Reinventing the Millennium

Fang Zhuo started another inspection trip of the mainland semiconductor industry from Luzhou.

After the Spring Festival, Mr. Qiu Ciyun returned to work completely, Professor Hu Zhengming also showed up more often to stabilize people's hearts, Dr. Liang Mengsong attacked the 10nm process at SMIC, and Luzhou performed its duties in the upstream and downstream of the industrial chain around Bingxin, including the research and development of Xinyang Luzhou, which has obtained the best resource allocation within the domestic capacity.

Although Yike's production capacity is under great downward pressure and Bingxin's operation has been challenged, Fang Zhuo maintains the necessary patience, respects everyone's efforts, and does what he can within the industry.

Fang Zhuo had a similar inspection with Zhang Rujing before, and this trip was similar to the last time, but many projects have borne fruit compared to the previous ones.

This kind of progress seen with one's own eyes can undoubtedly make people feel very good, and Fang Zhuo's visit this time has gained a lot of respect beyond the usual enthusiasm, especially in Xi'an, one is the storage production line that was previously stripped from Bingxin, and the other is the old leader Qiu Di.

He and his old leader had not seen each other for a long time, so they were not unfamiliar when they met, and they had a lively chat.

Qiudi couldn't help asking about the current situation of Yike and Bingxin, and he was most concerned about the photoresist problem mentioned by Chinese and foreign media recently.

"Waiting, I don't know when the results will be available." Fang Zhuo answered truthfully.

Qiudi was more straightforward in private chats, and asked: "Is it true? What about Yike's production capacity? I saw that there was news that your production capacity has been restored or is close to being restored?"

He has always been more concerned about his old friend's affairs. After thinking about it, he continued: "If it is not true, can those short sellers who shorted Yike's stocks run away?"

"You still care about this?" Fang Zhuo smiled with some surprise, "The financial market is unpredictable. Do you believe what I say or their speculation?"

Qiudi looked at Mr. Fang and shook his head: "You are not a technical background, do you know Bingxin so well?"

"This..." Fang Zhuo really couldn't refute this aspect.

"Besides, sometimes I don't know whether what you say is true or false." Qiu Di sighed, "You, Mr. Fang, are so well-connected, how can you be trapped by such a problem?"

"This is not a problem, but it is more concerned." Fang Zhuo said, "Look, now even Yike mobile phones are surrounded by people."

Qiu Di frowned, and sighed after a moment: "The storm is coming, and the sediment is resurfacing."

"It's okay, these are all expected problems. The short sellers have not changed their ways. They are nothing more than a new group of vultures." Fang Zhuo smiled, "As for mobile phones, Yike has never been afraid of competition. I still believe in our brand power. After all, it has been one of the leaders in the development of smart phones from 2007 to now, and it can be regarded as having relative pricing power."

He took a sip of tea and continued: "Other e-commerce and payment companies are just old rivals. It's not surprising that they are in a storm."

Qiu Di "tsk", this time seeing Mr. Fang again, he has the demeanor of a master.

Fang Zhuo saw the look on the old leader's face and smiled: "Yi Ke has done almost nothing this time. It's all about research and development, breakthroughs in key positions. With results, most problems have been solved."

Like this short selling and counterattack, although there are differences in the final gains, Yi Ke does not rely on Washington's decision or DuPont's resumption of supply. If there are these, it will definitely reap a lot of money, but if there are no such things, as long as Yi Ke makes a breakthrough in photoresist, the company's expected rebound in the future, the shorts will naturally disperse.

So, Fang Zhuo actually didn't care too much about the financial operations, but the gasoline man was very excited, probably wanting to wipe the signboard.

Not only that, when he walked out of Luzhou, when he met different industrial links in different cities on this trip, the whole person gradually changed from focusing on the problem to a more comprehensive consideration.

Ice core is very important, there is no doubt about it, photoresist is very critical, there is no doubt about this at the current stage, but Fang Zhuo is not only the chairman of Ice core, but also the head of Yi Ke.

What Bingxin provides is advanced manufacturing tools, and how to use this tool to generate greater value is what Yike and even the Yike system need to explore.

The former has problems at this stage, but it does not mean that the latter has no problems.

Fang Zhuo talked with his old leader about the semiconductor industry chain, and in the second half, he unexpectedly talked about the changes in the entire environment.

"Mr. Fang, do you think the Internet is about to usher in the era of inventory?" Qiudi was surprised.

"Different companies have different perceptions in different market environments, but for us Yike, hey, we sell mobile phones. Although our own products are special this year, observing the entire market, the growth rate should be slowing down." Fang Zhuo said the signal that Yike can feel.

According to IDC data last year, global smartphone shipments reached 1.43 billion units, a year-on-year increase of 10.1%, but the growth in Q4 has slowed to 5.7%.

The data for the first quarter of this year has not yet come out, but IDC also has a general assessment. If we use it to measure the trend of the whole year, there is indeed a possibility of continued slowdown or even stagnation of growth.

Yike sells mobile phones, so naturally it also uses the most personal data to make predictions, evaluate strategies, and look forward to development.

The change in hardware sales is an indicator, but it may bring about changes in the mobile Internet in the future, or even a certain reaction to the entire economic trend.

Yike cannot respond until the market has truly transformed into the stock era, and must make arrangements in advance.

This is what Fang Zhuo considered after coming out of Luzhou. Making increments and making the cake bigger is what he has been doing in the past, but how to divide the cake will be a test in the future.

Moreover, it is also important to find new driving engines from technology research and development.

Yike is now trying. The electric vehicle of the "Kunpeng" project is a move. However, Mr. Fang is still hesitant about it and is also observing and waiting for verification.

Relatively speaking, what he wants to see more is simple but not simple business logic, such as computer CPUs that are still based on advanced processes.

It's not easy, but I can see Yike's opportunity here at a glance.

Yike's notebooks have sold well in the past two years. However, Fang Zhuo believes that there is still room for Yike to compete in this relatively traditional field.

Fang Zhuo looked at the semiconductor industry chain, but his thoughts focused more on products and technologies with higher added value in the semiconductor field.

After hearing such words, Judy seemed to see the old friend in front of him constantly reading documents and visiting the scene.

He said sincerely: "Mr. Fang, before I met you, I thought Yike's crisis was very difficult. But after meeting you, I suddenly felt that Yike still has a long way to go."

Fang Zhuo laughed "haha": "Actually, my mental state is still very tense. I haven't slept much recently, but Yike is doing well internally. The market has withdrawn, the stock price has fallen, and production capacity has been limited. There are many things...but, you Guess what’s the most popular post on our company’s intranet today?”

Judy took a guess: "Photoresist production capacity news? Wall Street short selling?"

Seeing that Mr. Fang shook his head repeatedly, he refused to continue guessing and wanted to see the result.

Fang Zhuo opened his phone with a smile and showed the old leader the current hot posts on the intranet.

Judy took the phone, glanced at it, and looked up in surprise.

Fang Zhuo shrugged.

Today's No. 1 hot post on Yikenet: Chef Liu from the canteen has retired, and I have begun to miss the taste of his cooking!

The second hot post: Which one is higher or lower between Yike Canteen and Bingxin Canteen?

Qiu Di really felt some of the atmosphere inside Yike. It seemed that he was really not that nervous, but also seemed to be a little too relaxed.

…

The news citing a senior executive of the China Wafer Manufacturing Alliance does not appear to be confirmed.

Has Yike solved the photoresist problem?

Yike has no voice, Bingxin has no voice, there is no movement at the administrative level, and there is no movement from the employees. The only ones who have any movement are the short-sellers who are flying around.

Here it comes, a ferocious $7.19 billion!

Gone, a feeble $3.67 billion...

When the institutions that shorted Yike were ridiculed by the crowd, Russell of RC Hedge Fund really felt embarrassed. He was a member of the short sellers who took a public stance, but he couldn't help but see the unconfirmed news from China. Nearly half of the position was immediately reduced.

What's more, he even knew that some of his colleagues just walked away.

However, Russell waited for a week and saw neither formal or informal remarks from Yike and Bingxin, nor any changes in the supply of Yike mobile phones.

Looking back, this unproven news seems not worthy of such a big reaction...

Russell thought carefully and not only used some institutions' observations on Yike's shipments, but also asked BIS for its opinions. The latter believed that the semiconductor industry in mainland China could not solve the photoresist problem in the short term.

"Hey, Russell, this time may be two years, maybe three years. You have to know that this is an extremely sudden measure for them, and it is impossible to solve it quickly."

"If the ice core production capacity can be restored in two years, we all think this is a great thing."

"Russell, this is a perfect raid, trust us."

Russell respected the opinions of professionals, but he also communicated with peers before making a decision, such as Bridgewater Associates, which had participated in shorting Yike but suffered losses.

Bridgewater Fund is more decisive than RC Fund. It is decisive in withdrawing after hearing bad news and re-entering after seeing no movement.

"Russell, this is fake news. Everyone has overreacted. Besides, Yike's expectations must be lower. It's just a matter of how low it is. We are firmly bearish on Yike."

Russell asked the other party: "Then why did you leave before Bridgewater?"

"Afraid." Edson, the fund manager responsible for this move at Bridgewater Associates, was extremely honest and asked, "Aren't you afraid?"

Russell: "..."

Really scared.

As soon as the news from China came out, Yike's stock price was directly pushed up, and it caught up with the concerted actions of its peers. This time it has already lost a lot.

No matter how the American media describes the wrong decisions of Yike’s leaders in recent months, no matter how BIS restricts Yike and Bingxin, but...

But, that’s Mr. Fang!

Russell responded to a peer's question: "No, I'm not scared."

Edson was surprised: "Really?"

"Yes." Russell said seriously, "I just do it out of total respect for the other party."

Edson laughed loudly: "Very good, if you have the opportunity to meet Mr. Fang, you should tell him this personally."

Russell had already made his decision and continued: "But now also out of the other party's total respect, RC Fund has decided to contribute to the collapse of Yike."

"I like what you said. This time is different." Edson said, "This time it's not business, not finance, but politics. Mr. Fang has already got a lot of things. Now it's time for him to pay."

Russell also liked Edson's description.

He ended the call with his colleague, thought about and sorted out the relevant data, and updated a dynamic on Twitter: # Payment time # .

To a certain extent, Yi Ke had eaten a free meal with the White House twice before. This time is different. Now Mr. Fang needs to pay together.

On the last day of March, Nasdaq announced its short positions again.

In just two weeks, the short position of Yi Ke returned to $7 billion again, and it has exceeded the end of last month, approaching the next full level with a scale of $7.87 billion.

The shorts rushed in more violently than last time, becoming another material for news reports.

...

Huaxia, Luzhou, Xinyang Laboratory.

Yike's product quantity is in urgent need, Bingxin's photoresist is decreasing, Wall Street is shorting fiercely, and the media are scrambling to report and predict the decline of Oriental Enterprises, but these seem to have nothing to do with the laboratory in Luzhou.

As one of the R\u0026D leaders, Chai Qingliang knows that the work at hand is of great significance, but he himself is a dull person, just doing the work at hand calmly and thinking about the problem.

On April 1, April Fool's Day, Xinyang employees like to eat in Bingxin's cafeteria at noon, or in other words, if they can choose, everyone is willing to eat here.

The food in Bingxin's cafeteria is of high quality. It is said that the chef was specially invited by Mr. Fang from all over the country one year.

Because of the release of Nasdaq data yesterday, the topic in the cafeteria today is more or less related to Yike's short selling.

While eating silently, Chai Qingliang listened to his friends talking about Yike's short squeeze that shocked the world.

Well, that seems to be great, but what does it have to do with the work at hand?

Well, if ArF argon fluorine laser photoresist is used for 16nm, if it is to have good transparency and photosensitivity to deep ultraviolet light, it is still necessary to pursue cyclic polymers with higher transparency, etching resistance and chemical stability, and to establish a new resin system. In the past, polyparahydroxystyrene and its deuterated or chemically modified derivatives were used, but now it is necessary to...

"Hey, hey, Lao Chai, are you listening?" Tong Yongjian, who was narrating the glorious financial history of Yike, found that his friend seemed to be distracted.

"Oh oh." Chai Qingliang looked up blankly, then lowered his head, wrote the chemical formula on the table with his fingers, and said thoughtfully, "I thought of a new polyester cyclic acrylate, um, I need to try a new cyclic structure."

"Really? Is it useful?" Tong Yongjian suddenly felt a little discouraged.

Chai Qingliang shrugged, still said slowly: "Try it, um, polyester cyclic acrylate."