The global semiconductor industry is entering a new phase of consolidation, with mergers and acquisitions becoming a key strategy for leading companies to maintain their dominance and prepare for the future. However, China's semiconductor sector may struggle to keep up with this wave, potentially widening the technological gap with its U.S. counterparts in the coming years.
A notable example is Broadcom’s $130 billion bid to acquire Qualcomm, which marks a continuation of the aggressive M&A trend that has been shaping the global semiconductor landscape since 2016. Both companies are among the top 20 semiconductor firms, ranked fifth and fourth by IC Insights in 2016. If completed, this deal would significantly reshape the industry's competitive dynamics. Qualcomm’s unique business model—particularly its royalty-based licensing system—has raised questions about how the acquisition might affect downstream industries like smartphones and automotive electronics. Would it lead to changes in how royalties are collected? That remains to be seen.
Although Qualcomm’s board rejected the initial offer, citing undervaluation, the deal isn’t over yet. Broadcom could raise its bid, and this high-stakes battle could continue for months or even years, offering a fascinating glimpse into the evolving semiconductor landscape.
The semiconductor industry is inherently capital- and knowledge-intensive, with long development cycles and exposure to market fluctuations. This makes mergers and acquisitions a common strategy for survival and growth. By combining resources, companies can better weather economic downturns and strengthen their position in the supply chain.
In 2016, the M&A activity in the semiconductor sector reached a peak, with 40% of the top 10 companies involved in deals. The top 25 manufacturers saw a 10.5% revenue increase, while smaller players faced significant declines. Global M&A volume exceeded $140 billion that year, with over 40 major transactions.
This trend continued into 2017, with deals such as SK’s acquisition of LSGiltron, Broadcom’s purchase of Cosemi’s optoelectronics division, and Amkor’s agreement with Nanium A. These moves reflect a broader shift toward consolidation, driven by slowing growth in key markets like smartphones and IT infrastructure.
By 2016, smartphone growth had hit a plateau, with only 2.5% annual growth—a sharp drop from previous years. Meanwhile, the IT sector faced softness due to the rise of cloud computing and big data, which shifted demand away from traditional hardware. Server sales, for instance, declined in early 2017.
At the same time, the concentration of downstream industries—led by giants like Apple, Samsung, and Amazon—reduced the bargaining power of semiconductor suppliers. These companies are also investing heavily in in-house R&D, further intensifying competition.
For China, the implications are serious. If the Broadcom-Qualcomm merger goes through, it could create an unbridgeable gap between Chinese and U.S. semiconductor firms. The combined entity would gain a massive advantage in patents, capital, and talent, strengthening its control over the global supply chain.
With 5G on the horizon, Qualcomm and Broadcom’s dominance in wireless technology will only grow, giving them more influence over mobile and smart device ecosystems. China faces immense challenges in attracting talent, securing capital, and competing for customers, especially when foreign investments are often met with political resistance.
Despite these hurdles, China still has strengths: its vast smartphone market, rapid expansion of smart manufacturing, and strong investment in 5G and IoT. The key question is whether it can effectively combine these advantages with technological innovation to close the gap.
Ultimately, the future of China’s semiconductor industry depends on strategic partnerships, bold investments, and a deeper integration of technology and market opportunities.
Hengstar professional CCTV monitors are designed for professional surveillance systems. The monitors have multi signal input options, and using BNC connectors, which can support long distance signal transmission. Its controller boards have functions of: low EMI, 3D filter and 3D noise reduction and professional Mstar ACE-3 image/color processing and, ensuring the monitors have a perfect image. We have different board solutions for various input needs, and monitors of small size(10.4'') to big size(65'') for option. Our monitors support wall mount and desktop solutions, other mounting solutions are customizable according to customer's requirements. This professional CCTV monitors have been widely applied to control centers, stations, banks, medical diagnose and other site monitoring fields.
cctv monitor,cctv monitor screen,cctv display monitor,surveillance monitor,surveillance monitoring,video surveillance monitors
Shenzhen Hengstar Technology Co., Ltd. , https://www.angeltondal.com