Deutsche Bank has decided... Oh, no substantial progress has been made yet.
After Fang Zhuo returned to Shanghai, he met with three investment institutions respectively and adopted different attitudes.
DCM was already in the plan, and as he said, Connor fully supports the projects he values.
Because of the two related-party transactions of Sina's private placement and Yike's listing, Goldman Sachs suddenly became one and the other. Although Xu Kaiwei is the chief representative of Goldman Sachs in China, he will still be affected by the voices of other business departments.
This is like risk hedging. Regardless of whether Bingxin can make money or not, Sina and Yike have already had tangible benefits to fill it. What's more, there are no problems in the overall inspection of the Bingxin project, so you have to invest if you should!
As for Deutsche Bank, Fang Zhuo saw Connor from DCM and Xu Kaiwei from Goldman Sachs both in the conference room. Only Zhang Hongli from Deutsche Bank was in his president’s office. About 30% of the content discussed was related to ice core.
Fang Zhuo has an intuition about Zhang Hongli, who is very cautious in project investment.
In this case, let's put our energy in the right place first. As long as Goldman Sachs and DCM are completely dealt with, the financing progress of the Ice Core project will be 99% complete. The difference is more than 500 million and the difference is more than 100 million. The room for operation cannot be the same.
language.
In the first week of September, Fang Zhuo was based in Shencheng and Qiu Ciyun took root in Luzhou. One continued to raise funds and the other determined a suitable factory site.
With the gradual entry of funds from various companies, the proportion of CSMC shares registered in the Cayman Islands changes almost every day, gradually revealing the planned framework.
Fang Zhuo did not include a clause for transferring management rights in the initial agreement with DCM and Goldman Sachs. The difference between him and SMIC Zhang Rujing is that he can firmly control the ownership of the company through equity.
30% of its own shares + 14.4% of Luzhou SDIC + 10% of the option pool held by a third-party company. This gives it absolute decision-making power. This does not include IDG, which has not yet received funds, even if it continues to raise funds in the future.
, can still control the board of directors.
September 9th, DCM chose an auspicious day to sign a formal agreement with Ice Core CSMC.
There was no champagne, no celebration banquet, no media reporters were invited, and only a few photos were taken by Yike's people.
In the photo, both Fang Zhuo and Connor were smiling happily. The photo of the two shaking hands with each other while holding the contract was even taken back by Connor as a souvenir.
DCM came to China to develop business. As a partner, Connor chose the semiconductor industry, and the two investment projects he was promoting were Bingxin and SMIC.
Needless to say, SMIC is about to go public, and its scale and performance are destined to perform well in the stock market.
Ice cores are promising.
Connor believes that China’s semiconductor industry will develop rapidly to a certain extent, and that he can make considerable profits from it.
Three days later, Goldman Sachs Group, which had previously maintained a tacit understanding with Deutsche Bank, was also pleased to sign a formal agreement with Bingxin CSMC and also became a member of the company's board of directors, with chief representative Xu Kaiwei serving as director.
So far, Yike Group, Luzhou State-owned Investment Corporation, MIGA Fund, Goldman Sachs Group, DCM, and China Enterprise Investment have all reached cooperation with CSMC Ice Core and jointly invested US$750 million to build an advanced domestic wafer fab project.
Now, only Deutsche Bank and IDG are left that have not completed their tasks.
Fang Zhuo did not contact the two companies immediately. He spent two days thanking various local governments, saying that no cooperation was reached this time and that there would still be opportunities to build production lines next time, just like SMIC not only building factories in Shanghai.
Same.
In the future, there is still a lot of room for cooperation between ice cores and local governments.
On September 14th, CSMC held its first high-level meeting of the company. Five directors were supposed to be present, but four were actually present. The one who was absent belonged to the GA Fund. Everyone knew the purpose of setting up this seat and did not express it.
What's your opinion?
Fang Zhuo, Xu Kaiwei, Connor and Wu Hongquan, who represents Luzhou SDIC, are the four people on the board of directors who can vote on the spot with effect.
Also present at the meeting were Qiu Ciyun and other senior technical backbones who returned from Luzhou, as well as Sun Qi, the supply chain director of Yike.
●Today’s meeting mainly discusses international equipment procurement.
It is precisely because of this that Qiu Ciyun returned to Shencheng specifically. He had already drawn up a list of equipment, but due to Fang Zhuo's unprofessionalism, he had to explain the situation face to face.
“According to our procurement experience in the previous two years, European equipment is relatively easy to purchase, but Asian equipment such as Singapore is not easy to purchase. They mainly consider the protection of their own industry and will have administrative intervention.”
“Israel is also good, and they are happy to sell equipment, but their disadvantage is that the cost of subsequent maintenance and upgrades is very expensive.”
“The first equipment SMIC replaced was purchased from Israel. After one year, the follow-up costs almost caught up with the initial purchase price of the equipment.”
Qiu Ciyun in the conference room was chatting and introducing the procurement situation.
When he came to the end, he added: "Many of SMIC's second-hand equipment were obtained through Mr. Zhang's connections. If we can't buy them, I'm afraid we have to buy new ones. Moreover, I have the latest situation of international procurement."
I don’t know much about it yet, I’m afraid I need to do some running before I can evaluate it.”
Fang Zhuo listened very carefully. Although he didn’t know much about this field, he just knew how to employ people.
He first asked Sun Qi, the director of his company, and asked: "Mr. Sun has been doing business and communication internationally all year round. Mr. Sun is responsible for our cooperation with Yike and Japan's Toshiba. Can we expand the business scope next?"
You guys can discuss it and come up with a result."
Fang Zhuo motioned for Sun Qi and Qiu Ciyun to communicate with each other. The former is proficient in international procurement processes, and the latter is familiar with equipment demand, so they should be able to complement each other. As for Yike's supply chain, it is now very stable, and he can just promote his deputy.
“Mr. Xu, the new CFO recommended by Goldman Sachs is very useful. Can you recommend someone else for equipment procurement?”
Fang Zhuo turned around and communicated with Xu Kaiwei who was sitting next to him. The meaning was very clear. After signing the contract, everyone is on his own, so he should quickly provide help with equipment procurement.
Xu Kaiwei pondered for a while and said: "We are definitely willing to help and try to make sure there are no problems at the equipment level, but to be honest, the help Goldman Sachs can provide is more convenient in the United States."
Goldman Sachs is a global group, but its influence is naturally the strongest at its base camp.
It’s just that equipment procurement in the United States encounters the highest level of scrutiny.
The influencing factors on both sides are combined, and what the final result will be is something that you really have to try to know.
Fang Zhuo then asked Qiu Ciyun what he meant. If he could buy American equipment, then of course he should buy American equipment. Most of them are the best.
So, let’s finalize one thing first and adjust the focus of procurement. Originally, we put the most rigorously scrutinized American equipment last, but now we will try it in the United States first. If it is not satisfactory, we will then consider alternative products.
“Is there any equipment we can buy in China?”
Fang Zhuo waited until the decision was made and then asked with a smile.
Qiu Ciyun thought for a while and replied: "Very few. SMIC also has a small amount of domestic equipment, but there is a problem. We still have to consider subsequent technology upgrades. There is still a long way to go in this regard domestically."
“Especially for semiconductor materials, SMIC imports almost all of them. The domestic gap in this regard is even greater when it comes to equipment. I’m afraid it won’t take just a few years to catch up.”
Fang Zhuo nodded slightly and was not disappointed.
The most important task now is to build a combat-effective production line. Just like national development, of course we must take advantage of economic globalization to actively develop and learn from each other's strengths. When one day it can reach a large scale and have an impact, then we must be prepared for risks.
The procurement of equipment in the United States will be coordinated by Qiu Ciyun and Sun Qi, and will be coordinated with the team of Goldman Sachs Group in the United States. Intensive work will begin this month.
The meeting confirmed this point, and the second point of discussion was future market issues.
ˆAlthough the production line is not yet in sight, the market discussion is not just about the product sales itself.
The semiconductor industry is different from other industries. When foundries process upstream designed products, those IC design companies often provide some related technologies.
Just like SMIC, they have successfully transferred a number of semiconductor processes and technologies below 0.21 microns from major international manufacturers such as Toshiba, Infineon, and Texas Instruments.
Of course, in addition to technology transfer from major international manufacturers, patented technologies and independent research and development from partners are also important sources of technology.
Ice core obviously does not have the ability to aim at world-class technology at present. All it has to do is to negotiate some not bad orders to polish its technology and craftsmanship. Zhang Rujing can easily accomplish this because of his wide network of contacts.
Qiu Ciyun feels that this may be a challenge for ice cores, and he is fully mentally prepared.
“The cooperation between Yike and Toshiba is very good. The product supply contract has been signed for many years. I believe that as Samsung and their storage technology make breakthroughs, Toshiba will be happy to transfer some of the technology.”
“If they are unwilling to transfer technology, we will consider using alternative products, which is a small benefit.”
Fang Zhuo made an arrangement that everyone expected, and then said: "As for other orders, don't worry too much for the time being. First, there is still time, and second, I have prepared a package plan."
Everyone in the conference room was waiting for Mr. Fang to finish speaking. However, Fang Zhuo stopped talking.
“So, Mr. Fang, what is the package plan you are talking about?” Xu Kaiwei, the new director of CSMC, thinks he can ask this question clearly.
“I can’t say for the time being.” Fang Zhuo thought about it for a moment and then decided that he was one of his own, and added, “The main reason is to win orders from Philips and Texas Instruments. I will inform everyone when there is progress.”
Mr. Fang made a mistake.
The people in the conference room had some different ideas.
When Qiu Ciyun heard "Texas Instruments", he always went to Zhang Rujing to find Mr. Zhang when he was suspicious. Mr. Zhang had worked at Texas Instruments for a long time. Some of SMIC's orders were obtained by virtue of this relationship. However, Mr. Zhang could still work in the company.
Help with this matter? He is not a saint!
Xu Kaiwei felt that Mr. Fang might be trying to boost everyone’s confidence. The so-called “package plan” was probably fictitious. How could it be so easy to get orders in the market? What’s more, Mr. Fang was an outsider.
As for Connor, he happily prepared to wait until he heard the progress notification from Mr. Fang next time.
The Bingxin CSMC meeting lasted for a long time, and when it was over it was the time for everyone to take action.
That evening, Fang Zhuo compiled a copy of the meeting and sent it via email to Xiong Xiaoge, who was not yet a director but was spiritually recognized by him as a director.
After waiting for half an hour, he estimated that Lao Xiong could get a rough impression and made a call.
“Old Xiong, we are all in full swing here, why don’t you IDG come over?”
“Even if you IDG doesn’t come, the money from those caring people in society should come as soon as possible. Don’t be greedy.”
“Old Bear, Old Bear, I know you are listening, don’t hide on the other end of the phone and remain silent.”
Fang Zhuo said three sentences.
A few seconds later, Xiong Xiaoge's hoarse voice sounded: "I'm drinking water and taking medicine. I've been using my voice too much these days. IDG will visit Shanghai in two days. It's a joint investment between China and the United States."
“Okay, drink more water, see you in Shencheng.”
Fang Zhuo received a satisfactory answer and quickly ended the call, not wanting to understand the working process.
Xiong Xiaoge held her cell phone in her hand. She wanted to ask a few more questions about the project, but was choked in her throat. She couldn't help but cough again.
He shook his head, put down his phone, and continued to browse the meeting content in his email inbox.
…
Just as the ice core financing was a success and the work was in full swing, on September 20, an ordinary passenger plane landed at the Fort Worth International Airport in Dallas, Texas, USA on this ordinary day.
A group of people from Taiwan Semiconductor Manufacturing Co., Ltd. got on a special car to Texas Instruments, preparing to receive the chip products sent from mainland China accompanied by legal personnel.
The team that came to TI this time included Cai Lixing, general manager and chief operating officer of TSMC, Jiang Shangyi, senior deputy general manager of R&D, and Edward, general manager of the U.S. subsidiary. They are not low-level.
“Mr. Cai, are the people from Hsinchu also moving together today?”
Jiang Shangyi asked Cai Lixing while sitting in the car.
Cai Lixing shook his head: "After we have finished comparing the chip technology and fixing the evidence, we will let the Hsinchu police participate in the investigation."
“Actually, it’s impossible for SMIC’s chips to change course immediately. People in the Hsinchu company can be controlled first.” Jiang Shangyi said with a smile, “Don’t let people run away.”
They were discussing an internal technology leak that was discovered within the company. It is now basically confirmed that an employee was transmitting confidential drawings to SMIC via email.
But after discovering this incident, he did not alert the snake and planned to find more traces to convict him in one fell swoop.
At the same time, TSMC has long decided to take action on chip technology ahead of schedule. This time it contacted Texas Instruments for final evidence collection.
“Mr. Cai, do you think SMIC can continue to be listed?” Jiang Shangyi said cheerfully.
"It will definitely be listed. If it is not listed, it will be even worse. If we choose to launch it before they go public, SMIC will face a dilemma. They can only choose to bleed to go public." Cai Lixing said with confidence.
Jiang Shangyi nodded: "How can the Dongchuang matter last long?"
The group of people drove into Texas Instruments' company with such smiles, preparing to prepare a gift for SMIC, which was about to be launched.
