semiconductor m&a

February 27, 2025 – Industry sources reveal that ON Semiconductor (On Semi) is exploring a potential acquisition of Allegro Microsystems, a leading supplier of sensor-integrated circuits. ON Semiconductor has reportedly been working with advisors for several months to facilitate this acquisition.

The semiconductor market has been experiencing a resurgence in mergers and acquisitions (M&A), driven by policy support, soaring AI demand, and increasing investments in advanced chip technologies. Entering 2025, the M&A momentum remains strong. Following onsemi's acquisition of Qorvo's SiC JFET technology and Lenovo's purchase of Israeli enterprise storage firm Infinidat, the industry is now witnessing four more high-profile semiconductor M&A transactions.

On February 5, 2025, Yageo Corporation announced its plan to acquire 100% of Shibaura Electronics, a publicly traded Japanese company, in a deal valued at ¥65.56 billion JPY (approximately NT$14 billion or $430 million USD). This acquisition marks the first major cross-border merger and acquisition (M&A) deal initiated by a Taiwanese publicly listed company in the Year of the Dragon.

On December 16, 2024, Beijing announced plans to establish the Beijing Integrated Circuit Equipment Industry Investment and M&A Phase II Fund, with a total scale of 3 billion yuan. This move follows the success of the first phase, launched in 2020, and aims to further support the semiconductor industry’s development through mergers, acquisitions, and strategic investments.

The semiconductor sector continues to witness a surge in merger and acquisition activity, fueled by favorable policies like the “New Nine Guidelines,” “Sci-Tech Innovation Board Eight Provisions,” and the “Six M&A Rules.” Cross-industry acquisitions related to semiconductors have become particularly prominent. Recently, two notable transactions were disclosed: Jiangfeng Electronics’ acquisition of a majority stake in Beijing Ruisheng and Youa Group’s plan to acquire full control of Shenzhen Shangyangtong Technology.