My Age of Investment

【My investment era】 【】

"The good news is that Huaxin International finally made a profit in 2010, ending five consecutive years of losses."

"The bad news is that AMD has handed over the 28nm GPU chip foundry order for Radeon HD 7000 series graphics cards to our archrival Gulf Electric. In catching up with advanced process technology, the gap between us and Gulf Electric has once again widened."

Xia Jingxing looked at Zhang Rujing, who looked worried, and felt very calm in his heart. He was not frightened by the bad news brought by the other party.

Huaxin International has lagged behind Gulf Power for a year or two. It is not that easy to catch up.

His requirements for Huaxin International are not high. If he can continue to narrow the generation gap, he will win.

Thinking of this, he immediately asked about the yield rate of 45-nanometer chips.

Zhang Rujing glanced at Liang Mengsong who was sitting behind him with a smile, and said: "Huaxin International began to develop the 45-nanometer process technology at the end of 2007. During this period, it reached a technology license with IBM and began small-scale trials at the end of 2009. Produces 45nm chips.

In the next year, the main energy was spent on improving the yield rate.

Through the unremitting efforts of Meng Song and team members, the yield rate of Huaxin International's 45-nanometer chips has increased from the original 40% to 80%.

Although the yield rate is still not comparable to that of manufacturers such as Gulf Electronics, Intel, and Samsung that have maturely mastered the 45nm process technology, it has finally crossed the threshold of mass production. "

Hearing the good news, Xia Jingxing was very excited and quickly asked: "Where is the Suanni S1 chip? Can it be mass-produced?"

This is something that Xia Jingxing has always been concerned about. Fuxing Mobile is competing with Samsung mobile phones for the market while entrusting mobile phone chip OEM orders to Samsung.

Although Samsung has not fallen out of favor at present, it is unclear when it will show its hand.

In addition, the relationship between Fuxing Semiconductor and Gulf Power has become relatively tense. The only manufacturer that can OEM chips with advanced process technology is Intel. However, the premise for Intel to accept orders is that it will not be influenced by international politics, or computers with no conscience. R\u0026D CPU.

In other words, Fuxing Industrial Group as a whole will face various international giants sooner or later. It cannot take any chances and can only plan a self-sufficient development path in advance.

Even if you are not completely self-sufficient, if you have a few more cards to play, you will be much more calm and flexible when dealing with complex situations.

Liang Mengsong replied: “Suan Ni S1 chips can be mass-produced without pursuing profits.

As chip shipments increase and yield rates improve, costs will slowly be diluted. "

Xia Jingxing nodded lightly. The group's industrial chain security strategy was undoubtedly higher than the short-term profit strategy.

Broken down to specific actions, Fuxing Mobile abandons Samsung, which has lower chip foundry costs, and instead chooses to cooperate with Huaxin International, using mobile phone profits to subsidize the losses caused by the temporary lack of chip technology.

Thinking of this, Xia Jingxing glanced at Lin Bing, who immediately said: "No problem, no matter how high the cost of the chips produced by Fuxing Semiconductor is, we will purchase them as long as the price of the mobile phone is not high."

Liang Mengsong smiled and said, "That's not that bad. It's at most one or two times more expensive than the chips made by Samsung, which is about ten or twenty dollars."

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【My investment era】 【】

Lin Bing nodded slightly towards Liang Mengsong, indicating that he understood. As the CEO of a consumer electronics group, how could he not know the composition of mobile phone costs? Even if Huaxin International's chip foundry costs are several times higher, the gross profit margin of 40% will be restored. Cell phones are just as affordable.

But Lin Bing also had his own worries, and he soon expressed his worries.

“Competition in the smartphone industry is becoming increasingly fierce, and smartphones are upgraded every six months.

This results in mobile phone performance becoming more and more powerful, and at the same time forces mobile phone chips to embark on an endless pursuit of high-end processes.

Currently, Fuxing FX3 and iPhone 4 use 45nm chips, but in the future, FX4 and iPhone 5 may be equipped with more advanced 32nm and 28nm chips.

This day is not too far away. To be precise, it is very close. Next year we will see the launch of a new generation of mobile phones and a new generation of processors. "

Liang Mengsong understood what Lin Bing said and said very honestly: "We will definitely not be able to produce 32nm and 28nm chips next year, because the relevant research projects have just been established."

Lin Bing said with a serious face: "Without the most advanced chips, Fuxing Mobile cannot guarantee that its high-end mobile phone market share will not be swallowed up by Smartphone and Samsung."

Liang Mengsong replied calmly: "We will try our best!"

"What I need is an accurate timetable, because the development process of Fuxing Mobile is tied to Fuxing Semiconductor."

All the senior executives at the meeting remained silent, a little worried that the two of them would start a quarrel the next second.

The consumer electronics group currently seems to be flourishing and developing well, but if you look deeper, it is like a castle built on the beach with a weak foundation.

If you want to lay a solid foundation, you must develop the semiconductor industry. But the trouble is that semiconductors lag too far behind. There is no way to develop to a level that matches Fuxing mobile phones in a year or two.

Moreover, the mobile phone industry is not stagnant. It is also developing, even faster than the semiconductor industry.

This has formed a deadlock. Fuxing Semiconductor has finally mastered the 28nm process. When I look up, my dear, Fuxing Mobile is already designing 14nm or even 7nm chips.

There must be a leap forward!

This is the answer that the executives present thought briefly.

Liang Mengsong did not argue with Lin Bing, but turned to look at Xia Jingxing and proposed his plan.

“Mr.

As soon as these words came out, everyone in the audience was shocked. Even Zhang Rujing couldn't help turning his head to look at Liang Mengsong and found that the latter's expression was calm and his eyes were clear. It didn't look like he was talking nonsense?

Xia Jingxing didn't say anything and motioned for Liang Mengsong to continue.

“This is not a plan that I came up with, but a way to break the situation that I found after careful consideration.

Consider Fuxing Mobile and Fuxing Semiconductor each as a car. Fuxing Mobile is accelerating crazily in front, and Fuxing Semiconductor cannot catch up even if it presses the accelerator to the bottom.

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Therefore, Renaissance Semiconductor can only catch up by taking shortcuts.

Currently, Gulf Power and Samsung are still working on the 28nm process technology. When their technology breaks through to 14nm, I predict it will be three to four years later.

If we can complete the triple jump in three to four years, then we can theoretically catch up with them.

There may still be a gap, but it is definitely not a difference in process generation, but a difference in yield.

Regarding solving the problem of yield rate, I cannot guarantee that it is as simple as eating and drinking water, but as long as you are willing to spend money, there will eventually be improvement. "

Xia Jingxing looked thoughtful. In his memory, Liang Mengsong seemed to be very good at "taking shortcuts". When he was at Samsung, he led the team to jump from 28nm to 14nm, beating Bay Electronics, which had just mastered the 16nm process technology at that time. One end; when he was in charge of Huaxin International, he did the same thing.

All in all, this is a chip wizard with a crazy pursuit of advanced manufacturing technology.

But Xia Jingxing was still a little unsure. After all, the "step" Liang Mengsong had to take was much bigger than the steps taken by Samsung and Huaxin International in his previous life.

Zhang Rujing coughed and said: "This matter is not easy, and a large amount of money will be invested, so it needs to be carefully considered."

Xia Jingxing waved his hand, "Money is not an issue. As long as we can catch up with GEM and Samsung, it will be worth spending 10 billion US dollars."

Having said this, Xia Jingxing paused, turned his gaze to Liang Mengsong, and asked, "I have only one question, can you solve it?"

Seeing that Xia Jingxing didn't seem to be against the "adventure plan" he proposed, Liang Mengsong nodded excitedly, "I'm sure, but we just need to make some internal changes."

"What change?" Xia Jingxing asked.

“Samsung has a Kill Taiwan plan, which is actually to target Taiwan’s development plan as the number one target.

Gulf Electric is even more ruthless. Not only did it double its R\u0026D investment in 2010, reaching an astonishing US$5.9 billion, it also has an internal Nightingale Project that makes engineers pale after hearing it!

What is Project Nightingale?

It requires engineers to conduct technical research 24 hours a day, three shifts a day, without rest for experiments, and to use human resources to achieve accelerated breakthroughs in high-process processes. "

"Isn't that a sweatshop?"

Someone whispered something in a low voice, and Liang Mengsong immediately nodded and responded: "Yes, it is a sweatshop like Futukang, but one uses physical force to work, and the other uses mental force to work, and both are paid overtime. "

Xia Jingxing said in his heart that he finally knew the secret of Bay Power's victory, which was to roll hard and kill all opponents. Compared with the 996 that the Internet industry has been complaining about, compared with Bay Power's 007, it was indeed a blessing.

"In order to enable employees to work overtime, Gulf Power has raised the wages of all those who join the Nightingale Plan by 30% to 50%."

Xia Jingxing interrupted: "The Suanni Chip team has done similar overtime work in the United States before. Even if the salary is doubled, some people are not willing to do it, and it has also made Fuxing Industrial America a disreputable company in Silicon Valley."

Liang Mengsong smiled, "How can Americans adapt to this kind of overtime culture? It's better to use it to subsidize the motivated young people from mainland China."

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"That makes sense!"

Xia Jingxing smiled and nodded. He didn't know what kind of reputation he would be criticized on the Internet in the future. Compared with himself, Lao Ma might look like a good person.

“If we can guarantee continuous operation for four years, it will be equivalent to eight years of R\u0026D time for other companies.

With so much time, I think it will not be an unattainable dream to complete the triple jump in manufacturing technology. "

Xia Jingxing thought for a while and said: "In order to have sufficient manpower and be able to rotate in time, don't begrudge the labor cost and recruit more people."

The boss was so considerate, so Liang Mengsong naturally nodded with a smile on his face.

After a small episode, Zhang Rujing continued to report on his work.

"Huaxin International's revenue increased by 45.3% from US$1.0704 billion in 2009 to US$1.5548 billion in 2010, and its net profit turned a profit, from a loss of US$964 million last year to a profit of US$14 million;

Spreadtrum's total revenue in 2010 was US$346.3 million, an increase of 229.6% over 2009, and net profit was US$67.2 million;

Fuxing integrated circuit design company and packaging and testing company have also initially established a firm foothold in the industry, and will try to start accepting external orders this year..."

After Zhang Rujing finished his final summary report, Chief Financial Officer Deng Yuanjun took out a stack of documents and asked his secretary to distribute them.

"This is the group's overall financial report for 2010, with a total revenue of 518.6 billion yuan and a net profit of 52.3 billion yuan..."

Looking at the financial report in his hand and listening to Deng Yuanjun's introduction, Xia Jingxing had a clearer grasp of the overall strength of Fuxing Industry.

Although there are still various flaws and problems at the technical level, the capital strength cannot be underestimated.

This is achieved even though several industrial sectors such as semiconductors, cloud and intelligence, and aerospace are lagging behind.

If these industrial sectors that require a large investment in R\u0026D funds are cultivated and matured, and the net profit margin of Conscience Computer is increased from 2.0% to double digits, then the group's overall financial report will definitely look much better.

“Now that the group has finally entered the stage of full profitability, let’s set rules starting this year.

Every year, 10% of the net profit is injected into Fuxing Land Company for the development and construction of employee welfare housing and supporting schools. "

After hearing Xia Jingxing's words, all the senior executives stared with big eyes. They allocate 10% of the company's net profit to employees as a rule. It is unprecedented if not unprecedented.

Deng Yuanjun reminded in a low voice: "Mr. Xia, is this number a bit high? Some companies' R\u0026D investment ratios cannot reach this number."

"I don't care about other companies, but our company must establish a good employee incentive and welfare system. Not to mention comparable to Silicon Valley, at least in China, it must be unique."

Deng Yuanjun suddenly realized that this was a conspiracy, and the purpose was naturally to attract the best few talents.

The most important asset of a technology company is talent. Without talent, even if you become 007, you may not be able to compete with 996.

"Okay, I understand. I will make a detailed plan when I come down."

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After that, Deng Yuanjun began to report on the situation of the Fuxing Industrial Investment Fund under his supervision.

This 100-billion-dollar fund was registered in 2008 and completed fundraising in 2009. It has been in its three years and has invested in hundreds of companies, but the 100 billion has not yet been spent.

In this regard, Deng Yuanjun specifically explained the reason: "China's semiconductor industry has always been relatively young and its development stage is relatively early, so the valuations of the targets we invest in every time are not high.

Generally, the valuation is tens of millions or hundreds of millions, and then the financing is several million or tens of millions, and the average financing is less than 100 million.

A few larger semiconductor companies are either state-owned or have been acquired by us.

We have also not let go of some listed semiconductor companies and actively participated in private placements and bond subscriptions in the secondary market.

Generally speaking, our spending speed cannot keep up with Xinxin Group, which is overseas. "

Xia Jingxing laughed loudly. If you can't spend the money, why should you blame me?

"I remember I told you last time that we should first scan the semiconductor design, manufacturing and packaging and testing. After that, we can invest in semiconductor equipment and material companies along the industrial chain."

Deng Yuanjun spread his hands, "In fact, we have done this too. We have cooperated with a number of headhunting companies and assigned them to stay in Silicon Valley, Hsinchu and other chip industry zones, trying to trick some technical experts into starting businesses in mainland China.

As long as they are willing to start a business in mainland China, we will not only give them an angel investment, but we are also willing to help them find partners and form a small entrepreneurial team.

However, the results are slow and it doesn’t cost much. "

Xia Jingxing scratched his head and even came up with the idea of ​​going to the United States and Yizhou Island to trick people into starting a business in the mainland. It was obvious that he really couldn't find any companies to invest in in China.

Xinxin Group can set up PE funds overseas and engage in mergers and acquisitions in the chip industry, but it does not have this foundation at home.

The merger and reorganization of several rookie-level semiconductor companies with valuations of tens or hundreds of millions is not a strong alliance, and it doesn't make much sense.

In fact, it will not be until five, six or even ten years later, when this group of semiconductor companies have grown up, that there will be opportunities for resource integration.

"Then you can expand the scope of investment. As long as it is an industry that is lacking or weak in the country, we can support it. Whether it is biomedicine, precision machinery, instruments, or materials, as long as you are willing to return to China to start a business, we will invest in it. Pen."

Xia Jingxing estimated that the 100 billion fund he established might not be of much use for the time being. When it comes to use again, it will be five, six or even ten years later. It will be better to re-establish the fund at that time. .

In this case, it is better to invest in other industries. After all, time is precious. If you miss the rare development window, it will only become more difficult to develop in the future.

"Are we going to invest in medicine?" Deng Yuanjun was shocked, thinking that precision machinery, instruments, and materials could all be related to Fuxing Industry, but medicine was out of reach.

"Can't you invest? I think that in the future, biology, machinery, and engineering will definitely merge, such as bionic robots and brain-computer interface chips.

As an emerging technology giant, why should Renaissance Industries be complacent in the industrial field?

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【My investment era】 【】

It is named Fuxing Industry because it does not really only engage in industry-related research.

In the future, we will also come up with some of our own black technologies. This is brand marketing, and we will create a corporate personality that is determined to change the entire history of human development. "

"Oh, no wonder Musk has been tweeting all day long about colonizing Mars and equipping Nikola cars with cold air thrusters used in rocket engines."

"Business! This is all a business in the final analysis! Since people like to hear it, let's tell more stories and inject a cool, cool temperament into Fuxing Industry."