Core Viewpoint - The semiconductor materials industry is experiencing a wave of mergers and acquisitions (M&A) as companies seek to expand capacity and enhance competitiveness in response to market demands and challenges [2][6][7]. Group 1: Company Actions - Aisen Co., Ltd. (艾森股份) has decided to terminate its acquisition of 70% of the equity of Banuo (Suzhou) New Materials Co., Ltd. due to a lack of consensus on transaction terms [1]. - The company will continue to focus on its core semiconductor business, emphasizing technological upgrades and market expansion in advanced packaging and wafer manufacturing [1]. - Other semiconductor material companies, such as Youyan Silicon (有研硅) and Hu Silicon Industry (沪硅产业), have also disclosed M&A activities in May [1]. Group 2: M&A Trends - Since the release of the "M&A Six Guidelines" on September 24, 2024, seven semiconductor material companies have initiated nine M&A transactions, with a significant focus on silicon wafer manufacturers [2][4]. - The trend indicates that leading companies are using M&A to enhance their supply chain and competitive edge as industry concentration increases [2][4]. - Approximately one-third of the M&A cases in the semiconductor materials sector involve cross-border transactions, highlighting a global strategy for growth [8]. Group 3: Challenges and Considerations - Despite the growth in M&A activities, there have been several failed acquisitions due to cultural differences, integration challenges, and regulatory hurdles [3][10]. - The complexity of the semiconductor industry necessitates that acquiring companies possess deep industry insights and operational expertise to ensure successful integration and long-term viability [11]. - Financial leverage and the stability of funding sources are critical factors influencing the success of M&A transactions, especially in a market characterized by rising risks and declining risk appetite [11].