As the chairman of SMIC, Zhang Wenzui understands the importance of technological leadership!
At present, IBM's 45-nanometer process technology has not yet been successfully introduced by SMIC. Xingyi Semiconductor's self-developed 40-nanometer technology has been successfully developed and mass-produced!
Then SMIC is still developing a 45nm product?
If you fall one generation behind, you are completely doomed!
What's more, IBM wants 30% of profits, which is not acceptable to SMIC.
Even if you accept it, it is meaningless.
Xingyi Semiconductor is mass-producing 40nm, and SMIC’s 45nm is not very competitive at all.
As a result, the wafer fab in Shanghai is indeed finished.
Now that Xingyi Semiconductor is interested in it, it is impossible to sell it.
After all, although the SMIC 12-inch wafer fab is nominally owned by SMIC, its actual major shareholders are state-owned enterprises and the government.
The major shareholder spoke up, and the top management of Magic City came forward...
No matter how you look at this situation, SMIC cannot refuse it.
What's more important is that the other party is talking about buying, not robbing, and will give you money!
This made Zhang Wen feel a lot better.
There is no way, SMIC is too short of money. It has suffered losses for years and is heavily in debt, and it is almost impossible to get rid of the problem.
All money borrowed from the bank carries interest. With so much debt, the interest alone is an astronomical figure.
If we sell the Magic City wafer factory and exchange it for money, it's not impossible to wait for a while.
In this way, it would be timely to build a new factory and wait until the 40nm process is completed before putting it into production.
It’s better than having factories now that don’t have 40nm technology and can only make 65nm or 55nm.
After all, it is really a waste to use such an advanced production line to produce 65-nanometer memory chips.
Existing orders can be transferred to 8-inch small factories without any problem.
In the field of wafer mass production, 12-inch wafer fabs are mainly used to produce high-end chips such as logic chips.
As for low-end memory chips, an 8-inch fab is enough.
Seeing Zhang Wen's silence, Mr. Zhao said with a smile: "Don't worry, this Magic City wafer factory will give you as much as you invest, and you will never lose money."
Mr. Zhou also said: "The entire 12-inch wafer fab in Magic City has a monthly production capacity of 25,000 wafers. Including land acquisition, construction, and equipment, you have invested a total of 10 billion. In this way, I will ask Xingyi Semiconductor to give you 12 billion!"
‘We can earn 2 billion!’ Zhang Wen sighed: “It’s not impossible, but...you have to add more money!”
Mr. Zhou: "..."
Mr. Zhao: "..."
The two looked at each other and smiled: "Okay, tell me how much it will cost!"
Zhang Wen thought about it and decided that asking for more would definitely be unrealistic.
The Modu wafer fab has a monthly output of 25,000 wafers, which is a small wafer fab. If you build one from scratch, the total investment will be about 13 billion based on the current cost.
They only spent 10 billion because it was built early and the cost six or seven years ago was much cheaper than it is now.
Selling more points nowadays is also a good thing.
"Well, let's just say 13 billion. To rebuild such a wafer factory would cost 13 billion! My equipment is all new and I'm going to use the 45nm process."
Mr. Zhou nodded: "Okay. Two options. Option 1, 13 billion in cash. Option 2, 12 billion in cash, and we will give you a land with twice the area to build a new 12-inch wafer fab."
Land with twice the area would cost 2 billion, and option two is equivalent to 14 billion.
Zhang Wen smiled and said: "Leader, let's get 12 billion + three times the area of ​​land. We at SMIC also want to become bigger and stronger!"
"Okay, then it's 12 billion in cash + land worth 3 billion. The excess will be treated as compensation." Mr. Zhou agreed readily.
"Thank you, leader." Zhang Wen was in a good mood. His originally gloomy mood was gone. This business made a lot of money!
10 billion investment, cash out 12 billion + 3 billion industrial land, equivalent to 15 billion, net profit of 5 billion.
Isn’t this return on investment higher than chip foundry?
SMIC has not had such a high return on investment for so many years since its establishment!
'How about I stop manufacturing chips in the future, build a wafer factory, and then sell it to Wang Yi?'
‘It doesn’t seem impossible!’
Zhang Wendu was shocked by his genius idea.
Of course, this is just a thought.
Now Xingyi Semiconductor has become a popular product, and major first-tier cities are rushing to introduce Xingyi Semiconductor to build factories. There will be no shortage of wafer factories in the future.
Mr. Zhou looked at Zhang Wen's uncomfortable expression and frowned: "What are you thinking about again?"
Zhang Wen waved his hand: "I'm thinking about how to tell the shareholders that this matter must be voted on by the shareholders' meeting."
"Haha, I believe in your abilities and methods." Mr. Zhou smiled slightly.
Currently, there are three factions in SMIC.
The first faction is the mainland faction, which is the major shareholder of SMIC, mainly the government and state-owned enterprises. They want to use SMIC to support the development of the mainland's semiconductor industry.
The second faction, the Taiwanese faction, are executives who hold real power and want SMIC to quickly internationalize and become bigger and stronger.
The third faction, the foreign capital faction, is the numerous foreign-funded enterprises whose ultimate goal is to achieve profitability.
In the end, the mainland faction and the Taiwan faction each took a step back, and Zhang Wen, who received support from the foreign capital faction, became the new chairman.
Zhang Wen, who has always been good at balancing the relationship between all parties, has outstanding abilities. In the next few years, he gradually calmed down the internal strife at SMIC, which also laid the foundation for the introduction of Mr. Liang many years later and the rapid development of SMIC.
Mr. Zhou was very reassured about Zhang Wen's ability.
If it had been anyone else, this would have been impossible.
But if Zhang Wen comes forward, everything will be completely stable.
The next day, SMIC held a board meeting.
Zhang Wen sighed: "Good news or bad news, which one should you listen to first?"
"It's bad news, it will save you great joy and sorrow." A shareholder said with a smile.
"Okay, the bad news is that our 12-inch wafer fab in Shanghai is being targeted by someone and wants to buy it! And there is pressure from senior management, so we basically have to sell it."
Everyone was silent for a while: "..."
The major shareholders have completely different thoughts, but many people feel a little aggrieved.
The mainland faction had received the instructions long ago and were relatively calm.
But the Taiwanese faction couldn't sit still, and they yelled:
"Is this too much? Who dares to rob our fab?"
"SMIC is the mainland's leading semiconductor company. Who has such a big reputation? Who has such courage?"
"We are short of wafer fabs, so what does it mean to build our own and seize our SMIC's wafer fabs?"
"A scholar can be killed, never humiliated, and never sold!"
…
Listening to everyone's words, Zhang Wen smiled slightly:
"The good news is that the price offered by the other party is very high. We invested 10 billion to build the Magic City wafer fab, and we can get 12 billion in cash and land worth 3 billion. We can build a new wafer plant three times the size
factory!"
Hearing this, the expressions on the faces of the shareholders of the Taiwan Island faction who had been yelling at each other changed, as did the words in their mouths:
"A 10 billion wafer fab, in exchange for a return worth 15 billion, seems reasonable."
"Yes, SMIC has earned a 50% return on investment."
"And the land worth 3 billion can definitely allow us to expand three times."
"Twelve billion in cash can also enable us to survive the current crisis."
"Actually, if the capital city hadn't forced it, I wouldn't have supported building this 12-inch wafer fab. Our process is not up to par, and it's a complete waste."
Even the shareholder who said he couldn't sell it even to death couldn't help but said:
"It's not impossible to sell. If you have money to develop new technology, when the new technology is implemented, a larger fab will be built. How good would it be?"
Looking at this scene, Zhang Wendu had a complicated look on his face. He had prepared the rhetoric all night, but it was of no use at all.
All I can say is that these people are reality, very realistic.
But after thinking about it, Zhang Wen knew the reason.
The mainland faction is all state-owned enterprises and officials. I am afraid they have received Mr. Zhou's instructions a long time ago, so they will naturally not object.
Foreign investors only want to make money, let alone oppose it.
The only Taiwanese faction that opposed was also moved by the 50% profit...
So, the board of directors, who thought it would last a whole day and quarreled non-stop, was over in ten minutes.
Zhang Wendu was speechless: "Okay, let's go through the process, cast a vote, and raise your hands if you agree."
Soon, the voting results came out, with 95% supporting and 5% abstaining, and it passed smoothly.
Zhang Wen quickly took the results and went to Mr. Zhou Zhou: "It's done, all we have to do is sign the contract and make the payment. After the payment is made, we can immediately take over the factory and the employees."
Mr. Zhou was very satisfied: "Well done, don't worry, Shanghai will continue to support SMIC as always!"
Zhang Wen nodded, then changed the topic: "Mr. Zhou, I have a question I don't know whether to ask or not."
"What?"
“I don’t know if Xingyi Semiconductor’s 40nm technology will be sold. If it is sold, we won’t need to introduce IBM’s 45nm process!”
"This..." Mr. Zhou was also confused. No wonder this guy tried his best to promote this cooperation, in order to make money and tide over the crisis.
The second is to focus on Xingyi Semiconductor's 40nm process.
OK, really OK!
Wang Yi and Zhang Wen, one young and the other old, are neither serious.
Wang Yi is eyeing Zhang Wen’s 12-inch wafer fab!
Zhang Wen is eyeing Wang Yi’s 40nm process technology!
Really works.
"You!" Mr. Zhou shook his head: "How do I know this? You can ask yourself when Director Wang comes to sign the contract."
Zhang Wen nodded, understanding what Mr. Zhou meant.
There are some things that Mr. Zhou cannot speak about, but Zhang Wen can.
When Zhang Wen asked, he only represented SMIC and it was just a normal technology licensing negotiation.
For example, if Xingyi Semiconductor licenses 40 nanometer technology to SMIC, SMIC needs to pay a huge sum of tens of billions. If it cannot afford it, then it will give 20% of its annual profit to Wang Yi...
Even if Wang Yi refuses authorization and the negotiation fails, it is still a matter between companies.
If Mr. Zhou speaks, it means the official meaning.
For example, in the acquisition of the Magic City wafer fab, even Mr. Zhou came forward and even the Magic City officials wanted to facilitate it.
The meaning here is completely different.
Mr. Zhou does not want to force Wang Yi to sell technology for SMIC, making Wang Yi uncomfortable and thus affecting other cooperation between Modu and Xingyi Technology.
This is not cost effective.
Similarly, if Xingyi Semiconductor had not been so promising, Mr. Zhou would not have stood up for Wang Yi and asked SMIC to sell the factory.
To put it bluntly, all strength speaks for itself.
But it is obvious that Xingyi Technology has the strength to let Mr. Zhou take the lead. But it is a pity that SMIC does not.
Regarding this, Zhang Wen looked a little sad, but he was helpless.
It makes even less sense to think that the only Modu wafer fab that can produce 40 nanometer processes will be sold to Xingyi Technology.
SMIC's other wafer fabs are all old equipment.
Even Imperial's 12-inch line is very backward. It can make 65- and 55-nanometer memory chips, but it is completely insufficient to make 40-nanometer logic chips!
Unless all the equipment is dismantled, and then new advanced equipment is introduced and completely upgraded!
But this is unrealistic. After all, if this happens, it will cost tens of billions of equipment investments.
It is better to directly invest in building a new wafer fab, which will take a year or two.
In one or two years, the 40nm process will probably be nothing.
Either way, it's very troublesome.
Sometimes it's like this, one step is slow, and the other is slow.
Coupled with the rise of Xingyi Semiconductor, Zhang Wendu felt that SMIC's already bleak future had become even bleaker.
Forget it, take your time!
Zhang Wen sighed and had some thoughts in his mind.
As for leaking Xingyi Semiconductor’s mastery of 40nm process technology, Zhang Wen will not be stupid.
This matter has not been disclosed publicly, which means it is highly confidential.
Once it is leaked, he will be the first to be suspected.
Once suspected, SMIC's future situation will be difficult.
Zhang Wen would not do this kind of thing that harms others but does not benefit himself.
More importantly, Xingyi Technology paid well this time. Zhang Wen didn't have any complaints and even thought it was a good thing.
That night, Wang Yi received a call from Mr. Zhou:
"Hello, Director Wang, I am Zhou Xingguo."
"Hello Mr. Zhou, I'm sorry to trouble you about SMIC." Mr. Zhao had already vented his anger on Wang Yitong in advance.
"It's no trouble. We in Shanghai have always welcomed and supported high-quality enterprises." Mr. Zhou said with a smile.
Mr. Zhao next to him couldn't help but blush: 'Made, this guy started poaching in front of me! He's really not a human being!'
But Mr. Zhou didn't care: "The matter of SMIC's Magic City wafer fab has been negotiated, and they are willing to sell it to you."
"That's great!" Wang Yi was delighted. He didn't expect that this matter would go so smoothly and be done so quickly:
"Thank you Mr. Zhou, you are really helpful. What Xingyi Semiconductor lacks most now is production capacity. It doesn't matter if we spend more money."
"Haha, the original investment of the Magic City Wafer Factory was 10 billion. According to the current market, it is worth 13 billion. Now the equipment and workers are all packaged and sold to Xingyi Semiconductor for a price of 15 billion. What do you think?"
"No problem." Wang Yi readily agreed.
The premium of 2 billion is reasonable. After all, it is SMIC's most advanced wafer fab.
If it doesn't let people make some money, and SMIC is short of money, it won't sell it at all!
Mr. Zhou changed the topic: "But Xingyi Semiconductor only needs to pay 12 billion. The remaining 3 billion will be taken care of by the Magic City, which can be considered as support for Xingyi Semiconductor!"
These three billion will naturally be transformed into land worth three billion, allowing SMIC to build a new wafer fab with a monthly production capacity of 75,000 wafers.
Otherwise, the price premium wouldn't be that much.
In this regard, Wang Yi was too lazy to ask more questions.
12 billion to acquire a ready-made 13 billion wafer fab, which is really cool!
It's equivalent to infrastructure and land being paid for by the Magic City, which has the same policy as the Imperial City.
"Thank you Mr. Zhou, I really appreciate it. In this way, tomorrow the Xingyiyun data center in Jeju will be opened, and I have to attend. The day after tomorrow I will go to the Magic City and treat Mr. Zhou to a drink!"
Mr. Zhou played a big role in the success of the Modu Wafer Factory. He owed someone a favor and had to show it no matter what.
Of course, there is also Mr. Zhao’s mediation.
"Okay, then I'll wait for Director Wang to come." Mr. Zhou was in a good mood.
The three billion dollars were not wasted. No, the relationship with Xingyi Technology suddenly became closer.
But his ambitions are very big. What does a small fab with a monthly output of 25,000 wafers mean?
Wang Yi must be allowed to build a large-scale wafer fab with a monthly output of 100,000 wafers in Shanghai!
Of course, the conditions are the same as those in the Imperial Capital. The official responsibility for the tens of billions of land and infrastructure will be the responsibility of the Magic City. Wang Yi will be responsible for the subsequent tens of billions of equipment and process technology.
In short, if the imperial capital has it, the devil must have it too!
We can't wait for the imperial capital. Shenzhen City has already taken action, and the magical capital is drinking from the northwest wind.
So, after sending Mr. Zhao away, Mr. Zhou immediately made a call:
“Can SMIC’s 12-inch Magic City wafer fab still be expanded now?”
"Boss, we can't expand, the surrounding area has already been developed."
"Then we will plan a fab with a monthly output of 100,000 wafers, immediately, immediately!"
"Yes!" The subordinates quickly organized their manpower and started taking action.
Even Mr. Zhou is so concerned, how come he doesn't know the priorities of the situation?
Mr. Zhou fell into deep thought.
Jeju has the Meiyou Technology Headquarters, Xingyi Mobile Phone Super Factory, Xingyi Tablet Super Factory, and Xingyi Cloud Data Center...
The headquarters of Xingyi Technology in Didu is home to the Xingyi wafer factory, which will have a monthly production capacity of 175,000 wafers after it is fully put into production!
There are also Xingyi mobile phone factories and so on.
And what about Magic City?
Nothing!
Except for the SMIC wafer fab that is about to be acquired, the monthly production capacity is only 25,000 wafers.
Even if the second large-scale wafer fab in Magic City is subsequently signed, the two fabs combined will only have a monthly production capacity of 125,000 wafers, while the one in Imperial Capital has a monthly production capacity of 175,000 wafers!
It's not okay for the magic city to be so far behind.
We need to let Xingyi Technology invest in more projects.
Wait, doesn’t Xingyi Automobile want to settle in Shanghai?
Will it also be a popular project?
Mr. Zhou suddenly remembered this incident.
Previously, people in Shanghai thought that Xingyi Technology had no automotive elements and no relevant technical background, so it would be difficult to achieve success.
Therefore, I didn't pay much attention to it, and the treatment was mediocre, so Xingyi Technology didn't agree.
But now it seems that everything is hard to say.
Xingyi Technology can never be judged by common sense!
Xingyi Technology originally started out as a clothing manufacturer and had no background in making mobile phones. As a result, Xingyi mobile phones became popular all over the world and suppressed Apple.
As a mobile phone manufacturer, Xingyi Technology originally had no background in chip manufacturing. As a result, it not only successfully developed a 40-nanometer chip, but also successfully mass-produced it!
There is nothing to explain.
In this case, will Xingyi Automobile also become a success?
Is it also a king bomb project?
Or even a second BYD?
The city of Shanghai has always been envious and jealous of BYD in the Shenzhen market!
Although BYD is now in deep trouble and its stock price is miserable.
But Mr. Zhou knew that this was all temporary and would pass soon.
When the quality inspection results come out, and with Wang Yi's support, BYD's stock price will soar and return to its peak!
And if Xingyi Automobile becomes the second BYD, it will have a bright future.
Magic City has also filled the gap in new energy vehicles!
For this reason, Mr. Zhou made another call:
"The Xingyi Automobile Project will be immediately listed as an SSS-level strategic project in the Magic City. It will be re-evaluated and given adequate treatment. It must be introduced!"
"Leader, Xingyi Technology has never made a car, has no technology, no experience, and no qualifications. It is completely unworthy of the standards of an SSS-level strategic project."
"Hmph! They haven't made a mobile phone before, why are they trying to beat Apple? They haven't made a chip before, why are they developing a 40nm chip by themselves?"
Mr. Zhou snorted coldly, these subordinates are just pedantic.
Rotten wood cannot be carved!
"But mobile phones and cars are not the same. Especially new energy vehicles are an unknown new field, and the future of the entire industry is uncertain..."
The subordinate wanted to explain, but was interrupted directly by Mr. Zhou:
"Xiao Song, I am informing you, not discussing with you! Do it as soon as possible, and give me a satisfactory plan tomorrow night!"
"Yes!" Song Cheng's expression changed drastically and he responded quickly.
Whenever something happened before, Mr. Zhou would discuss an ideal plan with them, but this time, he obviously made a decision directly.
All you can do is follow the instructions and get busy quickly.
Mr. Zhou then hung up the phone with satisfaction.
Wang Yi is coming the day after tomorrow, and all plans must be made tomorrow night.
Whether it is Xingyi Wafer Factory Modu No. 2, which has a monthly output of 100,000 wafers, or Xingyi Automobile, plans must be made.
The day after tomorrow, I have to communicate with Wang Yi in person and even sign a contract!
There is no way, the headquarters of Xingyi Technology is in the Imperial Capital, and Wang Yi spends most of his time in the Imperial Capital. The Imperial Capital doesn't need to be in a hurry. If there are any good projects, he can sign them at any time.
But not even the devil!
Wang Yi finally came here. If he doesn’t hurry up and sign the contract, he will only be filled with regrets when Wang Yi leaves!
Xingyi Automobile!
The second fab!
If both projects are completed, it will be completely stable.
No, not enough!
There is also the Magic City R&D Center of Xingyi Technology!
Such a promising technology giant must be brought over as soon as possible!
We can’t let the imperial capital, Jeju, and the island city take all the benefits!
Mr. Zhou made another call: "Find me a piece of land near Lujiazui to build the Magic City headquarters for Xingyi Technology!"
Xingyi Technology is headquartered in Zhongguancun, the imperial capital, and focuses on technology.
Then the headquarters of Xingyi Technology Magic City is located in the Lujiazui Financial District, focusing on finance.
After all, Xingyi Technology’s Changchao has a payment function, so it can develop into finance and become the second Alipay!
The city is also very covetous of Alipay in Hangzhou.
As a financial center, how could Shanghai not have a payment giant settled there?
Xingyi Technology’s Changchao Payment and Xingyi Finance are the best choices.
In the next two years, the government will establish an Internet bank. Tencent in Shenzhen and Alibaba in Hangzhou are actively preparing to become the first batch of Internet banks.
If possible, Mr. Zhou would not mind promoting Xingyi Technology and establishing Xingyi Bank in Shanghai, becoming one of the first Internet banks!
Mr. Zhou thought clearly that since Xingyi Technology is to be introduced, then it should be fully introduced.
If you want to bind, then bind completely.
We must not take action in the imperial capital or Shenzhen City, and the magical capital will drink from the northwest wind.
Of course, Wang Yi didn't know about Mr. Zhou's grand plan.
At this moment, she was lying on the bed, enjoying the massage from Song Sining, while dialing Mr. Hu's phone number:
"Mr. Hu, SMIC's 12-inch Magic City wafer fab has been negotiated. We will buy it in full."
"Really?" Mr. Hu was in disbelief.
"Of course it's true. We can sign the contract the day after tomorrow."
Chapter completed!