Core Viewpoint - The semiconductor industry in China is experiencing challenges in mergers and acquisitions (M&A), despite the introduction of supportive policies. The current market conditions and valuation discrepancies are significant hurdles for companies seeking to consolidate and grow through M&A [1][2][3]. Group 1: Industry Overview - The 2025 Ninth Micro-Semiconductor Conference highlighted the ongoing discussions about M&A in the semiconductor sector, indicating a lack of large-scale consolidation despite numerous policy initiatives [1]. - Industry experts believe that the Chinese semiconductor market has not yet entered a significant M&A wave, citing various challenges and complexities involved in the process [1][2]. Group 2: M&A Challenges - Hu Liqiang from Jingfeng Mingyuan emphasized that M&A is a complex process, often described as a "charming trap," where companies aim to quickly integrate resources and enhance competitiveness [2]. - The success rate of M&A efforts in the semiconductor sector is low, with Xiaomi's investment arm reporting only a 5%-10% success rate in their M&A projects over the past year [3]. - Valuation discrepancies between primary and secondary markets pose a significant challenge, with some semiconductor assets experiencing valuation multiples that are misaligned [3][5]. Group 3: Strategic Importance of M&A - Yang Lianfeng from Gai Lun Electronics noted that M&A is not only a means for companies to grow but also a necessary step for the industry's overall development, particularly during the critical phase of domestic substitution [4]. - The importance of aligning the entrepreneurial team's vision with industry logic is crucial for successful M&A, as misalignment can lead to post-merger challenges [5]. Group 4: Future Outlook - Industry leaders call for a balanced approach to address market fluctuations and the need for rational asset valuation to facilitate smoother M&A processes [6]. - The integration of the semiconductor industry is seen as an inevitable trend, with M&A being essential for technological breakthroughs and resource consolidation, especially in the face of increasing external pressures [6][7].