Global monopoly of technology

Luo Sheng went on to say: "Mr. Xu, I like Hua for the company's high-quality and strong talent pool. Looking across the country, the best talents in the industry are basically concentrated in Huawei. It is true that I have tried to dig corners, but with little success. ."

Upon hearing these words, Xu Zhijun laughed, unavoidably a little proud.

Indeed, it is difficult to dig people from Huawei. This is the consensus of the industry. Although there are many resignations, the talents Luo Sheng wants are those who have not resigned.

Other companies want to get Huawei talents, only one kind of talent can get, that is, it is almost the same as the first-line fighting for the first line in Huawei. If you want to change to a lighter job, so take the initiative to resign. Such talents can Dug up.

For this company, as long as the employees dare to work hard, they dare to give a lot of money.

There is another one that is eliminated last. Although it is a bit worse, it is also the former employee. This brand is still very popular in the industry, just like the employees of Bluestar Technology in the Internet industry.

Luo Sheng added: "My vision for cooperation is that in order to provide relevant talents, I will take the lead in technology development, but it is limited to the development of mobile terminal technology. I really don't have time to give Wah for IC design."

Obviously, Xu Zhijun heard the meaning of the subtext: as long as someone is available, there is a lot to do.

After the two sides met, they talked for a long time and talked about all aspects. Both sides are engaged in technology. Xu Zhijun has never had such a selfless discussion with an outsider.

During the exchange, Xu Zhijun accidentally missed his mouth, and Luo Sheng didn't know whether he missed it on purpose or really, but it didn't matter.Xu Zhijun told Luo Sheng about the secret research and development of Hua's internal wireless terminal chip code-named "Meri".

This project started last year, and the purpose is also to develop WCDMA mobile phone chips.

However, Luo Sheng directly explained the shortcomings of the "Meri" project. After the disclaimer, he suggested that Huawei’s team should spend their energy and funds on 3GModem modems and AP application processors to accumulate power, and even start 4GLTE. Research and development and exploration of new technologies.

AP application processor, which is also being developed by Luo Sheng's "Blue Core" project, but this does not hinder technical discussions and exchanges between the two parties.

The more we talked, the more Xu Zhijun realized that Luo Sheng and the Blue Coast Company definitely deserve Hua's attention.

A person who is not a person but understands the worries, worries, thoughts, and behaviors of the current world, and can personally engage in technological development, so naturally there are conversations.

The two sides met for the first time, and after a long conversation, it took more than three hours to end. Xu Zhijun also left.

Here, Qin Weimu watched Huawei’s people leave. Only two of them were left in the reception room. He immediately said: "If we can reach a substantial strategic cooperation with Huawei, it is equivalent to having Huawei as an endorsement, then I have A 90% probability can help you get a 5 billion loan, or you don’t need to pledge your Bluestar technology equity. But, can the two parties finally reach a cooperation?"

Both parties were very satisfied during the conversation, but they did not reach any legally binding agreement. It is impossible to reach cooperation just after meeting, and it is not unusual for them to even talk for a long time.

Luo Sheng smiled and said, "Although there is no absolute certainty, we can have great expectations for this cooperation."

After Xu Zhijun left the Blue Coast company, he did not leave Sioux City. Instead, he stayed in a local hotel and stayed there for a whole week.

During this period of time, Xu Zhijun frequently came and went to the headquarters of the Blue Coast company, so naturally he discussed specific cooperation issues with Luo Sheng.

On the sixth day of his arrival in Sioux City, he was captured by the media of frequent trips to and from the headquarters of the Côte d’Azur company, and related reports soon appeared in the news.

For a time, the Cote d'Azur company, which has been immersed in a low-key for seven or eight months, once again attracted the attention of the industry.

It’s not surprising that Huawei’s high-level people appeared in the Cote d'Azur company, and it is even natural, because just check the general business items registered by the Cote d’Azur company in the industrial and commercial office to know that they are all players in the ICT field.

But the problem is that the founder of the Blue Coast Company is not an ordinary person, but Luo Sheng, who is this?This is an existence that doesn't play cards according to the routine, especially will fool investors, and has repeatedly succeeded so far without fail.

When the industry heard the news, many people were surprisingly unanimous and came up with the same idea: Was it possible that Luo Sheng would also give him money for "Fudge", right?

This this this...

It is possible.

Soon, the answer to this question was on paper half a month after Xu Zhijun came to Sucheng.

...

On the day of December 23, 2004, Wah finally made an extremely bold and even crazy decision for the internal board of directors to vote. After the news was announced, countless people in the industry were shocked.

At 16:00 on this day, Xu Zhijun represented Hua as the company, and Luo Sheng represented the Blue Coast Company. They held a temporary media conference in a local five-star hotel in Sioux City, and officially announced a strategic cooperation between the two parties. For the agreement, Sioux City leaders all attended.

For Sioux City, the landing of the Bluestar Technology Company is simply a joy, but Schengen is very depressed, and now I can't figure out why Luo Sheng wants to relocate the company.

The two parties jointly established a new subsidiary-Lens Semiconductor.

This is a semiconductor joint venture company with independent accounting, independent sales and focusing on independent research and development of integrated circuits.

Lens Semiconductor is headquartered in Sioux City instead of Pengcheng. The company's registered capital is 2 billion yuan, which is jointly funded by Huawei and the Blue Coast.

Wah contributed 1.32 billion yuan to account for 66% of the equity, and Blue Coast invested 680 million yuan to account for 34% of the equity. Lens Semiconductor’s first CEO was Xu Zhijun and served as the company’s legal representative.

The establishment of Lens Semiconductor is not only a huge advantage in the eyes of the outside world, but also Luo Sheng himself. That's why it shocked the chin of outsiders.

The shareholding ratio of the two parent companies is obviously driven by the basic direction, but major strategic decisions require more than two-thirds of the voting rights to pass, that is, 67% of the votes, while Huawei has only 66%, so the Blue Coast If they object, major resolutions cannot be passed. Although they do not have the right to vote, they are indirectly equivalent to having a veto power for major resolutions.

However, general resolutions can be passed by 51% of the votes.

At the same time, the two parties have three special agreements written into the company's articles of association and the shareholder agreement.

[The first special agreement]

Based on Lens Semiconductor, the companies of the two companies have opened up talent barriers and patent barriers in the field of integrated circuits.

However, technical barriers still exist. After all, the core technology of the two independently operated technology companies is the core competitiveness. However, because the agreement stipulates that the two parties can break through the patent barriers, who owns the technology, but both parties have the right to use the other's technology, but Limited to the field of integrated circuits.

[The second special agreement]

Lens Semiconductor’s wireless terminal technology shall not be authorized to any third-party enterprise or organization in any form and for any reason when any party opposes it.At the same time, in order to promise to voluntarily give up its own terminal consumer business, the strategic partner Côte d'Azur will do it, but the mobile terminal business of Côte d'Azur must use Huawei's communications business.

This special agreement is very interesting, because if you want to use Lens Semiconductor’s technology to do end-consumer business, you can use Lens’s technology with the consent of the Blue Coast Company. If the terminal of the Blue Coast Company The consumer business wants to cooperate with the communication business of a third-party company, and it must be approved by the company.

The second special agreement is a necessary condition for the third special appointment to appear.

[Article 3 Special Agreement]

From 2005 to 2020, Wah has unilaterally invested in R&D expenses for Lens Semiconductor each year. The amount invested is calculated based on Wah’s 15% of last year’s total sales. There is also an additional guarantee investment of US$500 million. Since 15% of total sales last year was only US$300 million, an additional US$200 million was added. In other words, Lens Semiconductor’s annual investment of US$500 million is guaranteed and not capped.

This is a unilateral investment by Wah, and the Blue Coast company does not need to follow up, but the proportion of the shares held by both parties in Lens Semiconductor remains unchanged.

At the same time, among the R&D funds invested by Lansi Semiconductor each year, Wah has to allocate 34% of the guarantee for the research and development of wireless terminal technology, and as long as this fund is used for Lansi Semiconductor, it will be used by Luo Sheng. Forget it.

...

People in the industry and the media are silly, 15% of sales, isn't this the proportion of R&D investment for the current year?All of them have been invested in Lens Semiconductor, so what about the investment in R&D?An additional 15%?

This is simply impossible.

After the establishment of Lens Semiconductor, Huawei also requested that the core "Blue Core" project of the "Côte d'Azur Lab" under the company's "Côte d'Azur" be stripped out as a whole and moved to Lens Semiconductor.

At the same time, the core ASIC R&D project of Wah was also stripped out and moved into Lens Semiconductor.

Hua is to inject the R&D funds of the joint venture company, 66% of which is used to develop its own core business, such as the development of communication baseband, 320G switching network chip and 10G protocol processing chip, etc., these are the core of high-end routers. Chip technology research and development.

In other words, the amount of R&D funds invested by Lens Semiconductor in the future will be determined by the amount of R&D funds invested by Huawei.

The establishment of Lens Semiconductor can be said to bind the two companies completely together. They truly breathe and share the same destiny, which is N times more reliable than the community of interests reached by other companies.

This approach is equivalent to Huawei’s core business. The Côte d’Azur has to share 34% of its revenue. Therefore, the industry and the media have seen the disclosed news. What stimulus would be required to agree to such an incredible agreement.

Luo Sheng used any number of ways to make Hua "Flicker" to this point.

For free, from the outside world, it is absolutely free.

This is the first thought of the outside world upon learning the news.

Not to mention, Huawei was indeed stimulated before finally signing this agreement.

After the two parties signed an internal confidentiality agreement, Luo Sheng personally took Xu Zhijun to visit the highly confidential [Azure] project, and almost fully revealed the ambitions of the Blue Coast company in the mobile Internet era. You know, in this era, The so-called concept of mobile Internet is incomprehensible.

This is the limitation of the times, and Luo Sheng is a person who has crossed the times. It is an exception and does not count.

...