Opinions on Deepening the Reform of the Mergers and Acquisitions Market" are providing a "system dividend" that supports mergers and acquisitions in the semiconductor sector [1][3]. - These policies aim to enhance resource allocation efficiency and promote the self-reliance of China's semiconductor industry [3]. Group 3: Industry Context - The semiconductor industry is crucial for national economic stability, with a global market value exceeding $600 billion, supporting various electronic products and the digital economy [2]. - China's semiconductor imports reached $385.6 billion in 2024, highlighting the ongoing trade deficit in this sector despite efforts to boost domestic production [3]. - The goal of developing the semiconductor industry is to ensure supply chain security and national security, rather than merely eliminating trade deficits [3]. Group 4: Future Outlook - The integration wave in the semiconductor sector is expected to accelerate domestic substitution and enhance China's competitive position in the global market [3]. - The emphasis on mid-to-low-end chips and the potential in compound semiconductors indicate a strategic focus on areas where China can achieve significant advancements [4].