My Age of Investment

Although Xia Jingxing and Zhang Rujing met for the first time, they chatted like they had been close friends for many years.

Unknowingly, the sky outside the window had brightened up, and the two of them had spent the whole night chatting about semiconductors, drinking countless cups of coffee.

Zhang Rujing's face no longer looked as decadent and tired as when he first appeared, and his whole person became energetic and not at all sleepy.

Although he still had some unfinished thoughts, he noticed that Lin Xinhe and Liu Xiaoduo, who was responsible for mixing the coffee, were yawning. He also knew that today's chat should end here.

“Mr.

As for international capital and government-owned capital, I leave it to you. "

Xia Jingxing stood up and shook hands with Zhang Rujing and said with a smile on his face: "Don't worry, all internal problems and obstacles will be eliminated at once this time. Only in this way can we free up our hands and feet to move forward in big steps. .”

Zhang Rujing nodded lightly. After a night of discussion, he already highly agreed with Xia Jingxing's development strategy.

In fact, the other party's development strategy is similar to his diamond layout, but the other party is more radical and the layout is broader and far-reaching.

Of course, the main reason why he failed was because Huaxin International did not have enough chips.

Fuxing Industrial Group and Vision Capital both have very strong capital strength, and their success rate is undoubtedly much higher than that of Huaxin International.

"Mr. Xia, I will definitely cooperate with you fully."

Walking to the door, Zhang Rujing and Xia Jingxing looked at each other with a smile on their faces.

He had been completely convinced by Xia Jingxing and planned to hand over the banner of revitalizing China's semiconductor industry to this young man.

He knew that his mission was almost over, solving the "nothing" problem from scratch for China Semiconductor.

And from having something to being good, and from being good to being refined, requires younger and more capable people to achieve it.

Now that he is letting go of Huaxin International and letting Xia Jingxing run it, he can also make this company go further in its chip journey.

The two looked at each other for a while, then smiled and nodded to each other, saying nothing.

After declining Xia Jingxing's farewell, Zhang Rujing left quietly humming a Chinese children's song that his father had taught him when he was a child.

He felt as if a huge burden had been lifted off his body, his steps were brisk, his expression was calm, and he seemed ten years younger.

Standing in the corridor outside the door, watching Zhang Rujing's figure walking further and further away, and the singing gradually disappearing, Xia Jingxing smiled and sighed: "What a strange person!"

Lin Xinhe on the side crossed his arms and said with a smile: "What am I talking about? He doesn't care about the control of Huaxin International, nor does he care about the gain or loss of personal wealth. What he really cares about is this company that condenses his personal efforts and his father's last instructions. And whether companies with personal feelings for family and country can achieve better development."

Xia Jingxing nodded heavily, "Yes, he entrusted us with his dream to show his trust in us, and we must not let him down."

Lin Xinhe nodded slightly, "It's up to you. You are the captain now."

…………

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After catching up on a few hours of sleep, Xia Jingxing climbed out of bed at noon. After washing up and having lunch, he walked out of the hotel room and took the elevator to the Envision Capital Magic City office on the 49th floor.

When Xia Jingxing came to the conference room, company employees and consultants such as Deng Yuanjun, Li Guangnan, and Liang Mengsong, and shareholders such as Lin Xinhe, Deng Feng, and Xu Xin were all present.

Xia Jingxing was too lazy to lay the groundwork and directly brought up the core topic: "Yesterday, I chatted with Mr. Zhang Rujing, the founder of Huaxin International, for a whole night. I decided to let Fuxing Semiconductor acquire Huaxin International, with Fuxing Industrial Fund acting as the financial advisor and Provide financing support.”

As soon as these words came out, the scene was quiet for half a minute. Except for Lin Xinhe, everyone else was a little shocked by the news.

Fuxing Semiconductor just started production yesterday, and today it will acquire China's largest chip manufacturer. What speed is this? It's not that fast on a rocket, right?

Zhu Min helped NEA invest in Huaxin International. He knew something about the company and said, "Jing Xing, you have to think clearly. The stock price of Huaxin International is sluggish now. The acquisition really doesn't cost a lot of money. It even costs a lot." Not as good as building a new factory.

But why is the market value of his business so low? This is because the market is bearish on it.

The external lawsuits of Bay Electric are like a sword of Damocles hanging above your head, and you don’t know when it will fall;

Internal losses are piling up, and the industry predicts that Huaxin International's losses this year may hit a new high.

The two unfavorable factors are superimposed, and Huaxin International is likely to become a pile of negative assets within one or two years.

For example, the factory and technical personnel are still there, but they need to compensate Gulf Power for one billion U.S. dollars and lose hundreds of millions of U.S. dollars every year. In fact, its book value has been wiped out. "

The others felt that what Zhu Min said made sense and nodded, then all turned their attention to Xia Jingxing.

Xia Jingxing explained calmly: "We will not discuss Gulf Power's lawsuit here, only the business-level issues of Huaxin International.

Starting last year, the price of memory chips began to plummet, which was the main factor causing Huaxin's losses.

In addition, Jiangcheng, Rongcheng and other factories have just started production, and orders are unstable. At the same time, they are also facing the pain of transforming from storage chips to logic chips...

This coincides with the trough of the industry. As long as we survive the past two years, the situation will get better.

Even if we don't acquire Huaxin, I plan to let Renaissance Semiconductor vigorously build factories and build production lines despite losses in the past two years.

Now Fuxing Mobile has begun to lead the replacement trend brought about by smartphones, and domestic 3G networks will be rolled out on a large scale next year. After the chip market demand rebounds, market production capacity may be in short supply due to this round of cyclical adjustments.

We entered the game late to begin with. If we don’t seize this round of investment opportunities and catch up, it will only be more difficult in the future.

In addition, and more importantly, Huaxin has technology that is one or even two generations ahead of us!

For example, in December last year, they had obtained the IBM 45-nanometer image sensor chip technology authorization, but they have not yet fully understood this technology, and their own business difficulties have also slowed down the research and development progress.

Spansion Semiconductor, a joint venture between AMD and Fujitsu, signed a cooperation agreement with Huaxin in October last year to jointly develop 65-nanometer flash memory chips, and conducted tape-out trial production at the end of last year. Mass production was originally planned for the second quarter of this year. .

However, Spansion Semiconductor has its own operating problems and may even go bankrupt, which has also slowed down the mass production plan of Huaxin's 65-nanometer products.

Even with so many unfavorable factors, Huaxin International still has a better development foundation than us.

If we take over Huaxin International and provide strong support to advance their advanced manufacturing process to 65 nanometers or even 45 nanometers, we can save at least three years of development time.

Gulf Power's 65-nanometer products were mass-produced in the fourth quarter of 2006, and their 45-nanometer products were mass-produced at the end of last year.

If Huaxin International's cooperation orders, technical personnel and technical reserves are absorbed, the gap between Fuxing Semiconductor and Gulf Power can be shortened from five or six years to one to two years in one fell swoop, and the technology generation gap can also be shortened from nearly three generations to one. "

While explaining his reasons for the acquisition, Xia Jingxing was also thinking and analyzing in his mind.

Three years ago was actually the time when the technological gap between Huaxin and Gulf Power was the closest. At that time, the technological gap between the two companies was only about one year and one generation of products.

However, in recent years, Gulf Power has begun to exert its strength again, and various problems have arisen within Huaxin, causing the technology gap to widen again.

But things haven't reached the point of no return yet.

If Huaxin International follows the same path of its previous life and gives up the pursuit of advanced manufacturing processes due to internal strife among shareholders, it will regrettably miss the great opportunity to overtake in corners.

At this time, Gulf Power is not as arrogant and invincible as it would be more than ten years later. In its previous life, this company only became the global foundry hegemon after reaping chip dividends for more than ten years.

If we don’t catch up now, we will pay ten or a hundred times the price if we catch up again in the future.

Because if there is a breakthrough in high-end processes within 10 nanometers, the cost of R\u0026D investment and production line construction will be astronomical, at least calculated in units of tens of billions of dollars.

Ordinary companies simply cannot afford to supply it. Only three companies, Gulf Electric, Samsung, and Intel, can afford to play this kind of money-burning game.

Liang Mengsong raised his arms high, "I support Mr. Xia's decision! If we cannot master advanced technology, we will never be able to enter the high-end chip market. What we will always get are leftovers, and the Fuxing Industrial brand will be tarnished."

As long as we can shorten the technological generation gap with Gulf Power to one generation in the next two or three years, I can issue a military order to equal Gulf Power in five to six years and surpass Gulf Power within ten years. "