TCL Technology's Merger and Acquisition of Central Electronics: Analysis of Corporate M&A and Restructuring Strategies

Li Liu

doi:10.62051/58wtg986

Authors

Li Liu

DOI:

https://doi.org/10.62051/58wtg986

Keywords:

TCL Technologies, Business Combination, M&A Performance, M&A Risks.

Abstract

Benefiting from national policy support and market economy, China's semiconductor industry has made significant progress in technological innovation, especially in the context of 5G, smart Internet and big data era, the center of gravity of the industry is shifting from South Korea and Taiwan to mainland China.Through the acquisition of Azeus, which is equipped with profound semiconductor packaging and testing technology, TCL Technology aims to enhance its competitiveness in the semiconductor field, optimize supply chain management and improve product quality control capability. supply chain management and improve product quality control. This paper examines TCL's acquisition of Azeus and discusses six aspects of the acquisition: overview of the two parties, industry background, progress of the acquisition, performance evaluation (including financial and non-financial), risk analysis, and characteristics of the acquisition. The results show that the acquisition has had a positive impact on TCL's development in semiconductors and related fields.

Downloads

Download data is not yet available.

References

[1] Borodin A, Ziyadin S, Islyam G, et al.Impact of mergers and acquisitions on companies’ financial performance[J].Journal of International Studies,2020,13(2):34-47.

[2] Ding S, Du M, Cui T, et al.Impact of board diversity on Chinese firms’ cross-border M&A performance: An artificial intelligence approach[J].International Review of Economics and Finance,2024,921321-1335.

[3] Gao Ziyao.Research on the synergistic effect of TCL Technology's merger and reorganization of Central Electronics[J]. China New Communication,2022,24(11):90-92.

[4] Jin Jiahui. Research on corporate M&A performance in the context of semiconductor technology upgrading--Taking TCL Technology's M&A of Zhonghuan Group as an example[J]. Operation and Management,2024, (04):61-67.

[5] Jingjing L, Xianming W. Technology-Driven Cross-Border M&A, CSR, and Enterprise Innovation Performance—Evidence from China[J]. Sustainability,2022,14(7):4169-4169.

[6] Mubeen S, Nagaraju Y. Impact of Mergers and Acquisitions on Financial Performance a study of Select Indian Companies[J]. Adarsh Journal of Management Research,2017,10(2):46-55.

[7] R. A C, Valentina S, A. N S. The long-term impact of bank mergers on stock performance and default risk: The aftermath of the 2008 financial crisis✰[J]. Finance Research Letters,2022,48

[8] Werner F, Minh T T N, Xia X. Financial performance analysis of German firms after Chinese mergers and acquisitions[J]. Review of International Business and Strategy,2022,32(3):405-422.

[9] Xiao Yanli, Zhang Qihui. Analysis of synergistic effect of merger and acquisition of electronic technology enterprises--Taking TCL Technology's merger and acquisition of Zhonghuan Electronics as an example[J]. Small and Medium-sized Enterprises Management and Technology,2023, (08):134-136.

[10] Yunjae B, Kyungsuk L, Taewoo R. Acquirer’s Absorptive Capacity and Firm Performance: The Perspectives of Strategic Behavior and Knowledge Assets[J]. Sustainability,2020,12(20):8396-8396.