Recently, Spreadtrum Communications, one of the world's top five suppliers of mobile phone chips, has acquired the company's Mobile Peak and mobile phone chip maker Taijing in succession. The foreign power company stated that although mergers and acquisitions have been common in the semiconductor industry, mainland semiconductor companies do not have strong capital. There is no perfect industrial chain and market, and there is still a big gap with the international semiconductor giants in starting mergers and acquisitions to increase their strength.
According to financial data, Spreadtrum’s revenue for the first half of 2011 was as high as US$297 million. The second half of the year is generally the peak season for the market, which means that the company is expected to become the first IC chip design company with a revenue of more than US$600 million in mainland China.
Industry sources said that Spreadtrum’s acquisition of two companies is paving the way for its smart phone business. Telegent Technology is the global leader in mobile analog TV chips. It received approximately US$100 million in revenue in 2008. Mobile Peak’s total transaction volume was US$32.6 million. Although Spreadtrum did not publish specific financial data, it still stated that the company’s business The growth rate is worth looking forward to.
Spreadtrum achieved significant gains in the second quarter of 2011, up 124.2% from the same period in 2010. Gu Wenjun, an analyst at iSuppli, said that if the company had revenues of 600 million U.S. dollars in 2011, as long as it grows by 20% per year, it could exceed the one billion U.S. dollar mark by 2015.
Gu Wenjun said that in 2006, although there were many semiconductor design companies on the mainland, they were small businesses with a total income of less than one Taiwan mobile phone wafer factory MediaTek. Mergers and integration is now the semiconductor industry?阞çæ“›y, depending on the company's independent development, it is difficult to fly.
Looking at the global semiconductor industry, the company is a design company. From January to July 2011, there were more than 80 mergers and acquisitions, and the top five IC chip design companies in the world were all involved in the integration. Including mobile phone chip maker Qualcomm (Qualcomm) in the first half of 2011 has bought Atheros, Rapid Bridge, GestureTek; communications chip maker Broadcom (Broadcom) acquired Provigent, SC Square, Innovision and so on. In contrast, there are only four cases of acquisitions by mainland semiconductor companies.
According to senior industry executives, the reason why mainland companies cannot make strong acquisitions is that funds are not strong enough. Spreadtrum bought 48.44% of Mobile Peak's shares and spent 32.6 million US dollars. This compares with Qualcomm’s US$3.1 billion purchase of Atheros and is undoubtedly a trivial task.
Some mainland semiconductor design companies have a certain scale, but from the perspective of the industry as a whole, they still have not divorced from the single product and single market, and the negative factors such as rising labor costs, appreciation of the renminbi, and taxation are still in the precarious situation. If companies can't break the status quo, then the outcome is likely to be merged, or flow into price competition, into a vicious cycle.
According to financial data, Spreadtrum’s revenue for the first half of 2011 was as high as US$297 million. The second half of the year is generally the peak season for the market, which means that the company is expected to become the first IC chip design company with a revenue of more than US$600 million in mainland China.
Industry sources said that Spreadtrum’s acquisition of two companies is paving the way for its smart phone business. Telegent Technology is the global leader in mobile analog TV chips. It received approximately US$100 million in revenue in 2008. Mobile Peak’s total transaction volume was US$32.6 million. Although Spreadtrum did not publish specific financial data, it still stated that the company’s business The growth rate is worth looking forward to.
Spreadtrum achieved significant gains in the second quarter of 2011, up 124.2% from the same period in 2010. Gu Wenjun, an analyst at iSuppli, said that if the company had revenues of 600 million U.S. dollars in 2011, as long as it grows by 20% per year, it could exceed the one billion U.S. dollar mark by 2015.
Gu Wenjun said that in 2006, although there were many semiconductor design companies on the mainland, they were small businesses with a total income of less than one Taiwan mobile phone wafer factory MediaTek. Mergers and integration is now the semiconductor industry?阞çæ“›y, depending on the company's independent development, it is difficult to fly.
Looking at the global semiconductor industry, the company is a design company. From January to July 2011, there were more than 80 mergers and acquisitions, and the top five IC chip design companies in the world were all involved in the integration. Including mobile phone chip maker Qualcomm (Qualcomm) in the first half of 2011 has bought Atheros, Rapid Bridge, GestureTek; communications chip maker Broadcom (Broadcom) acquired Provigent, SC Square, Innovision and so on. In contrast, there are only four cases of acquisitions by mainland semiconductor companies.
According to senior industry executives, the reason why mainland companies cannot make strong acquisitions is that funds are not strong enough. Spreadtrum bought 48.44% of Mobile Peak's shares and spent 32.6 million US dollars. This compares with Qualcomm’s US$3.1 billion purchase of Atheros and is undoubtedly a trivial task.
Some mainland semiconductor design companies have a certain scale, but from the perspective of the industry as a whole, they still have not divorced from the single product and single market, and the negative factors such as rising labor costs, appreciation of the renminbi, and taxation are still in the precarious situation. If companies can't break the status quo, then the outcome is likely to be merged, or flow into price competition, into a vicious cycle.
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