Reinventing the Millennium

Because of the global distribution of Avago's business, it does not need regulatory approval from 9 countries or regions like Broadcom's acquisition, but only needs 5.

In addition to the United States, the remaining possible resistance is Europe and Singapore.

But Qualcomm and Avago increased lobbying after basically reaching an agreement. Singapore has agreed to the acquisition. As for Europe, it is mainly engaged in Microsoft and Google this year, and there is not much response to Qualcomm's acquisition. It is expected that there will be no problem in passing.

Also because of this review background, although Jacob has flown to China, Chen Fuyang, the former CEO of Avago, was officially announced to be appointed and will soon become Qualcomm's senior vice president.

Even many media and analysts believe that this Chinese who is very recognized by Qualcomm's head will replace Morenkov as COO, and Morenkov has been rumored to be the candidate for Qualcomm's next CEO.

If Qualcomm's turmoil and transformation are over, Jacob will retreat to the board of directors. In the future, Qualcomm's power configuration is likely to be CEO Morenkov + COO Chen Fuyang.

However, this is all for the future. Qualcomm's most urgent task is to smooth out the storm.

After the FTC's statement was passed, despite the more severe statement from China, Wall Street generally still favored the acquisition of Qualcomm and Avago.

Can Qualcomm perfectly integrate innovation?

Not necessarily, but it will definitely reduce its reliance on the single business that is currently criticized.

Moreover, Avago is very smooth and seems to be fully prepared to integrate into Qualcomm, which is also a positive factor.

Fang Zhuo, who is in New York, is also paying attention to Qualcomm's changes. On the one hand, he saw the industry development views shared by Chen Fuyang, the proposed senior vice president, on different occasions, and on the other hand, Qualcomm's competitive presentation in products this year.

Qualcomm announced in April that this year's high-end chip was named Snapdragon 810. Until the first day of September, the first mobile phone manufacturer confirmed to be equipped with Snapdragon 810 finally appeared-Samsung.

Samsung will launch the flagship phone Trump equipped with Snapdragon 810 on September 27.

As of September, the Snapdragon 810 is a flagship chip designed by Qualcomm, manufactured with the 20nm process and used by Samsung.

Because Samsung failed last year with its own Exynos chip, and this year it reached a settlement with Qualcomm on baseband chips and communication patents, it directly used the Snapdragon 810 and no longer faced Apple and Yike head-on, but chose to release products at the end of September in an attempt to revive the momentum of Samsung's flagship brand.

Fang Zhuo thinks this decision is quite correct.

Well... it's just that this octa-core Snapdragon 810 processor, which consists of 4 Cortex-A57 cores and 4 Cortex-A53 cores, is it still the famous big fire dragon?

According to the temperature test results of the Snapdragon 810 that Qualcomm has released, its maximum operating temperature is lower than that of the previous generation Snapdragon 801, but this test can be seen on the test machine of the MDP development equipment.

And the thickness of this test machine is much thicker than that of a normal flagship mobile phone, with more heat dissipation space, and even a cooling fan can be stuffed inside.

Yike naturally cannot get the prototype and samples, so it is difficult to evaluate the true strength of Snapdragon 810. It can only be said that although Qualcomm has to abandon its self-developed architecture and use the public version of A53 and A57 architecture in the era of 64-bit processors, it seems that it is still fully prepared from the disclosed information.

Therefore, Samsung Trump combines the advantages of Qualcomm and Taiwan, and may be able to compete for the second place.

This is the estimate given by Yike.

Following the successful trial production of Bingxin's 16nm risk, the current task is to do small-scale mass production of process verification and optimization, and the new Mars obtained by Fang Zhuo is the product of this link.

The yield improvement of this link is still bumpy, but the prospects are becoming clearer and clearer.

Fang Zhuo has a call with Qiu Ciyun and Liang Mengsong almost every two days, and roughly determined that large-scale mass production can be carried out at the end of November, but based on the current progress, the yield may not be as expected.

According to Liang Mengsong's idea, the yield of the 16nm process with FinFET must be raised to 65% before it can be mass-produced. In this way, with the leading process, even if the yield is a little low, it can be equivalent to at least 85% of the cost of the other 20nm processes.

However, the external environment of the semiconductor industry is somewhat unpredictable, and Yike really can't delay for a long time, so it decided to raise the yield to about 55% for large-scale mass production.

From a static point of view, such a yield cannot make Bingxin profitable, but Liang Mengsong also understands the cost of Yike's waiting, and also has to dynamically consider the changes in the entire system.

First solve whether it has it, and then solve it well.

As soon as Bingxin made the decision, Fang Zhuo's heart was also determined. He had already prepared to postpone it to the beginning of next year, but Liang Mengsong and others could make a comprehensive balance, and every month ahead was excellent.

In addition to Liang Mengsong's decision on mass production, Qiu Ciyun also talked about an acquisition and integration related to Bingxin, and set his sights on Changdian, the number one wafer packaging company in China.

Since Taiji entered the packaging field, the industry has generally been pessimistic about the prospects of foundries intervening in the downstream links, believing that each industry has its own expertise and Taiji's investment is not cost-effective.

However, Bingxin cooperated with Changdian to establish a research and development subsidiary two years ago, adhering to the judgment that "Moore's Law will inevitably become ineffective gradually", considering the exponentially rising costs of improving the process.

Bingxin has come all the way from 130nm. Although it has basically conquered 16nm, it still has a large number of other process production lines. Considering the limited equipment procurement and cooperation in the future, trying to make efforts from advanced packaging is a two-pronged option.

However, in addition to these, Qiu Ciyun proposed to acquire Changdian because the research and development based on the cooperation between the two entities was not smooth.

Changdian was not very willing to set up a subsidiary to engage in research and development together before, worried about the risk of Bingxin entering this field to compete. Although it agreed later, the running-in of research and development was still painstaking. Not to mention that 1 plus 1 is greater than 2, it is even difficult to equal 2.

Various factors, and also noticing the ups and downs of mergers and acquisitions in the industry, Qiu Ciyun formally proposed to Mr. Fang to expand Bingxin from the wafer manufacturing link directly and quickly to the downstream link, which is also the popular acquisition method now.

Fang Zhuo has been talking about the changing trend of the semiconductor industry this year. He talked to Yike, Intel, Avago, and the media, but he really didn't expect the integration needed by Bingxin.

Qiu Ciyun said this, and he felt that he was in the mountains.

As for Changdian...

Qiu Ciyun said confidently on the phone: "Mr. Fang, I have inquired in detail. Changdian's controlling shareholder is Xinchao Technology, but it only holds 14.11% of the shares, and the company's equity structure is dispersed."

"Moreover, Changdian's own financial situation is not good. In the middle of this year, the debt ratio was nearly 70%. It is a good time for Bingxin to take action now."

Fang Zhuo received this call from Mr. Qiu, and his mind was full of industrial integration and global development trends. He suddenly heard the enthusiastic introduction from the other side and felt speechless.

He didn't speak, and Qiu Ciyun on the other side continued to introduce, and the direction was getting more and more towards the path of hostile acquisition.

"Ahem, Mr. Qiu, wait, Mr. Qiu, this..." Fang Zhuo stopped this rather bizarre idea. It was too extreme. Is this okay?

Qiu Ciyun said a little excitedly: "Mr. Fang, you have so much experience in hostile acquisitions, and Changdian will never be your opponent."

"Mr. Qiu, there is no need to make domestic acquisitions so stiff." Fang Zhuo expressed the tone of doing things.

Qiu Ciyun was stunned for a moment. Hmm… Who is the one who is making a fuss about the domestic acquisition?

“Besides, it is related to the domestic semiconductor industry. It is not good to force it.” Fang Zhuo said thoughtfully.

Qiu Ciyun was stunned again. Who pulled Morningstar Semiconductor, which was finally listed, off the Hong Kong stock market?

He figured out the general intention of the subordinate and felt that this excuse was just a polite refusal.

"Mr. Fang, although Changdian is doing R\u0026D with us, its management and we are not on the same page. After all, the interests of the two companies are different. Bingxin needs to do advanced packaging to supplement its technology. It is afraid that we will grab its orders."

"Changdian does not want Bingxin to do more packaging. How can we work together with such different positions? Since we are not united and have different positions, Mr. Fang, let's merge into one and become the same position! Become the same heart!"

"Let's not talk about Taiji. Take Samsung as an example. Its PoP packaging technology has also successfully optimized the internal space of mobile phones. This is a technological trend!"

"Mr. Fang, you are right. The big level is industrial mergers and acquisitions, and the small level is the application of cross-integration of technologies. We really don't pay enough attention to this area at present."

"Taiji's previous promotion of its CoWoS packaging was unsuccessful, and now it has begun to downgrade to a cheap InFO packaging alternative. It is nothing more than seeking a balance between cost and technology."

"This is not a good competitive change for us!"

Qiu Ciyun earnestly explained the importance of R\u0026D of advanced packaging.

"Mr. Qiu, I don't disagree with the acquisition of Changdian, but the way you imagine is questionable. So, you ask the company to prepare a document for me, and then you go to contact Changdian first." Fang Zhuo understood that Mr. Qiu had misunderstood his meaning, and said directly, "Changdian's market value is not high, and a peaceful acquisition should be able to achieve the goal."

Not all acquisitions are malicious, a good price can also be very tempting.

Qiu Ciyun thought for a moment, and still asked: "What if Changdian doesn't want to be acquired?"

Fang Zhuo thought about it and hesitated: "It shouldn't raise the price a little bit."

"Okay, Mr. Fang, then I'll go and talk first. If it doesn't work, you...well, you..." Qiu Ciyun felt that the boss might be a little shy about what he had done. After a few seconds, he finished speaking, "You can talk to them again."

Fang Zhuo listened to the emphasis on the word "well", and always felt that it was sarcastic, but he could only agree.

He felt that this matter didn't require too much effort.

When Bingxin announces the 16nm process before the end of the year, Amei will not respond so quickly. It will have to go through the process anyway. The time in between is enough for the company's stock price to rise. At that time, it will be possible to directly increase the issuance of shares to acquire Changdian.

For Changdian worth 10 billion yuan, a 25%-35% premium in cash + stock should be enough, right?

Fang Zhuo thought so. When Bingxin sent the information, he just glanced over it briefly and planned to communicate in detail after returning to China. His current mission in the United States is not only to care about Qualcomm, but also to adjust Yike America's position and arrange the Silicon Valley R\u0026D center.

However, within two days, Qiu Ciyun responded that Changdian refused to be acquired, and the reason was that it was also preparing to acquire another company - Singapore's listed company STATS ChipPAC.

STATS ChipPAC is the fourth largest packaging and testing factory in the world. According to feedback from Changdian and market-verified news, its major shareholder Temasek wants to sell its shares.

Therefore, Changdian wants to take this opportunity to acquire STATS Chippac from Shetunxiang to further expand its business overseas.

Moreover, Changdian has received support from domestic "big funds" and will receive part of the acquisition funds.

Fang Zhuo was extremely surprised. This reason for rejection was really legitimate...

Well, there are really a lot of "snake swallowing elephants" these days...

He turned to look at Bingxin's information in detail, carefully considered the relevant situation, and felt that Changdian's intention to acquire STATS ChipPAC still needs to be evaluated. In particular, the latter's continued losses will cause many integration problems.

Fang Zhuo kept this matter in his mind for the time being, but unexpectedly, there was no movement from him. Changdian, who was greeted by Qiu Ciyun over there, took the initiative to call the door.

"Mr. Fang, we are working well together, why does Bingxin suddenly want to eat us?" Wang Xinchao, the head of Changdian, got straight to the point.

"Mr. Wang, we just want to find a win-win approach." Fang Zhuo felt the emotions on the other end of the phone and changed to a euphemistic way of saying, "Moreover, Mr. Qiu is just asking, just exploring a possibility."

"Mr. Fang, who doesn't know..." Wang Xinchao didn't finish his words, and said after holding back, "Mr. Fang, now is a good opportunity for Changdian to expand. Don't do anything that makes people hate each other!"

"Mr. Wang, you misunderstood. Bingxin is just exploring the possibility of developing better packaging technology." Fang Zhuo said patiently, "If Changdian is unwilling, Bingxin will not force it. You said that Changdian wants to acquire Xingxin." Ke Jinpeng, if you really have a good evaluation and are short of money, you can tell me."

Wang Xinchao had already found a big fund, and he had originally intended to bring in ice core to help, but he was suddenly asked about the acquisition by Qiu Ciyun. How could he dare to lure a wolf into his house now?

As long as the acquisition of STATS ChipPAC is successful, Changdian will become the third packaging and testing factory in the world. Why should it be acquired by Bingxin?

The problem now is that he is a little worried that Mr. Fang will force himself on him. Regardless of the company's status, financial resources, relationships with superiors, and customer orders, the other party is obviously stronger.

However, in broad daylight, the world is clear, and the ice core is indeed powerful, but it cannot be so barbaric!

It’s just that... the shareholding amount of the major shareholder is too low, which seems to make it easy for barbarians to smell the smell of blood...

"Thank you, Mr. Fang, I don't dare to ask for your money. Just don't throw money at me." Wang Xinchao still expressed his concerns, "Changdian Electronics is developing very well. I hope to acquire it smoothly now. STAR Chippeng.”

Fang Zhuo wanted to sigh but didn't. He said sincerely: "I am very happy to see Changdian develop."

"Thank you, Mr. Fang, for your blessing." Wang Xinchao ended the call with this sentence.

In fact, he feels that Mr. Fang has a closer relationship with Changdian. After the financial crisis in 2008, the Ice Core Wafer Manufacturing Alliance took the lead in finding foreign funds and doing a number of corporate integrations.

Among them, Changdian also made gains, and eventually acquired foreign institutional shareholders through asset acquisitions.

Later, when reviewing the industrial development and corporate response after the financial crisis, it is inevitable to speculate and speculate. What happened back then is still worthy of gratitude, but it won't become a knife, right?

Wang Xinchao admired Mr. Fang very much, but he admired him so much that he was really willing to hand over Changdian. Moreover, at the time when he was planning to acquire STATS ChipPAC... he had resentment.

This emotion was quickly conveyed to Fang Zhuo by a third party.

On September 21, just a few days before Samsung’s autumn conference, Singapore also officially approved Qualcomm’s acquisition of Avago, basically leaving Europe’s final attitude.

Fang Zhuo received a call from a large fund that day, also mentioning Bingxin's interest in Changdian and Changdian's intention to acquire Shetunxiang.

"We are just asking, and we are just considering strengthening the research and development capabilities of advanced packaging. This acquisition... is not a formal contact, just a chat." Fang Zhuo was really helpless.

"It's not impossible for Bingxin to acquire Changdian Electronics." The person on the other end of the phone said slowly, "But, Mr. Fang, I hope you can have a good discussion after Changdian Electronics acquires STARS Chippac."

Fang Zhuo had no intention of not having a good discussion and responded: "Okay, the acquisition of Bingxin also needs a lot of evaluation. It's not just me opening my mouth and taking action. Hey, it's mainly Mr. Qiu and the others who make the decision."

"Mr. Fang, when will you return to China? Let's sit together and study it. Besides, hasn't Bingxin already formed a joint venture with Changdian, 'Bingxin Changdian'?" The other end of the phone told the situation, "Mr. Fang, this matter No need to rush."

Fang Zhuo heard the advice and agreed directly: "Okay, there is absolutely no rush! I will wait for the acquisition of Changdian to be completed, and Bingxin can also provide acquisition funds!"

When the big fund heard this, they quickly laughed and didn't want to talk about Bingxin's investment.

Fang Zhuo felt that his sincerity was slightly hurt, and it was all Mr. Qiu’s fault...

However, if JCET really wins STATS ChipPAC, it is said that STATS ChipPAC’s advanced packaging technologies such as SiP and FoWLP are quite good...

It’s good for industry, good for Changyang Electric, and perhaps also good for ice cores…

This matter deserves some deliberation.

Fang Zhuo controlled his thoughts and prepared to take a look at Samsung’s and Qualcomm’s Dacheng Trump products this year.

In the past few days while waiting for Samsung's press conference, as if it was an appointment, the regulatory agencies that required approval for Qualcomm's acquisition of Avago made their decisions one after another without raising any objections.

Six days later, on the 27th, the day of Samsung's press conference, Europe finally approved the acquisition of Qualcomm and Avago, announcing that there would be no more obstacles.

On September 27, Samsung took out Trump, which was equipped with Snapdragon 810, in an attempt to revive the high-end mobile phone market. The new Qualcomm, which acquired Avago, expanded its scale and tried to complete the transformation in the antitrust storm.