Core Viewpoint - The article discusses the recent trend of horizontal mergers and acquisitions (M&A) in the analog chip industry, highlighting both successful and terminated deals, and the implications for the industry's growth and consolidation [1][3][8]. Group 1: Recent M&A Activity - Sirepu (688536.SH) announced the termination of its major asset restructuring plan on December 9, leading to the resumption of its stock trading [1]. - DiAoWei (688381.SH) also held an investor meeting on the same day to announce the termination of its share purchase agreement for acquiring Rongpai Semiconductor (Shanghai) Co., Ltd. due to disagreements on key terms [1]. - The rapid termination of these M&A deals, particularly in the analog chip sector, reflects challenges in reaching consensus on transaction terms [1][4]. Group 2: Industry Trends - The analog chip sector has seen a surge in M&A activity this year, with companies like Yachuang Electronics (301099.SZ) leading the charge in horizontal acquisitions [3][4]. - A total of nine horizontal M&A attempts have been initiated by eight domestic analog chip manufacturers, including Sirepu, DiAoWei, and Yachuang Electronics [4][6]. - The trend of horizontal consolidation is driven by the industry's characteristics, such as a wide range of products and a dispersed customer base, which necessitate rapid acquisition of technology and resources [6][7]. Group 3: Reasons for Termination of M&A - Several M&A attempts have been terminated this year due to failure to reach agreement on key terms, such as transaction pricing and restructuring plans [7]. - The inability to finalize agreements is a significant reason for the high rate of M&A terminations in the analog chip sector [7]. - Economic adjustments and a cooling capital market have created discrepancies between market valuations and the pricing of M&A deals, complicating the completion of transactions [7]. Group 4: Future Outlook - Despite the challenges, external M&A is still viewed as a critical growth strategy for analog chip companies, with firms like Xinxiangwei indicating a commitment to combining internal growth with external acquisitions [8]. - The article suggests that the analog chip industry could benefit from a consolidation similar to that seen in global leaders like Texas Instruments (TI) and Analog Devices (ADI), which have successfully expanded through strategic acquisitions [10][11]. - There is a recognition that domestic analog chip companies need to enhance their product lines and core capabilities to compete globally, particularly in terms of manufacturing processes and product diversity [12].