Rebirth 99 to become a car giant

The establishment of Nanshan Precision is relatively low-key.

Most people didn't pay special attention to it, thinking that Nanshan Group was messing around on its own.

Even Cao Yang himself could not keep his eyes on Nanshan Precision all day long.

Because 2009 is also a very important year for Nanshan Group.

After the financial crisis broke out last year, 2009 will be the key to whether we can seize many opportunities.

For China, the situation in April 2009 was obviously different from that in the first quarter.

Whether it is official data or changes in corporate orders, we can feel that China's economy is recovering rapidly.

However, for the international market, the impact of the financial crisis is actually greater.

On January 14, 2009, Nortel Networks, the largest telecommunications equipment manufacturer in North America, filed for bankruptcy protection.

On January 27, 2009, sales in the U.S. auto market in the past ten months fell by 32% compared with the same period in 2007, which was the worst level in the U.S. auto market since 1991.

On February 6, 2009, Toyota announced that it would experience an annual net loss for the first time in decades. The company's performance would turn from the originally expected net profit of 50 billion yen to a net loss of 350 billion yen.

On February 10, 2009, UBS Group released its quarterly report, which showed that the group suffered a loss of approximately US$6.9 billion in the quarter, mainly from losses in investment banking risk positions, and a full-year loss of US$17 billion.

On March 2, 2009, the American Dow Jones Industrial Average closed at 6763.29 points, setting its lowest closing level since April 1997. This also means that the market value of the Dow Jones Index has shrunk by more than half in just one and a half years.

On March 9, 2009, Polar Bear had exhausted 35% of its foreign exchange reserves in the past five months. GDP fell by 8.8% year-on-year in a single month, and industrial production output fell by 16% year-on-year, the largest decline in 15 years.

In the first quarter of 2009, the unemployment rate in the Eurozone reached 9.5%, the highest level in 10 years.

Beginning in March 2009, the Federal Reserve purchased a large amount of treasury bonds and implemented a quantitative easing monetary policy, and the depreciation of the US dollar followed.

Although there is some good news later, for example, Citibank announced a profit in the first quarter of this year.

But the overall situation is very pessimistic.

This makes it much easier for Nanshan Investment to buy and buy in the international market.

"Mr. Cao, our layout of lithium mines, nickel mines and cobalt mines is almost completed."

“I even made a fortune in the gold market in the past few months.”

"The acquisitions related to Nanshan Semiconductor also went relatively smoothly."

"In addition to NVIDIA, which you mentioned is still in negotiation, some other small design companies have already won several contracts."

Lin Ling and Zhang Fugui came to Cao Yang's office again to report on Nanshan Investment.

For many people in Nanshan Group, Nanshan investment is relatively mysterious.

Many people know that there is such a company, but their specific business is not very clear to everyone.

"In the next period of time, in addition to continuing to communicate with chip design companies about acquisitions, some precision instrument companies can also be acquired if they have core technologies."

"These companies are generally not very large and not that sensitive."

"If there is no impact from the financial crisis, their operations tend to be very stable."

"Now is the best acquisition opportunity."

For many precision instrument manufacturers, their scale is actually small.

Even among the Fortune 500, it is almost difficult to find professional companies in this field.

Although many companies occupy a monopoly position in the Chinese market, their annual sales in China may only be a few hundred million yuan.

After all, these precision instruments are very niche.

After purchasing a laboratory, there may not be any need for it for several years.

The annual market will not be particularly large.

Of course, as China pays more and more attention to scientific research in the future, the related market will expand.

But it is only compared to the past market.

If compared with other large equipment, it is definitely incomparable.

"As long as you are not acquiring some very sensitive companies, the threshold is not high now."

“I can contact a few friends and see if I can find someone who is familiar with this industry.”

Lin Ling is a professional financial person and has a good understanding of various acquisition plans.

But the precision instrument industry is still too professional, and she really doesn't understand it.

Pretending to understand something that you don't understand can lead to big trouble.

She knows this very well, so she won't mess around easily.

With her investment status in Nanshan, there is no need to mess around.

"There are many small and medium-sized companies in Japan and Europe. They may only have one or two hundred people, but they may be well-known in the industry in a specific segment."

"If some of these companies are in trouble now, you can consider buying them back."

"If you miss this opportunity, it will probably be difficult in the future."

In China, people tend to look down on small companies.

When running a business, the bigger the better.

But in Japan and some parts of Europe, this is not entirely the case.

Of course there are large enterprises, but many small and medium-sized enterprises, even small companies with only a few dozen people, have mastered one or two core technologies.

This is quite meaningful to Nanshan Group.

You never know when these things will be available to play an important role.

"We at Nanshan Investment have also recruited some Japanese and Europeans during this period. I wonder if we can introduce some incentives in the plan to acquire companies."

“As long as we can acquire the companies we want and the acquisition price is right, we can give them some high bonuses.”

"In this way, there will be brave men under the heavy reward, which should be very beneficial to our acquisition."

Zhang Fugui on the side proposed a bolder plan.

If ordinary people proposed this plan, they might mean poaching the company.

But Zhang Fugui obviously doesn't have to worry about Cao Yang doubting himself.

Many acquisition plans will go much smoother if insiders or people familiar with the situation cooperate.

Zhang Fugui has been working hard since the 1990s, and he is quite knowledgeable in this area.

Although the situation abroad and at home are definitely not exactly the same, some things are similar.

"No problem, as long as we can acquire the right company, we should pay some reasonable price."

"However, we must also pay attention to the risks of legal compliance. Don't spend money. The enterprise will indeed be out of our control by then."

Cao Yang reminded Zhang Fugui and didn't dwell on too many details.

Now is definitely the best time to acquire companies in the international market that have core technologies but are in trouble.

In a few years, after the impact of the financial crisis has passed, if you want to acquire someone else, you will have to spend more money, and they will not easily sell to Chinese buyers.

The issues involved here are much more complex.

Naturally, Zhang Fugui and Lin Ling had no objections to this.

Although Nanshan Group's series of buying and selling actions have not made a big splash for the time being, for those in the industry who have been paying attention to Nanshan Semiconductor, they can feel the determination of Nanshan Group.

Warwick HiSilicon has the most say in this regard.

"Mr. Xu, several Silicon Valley chip design companies we had contact with before were recently acquired by a mysterious company."

"I inquired about it and found out that behind this mysterious company is Nanshan Investment, a subsidiary of Nanshan Group."

"They have been very active in Silicon Valley recently, and they are also in contact with many small and medium-sized enterprises in Japan."

"It seems that Nanshan Semiconductor is very determined to develop chips."

Even Shitian's contact with the Nanshan Group was not a day or two.

He clearly felt that Nanshan Group was completely different from other domestic companies.

Not to mention that Nanshan Group has developed many new technology products in recent years, but Nanshan Group's emphasis on technology research and development alone cannot be matched by ordinary enterprises.

Even the number of R\u0026D personnel of Nanshan Group is one of the largest in the country, and the treatment is also speechless.

In particular, Nanshan Semiconductor has purchased two residential communities in Yangcheng and Shanghai to accommodate Nanshan Semiconductor's talents, which is already well-known in the industry.

"Although we have been engaged in chip design for many years, in some areas, chip companies in Silicon Valley still have their own uniqueness."

"For example, we are not very good at GPU design related to image processing."

"There are also some technologies related to automatic parking of cars, which we have basically not researched."

"Nanshan Semiconductor is now fully engaged in various automotive-grade chip-related fields, and it does not hesitate to spend a lot of money to recruit people and buy companies. This intensity is indeed amazing."

"I just don't know how long they can last. Don't insist on it for a year. If you find that the investment is too high and the return is too low, just stop doing it. That will do great harm to the domestic semiconductor industry."

Xu Jun is a little looking forward to the development of Nanshan Semiconductor, but also a little worried about the development of Nanshan Semiconductor.

Although everyone makes products in the same industry, they are normally competitors.

However, the domestic strength in this area is too weak, and the competition between them can almost be ignored.

More often than not, it is a relationship of cooperation, exchange and complementarity.

The technical staff of Nanshan Semiconductor and the technical staff of Warwick HiSilicon would go to each other's company every now and then to conduct some technical exchanges.

This is also a continuation of the good relationship that the two sides have accumulated over the years.

"Nanshan Semiconductor is backed by Nanshan Group, so there should be no need to worry about funding in the next two to three years."

"Today's Nanshan Group has strong profitability and a very healthy balance sheet."

"As long as Mr. Cao is determined, even if he burns 10 to 20 billion on Nanshan Semiconductor every year, there should be no problem."

Lian Zhitian obviously understands the situation of Nanshan Semiconductor quite well.

In fact, the other party's situation is somewhat similar to theirs.

The semiconductor industry itself has not yet made any money.

But with the blood transfusion of the group, there is no problem in continuing to support it.

"Judging from the current pace, Nanshan Group's buying and selling actions have never stopped."

"The wafer factory in Shanghai is said to be under construction day and night, and the progress is very fast. It is expected to be completed by the end of this year."

"By then, Nanshan Semiconductor's comprehensive strength may be the strongest in the country."

Xu Jun made a very bold judgment.

There are actually quite a few domestic chip companies.

But there are only a few that have become successful.

And almost no one is following the path of Nanshan Semiconductor. From chip design to wafer production to packaging and testing, they want to do everything by themselves.

If ordinary companies were struggling like this, Xu Jun would definitely not be optimistic about it.

But when it comes to Nanshan Semiconductor, the situation is a little different.

On the contrary, he is looking forward to the future of Nanshan Semiconductor.

"If Nanshan Semiconductor's layout can be realized, then their prospects will be really worth looking forward to."

"Although the technology of automotive-grade chips is not the most cutting-edge in the industry, the demand for chips in the automotive industry is also quite large. It is not easy to solve this problem."

"I even heard that they are doing a lot of research on chips for other consumer electronics."

"Nanshan Semiconductor started poaching people like crazy in the second half of last year, and it has not stopped its pace of expansion until now."

"I don't know when they will bring us a surprise."

Even Shida is quite optimistic about the future of Nanshan Semiconductor.

He even thinks that Warwick HiSilicon can further cooperate with the other party, "Mr. Xu, I think that if some of the company's chips are close to the direction that the other party is researching, I have tried to buy them from them."

"Or part of the chip foundry can be considered to be handed over to Nanshan Semiconductor's chip factory in Shanghai."

"In this way, the relationship between us will definitely be able to take a further step, which should also be beneficial to future cooperation."

When Lian Zhidian said this, Xu Jun also considered it seriously.

Taking this opportunity, it seems like a good idea to participate in the construction of the Nanshan Semiconductor Magic City Fab Factory?

Although Warwick HiSilicon is currently only responsible for chip design and has no plans to enter the wafer factory, who knows what will happen in the future.

Maybe in a few years, we can cooperate with Nanshan Semiconductor to build a wafer fab.

Thinking of this, Xu Jun immediately gave a positive reply and said: "Screen it to see which chips are suitable for cooperation with the other party, and find a time to go over and communicate with them."

Warwick HiSilicon would think so, and BYD Semiconductor is naturally not idle either.

Relatively speaking, BYD Semiconductor focuses more on the semiconductor components needed for new energy vehicles such as IGBTs.

The demand for automotive-grade chips is actually greater.

"Mr. Wang, I heard a saying that in the future, Nanshan Group's industries, whether it is CNC systems on machine tools or parts produced by Nanshan Auto Parts, all those that need to use semiconductor components such as chips will need to be purchased domestically. .”

"Most of them will be concentrated in Nanshan Semiconductor for their own production."

"I had some doubts about this statement before. After all, it is very difficult to get all kinds of chips."

"But judging from some of the actions of Nanshan Semiconductor that we have recently heard about, the other party is probably serious."

"There are many semiconductor-related companies in Silicon Valley and Japan, and Nanshan Semiconductor has arranged people to contact them."

"Either poaching people or negotiating acquisitions, Nanshan Semiconductor makes very frequent moves."

As BYD's vice president of R\u0026D, Liang Chuanqing is in charge of all R\u0026D work of the group.

Naturally, he also has to grasp the trends in the industry in a timely manner.

In terms of semiconductors, the one that needs the most attention is obviously Nanshan Semiconductor.

Other domestic semiconductor companies are rarely heard of involving automotive-grade chips.

Even if there are, they are just entrepreneurial companies, and we don’t know when they will have results.

Unlike Nanshan Semiconductor, the wafer fab has already started construction and its team has recruited tens of thousands of people.

That move was so big that it was scary.

Especially in the context of the financial crisis, this action is even more exaggerated.

"According to your statement, wouldn't it become more difficult for BYD Semiconductor to poach people from the industry?"

The first thing Wang Fu thought of was what impact Nanshan Semiconductor's actions would have on him.

The semiconductor industry seems big, but the circle is also very small.

This is somewhat similar to the automobile industry.

Nanshan Semiconductor has raised the salary standards in the industry, and the impact is not just on your own company.

But the entire industry.

"Yes, now our semiconductor talents are mainly cultivated by ourselves."

"If you want to recruit from outside, you won't be able to recruit talents who have mastered core technologies unless you pay a high price."

"This is also a bit passive for us."

"The salary offered by Nanshan Semiconductor is too high, and it is simply impossible for us to follow up."

"Thanks to the impact of the financial crisis, it is not that difficult to recruit people. Otherwise, I estimate that Nanshan Semiconductor will offer higher salaries."

"That's when all hell broke loose."

Although Liang Chuanqing is not engaged in human resources, he still knows the approximate salary of various talents in the company.

If it weren't for the fact that some people value more than just salary, BYD Semiconductor would probably have poached a lot of its technical talents.

"There is no way, Nanshan Group is rich and powerful, we can't match it."

"What they want to do is also relatively big, and their starting point is different from ours."

"Everyone should consider cooperation as much as possible."

Wang Fu is also self-aware.

Although BYD's current earnings are not bad, they have always been relatively stable.

But it also depends on who you compare with.

Obviously, if compared with Nanshan Group, it is not on the same level at all.

Compared with burning money, BYD cannot compare.

"Nanshan Semiconductor wants to localize all domestic automotive-grade chips, so it should be relatively open to various external cooperation."

"Otherwise, it would be impossible for Nanshan Auto Parts itself or Xingchen Automobile itself to complete this task."

When Liang Chuanqing said this, Wang Fu breathed a sigh of relief.

His main purpose in engaging in semiconductors is not to have to work so hard to produce parts and cars, but the bulk of it will be taken away by chip manufacturers.

I didn't think about making much noise in the chip industry.

That would be too difficult and not suitable for BYD.

And when the semiconductor industry was paying attention to the news of Nanshan Semiconductor, Zhang Jing brought another good news to Cao Yang.

"Mr. Cao, NVIDIA has let go."

"As long as 20% of the founder team's shares are retained, the rest can be transferred."

"According to the current preliminary situation, the company will need to spend no more than US$1 billion at most to acquire Nvidia."

Zhang Jing's words made Cao Yang feel happy.

If others don’t know about Nvidia’s future, how can he not know about it?

NVIDIA, which focuses on chip research such as GPUs, is still a small player in the chip industry.

The development in the past few years has not been ideal, and now being affected by the financial crisis, life can be said to be very sad.

It does not have the style of a large manufacturer with a market capitalization of trillions of dollars in later generations.

"Promise them!"

"Money is not an issue. As long as they are willing to sell, whether it is higher or lower is not the most critical issue."

"But after the acquisition, Nvidia must set up a branch in Shanghai, and it must accept Nanshan Semiconductor to arrange for relevant personnel to enter the company to jointly research related GPU and other chip technologies."

“In addition, more confirmations and arrangements need to be made in terms of talent mobility and the departure of the founder team.”

"Don't spend a lot of money and just acquire an empty shell. That means nothing."

Cao Yang has seen too many problems of domestic companies suffering huge losses after spending heavily on overseas acquisitions.

In particular, the chip industry is quite special and is destined to be suppressed in the future.

How Nanshan Semiconductor can ensure its own interests requires early planning.

Of course, even from a purely financial investment perspective, acquiring Nvidia is a very valuable thing.

If the market value of one trillion US dollars cannot be achieved, then 100 billion US dollars is not a big problem, right?

By then, Nanshan Group will be making a lot of money.

There is definitely no problem in using these profits to further develop semiconductors.

Even because of Nanshan Semiconductor's high salary recruitment, students from various domestic universities have become much more enthusiastic about learning microelectronics and other related majors.

After all, no matter how good the ivory tower is, it will eventually enter society.

"No problem, I will personally fly to the United States and have a good communication with the NVIDIA team."

"Try to finalize the acquisition this month."

"The domestic economy already looks like it's about to recover. I'm worried that it will take too long and things will change."

When Zhang Jing said this, Cao Yang naturally had no objection.

He knows better than anyone how the economy will develop in the future.

If you don’t take advantage of 2009 to make a good effort, it will be much more difficult to make trouble in the future.

Even after people see you developing so fast and feel a sense of crisis, they will start to think about how to deal with you.