Since the start of 2025 there have been a reported 23 M&A deals. In 2024 alone, there were over 50 mergers worth around $56bn.
In April reports suggested that because so many chipmaking tool firms depend on government subsidies, China was looking to consolidate over 200 chip equipment companies into just 10 key players.
To that end SMIC has revealed plans to sell its entire stake in SMIC Ningbo to Goke Microelectronics, while local chip designer Hygon and supercomputer firm Sugon have announced a major asset restructuring. Chinese chip equipment giant Naura Technology is also set to buy a significant stake in photolithography toolmaker Kingsemi in a deal worth around $250m.
China’s overarching 'National IC Fund Phase II' has looked to shift the focus from overseas acquisitions to building a stronger local supply chain.
It should be noted, however, that not all proposed M&A deals in the chip sector have been agreed, for example, Ingenic walked away from a deal to acquire Fremont Micro Device, due to valuation gaps and clashing interests, according to reports.
All of this points to increased efforts by China to develop and invest in its own semiconductor industry as well as to restructure their procurement process, as the Chinese economy attempts to reduce its reliance on US sourced technology.
