Reborn in 2011, 985 missing from two copies

It would be best if we could become a major shareholder of SMIC, or even control SMIC.

After all, the current market value of SMIC is only about 10 billion.

Still at a low level, the future is promising.

But unfortunately, the competition for equity within SMIC is not as fierce as usual, and there are many tricks!

It is really difficult for Wang Yi to hold a controlling stake.

However, Wang Yi also has his own advantages, not only funds, but also orders!

Big order for 65nm smart chips!

And the CDMA license in hand is also the basis for SMIC to develop telecom chips!

SMIC introduced Datang Investment before. In addition to lack of money, another reason was to use Datang's TD-cdma to make mobile 3G chips.

But the future of TD-cdma mobile 3G is not optimistic and will soon fade away.

The CDMA license in Wang Yi's hands is a basic patent that is indispensable for telecommunications chips now and even in the future. It is much more important than Datang's TD-cdma!

These are all the capital Wang Yi needs to invest in SMIC and join or even control SMIC's board of directors!

Of course, if things don't go well, the only option is to acquire a wafer fab or even build your own wafer fab.

But unfortunately, this costs too much money and will be difficult in the short term.

Currently, building an 8-inch wafer fab will cost RMB 70 billion.

To build a 12-inch wafer fab, it will start at 200 billion!

This is the price before 2011. In a few years, the price of 12-inch wafer fabs will rise to more than 400 billion!

Wafer fabs burn money like this.

As for those who acquired a semiconductor company for several billions, that is because the company only designs chips and does not have a wafer factory, so it cannot mass-produce chips.

This kind of chip design company has little fixed assets, so it is not valuable.

After all, the value of an 8-inch wafer fab is 70 billion+.

Want to acquire at a low price, unless the shares are exchanged.

For example, when SMIC acquired Motorola's 8-inch wafer fab, it couldn't afford it. It was acquired at a low price by replacing it with SMIC's shares.

There is no way, the fab is too expensive.

Wang Yi also knew that SMIC was in chaos. Even his teammates wanted to directly acquire a wafer fab, but they were too poor to come up with 200 billion!

A 12-inch wafer fab starts at RMB 200 billion, which is simply unaffordable.

As for the 8-inch wafer fab, it also costs 70 billion, which is not realistic in the short term.

On the other hand, 6-inch wafer fabs are cheap, and a few billion is enough, but it is meaningless.

The 6-inch wafer fab is too backward and it is difficult to mass produce 90nm chips.

The 8-inch wafer fab is also lagging behind. It can produce 90nm chips at most, but it can't produce the 65nm that Wang Yi needs. Don't even think about it.

To put it bluntly, if Wang Yi wants to make 65nm, 45nm, and 28nm processes, it must be a 12-inch wafer fab!

Most of the wafer fabs that can be acquired now are 6-inch wafer fabs and 8-inch wafer fabs.

It is useless to acquire such a backward wafer factory. Not to mention a lot of money is spent, and the equipment is too backward!

After Wang Yi took over, he still had to spend money to upgrade all the equipment and convert the 8-inch wafer fab into a 12-inch wafer fab...

再投入巨资搞研发，提升制程工艺到90nm、65nm、55nm、45nm……完全费力不讨好，还不如直接收购12寸晶圆厂。

However, there are very few 12-inch wafer fabs, which are the most advanced ones at the moment. They are pawned by major semiconductor giants and will hardly be sold.

Even SMIC’s 12-inch wafer fab was built with its own land investment!

In this way, Wang Yi's only choice at the moment is to invest in SMIC first!

After making money, we will consider investing 200 billion in building or acquiring a 12-inch wafer fab.

Later, Wang Yi opened his laptop and looked at SMIC's market value.

112 billion Hong Kong dollars, which is about 100 billion yuan.

This market value is very low, very low, and it is not as expensive as a 12-inch wafer fab.

The reason is simple. What is really expensive about a wafer factory is not the factory building and the land!

But the advanced equipment and production lines inside!

Currently, SMIC only has a few backward 8-inch wafer fabs, with processes ranging from 130nm to 300nm.

Most of the equipment is second-hand equipment that Mr. Zhang bought in the past. The manufacturing process is backward and will be eliminated soon. It is not valuable.

To put it bluntly, the several wafer fabs owned by SMIC are only supported by factory buildings and land, and have little value.

The newly built 12-inch wafer fabs are still under construction. They are bottomless pits and equally worthless...

Hanxin and other 12-inch wafer fabs are only managed by SMIC, not SMIC itself.

In addition, SMIC is heavily in debt and its manufacturing process is stuck at 65nm.

While TSMC, Samsung, and Intel have already achieved 45nm, 40nm, and even 28nm, SMIC is three generations behind, and its valuation is naturally very low.

Wang Yi spent 20 billion and couldn't afford to buy a new 8-inch wafer fab, but he could buy a lot of shares in SMIC.

In May this year, CIC invested US$2.5 million in SMIC, acquiring 5.39 shares at a price of HK$360589053 per share, accounting for 11.6% of the shares, becoming the second largest shareholder.

Datang, the largest shareholder, holds 19.08% of the shares.

TSMC’s 10% stake was diluted to 6.543%, making it the third largest shareholder.

The current stock price of SMIC is only HK$4.3, and the market value has also dropped a bit. Wang Yi invested 20 billion and became the second largest shareholder, which is not a problem.

But there's no rush.

First, SMIC's current business process is still mainly based on business above 130nm. There are very few 90nm, and even less 65nm, and the yield rate is not high.

Wang Yi’s investment in SMIC may not necessarily have sufficient 65nm production capacity.

After all, SMIC’s 12-inch factory is still under construction and its production capacity is limited.

Secondly, SMIC is in chaos right now, its financial report is ugly, and its stock price will plummet.

Wang Yi remembers that in June next year, SMIC’s share price will fall to about HK$6.

The market value has also plummeted from the current HK$112 billion to HK$75-80 billion.

At that time, it is a good opportunity to buy SMIC at the bottom!

In order not to affect the bargain-hunting of SMIC, Wang Yi decided that the early orders for Xingyi smart home chips should be given to TSMC or Samsung.

Wait until you buy SMIC at the bottom and become a major shareholder of SMIC, then give it to SMIC!

At present, 95% of SMIC's revenue is from 90nm and above business, and very few are 65nm.

Wang Yi has now given it to SMIC. SMIC has insufficient 65nm production capacity and cannot take over.

In June next year, Wang Yi becomes a major shareholder of SMIC by buying the bottom, and SMIC's 65nm production capacity will be greatly increased, so that they can give them a big order.

Of course, the most reliable option is to build a self-built chip factory, but this has to be planned slowly, and 200 billion will not be available in a short time.

Wang Yi has made a calculation in his mind. Next year's smart home chips will be found by OEMs first to achieve profitability and support the research and development of high-end chips.

Buy SMIC at the bottom in the middle of the year. If the follow-up goes smoothly, then keep holding it, gradually control SMIC, and then introduce Mr. Liang!

If things don't go well, then wait until you reduce your holdings at a high level, cash out and make some profits.

At the same time, start planning your own 12-inch wafer fab. This is fundamental!