Global monopoly of technology

In November, the ties between Huawei and the Côte d’Azur have become closer, and the two parties are discussing the brand of foundry and Huawei.

Today, Xu Zhijun came to the Science and Technology Complex. In addition, he also brought Yu Chengdong, another core executive of Hua, because of the Honor brand, Hua made an internal decision to let Yu Chengdong, who is in charge of the European business, come back to take this task.

There is also a lady, her name is Liu Yixuan, born in 1981. Unlike other girls, she yearned to be an engineer since she was a child. She has always worked very hard in her studies. She graduated with a master’s degree at the age of 23, which is 2004. In 2017, the Blue Coast company had just been established, and she joined the company as an engineer.

It has to be said that there are relatively few female engineers in technology companies. Although Liu Yixuan is a woman, she is very capable. After joining the company, she entered the Blue Coast Lab to start semiconductor-related research work. Now she is accompanied by the company. Today, her abilities have been improved during the five years of work and she has also been recognized by Luo Sheng.

She is 28 years old this year and is still single. As a woman, she is not young anymore at the age of thirty, but as an executive of a large company, she is definitely young.

This time, Côte d’Azur and Hua are to jointly establish a new company focusing on the field of chip foundry. Luo Sheng and Hua have reached a consensus on the results of the discussion. This time, the Côte d’Azur will lead the way, so the choice of the head is determined by Luo Sheng .

And he valued Liu Yixuan.

"It's called Xiongxin Integrated Circuit Manufacturing Co., Ltd., or Xiongxin Electronics for short." Luo Sheng proposed. At this moment, the two parties are discussing the matter of the second joint venture.

Xu Zhijun and other representatives had no objection. The name of the person doing the actual work was of secondary importance. Luo Sheng thought of this name temporarily, and said it by the way.

There was no objection, so the name was decided.

"I suggest setting the headquarters in Shencheng, because Huaxin International is in Shencheng." Yu Chengdong smiled, um, just like ordinary people opening a small shop for business, the taste of opening diagonally across from each other is self-evident. .

The main consensus was reached before the meeting today, and the establishment of Xiongxin Electronics was of course very smooth.

The registered capital of this joint venture company is 15 billion yuan, of which Côte d'Azur invested 10.5 billion yuan, accounting for 70% of the equity in proportion, and Wah invested 4.5 billion yuan, accounting for 30% of the equity.

The operating period is from November 2009 to November 2059.

Xiongxin Electronics will need to inject R&D costs in the future. Both parties have to invest in proportion to the equity. If one party is unwilling to inject more R&D investment costs, the equity will be diluted proportionally.

This is the biggest difference from Lens Semiconductor. It is important to know that Lens Semiconductor’s R&D investment is all made by the company, and the Blue Coast holds 34% of the equity.

Now the Côte d’Azur’s ability to make money is already better than that of Huawei. Naturally, Huawei would not be foolishly at a loss to see this situation. Large companies also have to maintain profits, and R&D investment is really delicious. money.

Another difference is that Xiongxin Electronics is controlled and dominated by Blue Coast Company. Hua is the representative of the board of directors. The first head is Liu Yixuan.

And Xiongxin Electronics does not have a privileged department such as Lens Semiconductor's mobile processor division. You must know that Lens Semiconductor is dominated by Wah, but Luo Sheng has the final say in this department.

Xu Zhijun and Yu Chengdong stayed here for almost two hours, and after reaching a specific consensus, they also left.

Mr. Yu, who was in charge of leading the European business, was transferred back to the mobile terminal business group. The first CEO of Huawei Honor was Yu Chengdong. This is a separate smartphone brand established by Huawei and headquartered in Pengcheng.

And Xiongxin Electronics chose to land in Shencheng. Luo Sheng will not get together in Suzhou. Although Suzhou will be happy, it is not conducive to the development of the local economy.

To achieve such a large career, he must also consider the balanced development of the region, not too concentrated in the Yangtze River Delta Economic Belt or the Pearl River Delta Economic Belt, let alone a single city.

Anyway, as long as it is at home, the integration of industrial chains will not be as troublesome as transnational supply chains. It can also promote economic flows in various regions and promote the overall economic development of the country.

Only considering the development of the enterprise itself, the scale is too small to say, but if the scale of 100 billion US dollars is not considered, the final result will definitely be backlashed.

Now the land prices in Sioux City have gone wild. The biggest reason is that there are already several multinational corporations with giants, which gave birth to the birth of the "Land King".

Today Sioux City has been regarded as a quasi-first-tier city and a 1.5-tier city.

Bluestar Technology, Blue Coast, Lens Semiconductor, Shengfeng Capital.The existence of these large enterprises frantically absorb resources and nutrients from all around.

As a result, the surrounding areas are "barren" and the development becomes more uneven. The neighboring city of Xicheng is miserable because it is too close to Sioux City, and the two places are separated by a straight line distance of about 40 kilometers.

But all the talents have gone to Sioux City. It can be said that they are separated by a wall.

The people of Huawei left, but Liu Yixuan was still there.

"Mr. Luo, you choose Xiongxin Electronics to land in Shanghai, do you want to prepare for the acquisition of Huaxin International in the future?" Liu Yixuan asked.

It is not unreasonable for her to speculate like this. Today is November 3, and just the morning before, Huaxin International announced two major news.

First, the six-year litigation dispute with SPC ended. The two parties reached an out-of-court settlement and acquired approximately 10% of Huaxin International’s shares. They have agreed to acquire these shares and abide by the restriction agreement. SPC will not fight for entry. The board of directors of Huaxin International may interfere in its daily operations and only exercise shareholder voting rights on Huaxin International's proposals.

Second, Huaxin International was awarded a compensation of US$200 million, which is much less than the previous estimate of US$1 billion. Huaxin International currently has about US$450 million in cash on hand. This year’s cash flow is also positive. It will not cause an existential crisis for the company.

Third, the head of Huaxin International, Mr. Zhang, was forced to resign. From losing the lawsuit to the announcement of his resignation, it took only one week for Zhang Rujing to sign the resignation document. At the same time, he also signed a competition agreement: Counting from 2010, Within three years, he will no longer be engaged in chip-related work. For a 61-year-old engineer, it seems to be the end of his career.

Recently, news broke that Mr. Zhang might be engaged in charity or education work.

In almost a short day, Huaxin International, as the leader of the wafer foundry industry in the Mainland today, suffered three unlucky events in a row.From some perspectives, the company has lost its independence.

Luo Sheng turned his head to stare at Liu Yixuan and smiled: "Aren't you guessing that the recent turmoil of Huaxin International has my contribution?"

Liu Yixuan smiled and looked at her and asked, "Isn't there?"

Before Zhang Rujing came to talk about the business, he showed his intention to acquire Huaxin International. Although nothing was reached in the end, it didn’t take long for the Blue Coast to spend a huge sum of 70% to acquire a 7.2% stake in Liji Power. The forefoot has just sent a director to enter. As for China Semiconductor International, there are three unlucky things encountered in succession. It is not unreasonable for Liu Yixuan to think so.

Luo Sheng regained his gaze and shook his head: "Of course not. If I can raise the power of the company, the Americans will be the first to not agree. The Côte d’Azur’s investment in the company has also complied with the restriction agreement. The proposal to exercise the right to vote does not interfere with its daily operations, and the lawsuits against China Semiconductor Manufacturing and Huaxin International do not have my slightest influence in it."

Speaking of this, Luo Sheng looked at Liu Yixuan again and added: “In fact, even if Huaxin International wants to sell me, I will not accept it. The equity in it is quite complicated. I don’t know how many pits there are. It’s wonderful. What I want is technology and talents. The reason for arranging Xiongxin Electronics to land in Shencheng is actually to compete with Huaxin International for the few talents, and it is easier to attract Huaxin’s internal talents. This It’s the essence."

"Besides, Huaxin International has nothing to look forward to. As for the lithography machine and other semiconductor manufacturing equipment? We can buy it ourselves. The lithography machine can be purchased from ASML. We now have a set of key semiconductors. Technology patents are held in hand, and use this as a bargaining chip to exchange. It is not necessary to obtain the most advanced lithography equipment, but the 45-nanometer process lithography machine can be exchanged through negotiation."

Listening, Liu Yixuan nodded silently. Once the 45-nanometer chip lithography machine is in place, Xiongxin Electronics will become the first semiconductor company in the Mainland with a 45-nanometer process, and it can become the industry leader in the Mainland.

The competitiveness of Huaxin International will soon show a backward situation, because Xiongxin Electronics will also receive some technical support from Bo Semiconductor, including some cooperation in the circulation of talents.

Although Xiongxin Electronics and Cargo Semiconductor should be competitors in name, Cargo Semiconductor will definitely not give the other side its housekeeping skills.

When a company grows to a scale of hundreds of billions of dollars, competition and cooperation exist at the same time. After all, in the world of foundry, in addition to promoting integrated power, Samsung and Intel also have this ability.

Now that the cooperation with the Côte d’Azur is so close and the interests are complicated, there is no need to stiffen the relationship between the two parties on some minor details, not to mention the current semiconductor industry market is too big.

It's really very big. Now companies don't even consider the problem of overcapacity. The market can quickly digest how many chips you can produce, especially the soaring demand for chips in the Greater China market.

The overall scale of the chip market has not yet reached a bottleneck. Everyone can eat thirteen points without grabbing orders from customers.

However, it is not a good thing for Huaxin International. The competitive pressure brought by the birth of Xiongxin Electronics will definitely make the situation worse.

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