When the land was acquired, the floor prices were 25,000 yuan per square meter and 34,000 yuan per square meter. Adding several thousand yuan in construction and marketing costs, the total investment in the four projects would exceed 20 billion.
Lujiazui's prime location, when it goes on sale in 2017-2018, will be high-end and improved with large flat floors, which will be 120,000 per square meter and 160,000 per square meter.
With a total investment of more than 20 billion, it is easy to earn back more than 120 billion.
The net profit is as high as 100 billion!
It can be said that the profits of 100 billion from these four plots of land alone are enough to cover the total expenditure of a 12-inch large-scale wafer fab with a production capacity of 100,000 pieces in three months, as well as the total expenditure of research and development of the 28-nanometer process!
In recent years, prices have not risen excessively, and the currency has relatively maintained its value.
To build a large-scale 28nm wafer fab with a monthly output of 100,000 wafers, 30 billion is enough.
But in a few years, building a large-scale 10-nanometer wafer fab with a monthly output of 100,000 wafers will cost 50 billion or even more.
Similarly, the current research and development of the 28nm process requires several billion yuan.
But in a few years, the development of a 10-nanometer process will cost tens of billions.
If we develop a 7-nanometer process, the difficulty factor will skyrocket several times, and the research and development costs will also skyrocket several times.
Similarly, 7 nanometers requires multiple exposure technology, and the number of DUV lithography machines required will also increase several times.
By then, both the cost of building a wafer factory and the cost of producing 7-nanometer chips will skyrocket several times.
There is nothing we can do about this.
As for the price reduction of photolithography machines?
Don't think about such good things.
In a monopolistic industry, there is no such thing as price reduction.
In a one-sided seller's market, you have to buy and buy even if the price increases.
Unless domestic DUV lithography machines are realized and fully replaced, the lithography machines will become cabbage prices.
For example, before the breakthrough of domestically produced nuclear magnetic resonance instruments, giants such as Siemens monopolized the market and sold 32 million units.
After the domestic breakthrough, the number of nuclear magnetic resonance instruments reached 2.9 million!
Similarly, the current DUV lithography machine cost 350 million units by ASML before it was domestically produced. Once fully domestically produced and technically equivalent, it can achieve less than 100 million units in mass production!
The profits from the four plots of land in the magic city could exceed 100 billion, and Wang Yi couldn't help but feel very good.
"Dr. Wang, you have gained a lot from this trip to the Magic City. How about staying in the Magic City for a few more days?" Mr. Zhou said with a smile.
Wang Yi nodded: "Yes, I'm going to go to the ASE packaging and testing factory to see if it can be acquired."
"You want to acquire a packaging and testing factory!" Mr. Zhou instantly understood Wang Yi's thoughts.
"That's right, we have two wafer fabs in Magic City, so naturally we have to acquire a packaging and testing factory. In this way, we can provide a one-stop solution for chip mass production and chip packaging and testing."
According to Wang Yi's plan, mobile phone factories/foundries, wafer factories, and packaging and testing factories will all be divided between the north and the south.
Currently, the second phase of the Xingyi Mobile Phone J1 Super Factory in Jeju has been delivered and is undergoing trial production.
It will be fully put into production by the end of the month, when the annual production capacity will increase from the original planned 16-hour non-stop production of 50 million to 24-hour non-stop production of 75 million.
The Xingyi Factory in Imperial City has also increased its annual production capacity from 30 million units with 16-hour non-stop production to 45 million units with 24-hour non-stop production.
Starting next month, Xingyi Mobile's own annual production capacity will reach 120 million, and its monthly production capacity will reach 10 million.
Such terrifying production capacity can basically cover the sales of the Xphone 2 Kunpeng Edition.
After Double Eleven, domestic monthly sales of Xphone 2 will drop to around 10 million, or even below 10 million.
Including parallel imports dumped overseas, monthly sales are expected to be around 12 million.
After all, the Double Eleven promotion can set sales records and consume a lot of potential purchasing power.
In addition, the Xphone 2 has passed its prime sales period in the first three months, so subsequent sales will naturally decline a bit.
In this way, Xingyi Technology's own factory is enough to produce 10 million Kunpeng version of xphone 2.
Add in the 2 million units of Qualcomm version of the Xphone 2 manufactured by BYD, and the total is 12 million units of the Xphone 2 per month, which is enough to sell.
As for the Xingyi Mobile Phone J2 Super Factory in Jeju, it is still under construction and will be delivered in two phases in the middle and second half of next year.
Before the delivery of the J2 Gigafactory, the Kunpeng version of the xphone 2 was produced by the Jeju J1 Gigafactory and the Teito Factory.
The Xphone 1 and Xphone 1pro, as well as the Unbounded Thousand Yuan phone, are manufactured by BYD.
This achieves the north-south diversion.
Similarly, the fab will also be divided into north and south.
The Xingyi B1 wafer fab in the Imperial Capital mainly mass-produces Kunpeng 702.
By the end of the month, the yield rate of the B1 wafer fab is expected to reach 95%, with a monthly production capacity of more than 15 million units and the ability to produce 15 million Kunpeng 702 units.
The remaining 5% of inferior chips can be made into about 800,000 low-frequency Kunpeng 700s.
After these chips are produced, they will be sent to the Magic City packaging and testing factory for packaging and testing at low cost and high efficiency through the Beijing-Shanghai high-speed rail.
After the sealing and testing is completed, the Kunpeng 702 chip is sent to the Jeju J1 super mobile phone factory, the tablet factory, and the mobile phone factory in the imperial capital via the Beijing-Shanghai line for the production of the Xphone 2 Kunpeng version and Xingyi Tablet X1 Ultra version.
The M1 wafer fab in Shanghai mainly produces low-frequency Kunpeng 700 chips and can produce more than 15 million Kunpeng 700 chips every month.
Kunpeng 700 is a castrated version of Kunpeng 702. During the R&D and design stage, the main frequency of the quad-core CPU was reduced from 1.7G to 1.3G, and the GPU was directly designed as a three-core.
Therefore, the production difficulty of Kunpeng 700 is much lower than that of Kunpeng 702, and the yield rate is naturally higher. As the proficiency level increases, it is expected to exceed 97%.
As for the Kunpeng 500, there is not even any research and development. It is just the Kunpeng 700 that uses an algorithm to lock the core and reduce the frequency, and just changed its name.
To put it bluntly, Kunpeng 500 and Kunpeng 700 are the same chip, just with the algorithm castrated.
Of course, 3% of Kunpeng 500s are really defective and are made from inferior chips of Kunpeng 700s. After all, they cannot be wasted.
More than 97% of the remaining Kunpeng 500s are actually Kunpeng 700s, which only lock the core through algorithmic core reduction and frequency reduction.
The Kunpeng 700 produced by the M1 wafer fab will be sent to the BYD foundry after being sealed and tested in Shanghai for production of xphone 1, xphone 1pro, Xingyi Tablet X1, and X1pro.
On the Xphone 1 and Xingyi Tablet X1, the algorithm will be used to lock the core and reduce the frequency, and will be renamed Kunpeng 500.
Of course, if you want to be less emasculated, you can also change it to Kunpeng 506: a quad-core CPU with a main frequency of 1G and a slightly down-clocked tri-core GPU, which is used in xphone 1 and Xingyi Tablet X1.
Next year's Unbounded mobile phone will be a little more stripped down and changed to Kunpeng 500: quad-core CPU 1G clocked, dual-core GPU, used in the 999 Unbounded mobile phone.
In this way, the Unbounded mobile phone starting at 999 and the Xphone 1 priced at more than 2,000 yuan can be distinguished, and the Xphone 1 will not be scolded for using the same chip as the thousand yuan phone.
Compared with Kunpeng 700, the performance of Kunpeng 506 has both CPU and GPU downclocking algorithms, which will not affect the sales of xphone 1pro and Xingyi Tablet X1 pro.
Anyway, they all use Kunpeng 700 chips, and it is easy to operate after algorithm castration + name change.
As for cracking the castration algorithm and achieving full performance?
The XOS system has changed the underlying architecture of Android and recoded it. If it can be cracked, it will be considered powerful.
But there is a high probability that it will become a brick!
If such a talent really existed, Wang Yi would hire him with a high salary!
More importantly, the algorithm tuning and heat dissipation of the SOC chip are based on the core and frequency of the SOC chip.
Kunpeng 500 already generates low heat through core locking and frequency reduction, so the heat dissipation module of the Unbounded phone can be adjusted casually.
Once cracked, the performance of the Kunpeng 700 is fully released, and the heat dissipation module is so severe that the Unbounded phone's heat dissipation module cannot handle it. When the phone overheats and triggers the lock-core downclocking mechanism, the performance will still be the same as that of the Kunpeng 500.
It's purely unnecessary.
The same is true for the Kunpeng 506. The heat dissipation design of the Xphone 1 has no problem running the performance of the Kunpeng 506, but if it is used on the Kunpeng 700, it is completely insufficient.
After all, the Xphone 1 is a dual-core phone, and the original cooling module was also designed for Qualcomm's dual-core. The downclocked quad-core Kunpeng 506 can still handle it, but the Kunpeng 700 with full performance cannot.
In this way, everything flows north and south.
The new flagship is produced in-house and others are OEMed.
When the sealing and testing factory in Imperial City is put into operation next year, the flagship chips produced by Imperial City will be directly packaged and tested in Imperial City, and then directly shipped to the factories in Imperial City and Jeju.
By then, everything from chip factories, to packaging and testing factories, to mobile phone factories will be divided into north and south!
This is Wang Yi's overall plan.
I had lunch with Mr. Zhou. In the afternoon, Wang Yi returned to the hotel where he was staying and held a video conference with Song Sining.
"Looking at your state, it seems that this trip to the Magic City has yielded a lot." Song Sining said with a smile.
Wang Yi nodded: "Of the nine projects, eight have been finalized!"
"???"
"Nine projects?" Song Sining was confused:
"The acquisition of SMIC's Magic City wafer fab, the acquisition of ASE's packaging and testing plant, plus the Xingyi Automobile project will support three, how can there be nine?"
Wang Yixiao said: "The acquisition of SMIC's wafer fab has been completed, but the monthly production capacity is only 25,000 wafers. The city has built us a large-scale wafer fab with a monthly production capacity of 100,000 wafers."
Song Sining: "..."
"In addition, a 300-acre industrial park has been planned in Lujiazui to serve as the headquarters of Xingyi Technology Magic City."
Song Sining: "..."
"Near the industrial park, I won four more residential land projects, with a total construction area of ​​900,000 square meters, and spent 27 billion, all at the lowest price."
Song Sining didn't know what to say: "..."
"Xingyi Automobile has also been negotiated."
"So that's it." Song Sining suddenly realized: "Two wafer fabs, one Magic City headquarters, one Xingyi Automobile, plus four residential projects, and ASE's packaging and testing projects, there are indeed nine!"
"That's right, the other eight projects have been signed. Now the only thing left is to acquire the ASE packaging and testing factory. Mr. Hu is pushing forward here."
Wang Yi’s original plan for this trip to Shanghai was to acquire SMIC’s Shanghai fab and ASE packaging and testing factory.
By the way, let's see if the Xingyi Automobile project can be pushed forward. If not, Wang Yi will change the city layout.
He would not hang himself in a city.
The result was unexpected. Not only was the Xingyi Automobile project completed, but six more projects were added to the project. It can only be said to be an unexpected surprise.
"The assistant is sorting out the information and will send you the contracts for these projects soon. You will have to keep an eye on the Magic City headquarters in the future," Wang Yi said.
"Okay, I'll make arrangements for Meiyou Technology and I'll go there."
Song Sining knew that she would be stationed in the Magic City from now on.
Meiyou Technology in Jeju has already been on the right track, and it is enough to leave it to Chen Chuanqing to manage.
As the vice president of the group, Song Sining naturally had to do such a big thing as opening the Magic City headquarters.
In particular, there are Xingyi Automobile, two wafer fabs and other projects in the capital city. In a strategic sense, it has surpassed Jeju and is second only to the imperial capital.
It was natural for Song Sining to come and take charge.
After all, Wang Yi had to return to the Imperial Capital and could not live in the Demonic Capital forever.
Of course, there is another consideration that Wang Yi has. Lin Shu is in the imperial capital and Song Sining is in the magical capital.
The king does not see the king.
Good.
"Here it comes, it has been sent!" Song Sining said, opening the email:
"Don't mention it, the location of the Magic City headquarters is really good. In the inner ring, Lujiazui, it has a bright future. There are also four residences and 900,000 square meters of construction land. It's a big deal!"
Wang Yi smiled faintly: "There is no rush for the four residential projects. Just let them go for now. Just wait until construction starts in 2016 and sales in 2017. They will be sold out in two years. Let's build the Xingyi Technology Magic City Industrial Park first."
"Okay, leave it to me!" Song Sining has experience in the construction of Jeju Miyou Science and Technology Park.
"In addition, after you come to Magic City, rent an office building in Magic City first, or buy an office building and build the Magic City headquarters first. Xingyi Financial will also move here."
"Office building..." Song Sining smiled: "Chairman, you forgot, we bought the office building that Xiaoi Robot rented, so we can use it first."
"Yes, Xiaoi robot, I forgot about this." Wang Yi suddenly realized.
Originally, Xiaoi Robot rented an office building. After Wang Yi acquired Xiaoi Robot, he asked Song Sining to take over the entire office building.
And it has recruited some AI talents to realize the expansion of Xiaoi Robot.
It's just that as Xingyi Technology has more and more business divisions, Wang Yi becomes too busy and forgets things.
"Okay, then let's use Xiaoi Robot's office building first. If it's not enough, there are suitable industrial parks or office buildings. If the price is good, we can just buy it."
These days, you can earn money by buying high-quality assets in first-tier cities.
Even if you buy it, mortgage it to a bank and then lend it out, and pay the loan interest every month, you can make a lot of money.
In the next few years, the annual growth rate of housing prices in the Magic City will be as high as 30%-40%, and the loan interest will only be a few points...
Rent is more expensive than interest!
"Okay, then I'll let people see if there are suitable office buildings and industrial parks, and then I'll buy them." Song Sining understood what Wang Yi meant.
In fact, Xingyi Technology and Meiyou Technology have purchased many assets in first- and second-tier cities across the country.
For example, among the Xingyi flagship store, Meiyou flagship store and Xingyue flagship store in first- and second-tier cities, only 30% is rented, and the remaining 70% is purchased directly!
But in third- and fourth-tier cities, the situation is completely reversed. More than 70% of the land is rented, and only 30% of high-quality land is purchased.
Let alone the fifth, sixth, seventh and eighth tier cities, they are all rented.
Otherwise, when housing prices rise, these cities are the last to rise.
When housing prices collapse, these cities collapse the fastest.
There is little room for added value and poor ability to maintain value.
Coupled with the serious population outflow many years later, housing prices that finally exceeded 10,000 yuan will quickly fall back to 4,000 to 5,000 yuan per square meter, almost to the current level.
No one wants even four or five thousand. In a word, there is no liquidity.
Once you buy it, it's a waste.
This asset is suitable for renting.
On the contrary, some Xingyi stores in the townships purchased them directly.
Without him, township assets would be priced at cabbage prices, and the rent for the next ten years would be enough to directly buy the property rights...
"The Xingyi Automobile Division has also moved from the Imperial Capital to the Magic City! From now on, the research and development of mobile phones and semiconductors will be in the Imperial Capital, and the research and development of automobiles and three-electric systems will all be in the Magic City."
"Okay!" Song Sining firmly remembered: "It doesn't matter if Xingyi Car is placed in the Magic City, it will radiate to the northern region to the north, to the southern region to the south, to the central region to the west, and to the east close to the port, which is also convenient for export."
"Yes, Shanghai has unique advantages in manufacturing automobiles. Moreover, winter attenuation is a big problem for new energy vehicles. They are obviously more suitable for the south and have more market in the south."
Wang Yike knows that two-thirds of new energy sales in the future will be concentrated in the south.
Without him, in winter, it is cold in the north and the battery life is reduced by half.
At this point, many northerners simply gave up on trams.
But in the south, the winter is not too cold, the battery life decreases very little, and the cost of new energy is much lower than that of gasoline vehicles. It is simply a paradise for new energy.
Of course, Xingyi Automobile definitely started with the extended-range model, and the first few years after mass production were all extended-range vehicles.
There is no way, battery technology is still relatively poor these days.
The typical cost is high, the battery life is low, there is no future for pure electric vehicles, and it is easy to suffer from range anxiety.
Extended range is the way to go. If you run out of battery and still have gas, you won’t panic at all.
Many years later, there will be a huge breakthrough in battery technology, fast charging stations can be found everywhere, and pure electric cars worth more than 100,000 can easily run 500 kilometers. At that time, it will be suitable for pure electric cars.
By then, as long as it is not a long distance of 800 kilometers, there will be no need to worry.
After all, after driving for 300 kilometers, you can charge it in the service area and sleep for 20 minutes. When it is full, you can run another 300 to 400 kilometers.
What's more, pure electric vehicles with a range of thousands of kilometers in the future will not be a problem.
But that will be at least ten years away.
Before that, programmability was still king.
In the evening, Mr. Hu, after running around all day, finally returned to the hotel and approached Wang Yi:
"Chairman, we have been talking with ASE for two days, and we have made some progress. The other party said that they can consider selling, but the price has not been reached."
"The price has not been negotiated? A 20% premium is acceptable," Wang Yida said.
Mr. Hu sighed: "I thought so too. The market price of ASE's Magic City packaging and testing plant is around 1.5 billion. We paid 1.8 billion, which is a 20% premium. It is considered a reasonable price. But they want 2.5 billion!"
"2.5 billion?" Wang Yi frowned. For a 1.5 billion packaging and testing plant, if you want 1.8 billion, or even 2 billion, we can negotiate.
Xingyi Semiconductor currently lacks a packaging and testing factory, so money can be exchanged for time, which is easy to say.
But for 1.5 billion, the sudden premium is 66.67%, and the premium is 1 billion. This is making Wang Yi a big enemy.
"ASE has such a big appetite. If that's the case, we won't buy it. It's not impossible to look at other packaging and testing factories. Even the equipment and production lines of mainland packaging and testing factories are a little worse than ASE."
"That's what I think too. I'll give up if we can't reach an agreement. But the director of ASE said that their chairman will come to Shanghai tomorrow and hopes to meet you. According to him, this matter can still turn around, but their director
The chief wants to interview you."
"Meet for an interview?" Wang Yi smiled faintly: "As the world's first packaging and testing giant, ASE holds more than 20% of the global market, so it can be considered a leader. Their chairman personally invites them, so they have to give face!"
Originally, Wang Yi was too lazy to come forward in person, but in order to solve his urgent need to acquire the Magic City packaging and testing factory, he still had to meet him.
After all, he is the leader in the packaging and testing field and the founder of a top semiconductor giant.
Taiwan’s semiconductor deployment is actually quite interesting.
MediaTek is currently the second largest chip design giant in the world, second only to Qualcomm.
Although they are all low-end chips, even used for copycat phones, they are large in size and have higher revenue than Samsung and Nvidia.
TSMC is the world’s number one chip foundry giant.
ASE is the world’s first beta testing giant!
Three companies and three fields, from chip design to wafer manufacturing to packaging and testing, directly realize a one-stop closed loop.
Wang Yi couldn't help but want to applaud, he will arrange it!
On the other hand, in the mainland, the layout is much different.
In terms of chip design, HiSilicon is in its infancy and is not as strong as MediaTek at the moment, but it has a promising future.
In wafer foundry, SMIC is stuck at 55nm, which is far behind TSMC's 28nm.
Chip packaging and testing, Changdian Technology, Tongfu Microelectronics, and Huatian Technology are all doing well.
Even if it's not as good as the sun and the moon at the moment, it's still up to par.
Overall, it is much worse than Taiwan.
But with Xingyi Semiconductor, there is still hope to catch up.
As for the purpose of ASE Chairman's meeting with Wang Yi, Wang Yi also had a guess. It was most likely for the order.
Regarding Xingyi Semiconductor's self-developed 40-nanometer chip, Qualcomm got the news, Nvidia got the news, and ASE also got the news.
Coupled with the high sales of Xingyi mobile phones and Xingyi tablets, the self-developed 40nm orders are also in the hundreds of millions.
The number of chips that need to be sealed and tested every year is also in the hundreds of millions!
With such a large order, ASE was so enthused that the chairman of the board flew over in person.
All I can say is that everyone has their own plans.
Wang Yi has his eye on ASE’s Magic City packaging and testing plant, and ASE has its eye on Xingyi Semiconductor’s self-developed billion-level chip!
As for the final result, it depends on the methods of both parties tomorrow.
The next day, Wang Yi came to the ASE Magic City headquarters and met Zhang Sheng, the chairman of ASE and the founder of ASE Group.
"Dr. Wang, I have admired your name for a long time, but I didn't expect you to be so young!"
Zhang Sheng smiled and stretched out his hand: "You are so young and you have achieved achievements that we can look up to. You are really young and promising."
Wang Yi smiled faintly: "Director Zhang is overrated. You founded ASE Group and became the world's first beta testing giant. You are really awesome."
There was a period of mutual business support and the atmosphere was very harmonious.
"Dr. Wang, please, I've prepared tea!"
The two came to the reception room, exchanged some pleasantries, and got straight to the point:
"Director Wang, if you want to acquire ASE's Magic City packaging and testing plant, it's not impossible. The price of 250 million is not high, it's even very cost-effective."
"Director Zhang, it's 1 billion higher than the market price, so it's not a good deal. If it were 1.8 billion, I wouldn't say anything."
Zhang Sheng chuckled: "That's not how it works out. The Magic City packaging and testing factory is indeed worth 1.5 billion, so I can give you 1.8 billion. The extra 700 million is the technology licensing fee!"
"You have a packaging and testing factory, but without packaging and testing technology, it's useless, right?"
"You're just going to transfer packaging and testing technology for 700 million?" Wang Yi didn't believe it.
This is Sun Moonlight's special skill, although Wang Yi doesn't need it.
"The 700 million is just a technical license, which requires our technicians to operate and help you produce. You just pay the salary. In addition, your people are prohibited from contact to prevent technology leaks."
Wang Yi was speechless: "..."
Is this guy thinking about tea eggs?
Chapter completed!