Core Viewpoint - The article discusses the recent surge in mergers and acquisitions (M&A) within the semiconductor industry in China's A-share market, highlighting various companies' strategies and the underlying motivations driving these transactions [3][15][26]. Group 1: M&A Activity in Semiconductor Sector - Over 20 M&A transactions related to the semiconductor industry have been reported in the second half of the year, with companies from diverse sectors, including real estate and printing, participating in these deals [3][4]. - The acquisition of Nanjing Turnafly Electronic Technology Co., Ltd. by Yongji Co., Ltd. was terminated after a half-month suspension, leading to a 10.02% drop in its stock price upon resumption of trading [1][26]. - Greenway Technology's acquisition of Jiangsu Damo Semiconductor Technology Co., Ltd. involved a premium rate exceeding 300%, despite the company's projected net profit decline of 54% from 2022 to 2024 [3][11]. Group 2: Focus Areas in M&A - The two main focal points in the semiconductor M&A landscape are the photolithography machine and GPU industry chains, with significant investments directed towards these areas [4][6]. - Companies are targeting various segments within the photolithography machine supply chain, from foundational technologies to key materials and equipment [6][12]. Group 3: Investment Strategies - Some companies are investing in foundational technologies, such as Fudan Fuhua's investment in Lian Guang Yuan He, which focuses on optical technology and aims to develop integrated systems for communication [7][8]. - Other investments are aimed at acquiring core technologies and talent, exemplified by United Chemical's investment in Zhaoguang Rui, a startup developing projection lithography machines, led by a former ASML employee [9][10]. - Companies like Zhengfan Technology are seeking to enter the supply chains of leading international manufacturers, as seen in their acquisition of Han Jing Semiconductor, which supplies critical components for semiconductor manufacturing [10][18]. Group 4: Diverse Approaches to M&A - The article identifies two distinct paths in the M&A landscape: one led by industry players seeking to enhance their capabilities and another by cross-industry players pursuing high-risk, complex transactions [15][21]. - Traditional industry companies are attempting to pivot into the semiconductor sector, as demonstrated by Greenway Technology's acquisition of Damo Semiconductor, despite its own declining performance [22][25]. - The complexity of transactions is illustrated by Kaipu Cloud's acquisition of Jin Taike's storage business, which involves multiple steps to separate valuable assets from liabilities [23][24].