Reborn in 2011, 985 missing from two copies

As the chairman of SMIC, Zhang Wen knows best the importance of technological leadership!

At present, SMIC has not yet successfully introduced IBM's 45nm process technology, but Xingyi Semiconductor has successfully developed its own 40nm technology and achieved mass production!

So what's the point of SMIC working on 45 nanometers?

If we fall behind by one generation, we’re all doomed!

What's more, IBM's demand for 30% profit is not acceptable to SMIC.

Even if you accept it, it's meaningless.

Xingyi Semiconductor’s 40nm is in mass production, and SMIC’s 45nm is not very competitive at all.

In this way, the wafer factory in Shanghai is indeed finished.

Now that it has been favored by Xingyi Semiconductor, there is no way for it not to sell it.

After all, although the SMIC Shanghai 12-inch wafer factory is nominally owned by SMIC, the actual major shareholders are state-owned enterprises and the government.

The major shareholder spoke up, and the top management of Shanghai came forward...

No matter how you look at it, this situation is not something SMIC can refuse.

More importantly, the other party said he wanted to buy, not rob, and he would pay!

This made Zhang Wen feel much better.

There is no way. SMIC is too short of money. It has been making losses year after year and is heavily in debt. It can barely make ends meet.

The money borrowed from the bank is always charged with interest. With so much debt, the interest alone is an astronomical figure.

If we sell the Shanghai wafer factory and get the money, we can slow down the process a bit.

In this way, it would be timely to build a new factory and start production after the 40-nanometer process is finalized.

It is much better than the current factory which has no 40-nanometer technology and can only produce 65-nanometer and 55-nanometer products.

After all, it is a waste to use such an advanced production line to produce 65-nanometer memory chips.

There is no problem in transferring existing orders to small 8-inch factories.

In the field of wafer mass production, 12-inch wafer fabs are mainly used to produce high-end chips such as logic chips.

As for low-end memory chips, an 8-inch wafer fab is sufficient.

Seeing Zhang Wen was silent, Mr. Zhao smiled and said, "Don't worry, we will pay you the same amount of money as you invested in this Magic City wafer factory. We will never let you lose money."

Mr. Zhou also said: "The entire Magic City 12-inch wafer factory has a monthly production capacity of 2.5 pieces. In addition to the land acquisition, construction, and equipment, you have invested a total of 100 billion. In this way, I will let Xingyi Semiconductor give you 120 billion!"

"You can make 20 billion!" Zhang Wen sighed, "It's not impossible, but... you have to pay more!"

Mr. Zhou: "..."

Mr. Zhao: “…”

The two looked at each other and smiled: "Okay, you tell me how much you want!"

Zhang Wen thought about it and felt that it would be unrealistic to have too much.

The Shanghai wafer factory produces 2.5 wafers per month, which is a small wafer factory. Building one from scratch would cost about 130 billion yuan based on current costs.

They only spent 100 billion because they built it early and the cost six or seven years ago was much cheaper than it is now.

Selling more is a good thing nowadays.

"Let's put it this way. Let's say it's 130 billion. It will also cost 130 billion to rebuild a wafer fab like this! My equipment is all new and I'm going to use the 45-nanometer process."

Mr. Zhou nodded and said, "Okay. There are two options. Option one: 130 billion in cash. Option two: 120 billion in cash and a piece of land twice the size to build a new 12-inch wafer factory."

A plot of land twice the size would cost 20 billion, and option two would cost 140 billion.

Zhang Wen smiled and said, "Leader, 120 billion + three times the area of ​​land, we at SMIC also want to become bigger and stronger!"

"Okay, then it's 120 billion in cash + land worth 30 billion. The excess will be considered compensation." Mr. Zhou agreed readily.

"Thank you, boss." Zhang Wen was in a good mood. His originally gloomy mood was swept away. He made a lot of money from this deal!

100 billion investment, cashing out 120 billion + 30 billion industrial land, equivalent to 150 billion, with a net profit of 50 billion.

Isn’t this return on investment higher than chip foundry?

In all these years since its establishment, SMIC has never had such a high return on investment!

"How about I stop making chips and build a wafer fab, and then sell it to Wang Yi?"

'That doesn't seem to be a problem!'

Zhang Wen was shocked by his own brilliant idea.

Of course, this is just a thought.

Now Xingyi Semiconductor has become a hot commodity, and major first-tier cities are rushing to introduce Xingyi Semiconductor to build factories. There will be no shortage of wafer fabs in the future.

Elder Zhou looked at Zhang Wen's strange expression and frowned, "What are you thinking about?"

Zhang Wen waved his hand: "I'm thinking about how to tell the shareholders. This matter needs to be voted on at the shareholders' meeting."

"Haha, I believe in your ability and means." Mr. Zhou smiled slightly.

There are currently three factions in SMIC.

The first group is the mainland group. The major shareholders of SMIC are mainly government and state-owned enterprises. They want to use SMIC to support the development of the mainland semiconductor industry.

The second group is the Taiwan group, which consists of executives who hold real power. They want SMIC to internationalize quickly and become bigger and stronger.

The third group is foreign capital, which includes many foreign-funded enterprises whose ultimate goal is to achieve profit.

In the end, the mainland faction and the Taiwan faction each took a step back, and Zhang Wen, who received the support of the foreign capital faction, became the new chairman.

Zhang Wen, who has always been good at balancing relationships among all parties and has outstanding abilities, gradually calmed down the internal strife in SMIC in the next few years, and also laid the foundation for the introduction of Mr. Liang many years later, which enabled SMIC to develop rapidly.

Mr. Zhou is very confident in Zhang Wen's abilities.

If it were someone else, this would be difficult to accomplish.

But if Zhang Wen comes forward, everything will be completely stable.

The next day, SMIC held a board meeting.

Zhang Wen sighed: "One good news and one bad news, which one do you want to hear first?"

"It's bad news, so we don't get too excited or too sad." A shareholder said with a smile.

"Well, the bad news is that our 12-inch wafer fab in Shanghai has been targeted by someone who wants to buy it! And with pressure from the top management, we basically have to sell it."

Everyone was silent for a while: "..."

The major shareholders all have completely different thoughts, but many of them feel a little aggrieved.

The mainland faction had received the instructions long ago and was relatively calm.

But the Taiwan faction could not sit still and started to curse:

"Isn't that too much? Who dares to rob our wafer factory?"

"SMIC is the leader of the mainland's semiconductor industry. Who has such a big face? Who has such a big courage?"

"If you are short of wafer fabs, build them yourself, and snatch our wafer fabs from SMIC, what does that mean?"

"A gentleman can be killed but not humiliated, and he must never be sold!"

……

Listening to everyone's words, Zhang Wen smiled slightly:

"The good news is that the price they offered is very high. We invested 100 billion to build the Magic City wafer factory, and we can get 120 billion in cash and land worth 30 billion. We can build a new wafer factory three times the size!"

Hearing this, the Taiwan shareholders who were cursing at first changed their expressions and words:

"A wafer factory worth 100 billion yuan in exchange for a return worth 150 billion yuan seems reasonable."

"Yes, with a 50% return on investment, SMIC has made a profit."

"And the land, which is worth 30 billion, can allow us to expand three times."

"120 billion in cash will also allow us to get through the current crisis."

"In fact, if the Magic City hadn't forced me, I wouldn't support building this 12-inch wafer factory. Our technology is not up to the standard, so it's a sheer waste."

Even the shareholder who said he would never sell the shares could not help but say:

"It's not impossible to sell it. We can use the money to develop new processes. By the time the new processes are implemented, a larger wafer fab will have been built. How great would that be?"

Looking at this scene, Zhang Wendu had a complicated expression. The speech he prepared all night was of no use at all.

All I can say is that these people are realistic, very realistic.

But after thinking about it, Zhang Wen knew the reason.

The mainland faction consists of state-owned enterprises and officials. They have probably received instructions from Mr. Zhou a long time ago and naturally will not object.

Foreign investors only care about making money and will not object.

The only Taiwanese faction that opposed it was also moved by the 50% profit...

So, the board meeting that was thought to last a whole day with endless arguments was over in ten minutes.

Zhang Wen was speechless: "Okay, let's go through the process, vote, and raise your hands if you agree."

Soon, the voting results came out, 95% in favor and 5% abstention, and it was passed smoothly.

Zhang Wen quickly took the results and went to Mr. Zhou: "It's done. All that's left is to sign the contract and pay the money. After the payment is made, we can immediately take over the factory and the employees."

Mr. Zhou was very satisfied: "Well done. Don't worry, Shanghai will continue to support SMIC as always!"

Zhang Wen nodded, and then changed the subject: "Mr. Zhou, I have a question that I don't know whether I should ask or not."

"what?"

"I don't know if Xingyi Semiconductor's 40-nanometer technology will be sold. If it is sold, we won't have to introduce IBM's 45-nanometer process!"

"This..." Mr. Zhou was also confused. No wonder this guy tried his best to promote this cooperation. One reason was to make money and overcome the crisis.

Secondly, they have their eyes on Xingyi Semiconductor's 40nm process.

Okay, really okay!

Wang Yi and Zhang Wen, one young and one old, are both not serious.

Wang Yi has set his sights on Zhang Wen’s 12-inch wafer factory!

Zhang Wen has set his sights on Wang Yi’s 40-nanometer process technology!

really do.

"You!" Mr. Zhou shook his head. "How would I know? When Mr. Wang comes to sign the contract, you can ask him yourself."

Zhang Wen nodded and understood what Mr. Zhou meant.

There are some things that Mr. Zhou cannot speak about, but Zhang Wen can.

Zhang Wen asked, saying that he was only representing SMIC and it was just a normal technology licensing negotiation.

For example, if Xingyi Semiconductor licensed its 40-nanometer technology to SMIC, SMIC would need to pay a huge sum of tens of billions of dollars. If it couldn't afford it, it would give % of its annual profit to Wang Yi...

Even if Wang Yi refuses to authorize and the negotiations fail, it is a matter between the companies.

If Mr. Zhou speaks, it means he is representing the official opinion.

For example, the acquisition of the Shanghai wafer factory was made possible by Mr. Zhou and the Shanghai government officials.

The meaning here is completely different.

Mr. Zhou doesn't want to force Wang Yi to sell technology for the sake of SMIC, which would make Wang Yi uncomfortable and affect other cooperation between Modou and Xingyi Technology.

It's not a good deal.

Similarly, if Xingyi Semiconductor was not so promising, Mr. Zhou would not have stood up for Wang Yi and asked SMIC to sell its factory.

To put it bluntly, everything depends on strength.

But it is obvious that Xingyi Technology has the strength to let Mr. Zhou take the lead, but unfortunately SMIC does not.

Zhang Wen looked somewhat gloomy about this, but he was helpless.

It makes even less sense when you consider that the only wafer factory in Shanghai that can currently perform 40-nanometer process is going to be sold to Xingyi Technology.

SMIC's other wafer fabs are all equipped with old equipment.

Even the 12-inch line in the capital is very backward. It can make 65- and 55-nanometer memory chips, but it is totally insufficient to make 40-nanometer logic chips!

Unless all the equipment is dismantled and new advanced equipment is introduced for comprehensive upgrading!

But this is unrealistic. After all, if this happens, it will require an investment of tens of billions of dollars in equipment.