Rebirth of the Wild Age

"Rihard (Zhang Rujing) didn't even wear a suit, just a work shirt and an old gray sweater, like a missionary, and his desk was a cheap piece of plywood. He said that he has a Chinese semiconductor grandeur. Dream, he has to devote himself completely to this dream, it seems that he can even sacrifice his life, this person is not doing this for making money, this is the scariest thing.”

This content is the original words that a friend of SMIC came to mainland China to visit Zhang Rujing at the beginning of its founding.

When Song Weiyang saw Zhang Rujing, he was not so "down and out", instead he was wearing a brand new suit and leather shoes. Because today is the inauguration ceremony of SMIC's first factory, the leaders of the city will also come to participate in the ribbon-cutting event, and they must show a solemn and joyful atmosphere.

Song Weiyang did not participate in the ribbon-cutting, he just attended as a guest, and delivered a congratulatory speech at the end of the ceremony: "First of all, I would like to congratulate the completion of SMIC's No. 1 factory, which is a grand event in China's semiconductor industry. Thanks to Mr. Not only brought more than 300 bend engineers, but also persuaded his American wife and 90-year-old mother to move the whole family to the mainland. Mr. Zhang has made up his mind to do business in mainland China. This is fundamentally different from other businessmen investing in China. Other investors come to the mainland to do business, and Mr. Zhang really wants to do business. I admire people who concentrate on doing business, and I also like to communicate with people who do business. Friends, I also wish Mr. Zhang great success in his career!"

"Papa papa!"

Amidst the applause, the big leaders in the city laughed and said: "Boss Song said it very well. Whether it is business or career, as long as you are willing to invest in China, as long as you abide by Chinese laws, Shenghai will welcome you with an open door and create for the enterprise. Good policy environment. The SMIC founded by Mr. Zhang, the Shenghai government will provide the most favorable policies in the local area under the national preferential policies. Support the development of SMIC, support the development of China's semiconductor industry, and strive to let China's chip processing has reached a new level!"

"Thank you to the leader and Mr. Song for your support and congratulations," Zhang Rujing took the microphone amid the applause, "53 years ago, my father took more than 200 young metallurgical apprentices from the mainland. The parents of these apprentices, like Tuo Gu, pleaded My father took good care of their children. Since then, my father has become the patriarch of more than 200 children, helping them start a family and start a business. When each child gets married, my father is their witness. When I was working in Texas Instruments, I was full The world built a chip factory. Once when I went home, my father asked me: "When will you go to the mainland to build a factory?" Big Semiconductor has already made a plan to build a factory. The first and second factories are built in Wanwan, and the third to tenth factories are located in the mainland. Unfortunately, this plan has been stranded, and I have left Shida Semiconductor. Back then, my father took his family and more than 200 apprentices to Wanwan. Now, I come back with my family and more than 300 engineers. It’s like a reincarnation that lasted half a century. I fulfilled my father’s last wish. We will take root here and pursue the grand dream of a Chinese semiconductor!"

"Papa papa!"

The audience applauded thunderously.

During the subsequent interview, the reporter also specifically selected the good side to ask questions, and the atmosphere on the scene was warm and joyful.

But there are still people who don’t have long-sightedness. A financial reporter suddenly said: “Mr. Zhang, the global chip industry was booming last year, but the market took a sharp turn for the worse at the beginning of this year. The largest chip manufacturers in China, Shougang, Huajing, Huahong, etc. The financial reports for the first quarter all show that their chip manufacturing projects are losing a lot of money. Take Hua Hong as an example. It was only announced that it was officially put into production last year, and the annual profit reached 516 million yuan. And this year, Hua Hong’s first quarter net loss More than 200 million yuan. Why did Mr. Zhang choose to build a factory when the industry was at its worst? How can you ensure that SMIC can make a profit?"

Facing such troublesome reporters, the leaders of the city were very unhappy, and no matter how deep the city was, they showed a gloomy expression.

Zhang Rujing smiled slightly, and kicked the ball to Song Weiyang: "When I was in the United States, I heard Mr. Song's name like thunder. Mr. Song is a master in business, so you might as well ask him to answer this question."

Song Weiyang tilted his legs nonchalantly, leaned on the iron leather chair, tilted his head and asked the reporter, "Do you know that the more sluggish many industries are, the more investment should be increased?"

"Why?" the reporter asked.

Song Weiyang said: "It depends on whether you want to make quick money or make long-term plans. In the mid-1990s, China's beverage industry developed rapidly, but Xifeng chose to expand steadily. Many companies that expanded too fast were completely dead. And In the past two or three years, China's export volume declined, domestic demand was seriously insufficient, and related manufacturing industries were in distress. However, Xifeng Company made rapid progress at this time, continuously increasing internal and external investment. As a result, the first two years The companies that have been steadily developing in recent years are all dead or half-dead, but Xifeng has developed rapidly because of throwing money at the downturn in the industry."

The city leaders were also interested in this question and asked, "Boss Song, can you explain it to everyone in detail."

Song Weiyang smiled and said: "The one who remains is king, and the one left is left over. In fact, the reason is very simple. In the downturn of the industry, everyone loses money or does not make money. At this time, the cost of expansion is the lowest. As long as you choose the right development route, you can get through it." It can go to a higher level. The same is true for the Internet industry. When it was the most prosperous a few years ago, I only invested a small amount of money, and did not follow the trend to invest all my wealth. Now the Internet is half dead, but I am increasing investment. From last year to now Tens of millions of yuan have been invested, and another one or two hundred million yuan will be invested this year."

The reporter was still not convinced: "Chip manufacturing is a cutting-edge technology industry, and China's general environment is also unstable. Can it be the same as making beverages and the Internet?"

Song Weiyang did not answer, but said to Zhang Rujing with a smile: "I am a layman in chip manufacturing, Mr. Zhang, let me explain."

Zhang Rujing's tone was unhurried, and he said: "15 years ago, Samsung had a new product on the market, but it encountered a trough in the global semiconductor industry, and the price of memory plummeted by more than 90%, from 4 dollars per chip to 30 cents. , and the production cost of Samsung memory at that time was 1.3 US dollars. This means that every time Samsung sold a piece of memory, it would definitely have a net loss of 1 US dollar. At that time, Intel chose to withdraw from the field of memory manufacturing, and companies such as nec and Hitachi have significantly reduced expenses. , constantly shutting down production lines and reducing R\u0026D investment. But Samsung is losing money and investing more, crazily increasing R\u0026D technology, and continuously expanding production capacity. In one year, Samsung Electronics lost 300 million U.S. dollars and lost all its equity, all thanks to government loans and Samsung Electronics. Blood transfusions from other companies in the group. After another year, Samsung Electronics survived, and its influence in the industry soared, but it was still not as good as some Japanese benzene giants. Another year passed, the global economy was in a downturn, and Japan’s benzene was even more economical. The bubble burst. Other companies cut production one after another, and Samsung increased investment despite losses. This time, it took four years to become the world's largest memory manufacturer."

"Understood?" Song Weiyang said to the reporter with a smile, "Persistence does not necessarily mean victory, but failure to persist will definitely lead to failure. I am willing to take a gamble with Mr. Zhang. Now SMIC has 10 billion yuan in funds. The 10 billion When the losses are over, I will invest more, and I can accept the losses within 15 billion."

Zhang Rujing couldn't help laughing, and applauded: "Mr. Song is so courageous!"

The reporters suddenly became excited, and they even thought of the title "Song Weiyang is optimistic about the chip manufacturing industry, allowing SMIC to lose 15 billion to seize the market".

"Boss Song, do you have that much money?" a guy booed.

"Hahaha!" Everyone laughed.

This is stubbornness. Exactly how much money Song Weiyang has has been discussed from the people and the Internet until last year's CCTV awards ceremony.

Song Weiyang was also very cooperative, and said with a smile, "I can still afford to lose billions."

According to statistics in 2019, the number of "100 million households" in China has reached 110,000, and the popularity seems to be catching up with the "10 million households" in the 1980s. But at the beginning of 2001, "100 million yuan" was able to rank among the top 300 of China's richest list, and it was even more unimaginable for several billion yuan, directly entering the top 10 of the rich list.

Now Song Weiyang says that he can afford to lose billions, and if it is spread by the media, the effect will be the same as "the small goal of earning 100 million first".

A few years ago, the Ministry of Electronics of the People's Republic of China implemented the "909 Project" to vigorously develop the semiconductor industry, with a total investment of only 10 billion yuan. Hua Hong undertook this project, completed the construction of the factory in two years, and achieved an annual profit of more than 500 million yuan in two years, and was instantly praised by the domestic media.

But tragedy will soon come. Due to the plummeting demand for global chips, Hua Hong will lose nearly 1.4 billion yuan this year. The once popular domestic media, after Hua Hong released its year-end financial report, rushed to criticize and criticize, and even said that "you can't make chips by spending money alone." It's like only Chinese companies are losing money, and foreign companies can make profits against the market. It's pure nonsense.

Sure enough, Song Weiyang was able to afford billions of dollars of boasting, and quickly became the focus of national public opinion, covering up the limelight of the completion of SMIC's No. 1 factory.

Ordinary people don't care about chip factories, this thing is too far away from them. But money is everyone’s favorite, billions is an unimaginably huge amount of money, and some media even deliberately added material to mislead readers into thinking that Song Weiyang would take 15 billion to lose money, making it look like SMIC is owned by Song Weiyang alone .

Public opinion quickly divided into two factions. One faction praised Song Weiyang for his courage and willingness to go bankrupt for the development of China's chip industry. Another faction criticized Song Weiyang wildly, saying that with the 10 billion yuan, it is better to subsidize poor areas and help farmers increase production and income.

CCTV's "Dialogue" column even invited several celebrities to make a special program around this topic.

There are all kinds of memes on the Internet, not saying that I have hundreds of thousands of dollars every minute, but claiming that I can afford to lose billions. It's a pity that there is no emoticon package at this time, otherwise it will be more lively, and it will be a matter of time before Song Weiyang becomes the king of the generation.