Abstract
Mergers and acquisitions are one of the most important strategies for firms in the semiconductor industry to gain access to valuable technology resources and new markets. This study researches how M&A orientation of the semiconductor firms influence their financial performance. Data were gathered from two sources, Thomson ONE Banker and Compustat. Multiple-regression- analysis was used to conduct statistical analysis. The empirical results are as follows： 1. Among the semiconductor industry, scales are significant positively associated with profitability, but significant negatively associated with the asset turnover. 2. Undergoing multiple M&As within one year time frame is negatively associated with profitability, while the numbers of M&A combined with free cash flow are no longer negatively associated with its profitability . 3. Acquiring experience and FCF variables are positively associated with semiconductor firms financial performance. 4. The transnational M&As are insignificant as to financial performance, but become significantly negatively associated with their profitability when FCF variable interaction effect is added; this might be due to trans-area integration difficulties and a tendency to non-prudent decision making.