TECH

China’s Semiconductor M&A Spree Hits Snag on Valuation Clashes

Published: Dec. 25, 2025 3:09 a.m. GMT+8

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Eleven of the 122 semiconductor M&A deals announced in China so far in 2025 have been terminated, IT Juzi data show. Photo: IC photo

A string of acquisition deals in China’s white-hot semiconductor sector unraveled in December, underscoring a widening valuation gap between listed buyers and privately owned targets amid volatile market conditions.

Shanghai-listed companies including 3Peak Incorporated, VeriSilicon Microelectronics (Shanghai) Co. Ltd., Hygon Information Technology Co. Ltd. and Dioo Microcircuits Co. Ltd. all announced in December the termination of previously planned acquisitions, raising market concerns.

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A growing valuation gap led to the termination of at least 11 out of 122 Chinese semiconductor M&A deals in 2025, or about 9%.
Listed companies sought low-priced private acquisitions, but target firms with strong technology resisted undervaluation; market volatility and regulatory scrutiny further complicated deals.
Despite recent high-profile deal failures, analysts remain optimistic for 2026 M&A as investor enthusiasm persists, highlighted by chip IPOs surging over 450%.

AI generated, for reference only

Who’s Who

3Peak Incorporated: 3Peak Incorporated, a Shanghai-listed company, was mentioned in December for terminating a previously planned acquisition. This cancellation contributes to a trend of unraveling acquisition deals in China's semiconductor sector, driven by a widening valuation gap between listed buyers and privately owned targets, along with volatile market conditions.

VeriSilicon Microelectronics (Shanghai) Co. Ltd.: VeriSilicon Microelectronics (Shanghai) Co. Ltd. is a Shanghai-listed company in the semiconductor sector. In December, it terminated its planned acquisition of Nuclei System Technology Co. Ltd. due to divergent demands, but simultaneously announced a new plan to acquire Pixelworks Inc.

Hygon Information Technology Co. Ltd.: Hygon Information Technology Co. Ltd. (海光信息技术股份有限公司) is a Shanghai-listed company that terminated a planned all-stock merger with Dawning Information Industry Co. Ltd. in December. This collapse was attributed to significant shifts in the market environment, causing high volatility in both companies' share prices.

Dioo Microcircuits Co. Ltd.: Dioo Microcircuits Co. Ltd. is a Shanghai-listed company in China's semiconductor sector. In December, they terminated a previously planned acquisition, one of several such unravelled deals among Shanghai-listed companies. This highlights a widening valuation gap between listed buyers and privately owned targets.

Dawning Information Industry Co. Ltd.: Dawning Information Industry Co. Ltd. is a Shanghai-listed company. Its planned merger with Hygon Information Technology Co. Ltd. was terminated in December due to volatile market conditions. Before the deal's suspension, its market capitalization was about 90.6 billion yuan, rising to 127.5 billion yuan by December 24.

Nuclei System Technology Co. Ltd.: **Nuclei System Technology Co. Ltd.** (凝思科技) is a privately-owned RISC-V CPU IP provider. Its planned acquisition by VeriSilicon Microelectronics (Shanghai) Co. Ltd. was terminated in December due to "divergences" between Nuclei's demands and market conditions, as well as shareholder interests.

Pixelworks Inc.: Pixelworks Inc., an American company, is a display chipmaker. In December 2025, VeriSilicon Microelectronics (Shanghai) Co. Ltd. announced a plan to acquire Pixelworks Inc.

Goke Microelectronics Co. Ltd.: Goke Microelectronics Co. Ltd. (国科微) formally terminated its acquisition of Ningbo Semiconductor International Corp. (NSI), a high-end filter producer, in late November. The deal had been met with skepticism due to limited business synergies between the two companies.

Ningbo Semiconductor International Corp.: Ningbo Semiconductor International Corp. (NSI) was the target of a planned acquisition by Goke Microelectronics Co. Ltd. The deal was terminated in late November due to limited business synergies between the two companies, indicating market skepticism regarding the strategic fit.

Moore Threads Technology Co. Ltd.: Moore Threads Technology Co. Ltd. is a chip unicorn that recently had a blockbuster IPO. On December 24, its shares closed up 455% from their offering price, indicating strong investor enthusiasm in the semiconductor sector.

MetaX Integrated Circuits Co. Ltd.: MetaX Integrated Circuits Co. Ltd. (沐曦集成电路) is a Chinese chip unicorn. The company had a blockbuster IPO, with its stock surging 493% from its offering price by December 24. This indicates strong investor enthusiasm for the semiconductor sector.

AI generated, for reference only