[News] China’s A-Share Chip M&A Boom: 73+ Applications Reportedly in 18 Months, $55B Deal Value in 2024

As the U.S. clamps down on chip exports, China is fast-tracking the consolidation of its semiconductor industry. According to Economic Daily News and Chinese media like Sina, China’s A-share chip sector has announced at least 23 M&A deals since 2025.

Notably, as the reports highlight, in 2024 alone, over 50 mergers were reported, with total deal values topping RMB 400 billion (around $55.7 billion).

This aligns with an April report from South Korea’s Etnews, which noted that since many chipmaking tool firms depend on government subsidies, Beijing plans to consolidate over 200 chip equipment companies into just 10 key players.

In early June, foundry giant SMIC revealed plans to sell its entire 14.83% stake in SMIC Ningbo to Goke Microelectronics, according to the Science and Technology Innovation Board Daily. Just days earlier, on May 25, local chip designer Hygon and supercomputer firm Sugon announced a major asset restructuring, South China Morning Post reported.

Meanwhile, in mid-March, Chinese chip equipment giant Naura Technology announced it would buy a 9.5% stake in photolithography toolmaker Kingsemi for RMB 1.69 billion (about USD 233 million), according to ijiwei.

In March, Chinese EDA firm Primarius Technologies announced it would acquire a stake in Chengdu Analog Circuit Technology (Actt), marking another step in the wave of consolidation sweeping China’s EDA sector—following Empyrean Technology’s recent takeover of Xpeedic.

Citing Chinese industry experts, Economic Daily News reports that since the launch of the National IC Fund Phase II, China’s chip sector has shifted from overseas acquisitions to building a stronger local supply chain. The push for deeper integration has only accelerated with Phase III kicking off in 2024, the report adds.

However, Economic Daily News, citing local media, notes that not all M&A deals in China’s chip sector are landing. In March, Goodix scrapped its bid for Shenzhen Yunyinggu, while Ingenic walked away from acquiring Fremont Micro Devices—mainly due to valuation gaps and clashing interests, the report suggests.

Read more

• [News] China’s Chip Equipment Giant Naura Tech Acquires Stake in Kingsemi amid Local Industry Integration
• [News] Chipmaker Hygon to Acquire Sugon as China Pushes Chip Sector Consolidation

(Photo credit: AMEC)