The Challenges Behind Huawei’s Mergers and Acquisitions Failure in The International Semiconductor Industry

Abstract

Semiconductor industries, which involve the design and manufacturing processes that drive modern technology advancement in computing, communication, and electronics, are seeking greater profitability and market power through mergers and acquisitions. As one of the strongest global telecommunication suppliers, however, Huawei Technology finds it difficult to exercise M&A in semiconductor companies internationally, specifically in the United States. In this literature review research paper, the author identifies and explains four main challenges behind Huawei’s failure: (1) understanding the vertical integration and horizontal expansion, (2) discovering the acquired companies’ inherent hesitations, (3) exploring the impact of U.S. restrictions on foreign investment, and (4) navigating global dynamics under the hegemony of semiconductors market power. With an extended focus on challenges encompassing not only the examination of acquired companies but also the evaluation of international conflicts, this paper seeks to provide valuable insights and enlighten researchers and investors keen on gaining a deeper understanding of mergers and acquisitions (M&A) within the high-tech sector, particularly in areas such as semiconductor manufacturing.