Reinventing the Millennium

Integrated circuits are divided into two categories: digital and analog. Storage and logic chips are important tracks for digital circuits.

The reason why the storage industry is highly competitive is naturally because it has extremely high value.

According to data from world semiconductor trade statistics, memory chips account for about one-quarter to one-third of the semiconductor market, which is basically consistent with the scale trend of the overall global semiconductor market.

Therefore, new players are emerging in this track all the time.

And Fang Zhuo's statement about cycles is not unfounded. Not only memory chips, but also the cyclical ups and downs of the entire semiconductor market are quite obvious. It is a cycle in about four years.

High prices → Increase production capacity → Excessive production capacity → Low prices → endure → can’t endure...

Those who can't bear it may join a group to stay warm, or they may go bankrupt and liquidate.

In such a cycle, there are also manufacturers that like to play counter-cyclical games, that is, the lower the price, the higher the production capacity, and then when the price is high, they will have the competitiveness to squeeze out other competitors.

How to formulate development strategies and directions under such a pattern is a test of experience and wisdom, and is also affected by a variety of factors.

For example, when SMIC enters the memory chip market, it obtains technology transfer through contract manufacturing.

Even if it’s not a very good time now, can we not use it if we have the technology in front of us?

Even if Fang Zhuo was at this decision-making point, he would definitely have to make a decision.

But from Bingxin's standpoint, in the short term we can only watch the changes in the market and focus on doing a good job in the foundry business first.

"Mr. Fang, are you still worried that our SMIC won't be able to survive this cycle?" As a technical expert, Wu Jingang is relatively straightforward, so he asked Mr. Fang for his opinion.

"That's not true." Fang Zhuo said, "SMIC wants to make storage and DRAM. This is the first step for our domestic DRAM. We will support you in all aspects. I am not afraid that you will not survive. I am afraid of your customers." I can’t survive it.”

SMIC acquired the DRAM stacking technology from Elpida.

What is Elpida?

It is the wail of three defeated dogs.

The difficulties faced by these three DRAM companies, NEC, Hitachi, and Mitsubishi, are caused by external and internal factors. Can they eliminate these factors by joining forces?

Fang Zhuo made a conventional judgment and the answer was no.

As for what chain changes such an answer will bring, and whether there will be situations in the middle that are beneficial to the ice core, it still requires patient observation.

Wu Jingang heard what Mr. Fang said and said with a smile: "Mr. Fang, as long as we have the technology, what's there to fear? Even if we don't do OEM work for Elpida in the future, we can still do OEM work for other companies. It's really not possible. What a big deal. Let’s create our own brand.”

He joked: "When the time comes, I will invite Mr. Fang to take over the operation. Our SMIC technology and Mr. Fang's ability are a perfect match. We will definitely get a share of the storage industry."

Fang Zhuo hasn't spoken yet.

Qiu Ciyun, who had been listening next to him, frowned. He glanced at Mr. Fang. Based on how he got along with him after coming to Bingxin, he felt that there were still some unfinished things. He turned around in his mind about the current situation of Bingxin and muttered: "Taiwanese." You must be on guard."

As soon as these words came out, the atmosphere dropped a level lower.

No matter what direction SMIC breaks through, it will be assisted by various factors, but it will also lead to interception.

Purely in terms of process technology, it is one generation behind the world's top-notch products and is considered a thorn in Taiwanese journalists' side.

Wu Jingang said solemnly: "After the settlement of this lawsuit, Taiwan reporters should not have the power to interfere with us."

"This is called shooting the first bird." Fang Zhuo smiled slightly, "So, if another first bird appears, our ice core can also help the core share the pressure."

"Understood, we will work all night tonight." Wu Jingang nodded repeatedly, "Try to let the ice core block the bullet for our core."

The group of people laughed again.

Yu Zhengxiang, who raised a question that led to this discussion, laughed unconsciously. Both the atmosphere here and the content of their discussion were quite unexpected.

Dinner time was over and the busy canteen quickly became deserted.

Fang Zhuo saw Yu Zhengxiang off, and his assistant carried the gifts into the car first.

The two of them strolled through the ice core factory.

"Mr. Fang." Yu Zhengxiang pondered over and over again, and finally said, "Thank you for your trust in Yu Hong. She sometimes has a straight temper. If there is anything she doesn't do well, please bear with me, Mr. Fang."

Fang Zhuo smiled: "I do trust Yu Hong, but, Uncle Yu, our trust is mutual. When she joined the company after joining the company after graduating from the University of Science and Technology, I was also touched by her trust. Besides, she still can't do it today." It’s just a matter of trust.”

"The company has grown from small to large, and the business has grown from small to large. Her ability and willingness to pursue progress are the biggest reasons why she became President Yu of Yike."

"I communicate with Yu Hong a lot, and I also believe that her achievements go beyond that."

Yu Zhengxiang nodded silently.

Mr. Fang's admiration for his daughter was beyond words.

If...if this person is always forty or fifty, then there is no need to have any strange worries.

However, what kind of chemical reaction will there be between two young people who appreciate each other? Yu Zhengxiang had a similar experience, but in the end they still ended up separated.

Yu Zhengxiang walked to the factory gate, hesitated again and again, but still did not speak. He just shook hands with Mr. Fang with force.

Fang Zhuo also hesitated for a moment, and then spoke: "Uncle Yu, if you need help, you can call me."

He knew that this person's trip to Luzhou was to attend a cadre study meeting, and there might be a change in his position.

As for whether this change needs to be implemented, and whether this person wants to implement it from his own side, it is up to him to judge and decide.

Yu Zhengxiang smiled, did not answer the question, and said goodbye: "If Mr. Fang has the opportunity to come to our county in the future, he must come and try the specialties."

Fang Zhuo nodded, waved goodbye, and retracted his hands into his sleeves when he saw the car started.

He looked up at the sky and suddenly found that the snow that had not fallen during the New Year seemed to be falling now.

"Auspicious snow heralds a good harvest, and auspicious snow heralds a good harvest."

Fang Zhuo took a breath of the cold air and hoped that this year would be a good year for ice cores.

Toot, toot, toot.

Yu Zhengxiang sat in the car and dialed his daughter's phone but did not get through.

He lowered the window and looked back.

This area of ​​Luzhou is quite deserted, with only one straight road, Yuhu Road, brightly lit.

The ice core factory in the distance stood alone under the night, as if it was gathering strength to move forward in the darkness.

…

Big Year.

It snowed in Luzhou at night, but it wasn't heavy. During the day it was just a thin layer of snow.

Wei Boyun, the marketing director of Morningstar Semiconductor, came to Bingxin again as if clocking in at work. He found that Fang was always a good talker, so he wanted to take advantage of this rare opportunity to accumulate popularity.

Fang Zhuo smiled when he saw the director.

"Mr. Wei, Mr. Wei, are you working so hard to run orders? Where is the vice president of the headquarters? Didn't he say he was coming?"

Wei Boyun said with a "hehe" smile: "You have to run for sales. My mission in Luzhou is to visit Mr. Fang. Going back to the hotel is boring. If I can chat with Mr. Fang here and relieve Mr. Fang's boredom, then Nothing better."

"It's cold today, go to the office." Fang Zhuo shook his head.

Wei Boyun said diligently: "No hurry, no hurry, Mr. Fang, you go to the office and I will sweep the snow in this area. I think they haven't swept it here yet. Don't turn around and slip."

Fang Zhuo: "..."

He actually entered the office and watched through the window as the marketing director from Baodao swept away a large piece of snow.

This energy.

Tsk tsk.

Wei Bo took off his coat as soon as he entered the office. He was in his forties, and he suddenly moved his muscles and was covered in sweat.

"Mr. Wei, have some tea." Fang Zhuo poured the second cup of tea and said with a smile, "Looking at Mr. Wei's spirit of running the market, I really believe your 'nanny' rhetoric."

Wei Boyun perked up and assured: "We want our customers to fulfill their needs as quickly as possible. Mr. Fang, Morningstar Semiconductor's chip design is definitely not bad, but it lacks product performance opportunities."

"Even though Genie has a high market share now, they are actually quite rigid and quite slow."

He thought of a better way to put it: "Just like Sony's walkman being slow to MP3 players, they are big and stiff, we are small but beautiful."

"It's interesting." Fang Zhuo really understood the situation more clearly because of this description, and nodded slightly, "So, your competitors are chip solution providers like Philips who have their own products?"

Wei Boyun replied seriously: "Relatively speaking, Philips' solutions for LCD products are indeed more competitive than Jenny's, but although they have the verification of their own brands, after all, they have a certain competitive relationship with Changhong and Skyworth. TV Large-scale adoption by enterprises is still difficult.”

"We are different. Our IC design can combine the hardware requirements of different manufacturers to provide optimization solutions. This time can be guaranteed within 3 months."

“Our technical team is very experienced in the industry.”

Fang Zhuo showed an expression of interest on his face.

Wei Boyun gushed louder and louder: "The vice president who is coming today has been a supervisor at Generi. Although Morningstar Semiconductor has not been established for a long time, he is very responsible from top to bottom."

Fang Zhuo nodded and praised: "Indeed, Mr. Wei's spirit is very touching."

Wei Boyun is very happy.

Fang Zhuo asked again: "From what you said, a small and beautiful design company is quite good. Does your company sell it?"

Wei Boyun just took a sip of tea to moisten his throat. When he heard such an interesting question from the richest man in the Mainland, he almost choked. He didn't sell the product, so he was going to sell the company?

He coughed several times and said in a daze: "This, this, Mr. Fang, this is not within my scope of responsibility."

"Where is the vice president who came today? Can he talk about this?" Fang Zhuo put his left and right hands into his sleeves and asked like an old farmer about the vegetables sold at the stall.

Wei Boyun looked at Fang Zhuo's expression and suddenly realized that he couldn't ignore his huge energy just because he had been chatting with Mr. Fang at the door for two days: "Mr. Fang, this should not be within his scope, uh, just I personally feel that the company has no plans to raise funds for the time being.”

Fang Zhuo shrugged and did not insist on asking.

It may be said that it is small but beautiful, but the price of a company that builds a technical team and market system will never be cheap.

If it's just small, then anyone can do it, but if you want to be beautiful, you have to pay a high price.

It is also difficult to turn around funds in the near future, otherwise we can still talk about it again.

Fang Zhuo has his own considerations.

Both Bingxin and Yigou are big money eaters, and they will inevitably need funds in the future. Most of the funds for actions including buying a team come from the pledge of their Yike shares, including the sale of some Sina shares. .

The funds pledged by the shares are time-limited and interest-bearing and need to be repaid.

In terms of the use of funds, Fang Zhuo believed that the money had far exceeded its own value, but... it still had to be paid back.

To make it simple, just cash out the unpledged shares.

However, considering the shareholdings of Goldman Sachs, IDG and other institutions, Fang Zhuo is a little worried that his actions will cause a chain reaction. Yike's annual report last year has not been released yet. Due to the rapid development of the overall market, he believes that this will satisfy institutions and shareholders. .

Maybe it can continue to push up the company's stock price.

So, what if you reduce your holdings a little and seek help from your close comrades?

Anyway, wait until you have sufficient funds and then buy it back from the stock market.

Considering the raising and use of funds, Fang Zhuo is very cautious about making big moves in the short term.

And he asked Wei Boyun. On the one hand, his words were really contagious and he introduced the company well. On the other hand, it was also because the IC design company could bring more of the basic value of the ice core into play.

Bingxin's current confirmed business is wafer foundry. In the final analysis, it is just a factory.

However, this factory requires a lot of money and technology.

How can we maximize the value of foundry products that cost so much money and technology?

In other words, how to add added value to it?

There is no doubt that we can learn from Samsung in this case.

Samsung's vertical integration of IDM is a path worth learning from.

IC design, IC manufacturing, and IC packaging. IC design is the easiest among them. Hu Zhengda, who graduated from Taiwan, chose to start his business in the field of chip design. Huawei's HiSilicon is also in this direction.

Fang Zhuo feels that it is not appropriate to expand to other areas before the ice core production capacity is mature, but if there are cheap and affordable options, it is not impossible. It is still possible to bite the bullet and squeeze out more money.

Wei Boyun did not introduce the company anymore, and instead talked about product chips and industry news. This was also a common topic with Mr. Fang, so as not to accidentally sell his company.

At noon, just as the vice president of Morningstar Semiconductor was about to arrive, Ni Runfeng from Changhong called.

"Mr. Fang, I will go to Luzhou tonight to see the progress of the ice core."

"Coming here so early?" Fang Zhuo was a little surprised. "That's just right. People from Morningstar are in my office now. A vice president of the company will arrive later. You can talk about their chips in the evening."

When Wei Boyun heard what Mr. Fang said, his eyes showed excitement.

"I want to have a drink with Mr. Fang and arrange work for me." Ni Runfeng was a little helpless.

"The main reason is that Mr. Wei is very sincere and said that he would put a research and development team in Luzhou. No matter what, let's talk about it." Fang Zhuo gave straightforward advice.

"Okay, see you tonight." Ni Runfeng responded.

Fang Zhuo hung up the phone and said to Wei Boyun with a smile: "Mr. Wei, in order to prevent you from continuing to report tomorrow, I gave you the opportunity. Your words are indeed nice, but the final outcome depends on the product. "

Wei Boyun took a deep breath before Mr. Fang hung up the phone, and said in a deep voice: "Mr. Fang, I will not let you down."