In 2025, A-share listed semiconductor companies in China experienced a surge in merger and acquisition (M&A) and restructuring activities, with the number of M&A deals surging by more than 15% year-on-year. The primary goals of these restructuring efforts centered around asset integration and strategic collaboration. Nevertheless, the failure rate within the semiconductor M&A sector also climbed. Several industry experts highlighted that, despite a more lenient approach in regulatory reviews, substantial valuation gaps between the primary and secondary markets in the semiconductor industry have emerged as the main driver behind M&A failures. At present, buyers and sellers face challenges in reaching consensus on crucial terms, including valuation pricing and performance commitments. The industry advocates for the adoption of strategies such as differentiated M&A approaches and phased incubation via M&A funds to curb the risk of failure in semiconductor M&A and restructuring endeavors.