Rebirth 76: Industrial Internet Empire

After Qian Ning and Liang Mengsong negotiated the details of joining Zhiyuan Electronics, they did not leave Hsinchu immediately, but went straight to the UMC headquarters in Hsinchu Science and Technology Park.

In the shadow of the famous tree of people, Zhiyuan International has become an upstart in Wall Street and Silicon Valley capital circles in recent years. Qian Ning's sudden visit made UMC President Cao Xingcheng aware of an opportunity. If the Zhiyuan Group's strategic investment can be introduced, it will have a positive impact on the development of UMC. , is undoubtedly the biggest help.

TSMC, which is also located in the Hsinchu Science and Technology Park, was established ten years later than UMC, but because of the shadow of European and American capital behind it, it has entered the fast lane of development...

"I have always heard people say that Mr. Qian of Zhiyuan International is young and promising. When I saw him today, he is indeed well-deserved..." As soon as they met, Cao Xingcheng praised him in broken Mandarin.

Qian Ning chuckled and said: "Mr. Cao is a senior in the industry. He is known as the "Godfather of Capital" in Taipei and Hsinchu. Our chairman, Mr. Yang Mo, also admires you very much. Let me say hello to you on his behalf..."

After complimenting each other for a while, the guests and hosts sat down in the reception room.

"Mr. Qian, Zhiyuan International has been making big moves in the capital market in recent years. I wonder which company you are interested in when you come to Hsinchu this time?" Cao Xingcheng asked tentatively.

Qian Ning chuckled and said: "Mr. Cao has a sharp eye. You really told me that I came to UMC to visit you because I really have something to ask for. Mr. Cao, I heard that UMC has made all IC design departments independent?"

"Yes! What? Zhiyuan has ideas about IC design?" Cao Xingcheng asked quietly.

Qian Ning nodded and said: "Zhiyuan International has fully acquired the American EDA supplier Kaideng Electronics. Due to lack of manpower, UMC has separated out the IC design department independently. I wonder if Mr. Cao has the idea of ​​selling it as a whole?"

Cao Xingcheng smiled bitterly and said: "Mr. Qian, the independent IC design department is the core technical team of UMC. If all of them are sold, UMC will be close to closing down!"

Qian Ning secretly cursed in his heart: This old fox is indeed well-deserved. It seems that he is preparing for the lion to open his mouth?

"Mr. Cao, it is a general trend to divest the IC design department. TSMC has become prosperous in recent years precisely because they are a pure foundry company. If UMC had its own IC design department, Intel, IBM, including us Zhiyuan, who would dare to Can I leave the integrated circuit design drawings to you for production?" Qian Ning said calmly.

Before Cao Xingcheng could react, Qian Ning continued: "Actually, we initially planned to recruit some people from the Taipei Industrial Research Institute, and then recruit a few core technical personnel with high salaries from companies in Hsinchu to set up a platform first, but we, Mr. Yang, I think acquisition is better, not only can it save some time, but it can also establish a strategic partnership with UMC!"

Cao Xingcheng pondered for a moment and then said: "Mr. Qian, do you think this is okay? Our IC design department will be integrated into Kaideng Electronics and become a subsidiary of Kaideng Electronics through mergers and acquisitions..."

"Isn't this not good? Kaideng Electronics has branches in many countries around the world. If you just merge your IC design department, you won't get much equity. You definitely don't want to merge UMC with Kaideng Electronics as a whole... ..." Qian Ning said with a frown.

Qian Ning's last sentence almost made Cao Xingcheng jump out of his chair: Do you really dare to think that UMC, a semiconductor group company with a full industry chain from chip design to manufacturing, packaging, and testing, was acquired by an EDA supplier?

Qian Ning pondered for a while and then said: "Actually, I also know a little bit about Mr. Cao's development ideas. You have always wanted to merge the IC design department with other fabless IC design companies, so that on the one hand, you don't have to worry about building a fab. I have to worry about huge amounts of money, and on the other hand, I can also get stable orders from cooperative IC design companies.”

Cao Xingcheng nodded with a wry smile and said: "There is no way! Apart from leading companies like Intel and IBM, which semiconductor design and production company is not worried about stable orders and astronomical wafer factory construction funds?"

Qian Ning laughed and said: "After reaching strategic cooperation with Zhiyuan Group, the problems of funds and orders will be easily solved!"

Cao Xingcheng chuckled and said: "Of course UMC wants to cooperate with Zhiyuan Group, but the overall acquisition..."

"If Mr. Cao has any ideas, please tell him directly..." Qian Ning said calmly.

Cao Xingcheng pondered for a moment and then said: "The IC design department of UMC and Kaideng Electronics established a branch in Hsinchu. UMC invested in core technical personnel and some technology patents, Kaideng Electronics invested US$800 million in capital and technology authorization, and Kaideng Electronics held shares. Zhiyuan International holds 51% of the shares, and UMC holds 49% of the shares. In return, Zhiyuan International will raise US$5000 million in the capital market for UMC to build a new wafer factory, and the two parties have reached a deeper strategic cooperation..."

Qian Ning categorically vetoed: "This is impossible. The patents of UMC's IC design department and the patents of Kaideng Electronics are not the same. It is a false proposition for core technical personnel to invest in shares. As long as Zhiyuan is willing to offer attractive salaries, no one else can." It is said that in Hsinchu and Taipei, even if you go to Silicon Valley, you can find a lot of chip designers. We can evaluate the value of patents based on third-party organizations, and then allocate equity based on the evaluation price!"

Cao Xingcheng is not stupid. How could he agree to hire a European and American third-party agency to evaluate?Zhiyuan Group deals with various evaluation agencies every year. Which evaluation agency will offend the boss, the God of Wealth?

"UMC can make concessions on its equity and reduce it to 45%, but Kaideng Electronics needs to increase its investment capital to US$1000 million!" Cao Xingcheng said after hesitating for a moment.

"One price! US$1000 million, Kaideng Electronics holds 70% of the shares! This is our bottom line!" Qian Ning pondered for a moment and then gave his "base price".

After a period of bargaining, the two parties reached a cooperation draft: Kaideng Electronics used US$1150 million in cash and technology licensing to obtain 65% of the equity of the new company. The technology patents applied by UMC and Kaideng Electronics during the past three years will be permanently licensed to the new company for free!

After negotiating the preliminary cooperation agreement, Qian Ning chuckled and said: "Mr. Cao, can you call the core team of the IC design department for a brief meeting? We can also discuss the personnel arrangements of the new company's main executives."

Cao Xingcheng went out to make a phone call. About 15 minutes later, a middle-aged man walked in!

"Ming Jie, come here quickly! This is Mr. Qian Ning, the president of Zhiyuan International. From now on, your IC design department will follow Mr. Qian's orders..." Cao Xingcheng waved.

"Hello, Mr. Qian! I am Cai Mingjie from the IC Design Department..." the middle-aged man said, extending his hand.