Taiwan M&A has strong Q1 after a robust 2016

Spurred by semiconductor company consolidations, TMT activity dominated both inbound and outbound dealmaking

The 2017 kickoff in Taiwan M&A showed the second highest Q1 deal volume since Q1 2010, with 13 deals. This matched the Q1 2016 total  - which itself was a busy year for M&A in Taiwan.

Last year’s volume of 52 deals was roughly on par with 2015’s 55-deal volume. But the aggregate deal value in 2016, which reached US$12.9 billion, was the third highest on record, behind 2009 (US$20 billion) and 2006 (US$17 billion).

Over the past 15 months, the technology, media and telecom (TMT) sector dominated dealflow for Taiwan-based targets, with 25 deals worth US$11.7 billion. 

Driven by consolidation in the semiconductor market, the TMT dealflow featured the three largest Taiwan inbound M&A deals in 2016. US-based Micron Technology took control of the remaining 67 percent stake it did not already own in Taiwan's Inotera Memories, for US$3.6 billion. Taiwan’s Advanced Semiconductor Engineering agreed to acquire the 67 percent stake it did not already own in its domestic counterpart Siliconware Precision Industries for US$3.4 billion. And Netherlands-based ASML Holding agreed to acquire Taiwan’s Hermes Microvision for US$2.8 billion.

Outbound activity from Taiwan also hit a record high in 2016, with 37 deals worth US$5.5 billion. TMT activity also dominated outbound activity, with 17 deals worth US$4.1 billion. By value, the most important outbound market was Japan, while volume was highest in the United States (nine deals worth US$900 million) and China (eight deals worth US$600 million).

In the largest outbound deal from Taiwan, a consortium comprising Hon Hai Precision Industry, Foxconn Technology and SIO International Holdings agreed to acquire a 66 percent stake in Japan’s Sharp for US$2.5 billion.

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