Chapter 1084

After the proposal to obstruct the cooperation between Jinhu and Microsoft was rejected, Li Zaizhu, on behalf of Samsung Electronics, held an emergency consultation with Wenzhou municipal government under the negotiation of Hongxin to discuss the joint venture plan of Samsung Electronics to build a wafer factory in Wenzhou. In almost half a month, he basically negotiated the joint venture agreement of Samsung macro core wafer factory, In a hurry, the US authorities announced the cooperation plan on the day after the review by Jinhu and Deyi technology transfer association.

Compared with the long preparatory period for the establishment of the plant between Zhongjing micro core and Huaxia NEC, the negotiation speed between Samsung Electronics, Wenzhou municipal government and Hongxin investment on the joint venture of Samsung macro core is amazing.

Wenzhou Sea View Hotel, 36 storey senior suite, Li zaixu stands in front of the floor glass window, looking at the distant sea water, the nearby busy harbor and the clean and vast port industrial zone.

In Beijing, Jianye and Wenzhou, Li Zaizhu deeply felt that although there are still such problems in this country, he cannot deny the fact that it is rising rapidly.

As a Hg person, we should be proud of the economic achievements of Hg in the past 30 years, but we should also see that when China really rises, the position of Hg squeezed by China and Rb in the corner of Northeast Asia will be quite embarrassing and embarrassed. In terms of geopolitics, Hg has no chance to become a big country, but ordinary Hg youth have the self-confidence to inflate their economic achievements in the past three decades, and will never admit this.

Li Zaizhu closed his eyes in a complicated mood. Starting from his personal feelings, he would never want to see China rise one day, but the false denial will not help solve practical problems. In the actual situation, Samsung Electronics must look positively at the competitive threat from Jinhu.

It seems hasty and thoughtful to choose this opportunity to build a joint venture wafer factory with Wenzhou municipal government and Hongxin. Li Zaizhu knew that his uncle came to China in the summer. He has always been very concerned about the Chinese market and should have had in-depth thinking. Whether or not Samsung Electronics decides to directly come forward to destroy the cooperation plan between Jinhu and Microsoft, or decides to build a wafer factory in China, the decision-making time is very short and firm, which is undoubtedly correct.

The joint venture launched the construction plan of Samsung macro core, on the one hand, it can cooperate with Mitsui to run on SMIC, so that the construction cost of SMIC's new plant can be increased from equipment procurement, financing, policy support, market competition and other aspects. It is best to force SMIC to abandon the construction plan of new plant, even if SMIC is still determined to build a new plant, It will occupy the resources invested by Jinhu in other industrial fields, which is also beneficial.

On the other hand, Samsung Electronics has long decided to gradually shift its manufacturing focus to China and reduce manufacturing costs. However, wafer manufacturing is the foundation of the electronics industry. Whether or not to transfer, when to transfer, let alone disputes within Samsung, Hg people and government authorities also have disputes about it - at present, if we continue to entangle in these disputes without practical action, This will make Samsung's manufacturing cost disadvantage more and more obvious - this is the fundamental reason why Samsung decided to build a wafer factory in China.

Jin nanyong knocked on the door and came in. He saw Li zaixu standing at the window looking at the sea. He came over and said to him, "Secretary Jin and Mayor Han are going to the hotel. Shall we go down to meet him?"

"Jin, Han..." Li zaixu smiled faintly and said jokingly, "it sounds like our Hg people."

Jin nanyong also smiled and thought that the vicious competition in China was really amazing.

The reason why we decided to build the plant in Wenzhou instead of Jianye is that Wenzhou municipal government and Hongxin investment promise to provide all low interest loans for the huge amount of money required for the plant by ICT bank, Wenzhou commercial bank and other financial institutions, and Wenzhou municipal government will undertake the construction of supporting projects. In addition to providing technical and project management technicians, Samsung Electronics, There is little additional risk. In fact, the so-called Samsung macro core actually just relocated Samsung Electronics's 0.35 micron eight inch wafer factory in Hg Shuiyuan city to Wenzhou. The equipment price will also be calculated according to the current price of the new equipment. When the equipment of Hg Shuiyuan factory is empty, it can make room for four lines of 0.13 micron. Jin nanyong really can't think of any reason to refuse to cooperate with Wenzhou.

No wonder Li Zaizhu joked that Jin Liping, Secretary of the municipal Party committee of Wenzhou City, and Han Qigeng, mayor of Wenzhou City, were like Hg people.

"How long will it take Yan Wenjie to come?" Li Zaizhu picked up the suit on the sofa and put it on, ready to go down with Jin nanyong to meet the owner of Wenzhou.

Yan Wenjie and Hongxin are partners in the joint venture to build a wafer factory. Li zaixu knows that it is actually chizuo xiuzang who gives ideas behind his back. Some time ago, chizuo xiuzang stayed in Jianye and had close contact with Yan Wenjie. Otherwise, how could Yan Wenjie catch Samsung's itch at once?

For the joint venture wafer factory, the shareholding proportion of Hongxin will reach 25%. The ICT bank controlled by Hongxin will also provide the same proportion of low interest loans for the construction of the wafer factory, which is also a very cost-effective business for Hongxin. In fact, the investment risk is transferred to the ICT bank.

In addition, Wenzhou urban construction investment group, which is directly controlled by Wenzhou municipal government, holds 25% and Samsung Electronics holds 50%. Nominally, Samsung Electronics does not control the joint venture wafer factory. In fact, in the future, the whole technical team and management of the wafer factory will be directly controlled by Samsung Electronics. Is there any more direct and tighter control?

"Yan Wenjie will come with director Yan. It may take some time," Jin nanyong said.

The Yan Family's influence in eastern Zhejiang is really terrible. As Yan Wenjie's cousin and Yan kuanhe's nephew, Yan Yi once held a leading position in Wenzhou for a long time. After Hongxin Department surfaced, Yan Yi was transferred from Wenzhou to serve as the director of the national industrial machinery Commission. It is also reported that Yan Yi will join the China planning and Development Commission as the deputy director in charge of industry.

Yan Wenjie received a phone call and heard that Jin Liping and Han Qigeng had arrived at the Guanhai hotel. He also urged the driver to drive faster. After all, it was impolite to let Jin Liping and Li Zaizhu wait too long.

Yan Wenjie is extremely satisfied with Samsung Hongxin's investment plan. In fact, Hongxin does not need to directly bear any investment risk. All it has to do is to provide a proportional registered capital of US $2.5 million. As Samsung Electronics's 0.35 micron thread chip production base in China, Samsung Hongxin will obtain Samsung Electronics's internal orders and can't worry about the bad situation of the external market.

The reason why Zhongjing micro core can live well and the market prospect of Huaxia NEC after it is put into operation is that Zhongjing micro core obtains a large number of internal orders from Jinhu.

How can Yan Wenjie let Hongxin miss such a business that can make a steady profit without losing money? At the secret meeting between Jianye and Chi Zuoxiu, Yan Wenjie saw many hidden benefits when he heard Chi Zuoxiu's suggestion.

Although it is pleasant to besiege Jinhu together, as a businessman, the first consideration is interests.

Yan Wenjie knows very well that Samsung Hongxin after the joint venture will give Samsung strict control. Samsung has enough financial means to maximize Samsung's profits. Although it is a business that can make no loss for Hongxin, the actual profit is also very limited. This profit is really worth fighting for, but what kind of chain reaction will happen if Samsung Hongxin's 25% equity in Hongxin is held by Haisu technology controlled by Hongxin?

In Jinshan Qinyuan, in the luxurious room by the Yinma River, Zhang Ke was in his study, staring at the stock trend chart on the computer screen for a while, then went to the window and looked at the sparkling light on the Yinma River in the sunset.

Ye Jianbin sat on two legged stilts on the sofa, smoking like a gentleman. He was quite proud to spit out the smoke circle there. When he saw Zhang Ke's eyes leave the computer screen, he told him: "Yan Wenjie's brain is very smart. His brain is better than him. I don't see it much anymore..." he also stretched out his fingers and pointed to his temples.

Zhang Ke turned around, stood against the windowsill, smiled and said, "his ambition is also great. The only disadvantage is that he is too greedy and doesn't know to leave some limits."

"He probably thought he could really make Haisu technology into a glittering leading technology enterprise with the skill of four or two catties." Ye Jianbin said disdainfully.

The Shanghai and Shenzhen stock markets are still oscillating and adjusting today. Due to the news that Hongxin investment will let Haisu technology participate in the joint venture and plant construction plan of Samsung Hongxin, the stock price will pay for the day as soon as the opening of trading today and top to the trading limit. Since Haisu technology implemented the stock gift distribution scheme in the third quarter, on the surface, the share price has decreased in the past two months, and the actual market value has doubled.

"Alas," Zhang Ke shook his head and sighed, "it's going to rain. My mother wants to get married. Let them toss around. As long as we break the rules and don't break the Golden Lake, we can stretch out our hands to stop them?"

Obviously, according to the normal rules of the game, Haisu technology is not qualified to participate in the investment of such a major project of the wafer factory, at least the capital strength is far from enough.

In addition to the huge financing from financial institutions and bank consortia, Jinhu and other shareholders jointly undertook 50% of the capital contribution obligation of about US $600 million. Losses or other operational risks will also be borne by the shareholders' capital contribution first; Generally speaking, in case of business risk, the loss of equity is far more than the loss of creditor's rights.

Samsung macro core has completely transferred the investment risk to financial institutions. The joint venture shareholders have not invested much money at all, and there is almost nothing to lose. Haisu technology can also participate in the joint venture of Samsung macro core by transferring a thousand pounds in four or two. It only provides a registered capital of us $2.5 million and holds 25% of the equity of Samsung macro core.

Although the joint venture plan of Samsung Hongxin has broken the bottom limit of the rules of the game, the local governments of eastern Zhejiang Province and Wenzhou City have supported it. Zhang Ke just wants to do damage, but they also have a regret beyond their reach.

For a long time, Wenzhou's economic development has been second to none in East China, and the economy of eastern Zhejiang Province was better than that of the East China Sea as a whole before 1997 and 1998. The rise of Huishan, Jianye and Haizhou in recent years, especially the strong rise in high-tech industries, has raised the economic development level of Donghai province to a new stage, eclipsing eastern Zhejiang. In addition, the port construction project of Dongshan Island in Xinting is in full swing, which will also disperse the competitive advantages of many coastal cities in eastern Zhejiang Province, including Wenzhou, in the field of seaport industry.

In this context, it is not difficult to understand that the local government of eastern Zhejiang is desperate to come forward and finalize the joint venture scheme of Samsung Hongxin with Samsung Electronics; As a traditional representative of local forces in eastern Zhejiang Province, Hongxin is not difficult to understand.

Fu Jun knocked on the door and said, "Secretary Zhao has arrived at the hotel."

"Ah, here comes Zhao Youlun," said Ye Jianbin with a smile after he got up from the sofa, patted off the soot on his body. "He probably wanted to persuade us to build a wafer factory in Jinshan. He didn't think about the miserable siege we gave Mitsui, Samsung, TSMC, Huaxia Electronics and Hongxin..."

Ye Jianbin's tone was relaxed, but it did not mean that Jinhu was in a relaxed situation at this time.

The production capacity of Asian wafer enterprises expanded greatly. Once the news was announced, the prices of wafer manufacturing equipment in Europe and the United States rose sharply immediately, and the main investment of wafer factories was these expensive manufacturing equipment. The original plant construction plan was forced to be abandoned. For the specific revision of the plant construction plan, we should sit down and discuss with other shareholders such as Deyi, Yunyuan and Singapore innovation.

Just as Microsoft would not mind paying hundreds of millions of dollars more to buy the equity of global music online for the overall interests of industrial layout, Deyi would not mind paying an additional $120 million for the construction of a new factory; Guo has a close relationship with Jinhu, but Guo Yunyuan group is still a family business after all. Its real capital strength is limited. Assuming an additional contribution of US $120 million will seriously affect its investment plans in other fields

"When others come to fight, we have to break through. It's so interesting," said Zhang Ke, shaking his head and smiling bitterly. "I'll invite Mr. Guo. You deal with Zhao Youlun first?"

Zhang Ke and ye Jianbin went to the corridor. Guo Songyan was also coming out of the room with his wife. When he got off the plane, his blood pressure was a little high. He was tired of running around these two days. When he came to Qinyuan, he went back to his room to rest for a while. At this time, he regained his spirit. When he saw Zhang Ke, he said, "there is a sense of retreat in Singapore..."

Zhang Ke nodded and said: "the prospect of the chip market is unknown, and the chip capacity in the Asian market will increase greatly. When the investment budget is likely to rise sharply, the conservative investment attitude is appropriate..."

"Although it can be understood, it's just quite tricky." Guo Songyan sighed slightly. For this matter, sun Shangyi stayed in Singapore to negotiate with relevant parties. Singapore retreated. According to the previous plant construction budget, it will directly generate an investment gap of nearly US $400 million. After the sharp rise of equipment price, the investment gap is likely to expand to US $600 million, which is not a general thorny problem.

"I wonder if it's possible... Since the operation of Zhongjing microchip for one year, it has actually proved that Jinhu's internal orders can ensure profitable operation. Can the equity held by Singapore be directly held by licensed semiconductor?"

"The franchise has been losing money for six quarters. Without the support of the Singapore monetary authority, the franchise is not able to take over the equity of SMIC held by the Singapore monetary authority, nor can it undertake the investment task of the new plant..."

Singapore Chartered Semiconductor is the fourth largest chip OEM in the world. However, due to Singapore's narrow location, limited human resources, electronic industry structure and scale, it is far less competitive than Japan, South Korea and Taiwan. It is far less competitive in the OEM market than TSMC. After the completion of many licensed wafer factories, even if there are profits, they are still meager profits, and most of the time they are at a loss. Since the second half of 1997, they have been directly impacted by the Asian financial storm. The currency exchange rate of Japan and South Korea has fallen sharply, which has not only caused losses to the economy of Japan and South Korea, but also stimulated the development of Japan and South Korea's export processing industry in the chip OEM market, Licensed semiconductors are at a disadvantage. Even if the current wave of new technology is surging, it is far from restoring the vitality of franchising.

In fact, the cooperation between Jinhu and Singapore on the microchip is with the licensed semiconductor. At first, the 0.35 micron technology was mainly from the licensed semiconductor, but the financial situation of the licensed was worrying. At the beginning, the Singapore monetary authority came forward to directly invest and hold shares in the microchip.

The financial situation of the franchise is more worrying than two years ago. In theory, there is no possibility of directly holding shares in Zhongjing microchip. Guo Songyan looked at Zhang Ke suspiciously and didn't know why he suggested that the franchise semiconductor should hold shares directly.

"Now everyone is beating up the Zhongjing microchip," Zhang Ke asked Guo Songyan to walk ahead and said as he walked, "However, I think chartered semiconductors have had a hard time in the past two years. Asian chip production capacity will surge in the next year, but the market prospect is uncertain. Chartered semiconductors will have a harder time in the next year, especially in the chip OEM market with 0.25 micron process. It's not too much to judge that chartered semiconductors will completely lose their competitiveness in this market in the next year..."

"Ah..." Guo Songyan grasped the key points in Zhang Ke's thinking and waved his fingers in front of him. "Franchising should avoid sustained huge losses. It is a wise choice to close the production line with poor competitiveness... Although franchising has no ability to directly spend hundreds of millions of dollars, do you want franchising to transport the closed production line equipment to China as a contribution to Zhongjing microchip?"

"Well," Zhang Ke nodded, affirming Guo Songyan's guess, "on the one hand, the price of new equipment soared, which was painful, and I didn't want to suffer a big loss; on the other hand, franchising to transfer the production line with poor competitiveness and long-term loss to Zhongjing microchip can be transformed into profitable investment - I really can't imagine a more win-win solution..."

"Well," Guo Songyan nodded heavily, "this plan is very good, and it is very promising to convince the Singapore authorities... Why didn't you tell me earlier, I don't have to worry about rising blood pressure by plane."

"I didn't have such an idea until I saw the plan of Samsung Hongxin. When I had this idea, Mr. Guo, you were on the plane," Zhang Ke said with a smile, "Has Mr. Guo seen the joint venture plan of Samsung Hongxin? This plan is actually that Samsung Electronics will transfer the wafer production line with poor domestic competitiveness to China... I think it will be easier for Singapore to accept the precedent of Samsung Electronics."

"I haven't seen the joint venture plan of Samsung Hongxin yet..." Guo Songyan said.

Zhang Ke asked Fu Jun to go back to his room and show Guo Songyan the joint venture plan of Samsung Hongxin, and continued: "In addition, as far as I know, the Singapore authorities have not given up their support for the franchise, but to sustain the franchise, they must have a 0.13 micron production line on their head, so as not to completely suppress TSMC and Japan and South Korea wafer factories... In this case, the franchise needs to transfer the production line with poor competitiveness and relieve the pressure on operation. The Singapore authorities If you like, we can sit down and talk about a 0.18 micron production line... "

"0.18 micron is a little difficult, and franchising is still profitable..." Guo Songyan said. He thought for a while.

Singapore is a small place. Any competition in the middle and low-end market is seriously limited by the narrow local market and high human resource cost. Only in the middle and high-end market, Singapore's electronic enterprises can maintain a certain competitiveness by virtue of their advantages in capital and advanced technology.

In fact, in the future, franchising will actually choose to abandon the medium and low-end market and maintain competitiveness with advanced process technology. Even so, the development path of franchising is extremely difficult and bumpy.

"If it's difficult to talk about it, we mainly focus on the licensed 0.25 micron thread equipment," Zhang Ke also knows that it's difficult to license the 0.18 micron production line to be eliminated to Zhongjing microchip, and said: "in addition, I'd like to congratulate you, Mr. Guo. The prototype of Jinhu 512M flash memory chip has been developed. It adopts the 0.13 micron thread design, which may increase some negotiation chips?"

"Ah, Oak Park has already achieved this step?" Guo Songyan asked happily. "It's really not easy. I think it's very promising to talk about it. I'll rest in Jinshan for two days before I have a plane to Singapore. Mr. Sun is in Singapore and can communicate directly with the senior management of the Singapore monetary authority and Temasek..."

If Jinhu can design and produce high-capacity flash memory chips, it needs to hand over the orders to the OEM. The market scale of flash memory chips is becoming larger and larger. Striving for the foundry business of flash memory chips will be a battlefield for wafer foundry manufacturers. In the flash memory chip market, Jinhu is not weak compared with Toshiba and Samsung. Jinhu's orders are absolutely attractive.

Walking through the winding corridor of Qinyuan guest room area and reaching the front Hall banquet area, Jinshan municipal Party Secretary Zhao Youlun and accompanying officials have been waiting there. At this time, Zhongjing microchip is facing the siege of many wafer manufacturers in Asia. Zhao Youlun is also very clear about this situation, but he is also very confident in Deyi and Jinhu behind Zhongjing microchip. Zhongjing microchip will build two new factories at the same time , why should Jinshan compete for one this time.

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