The Synergy Analysis on Merger and Acquisition for the Taiwan Wafer Foundry which results from mainland China Foundry Competitive Advantage

• Main Authors: Paul Lin, 林寶洲
• Other Authors: Sue-Fung Wang
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/54249493114846872383

碩士 === 國立交通大學 === 管理學院碩士在職專班管理科學組 === 94 === The purpose of this research is to analyze the competitiveness and synergy on merger and acquisition of Taiwan wafer foundry industry faces challenges between rapid growth of mainland China wafer foundry industry and IDM conducts foundry sales. The synergy analysis is conducted on both operating Synergy and Financial Synergy on pre-Merger and after-Merger of Taiwan Semiconductor Manufacturing Company(TSMC) and United Microelectronics Corporation(UMC), even legal discussion in this M&A case. In addition, we propose the competitive advantage of this new company. The study shows that the merger between TSMC and UMC, will accomplish the merger synergy and overcome the threat of competitors. On the aspect of operation synergy, the merger will provide more 8 inch wafer capacity from UMC fab to solve the tsmc capacity shortage issue and improve the UMC gross profit with tsmc management style and economy of scale. On the aspect of market synergy, with enough capacity for sales and strength of UMC in Asia market, it will increase the market share. The last financial synergy, we find that the new company owns almost 75% wafer foundry market share and has absolute control right in price setting, in the other hand, develops the latest and high-level products with the economic cost. These benefits are good for the return of equity and is more than pre-merger.