Rebirth 99 to become a car giant

When there is a slight gap between you and a person, you may envy him or be jealous of him.

But when the gap between you and others is particularly huge, jealousy slowly disappears, and even envy disappears.

Nanshan Semiconductor has made so much noise in the past six months, and its popularity in the country has slowly increased.

At least in the industry, it is something that everyone knows and knows about.

Now, Nanshan Semiconductor suddenly announced its acquisition of the American chip giant NVIDIA, which is more like a blockbuster dropped on China's semiconductor industry.

It was even thrown into the global semiconductor industry.

Everyone is living in dire straits, but Yinnanshan Semiconductor has started a buy-buy-buy model.

What I bought before were small chip design companies with low value. Anyway, there are a lot of companies like this in Silicon Valley.

But for manufacturers of NVIDIA's level, the situation is different.

Nanshan Semiconductor acquired Nvidia and became completely famous in the industry.

BYD still had some ideas about competing with Nanshan Semiconductor before, but now it has almost given up.

"Mr. Wang, I think BYD Semiconductor can focus on power components in the future, and leave other memories and chips to companies such as Nanshan Semiconductor and Huawei HiSilicon for design and production."

"Otherwise, if our stall is relatively large, it is likely that none of the components will be ready by then, and none of the products will be competitive."

Liang Chuanqing feels that BYD Semiconductor needs to make some choices at this time.

Everyone wants to do well in semiconductors, but if we do everything, we will definitely not be able to do it well.

Even chip giants like Intel don't dare to make all kinds of chips, let alone BYD Semiconductor?

Wang Fu naturally has a clear understanding of this situation.

It's just that he feels that the company still needs to have certain chip design and production capabilities, otherwise it will be very passive when designing related parts.

Even BYD Semiconductor needs to have the production capacity of some chips that are not so advanced in technology, so that parts from BYD cars can be used when necessary.

This can also be regarded as a way to ensure the security of the chip.

"According to the current pace, Mr. Cao said before that he had prepared 500 yuan for Nanshan Semiconductor to burn. This should not be a big lie."

"So far, Nanshan Semiconductor has burned at least more than 10 billion yuan in funds."

"This doesn't even take a year. There is still a lot of money to burn later."

"Such a high-intensity money-burning plan is obviously not suitable for us."

Although BYD's financial report is still relatively eye-catching, it is stressful to earn even 1 billion in a year, let alone 10 billion.

In this case, it is naturally impossible to invest so much money to burn it.

"Yes, we have BYD Nanshan Semiconductor Company in Nanshan to be responsible for the design of the chips. The production of the chips will definitely be handed over to Nanshan Semiconductor's Magic City Factory."

"I think we can also take this opportunity to deepen our cooperation in the semiconductor field."

"If we want to realize chip procurement in China, other than placing our hope on Nanshan Semiconductor, other manufacturers are probably unreliable."

"Especially for automotive-grade chips, manufacturers such as Bosch, Continental, and Denso will never use chips from Chinese manufacturers. Even if some manufacturers design and produce products, they can't find customers."

"Nanshan Auto Parts supplies parts to almost all domestic OEMs, and has a very good relationship with independent brand car companies in particular."

"If our BYD Semiconductor, BYD Nanshan Semiconductor and Nanshan Semiconductor companies can carry out a certain degree of division of labor and avoid duplication of investment in resources, then the pace of localization of automotive-grade chips in the future should be very worth looking forward to."

When Liang Chuanqing said this, Wang Fu was immediately moved.

Anyway, if you can't handle the chips yourself, you have to outsource them no matter where you buy them.

In this case, it is better to cooperate with Nanshan Semiconductor and strive to make all automotive grade chips domestically produced.

By then, the cost of subsequent models will definitely be significantly reduced.

There is a saying in the market that there is no such thing as a bad car, only a bad price.

Even if Zotye is of poor quality, as long as the price is low enough, many people will buy it.

"Power components must be used on the PCU, and some parts on electric vehicles also need to be used."

"Our company focuses on power components and communicates more with Nanshan Semiconductor. Let's adjust our focus. I think this plan is feasible."

"Otherwise, BYD Semiconductor and Nanshan Semiconductor will become competitors, which will not be a good thing."

Wang Fu now has a very clear understanding of BYD Semiconductor's strength.

When Nanshan Semiconductor started acquiring Renesas Electronics' wafer fabs and packaging and testing plants, Wang Fu had already realized that everyone might not be on the same level.

Now that Nanshan Semiconductor has once again spent a lot of money to acquire Nvidia, Wang Fu knows that BYD Semiconductor can no longer compete with others.

Being able to be a good little brother and share the dividends of industry development is considered very good.

"I will personally arrange this matter later."

"No matter what competitive relationship we have in private, we must not stalemate the relationship on the surface."

"I believe Nanshan Semiconductor should also have this understanding."

"So there is a high probability that the final cooperation can be negotiated."

Liang Chuanqing is familiar with many people in Nanshan Group.

It's hard to say what our relationship will be like in the future, but at least on the surface it can still be passable.

However, BYD Semiconductor can do well on the bright side, but Samsung Electronics cannot.

Seeing the continuous development and growth of Nanshan Semiconductor and its continuous expansion against the trend, the people of Samsung Electronics are really anxious.

In their view, China's semiconductor market is an important development direction for Samsung Electronics.

If this is disturbed by Nanshan Semiconductor, the impact will be huge.

"Mr. Park, I asked people in Silicon Valley to find out. The reports on the Internet are basically true."

"Nanshan Semiconductor has spent a lot of money this time, spending US$1 billion in cash to acquire Nvidia."

"However, this further illustrates their emphasis on the semiconductor industry, which will bring many obstacles to Samsung Electronics' development in China in the future."

As a senior executive of Samsung Electronics in China, Li Zailin is not only responsible for the operation of Samsung's first domestic semiconductor factory, but also the deputy general manager of Samsung China.

After staying in China for so many years, he is very optimistic about China's market prospects.

So even if there was an opportunity to return to China, he refused.

Ning Weijitou probably refers to Li Zailin.

Although he didn't take it as a boss, it was definitely much more comfortable than in Goryeo.

"Nanshan Semiconductor has a rather special status in China now. Needless to say, it won so many National Science and Technology Progress Awards in January. The leaders who have visited Nanshan Group in recent months are also of high level."

"In this case, it shouldn't be very difficult for them to find bank loans to acquire chip companies."

"If we want to hold them back from this aspect, it will probably be difficult."

"The main thing now is to find out what the strength of Nanshan Semiconductor is and whether it will pose a real threat to the development of Samsung Electronics."

Although Park Geun Hee was a little irritable inside, her tone of voice was still very calm.

As a leader, you still have this kind of magnanimity.

In fact, it is often difficult for a person who fusses over everything to become a leader.

Even if there is a breakthrough at the grassroots level, it will basically always be there.

"We have also had some people change jobs and go to Nanshan Semiconductor, and some are even willing to continue sharing information with us."

"Judging from the current situation, they have built a factory in Shanghai. The construction progress is very fast. It is estimated that small-scale mass production will be possible by the end of this year."

"Many of the equipment used in this factory are the most advanced today, so the final level may not be particularly low."

"The only thing that is difficult to judge is how high the yield rate is."

"As long as they can solve the problem of yield rate, they will have a firm foothold in the field of chip production."

"In China from now on, Nanshan Semiconductor will be our main competitor just like SMIC."

"However, although Nanshan Semiconductor has recruited a lot of international talents, I doubt that it can solve various problems after the factory is put into operation so quickly."

Although Li Zailin was a little worried in his heart, after seeing Park Geun-hee's reaction, he immediately knew that he couldn't act too hastily.

If you start shouting before the company suffers losses, you might be blamed for it then.

He is no longer a newbie in the workplace, so he can naturally understand these truths.

So soon, he began to change the topic.

He didn't lie anyway, and he wasn't afraid of being blamed later.

"We can consider placing a few more people in, and try our best to grasp all the first-hand information on the development of Nanshan Semiconductor."

"If the situation of Nanshan Semiconductor is not clarified, Samsung Electronics' development in China will always face potential threats. This should be something that no one wants to see."

When Park Geun-hee said this, Li Zailin naturally had no choice but to make arrangements honestly.

As for whether you can really get such clear information, sometimes you have to make it up.

Anyway, as long as the fabrication is good enough, it will be difficult for most people to expose it.

…

When Nanshan Semiconductor made such a big noise, in addition to the concerns of peers in the industry, institutions at all levels in China were naturally also very concerned.

Liu Tianwu immediately shared an important news with Cao Yang.

"Mr. Cao, a vice president from the Government Affairs Council will lead a team to Nanshan Semiconductor for inspection and exchange in a few days."

"It is estimated that relevant departments will start to contact you later."

"At that time, leaders of several related ministries and commissions will also come to inspect. Everyone is now full of expectations for Nanshan Semiconductor."

Obviously, Nanshan Semiconductor has now completely raised its flag, and many people are watching.

Although China's semiconductor industry is not very good, it does not mean that China does not pay attention to development in this area.

In 1994, China began to vigorously support the development of the semiconductor industry and established a number of companies such as SMIC.

However, due to limitations in technical level and funding, China's semiconductor industry has been in a low state for a long time.

But that doesn't mean it's not taken seriously.

In the past, we did not see particularly great confidence, and there was controversy over what technology to use limited funds to develop first when everything was running out.

Obviously, semiconductors, a highly difficult technology, are not given the highest priority. There are many more important and urgent projects that have been put ahead.

But now Nanshan Semiconductor has begun to make a name for itself, and the situation is obviously a little different from before.

At this time, China's views on the semiconductor industry naturally began to change.

Otherwise, the reorganization of the Semiconductor School of Lingnan University of Technology would not have been approved so quickly.

Even poaching people from various universities did not cause any backlash.

There is a reason for this.

"You are welcome at any time. Our Nanshan Semiconductor design center in Yangcheng and Nanshan Equipment's semiconductor equipment division now have some achievements that can be displayed and exchanged."

"Nanshan Semiconductor also has very clear plans for the future and can introduce them to leaders at any time."

Although sometimes visiting would waste a lot of Cao Yang's time.

But it has to be said that these visits are essential.

If you want China to support your development, you must let everyone know how strong you are, right?

Otherwise, the introduction of various policies and preferential tax policies would be confusing to everyone.

Especially in recent years, many industries have experienced some messy things, and it is not uncommon for good policies to eventually fall into the trap.

"At that time, both Lingnan Province and Yangcheng City will be accompanied by relevant personnel, so you don't need to worry about the relevant preparation arrangements."

"It is enough to give a good introduction to Nanshan Semiconductor and let everyone know about Nanshan Semiconductor's next development plan and full confidence in its future."

"Of course, everyone is also paying close attention to the construction of the Modu wafer fab. You can report the relevant progress simultaneously at that time."

Liu Tianwu naturally attaches great importance to this visit, so he is also preparing to take his troops to personally participate in various arrangements.

In this area of ​​work, Yangcheng City is definitely more experienced than Nanshan Group.

And just as everyone is preparing for this visit, Nanshan Semiconductor's acquisition of Nvidia is also further fermenting.

In the past, it was mainly people in the IT industry who paid attention to this matter. Gradually, even people in the automotive industry began to pay attention to it.

Especially those automobile giants, they know the meaning behind car-grade chips better than domestic independent brand car companies.

Ford Motor Purchasing Director Chris personally called Cao Yang.

"Cao, is your group planning to produce its own automotive-grade chips in the future?"

Although Ford Motor Company is a big business, it really has no involvement in chip production.

All of Ford's automotive-grade chips are purchased through suppliers.

After all, whether it is ECU or TCU, or instruments and displays, they are all purchased from suppliers.

The suppliers who produce these parts are not chip suppliers.

It is equivalent to saying that the chip is not only not a first-level component of the car company, but it is not even a second-level component, but has gone to the third or fourth level.

In this way, as long as there are no problems with these things, they will not receive much attention.

It is normal for even OEMs not to know which company uses the chip on their ECU.

As the purchasing director of Ford Motor Company, Chris was able to realize the importance of car-grade chips and personally called Cao Yang to communicate. This can be regarded as a relatively advanced awareness.

"In addition to producing our own cars, our Nanshan Group also has a large number of auto parts businesses."

"Many of the chips here are purchased through traders. When we talk about annual price reductions every year, there is no room for price reductions."

"And the procurement cycle of these chips is very long, generally more than half a year, and even eight or nine months is normal."

"Although the price of a single chip may not be very expensive, if all the chips used in the entire car are included, the value is still quite high."

"The most important thing is that as a large auto parts company, we have no confidence in the supply of chips, and supply problems may occur at any time."

"This is something difficult to accept and something our customers don't want to happen."

"With these in mind, I am ready to let Nanshan Semiconductor start producing automotive-grade chips on its own."

"If we use our own chips in the future, not only will the supply be guaranteed, but we will also be able to provide OEMs with price reduction solutions."

Cao Yang gave a brief explanation and focused the topic on ensuring supply and cost reduction, the two issues that the OEM's purchasing department was most concerned about.

As for other considerations behind engaging in semiconductors, Cao Yang would definitely not tell Chris.

These are the key development strategies of Nanshan Group in the future. How can you say them casually?

Chris also very much recognized Cao Yang's remarks.

After all, what Cao Yang said were objective facts, and they were in line with Chris's understanding of car-grade chips.

For a long time, car-grade chips have not been advanced chips, and are even products produced by backward chip technology.

Therefore, the price of a single chip is not very high, but the stability requirements are very high.

This kind of parts is somewhat disdainful to international automobile giants such as General Motors and Ford Motor Company.

They themselves do not need to worry about the supply of these chips. After all, they are all produced in their own country or brotherly countries.

This situation is quite different from that faced by Chinese companies.

"Your considerations are very reasonable, but if you spend such a high price just to supply and reduce prices of some car-grade chips, the effect will be very limited, right?"

"Everyone is already using mature equipment to produce automotive-grade chips. Nanshan Semiconductor has to do everything by itself."

"The cost of the chips produced in the end may be higher than others."

What Chris said was not nonsense.

In fact, this is an important obstacle to the development of China's chip industry.

The things you produce are backward and the cost is higher than others.

How does this allow customers to choose you?

These are the arguments put forward by some people who advocate engaging in trade rather than developing technology themselves.

"Chris, don't worry, the final price of our car-grade chips will definitely not be more expensive than those purchased from outside."

"Although the production cost of automotive-grade chips from chip manufacturers such as Inflix and NXP may be lower than ours, after price increases from various trading companies and agents, when they are finally installed on our parts, the price has already It’s much higher than the ex-factory price.”

"And Nanshan Semiconductor directly supplies Nanshan Auto Parts, and the cost is definitely lower than our price for buying other chips."

Cao Yang also explained this cost change to Chris from a different angle.

His statement is obviously reasonable.

One is direct procurement, eliminating all kinds of messy trade links in the middle.

One is that a bunch of companies in the middle are making money, and when it is finally distributed to customers, the cost level is no longer at the ex-factory price.

Just like a pound of watermelon, the purchase price in the field is much different from the selling price in the supermarket.

Car-grade chips have a similar situation.

Most parts companies do not have the strength to directly talk to chip manufacturers like Infineon, and other chip manufacturers are not willing to have so many customers.

Therefore, it is inevitable to sell chips through agents and trading companies at all levels.

Unless there are a few particularly powerful parts companies such as Bosch and Continental, that is another matter.

"What you say makes sense, but I want to remind you that car-grade chips are not that easy to work with."

"Now you spend so much money just to acquire one Nvidia. When the time comes to produce various car-grade chips, it will cost even more money."

"How about I help you directly contact the general agents of some chip manufacturers, maybe you can get a more favorable price."

After going around in a big circle, Chris revealed his core purpose.

As the purchasing director of Ford Motor Company, his circle of friends must be very broad.

It is not a big problem to help Cao Yang introduce a general agent of a chip manufacturer.

Maybe he can get some additional benefits during this introduction process.

After all, there is actually competition between different chip manufacturers.

There is not only one company producing car-grade chips.

"Chris, it would be great if you could introduce us to him."

"As for the car-grade chips we produce ourselves, funds have already been invested, and we still have to work on it."

"But several lines will be developed at the same time. We will make a decision after seeing the results."

Cao Yang's answer left Chris speechless.

However, Chris's goal was basically achieved, and the conversation this time was considered effective.