My Age of Investment

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After staying in the capital for a few days, Xia Jingxing went to the Magic City.

He was not in a hurry to see Wang Wei and handed over the task of fighting the front station to Zhang Yong.

After Deng Yuanjun received Xia Jingxing at the airport, he accompanied him to Spreadtrum Communications.

The global R\u0026D center of this baseband chip manufacturer is also located in Zhangjiang Science and Technology Park, very close to Huaxin International and Fuxing Semiconductor.

Sitting in the car, Deng Yuanyun reported to Xia Jingxing the entire process of acquiring Spreadtrum Communications.

“After Spreadtrum went public in 2007 with the title of “China’s No. 1 3G stock”, its business has continued to decline.

In the third quarter of last year, Spreadtrum Communications recorded revenue of US$19.977 million, a year-on-year decrease of 48%, and a net loss of US$31.258 million.

Then the financial crisis broke out, and Spreadtrum Communications' stock price fell to about $0.8, resulting in a market value that was less than the company's net cash on the books.

At the beginning of this year, with the help of its two founders Wu Ping and Chen Datong, Renaissance Semiconductor acquired Spreadtrum Communications at a premium of US$212 million. "

Xia Jingxing chuckled and said: "Spreadtrum was cheated by China Mobile. It is the first 3G company. Haha, the 3G commercial license was only issued this year. The wait is so long that the day lily is cold."

Deng Yuanjun said with a smile: "In fact, Spreadtrum launched the first TD-SCDMA/GSM dual-mode chip as early as 2004, and since then the company has bet all its money on this domestic standard technology.

This decision was made by Wu Ping when he was CEO. It cannot be said to be wrong. It can only be said that he did not expect that the decision-making above would be so slow and almost killed Spreadtrum. "

Xia Jingxing smiled. He was very familiar with Chen Datong and Wu Ping and knew some of their thoughts.

To put it bluntly, it is a bet. The bet is that the TD standard will receive policy support, and then Spreadtrum Communications can ride on this "domesticization" trend and compete with MediaTek in one fell swoop.

It’s okay not to bet, because in terms of 2G chips, the newly established Spreadtrum Communications is no match for the long-established MediaTek.

As for Qualcomm, you can’t even see its back.

"Because of this wrong decision, Wu Ping and Chen Datong were severely harassed by the capital side. They said they resigned voluntarily and left the company to start a second business. In fact, they were forced to leave by shareholders."

Speaking of this, Deng Yuanjun was full of emotion, "To be honest, it's a bit of a pity. If the higher-ups had done more, maybe Spreadtrum Communications wouldn't be what it is now."

Xia Jingxing said calmly: "There are also difficulties above. Who makes our country technologically backward and on the catch-up side?"

Deng Yuanjun smiled and nodded, "That's right. If the 3G licenses had been issued a few years ago, there might not have been anything wrong with us."

Xia Jingxing originally wanted to ask Deng Yuanjun about Spreadtrum Communications' TD chips, but after thinking about it, he decided to wait until Spreadtrum Communications came to talk, and changed the subject to the Renaissance Industrial Fund.

When it came to the fund, Deng Yuanyun seemed to be a different person, and he suddenly became excited.

"Mr. Xia, there are rumors in the industry that our 100 billion yuan fund will invest in hundreds of chip industry chain companies in the next two to three years.

People we know and people we don’t know are all recommending projects to us.

China has never set up such a large fund, let alone a fund that specializes in semiconductor investment.

Projects 908 and 909 have investments of 2 billion and 10 billion yuan respectively, which together are less than one-eighth of ours.

Everyone admires your courage, Mr. Xia, saying that Fuxing Industrial has accomplished something that no country has been able to accomplish.

Recently, leaders from Shanghai Magic City have been coming to our company every day. They very much hope that we will invest the 100 billion yuan in Magic City, or introduce the semiconductor companies we invest in to settle in Shanghai. "

Xia Jingxing frowned slightly and said, "I have repeatedly warned not to promote it vigorously. Even if it is promoted, it cannot be said to be a semiconductor industry fund.

What should I do now that your actions have triggered sanctions from Bald Eagle? "

After Xia Jingxing's words, he poured a basin of cold water on Deng Yuanjun's head, and he immediately sobered up.

He smiled bitterly and said: "Mr. Xia, we have kept a low profile, but the companies we invest in are semiconductor companies, and there is no way to hide this.

The companies we invest in are all in the mid- to low-end fields, and their technologies and products are backward. Shouldn’t this cause the bald eagle to be wary, right? "

Xia Jingxing shook his head and said: "You cannot speculate on the bald eagle with this kind of thinking. China's total GDP will surpass Japan's next year at the latest, and the bald eagle's attention will definitely shift to China."

Having said this, Xia Jingxing sighed and decided to explain more to Deng Yuanjun.

“The time window left for us to catch up is only a few years, and we must improve China’s semiconductor technology level by one or two levels within this period.

Otherwise, once technology imports are cut off and domestic technology cannot be replaced, Fuxing mobile phones, Fuxing cars, drones and other products will all become a pile of waste. "

Deng Yuanyun frowned, "It won't be that serious, right?"

Xia Jingxing looked at Deng Yuanyun and said in a deep voice: "Don't overestimate the moral level of Americans. They will do anything for their own benefit.

If Fuxing Industrial has established itself as a leader, it must be prepared to die first. "

"Prepare to die first?" Deng Yuanjun muttered to himself.

"right!"

Xia Jingxing looked at Deng Yuanyun with burning eyes, "Since we decided to take this step, we have embarked on a road of no return.

Either reach the finish line victoriously or be shattered into pieces. There is no such thing as retreat.

If revived industry cannot break the Western blockade, then I would rather it be destroyed.

In my dictionary, there is absolutely no such thing as being content with being a second-rate company. "

Deng Yuanjun looked at the decisive boss, his eyes a little complicated for a moment.

Many of the mysteries buried in his heart were now solved.

Take semiconductors as an example. Fuxing Industrial has invested in so many chip companies. In terms of return rate, it cannot be said to be the best investment direction. On the contrary, it is suspected of redundant construction.

Now he understands that the boss is playing a big game and wants to drag China's semiconductor industry forward on his own.

"The semiconductor industry's backwardness cannot be changed overnight."

Deng Yuanjun decided to persuade his boss not to be too impatient. It is respectable to sacrifice one's family to serve the country, but the actual situation must also be considered.

Xia Jingxing nodded and said: "I know this, so the Fuxing Industrial Fund will have a second and third phase, and will invest until the day when China's semiconductors stand up.

At the same time, Fuxing Industrial also needs to play a role in the sales of end products, supporting some outstanding semiconductor companies with business and orders, so that they can grow as quickly as possible. "

Deng Yuanjun asked: "What about Fuxing Semiconductor? Our own subsidiaries also need chip orders from Fuxing Industrial."

Xia Jingxing smiled, "Fuxing Semiconductor cannot cover 100% of our needs. IGBT, chip materials, manufacturing equipment, and EDA software are all areas we have not entered.

Of course, in the long run, we can only provide limited help to the invested companies, and more needs to be done by their own efforts. "

Deng Yuanjun continued: "I think it might as well be like this. The Renaissance Industrial Fund invests in some non-semiconductor companies, such as the automobile industry chain and the mobile phone industry chain, so that our actions will not look so abrupt.

If all the funds are invested, we will then initiate the establishment of the second and third phases of funds. "

Xia Jingxing thought for a while, then nodded and said: "This is also a method. It looks more like an industrial fund for reviving the industry, rather than a fund for reviving the semiconductor industry."

Deng Yuanjun smiled slightly and said, "Yes, that's what I mean. Acting requires a full set. Now it can only be called a half set."

"By the way, you just said that the Magic City government wants us to invest the 100 billion in Magic City. Did they mention the investment memorandum they signed before?"

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