Rebirth 99 to become a car giant

Warwick also achieved an operating income of almost 150 billion last year, with a net profit of more than 10%.

Although there is no way to compare it with later generations, in this era, it is actually a very powerful existence.

In particular, a lot of Warwick's business comes from overseas, and in 2009, overseas countries were greatly affected by the financial crisis.

Warwick's opponents are basically driving backwards.

Alcatel-Lucent's revenue last year was 15.16 billion euros, and Nokia Siemens' revenue was 12.5 billion euros. Revenue fell by 11% and 18% respectively year-on-year.

Cisco and Ericsson, which rank first in both fixed-line and mobile devices, are no exception.

Cisco, with revenue of US$36.1 billion last year, fell by about 9%, while Ericsson, with revenue of US$27.1 billion, performed better, but also fell by 0.1%.

Under such circumstances, Warwick can achieve a revenue growth of 19%, which is absolutely impressive.

Of course, compared with Nanshan Group, there is still a big gap.

After all, it is 150 billion VS 520 billion, which is several steps behind.

Even so, Warwick can be regarded as the private enterprise second only to Nanshan Group in Lingnan Province.

In the whole of China, there is basically no private enterprise that is more capable than these two.

Two powerful private enterprises join forces...

Xu Jun is really excited!

"Mr. Cao, are you serious?"

Xu Jun stared at Cao Yang, who was one round younger than himself, with a complicated mood.

If anyone can change the strategic development direction of Warwick HiSilicon, Cao Yang is probably the one.

After all, Warwick has always been aware of Nanshan Semiconductor's actions in the chip industry.

The most important thing is that Nanshan Group's investment in research and development in recent years has been extremely exaggerated, and no domestic company can match it.

The level of madness can only be compared to that of Warwick.

The more this happened, the more Xu Jun admired the Nanshan Group.

Therefore, we are trying our best internally to hand over all the foundry business that Nanshan Semiconductor can do in the future to Nanshan Semiconductor.

"You know better than me how different the domestic chip industry is from the international one."

"In 2009, chips have surpassed oil to become China's largest imported commodity, consuming more than 100 billion US dollars in foreign exchange a year."

"Crude oil can also be replaced by natural gas, solar energy, nuclear power, etc., but chips are different. They are the foundation of the information industry. They have always accounted for more than 80% of global semiconductor product sales and are known as 'industrial food.'"

"Chips are involved in automobiles, computers, home appliances, digital electronics, automation, electrical, communications, transportation, medical, aerospace and other fields, and are used in almost all electronic equipment."

"The chip industry is a basic, critical and strategic industry in the national economy. Every US$1 of output value can drive US$100 of GDP."

"Warwick and Nanshan Group are both large consumers of chips. If they cannot control the production and supply of chips in their own hands, something will happen in the future."

"This speculation sounds completely fanciful and unreliable, but it is completely possible to happen."

When Cao Yang said this, Xu Jun couldn't help but straighten up.

This doesn't seem impossible!

After all, as an old man from Warwick, he knows the company's development goals very well.

If this goal is achieved, it will definitely threaten the interests of American companies.

If you are sanctioned then...

"Mr. Cao, what methods do you think the United States will use if they really want to deal with us?"

Now that this topic has been discussed, Xu Jun felt that he could have a good exchange with Cao Yang.

After all, he admired Cao Yang's vision very much.

If you look at the layout of Nanshan Group over the years, you can see the beauty of it.

The more insider you are, the more you understand how powerful it is.

"It's very simple. I have a lot of tricks."

Seeing that Xu Jun was discussing this issue with him seriously, Cao Yang didn't mind "revealing" some information.

"For example, directly restricting American chip companies from selling a certain type of chips to you is a relatively simple sanction."

"Another example is that they can restrict all American companies from doing business with you, whether it's buying or selling things."

"With the influence of the United States, once this sanction is issued, the impact will definitely be huge."

"To be more serious, they can completely restrict all manufacturers that use the patents or equipment and raw materials of American companies from having any transactions with you."

"This move directly expands the scope in all directions."

Hearing what Cao Yang said, Xu Jun couldn't help but frown.

Although he thinks the business methods of Americans are disgusting, this approach...

It shouldn't be like this, right?

"Mr. Cao, the international economic market is now promoting a free economy. This kind of obvious interference in the operation of enterprises should not be supported, right?"

"At most, it is to impose restrictions on high-end areas. This has been done countless times in the past."

Obviously, Xu Jun still has illusions about the United States.

I feel that the other party will not easily use administrative means to deal with a company without restrictions.

Doesn't that look too bad for the image?

"Mr. Xu, is it not easy to get support?"

"Immediately charge you with endangering national security, and then restrict you through special laws and regulations."

"People can deal with you legally and compliantly, and there is no violation of the rules at all."

“When the time comes, you won’t even know how to resist if you want to!”

When Cao Yang said this, Xu Jun fell silent.

He is not a fool, so he naturally understands what Cao Yang means.

It's just that I can't accept this kind of thing for a while.

After all, in the past ten years of development, Warwick has never encountered such a situation of being targeted by a country.

But listening to what Cao Yang said, if Warwick really reaches the world's number one in the field of communications in the future and defeats its competitors in the United States and Europe, then everything is really possible.

It does seem necessary to prepare for a rainy day now.

"Mr. Cao, you do everything yourself from chip design to wafer production, all the way to packaging and testing. This approach is not a mainstream international approach and the risk is very high."

"Could it be that you asked Nanshan Semiconductor to choose this path because you considered that it would be sanctioned by the United States after it develops in the future?"

Combining some of Nanshan Semiconductor's practices in the past, Xu Jun boldly made a guess.

"Yes, it's okay for you to understand it this way."

"Of course, the chip industry is very important, both for China and Nanshan Group."

"That's why I hope to keep most of the chips in my own hands, so that all the chips used by Nanshan Group can be purchased domestically."

“This way we can avoid some risks to the greatest extent.”

"But I also know that this kind of development path is very expensive and risky."

"Just building dozens of wafer fabs will cost hundreds of billions of yuan, and ordinary companies simply can't afford it."

"I have great confidence in Nanshan Semiconductor and China's economic development prospects."

"But with such a large investment, I still feel a bit stressed and quite strenuous."

"In particular, Nanshan Semiconductor has now officially launched the construction plan of the second factory in Magic City and the Lingnan factory internally."

"We are planning to build a 12-inch wafer fab with a monthly output of 50,000 wafers and an 8-inch wafer fab with a monthly output of 100,000 wafers within next year."

"If everything goes well, it is possible to further start the construction of a fourth wafer fab by the end of this year, allowing us to rapidly increase our wafer production capacity."

“Such a rapid pace of development requires extremely large funds and talents.”

"I'm not too polite to tell you that I don't have much pressure on funds for the time being. Whether it's Nanshan Group's own funds or a bank loan, I can handle it."

“But in terms of talent, it’s actually a bit stretched.”

"If we can build a batch of fabs with Huawei HiSilicon, and both parties share the risks and build a talent team together, then the pressure in this area can be greatly relieved."

Cao Yang already felt that Xu Jun was a little moved, so he expressed his thoughts frankly.

Although he also knew that such an important decision could not be made by Xu Jun alone.

But as long as Xu Jun can accept it, Cao Yang believes that he can convince the leadership internally.

For Cao Yang, the development path of Nanshan Semiconductor is definitely relatively arduous. His previous willingness to accept some state-owned investments also took many factors into consideration.

Even if he discussed some support plans with senior executives within the group, he did not think Nanshan Semiconductor would be able to make money in the next five years.

In order to maintain your competitiveness, even if you have the ability to make money, you must take your time and seize the market to the greatest extent first.

As a newcomer, if the product price has no advantage, it is really difficult for people to give up on chip giants such as Inflix and NXP.

Especially in the high-end chip field, even if Nanshan Semiconductor has relevant capabilities in the future, many companies will not necessarily consider using Nanshan Semiconductor.

Unless the cost is very tempting!

"Mr. Cao, I will go back and report your proposal to the board of directors."

"I personally support building part of the fab with Nanshan Semiconductor."

"Warwick HiSilicon also needs some fabs to produce its own chips."

Xu Jun did not hesitate anymore and gave his answer with certainty.

Cao Yang was not surprised by this.

Even after communicating with Xu Jun, he took the initiative to make a phone call to BYD's Wang Fu.

"Mr. Wang, is BYD Nanshan Semiconductor Research Institute interested in investing in its own wafer factory and packaging and testing factory?"

Everyone is so familiar with it, and Nanshan Semiconductor has made a big presence in the industry these days.

So Cao Yang directly entered the topic with Wang Fu.

“Nanshan Semiconductor’s Magic City factory has just started production, are you planning to build a new wafer factory?”

Wang Fu felt quite surprised by Cao Yang's call.

It is also involved in the semiconductor business, and he is relatively familiar with the industry.

There are now a large number of wafer fabs around the world with vacant production capacity, and many chip giants' wafer fab expansion plans are still in a tentative state.

Against this background, it is somewhat surprising that Nanshan Semiconductor continues to build wafer fabs with great success.

"The production capacity of the Magic City factory cannot even meet the needs of Nanshan Group itself."

"With the development of electric vehicles and smartphones in the future, the demand for chips will only increase."

"Chips are already the most important components imported by Nanshan Group from overseas. I don't know when this situation will turn into a huge pit."

"So as long as Nanshan Semiconductor's production capacity cannot 100% meet the needs of Nanshan Group, the pace of building fabs will not stop."

"Frankly speaking, Nanshan Semiconductor is already preparing to build two more wafer fabs on its own. Construction will officially start in the first half of this year. Preparatory work has already begun."

"But I felt that these rhythms were not enough, so I thought about whether we could make good use of our two joint ventures."

Since BYD and Nanshan Group have their own wholly-owned semiconductor divisions, BYD Nanshan Semiconductor Research Institute has been relatively small in these years.

But there are also thousands of researchers inside, and it is entirely possible for them to help build a wafer fab.

This is also one of the fastest ways Cao Yang can think of to expand the scale of the fab.

At the same time, this can also be regarded as one of the all-round development plans.

Nanshan Semiconductor built a number of wafer fabs by itself, cooperated with Huawei HiSilicon to build a number of wafer fabs, and then also cooperated with BYD to build several wafer fabs.

At that time, different fabs will have different focuses, but they will all be to meet domestic chip demand.

In the future, Nanshan Semiconductor will bring the two companies together to make China's chip industry competitive globally.

In addition, Nanshan Equipment is now researching chip production equipment.

It is estimated that it would be very difficult for other manufacturers to abandon the mature equipment of major international manufacturers such as ASML and choose products from Nanshan Equipment.

At least until Nanshan Semiconductor adopts a large number of Nanshan equipment products, other manufacturers will not consider it.

But if it is a fab that Nanshan Semiconductor cooperates with BYD and Huawei HiSilicon, the situation is different.

To a certain extent, Cao Yang’s choice to speed up the construction of the wafer fab was also for the sake of business expansion of Nanshan Equipment.

After all, if Nanshan Equipment wants to become competitive in chip equipment, it must have a large number of wafer factories to step forward and use its equipment, otherwise it will be meaningless.

"Our energy in the past two years has been mainly focused on IGBTs and other power components. Mr. Cao, are you also interested in these things?"

As the gap between BYD and Nanshan Group widens, Wang Fu now looks down on the competitive pressure Nanshan Group has brought to him.

Therefore, I am also willing to have a good discussion with Cao Yang on the direction of chip development.

"Power components such as IGBT have a lot of application prospects in electric vehicles and plug-in hybrid vehicles. Naturally, I am very interested."

"Now China's electric vehicle development has entered the fast lane."

"According to my estimate, the production of electric vehicles is likely to reach 50,000 units this year and 200,000 units next year."

"By 2015, there will be no problem reaching a scale of more than 1 million vehicles. By 2020, I think the proportion of new energy vehicles can reach more than 30% of the entire automobile market, which is seven to eight million The size of the market.”

"The demand for chips behind such a huge electric vehicle is huge. Even the chip demand for these electric vehicles alone will be more than the current chip demand for the entire automobile industry."

"Both of us attach great importance to the development of electric vehicles. If we don't make early arrangements for key core components, we will fall into passiveness later on."

This time, Cao Yang did not bring up the topic of sanctions.

After all, BYD and Warwick are facing different situations.

No matter how great the development of the automobile industry is, it is difficult for it to be sanctioned.

After all, no matter how good you are in this field, it will always be like that.

In the United States, General Motors, Ford Motor and Chrysler have countless ways to make foreign car brands fail.

"Mr. Cao, your analysis is quite reasonable. I also have high expectations for BYD Nanshan Semiconductor Research Institute."

"Nanshan Semiconductor has recruited many international talents in the past two years, and we at BYD have also conducted research on IGBT and other related technologies."

"It is indeed very feasible for both parties to jointly build a wafer fab under the structure of BYD Nanshan Semiconductor Research Institute."

Wang Fu quickly thought about the feasibility of this matter while thinking about the pros and cons of this matter.

Thinking that with the current scale of Nanshan Group, there was no reason to regard BYD as a competitor and there was no need to hack him, so he quickly decided to cooperate with Nanshan Group to build a wafer fab.

Of course, the scale of this wafer fab will definitely not be large from the beginning.

Only after success will further expansion of production capacity be considered.

So just after he finished speaking, he added: "We have an automobile factory in Chang'an City, and we have also considered further expanding investment there."

"If we cooperate to build a wafer fab, how about putting this wafer fab in Chang'an?"

Although Shencheng is BYD's headquarters, Wang Fu obviously does not intend to put all his industries in one place.

This is just like Cao Yang placing different factories of Nanshan Group in Yangcheng, Magic City, Chang'an and other places. It can also be regarded as a way to diversify investment risks.

Chang'an is originally the base camp of Nanshan Carbon Fiber, and Cao Yang is also very familiar with the people there.

Therefore, there is naturally no problem with Wang Fu's proposal.

"This is no problem. It is even possible to hand over the management of this wafer fab to a joint venture company."

"Nanshan Semiconductor and Nanshan Equipment can share their experience in building wafer fabs and recommend domestically produced equipment with more advanced performance and lower costs for wafer fabs."

One of Cao Yang's important purposes is to promote Nanshan Equipment's chip equipment, so naturally he has to say hello to Wang Fu in advance.

Otherwise, when the two parties have confirmed their cooperation and are about to start purchasing equipment from ASML and other manufacturers, and then jump out and say that they want to use Nanshan Equipment products, it will definitely cause twists and turns in the cooperation between the two parties.

"It was previously rumored that Nanshan Equipment has established a special semiconductor division to develop related equipment."

"Are there any concrete results already?"

Wang Fu couldn't help but ask a question.

After all, he had heard some related reports before and knew some news about Nanshan's equipment.

I just didn’t expect the results to come out so quickly.

"There are many types of chip production equipment, and the threshold for some is not as high as everyone imagines. This is just because chip manufacturers are used to looking for a few fixed manufacturers to purchase, so other manufacturers do not dare to participate even if they have the strength to conduct research and development. in."

"But Nanshan's equipment is different. We have the support of China's huge market. As long as we can develop qualified equipment, we will have the opportunity to put it into use."

"Nanshan Semiconductor's second 8-inch wafer fab will be the first to use chip production equipment developed by Nanshan Equipment."

"Except for a few that have not been developed yet and will continue to be imported, most of them will be domestically produced."

"We hope that in a few years, when we build a new fab, all the equipment will be domestically produced."

Since all joint venture wafer fab projects use Nanshan Equipment's products, Cao Yang naturally wanted to give Wang Fu a good introduction to Nanshan Equipment.

Otherwise, how can you make people easily agree to your request?

Chip production equipment!

If the person who promoted Wang Fu was not Cao Yang, he might not even be willing to listen.

For this thing, just looking at a certain piece of equipment, except for a few types such as photolithography machines, the threshold is not necessarily that high.

But if you look at complete sets of equipment, the situation is different.

If you don’t choose other people’s more mature solutions, you’ll give China what you can produce domestically, and continue to find others for the rest.

That requires you to have a good understanding of the equipment, otherwise you won’t know how to choose what equipment to buy.

"Since Mr. Cao is so confident, I will definitely give you my full support!"

"Before, we were debating whether to go to Chang'an City to build a wafer fab. Now we don't have to worry about it anymore. We will do it with you!"

Wang Fu waved his hand and agreed to Cao Yang's proposal!

In the next few days, China's semiconductor industry became lively.