Along with the global display industry increasingly fierce competition, our country is the world's largest semiconductor display industry, one of the most important, of the most promising future global TFT - LCD industry competition is the competition between enterprises in our country, several industry enterprise competitiveness weakening, actively adjust business strategy, enterprises increasingly strengthen competitive advantage, Acquisition is an important way for enterprises to integrate resources to achieve rapid expansion and enhance competitiveness. Semiconductor display enterprises in China should actively explore how to enhance competitiveness through acquisition. Semiconductor display enterprises should have a clear understanding of the motives of M&A and explore how to improve the performance of M&A.

In this paper, B company's acquisition of XM Company is selected. On the one hand, it is relatively new and completed in 2020, which is the largest acquisition case in semiconductor display industry in recent years. On the other hand, COMPANY B is one of the representative enterprises in the semiconductor display industry with a complete industrial layout, and has reached the leading level in the whole process of r&d, design, manufacturing and sales of display devices. Therefore, taking COMPANY B's acquisition of XM as an example to analyze the motivation of the acquisition and the performance before and after the acquisition can provide a certain reference for other enterprises in the semiconductor display industry.This paper combines theoretical analysis with case study. Firstly, on the basis of reviewing a large number of relevant literature at home and abroad, the theoretical part expounds the definition and classification of M & A, discusses the motivation of M & A, analyzes the performance of M & A, and introduces the selected cases; Secondly, it makes a detailed analysis of the motivation of B company's merger and acquisition of XM company from the inside and outside; Thirdly, it analyzes the performance changes of company B in the process of M & A and after M & A from two aspects of financial performance and non-financial performance; Finally, through the case analysis of company B's merger and acquisition of XM company, this paper summarizes the conclusions and Enlightenment of company B's merger and acquisition of XM company.

This paper adopts the method of combining theoretical research and case study. In the theoretical research part, it introduces the basic concepts of ENTERPRISE M&A by summarizing relevant literatures at home and abroad, and summarizes the research status of enterprise M&A motivation and performance at home and abroad. In the case study part, firstly, the case of B company acquiring XM Company is introduced. Secondly, the motivation of B company's acquisition of XM Company is analyzed from the company level and the international situation and market environment. Again, the performance changes of B company before and after merger are analyzed in detail, mainly including financial performance and non-financial performance. Finally, through the analysis of merger motivation and merger performance, the conclusion and enlightenment of B company's merger and acquisition of XM Company are summarized.

Based on the above research, this paper draws the following conclusions: The key reason for B company to acquire XM Company is to obtain synergistic effect and achieve power expansion through merger and acquisition; Industrial layout and national policies further promoted the success of B company's acquisition of XM Company; The successful integration of M&A resources ensures the m&a performance of B Company. It provides some enlightenment for semiconductor display industry m&a: enterprises should make reasonable M&A plan; Enterprises should pay attention to the integration of M&A resources and play the synergistic effect; Enterprises should explore m&a performance from multiple perspectives. It is expected to produce reference significance for other enterprises.