In Wang Yaocheng's industrial layout, electronic semiconductors are an out-and-out core industry, and LCD panels are also a core industry with extremely high technical barriers, equivalent to two important pillar industries of the consortium.
From now to 2008, in addition to focusing on the development of the LCD panel field, improving the layout of the chip manufacturing industry chain is a parallel key task.
In the final analysis, to have the ability to eliminate all interference, we still need to build a self-circulating closed-loop industrial chain.
The entire chip industry chain is very long. After careful combing, it can be divided into three parts.
Part One, upstream raw material and equipment production areas.
In this field, Japanese and American manufacturers are the strongest, including silicon wafers, photoresists, special gases, electronic chemicals, wafer packaging materials, photomasks, CMP polishing materials, sputtering targets, etc.
Key raw materials.
With the rapid development of the troika in the semiconductor field under the Royal Family Fund, China has shown a gratifying situation in which a hundred flowers are blooming in this high-tech field. A large amount of social capital investment and related enterprises established by entrepreneurs who have returned from foreign studies have further promoted the upstream raw material field to catch up.
World advanced level.
Speaking honestly
Although related domestic enterprises are developing rapidly, they will surely be able to take on important responsibilities in time.
But now, after all, the foundation is weak, the time is short, coupled with the late start and insufficient related research and investment, the products are basically crowded at the low-end level and cannot meet the high-level advanced process production needs.
Therefore, most of the upstream raw materials used by Atlantic Jinko, Hynix and TSMC are imported products.
At present, the world's semiconductor industry has entered the era of oligarchy, and the competition pattern is relatively stable.
Although the share of Japanese-funded enterprises in the semiconductor production and equipment industry is decreasing, they still maintain a dominant position in some other sub-sectors of semiconductors and in the field of semiconductor materials.
The production of semiconductor chips requires 19 necessary materials, all of which are indispensable. The technical barriers are high, and the production requirements are demanding and difficult to produce.
Therefore, semiconductor material companies occupy a vital position in the semiconductor industry.
Japanese-funded enterprises are engaged in silicon wafers, synthetic semiconductor wafers, photomasks, photoresists, pharmaceuticals, target materials, protective coatings, lead frames, ceramic plates, plastic plates, TAB, COF, bonding wires, packaging materials, etc. 14
It holds a 50% to 80% share in both medium and important materials, and has maintained an absolute advantage on a global scale for a long time.
The remaining market is occupied by multinational chemical companies such as AZ, Air Chemicals, Praxair, Pushland Chemical, BASF of Germany, and Dow Chemical Company of the United States. Domestic chemical companies are still hovering at a low level.
Royal Family Fund’s response to this is to walk on two legs;
First, using its status as the top buyer of international semiconductor raw materials, it selects one or two Japanese companies to participate in the shares and join the board of directors to close the strategic partnership between the two parties and have a certain say.
The tentative targets are several companies such as Shin-Etsu Chemical, Sumitomo Chemical and Fuji Electronics, and they have now entered the substantive negotiation stage.
Second, acquire three to five domestic companies for support. The initial screening targets include Foshan Huate Gas, Shenzhen Qingyi Optoelectronics, Jiangfeng Electronics, Zhejiang Jinhongrui and other companies to expand their say in this field and ensure the supply of upstream raw materials.
In upstream semiconductor production equipment
The photolithography machine is responsible for drawing, and the etching machine is responsible for engraving. They are both core production equipment.
The Royal Family Fund has mastered the key equipment production capacity of the advanced ultraviolet lithography machine of the Dutch ASML company, and its ability to maintain the leading edge in advanced process technology is inseparable from this.
at the same time
Actively deploy etching machine manufacturing companies, and jointly invest with relevant parties in China in two companies, Northern Huachuang and China Micro Semiconductor, occupying 15% to 25% of the equity respectively, strengthening the consortium's semiconductor integrated circuit manufacturing, advanced packaging, and LED production.
Self-sufficiency in the field of high-end equipment for MEMS manufacturing and other micro-processing.
part two
In the field of semiconductor chip design and production, the companies under the Royal Family Fund have abundant capital that is unparalleled in the world and are the kings in this field.
Among IC chip design companies, the consortium owns the world's top Red Hat Systems and AMD, the Athlon central microprocessor based on the open source Linux architecture, and the embedded Linux mobile phone baseband chip with completely independent intellectual property rights.
The field of chip manufacturing is even more remarkable. The troika of Atlantic Jinko, TSMC and Hynix is very powerful. They are all leading companies in the industry. Their competitiveness and technological research and development capabilities are far ahead, completely crushing their competitors.
IC packaging and testing also has strong strength, and there is no doubt about its strong strength.
part three
In the field of downstream applications, Wang Yaocheng already has a complete layout and planning, including detailed deployments in PC, wireless communications, consumer electronics, network equipment, medical equipment and industrial applications.
The entire midstream and downstream industry chain, down to Global Communications, which faces users directly, is basically improving day by day.
After sorting out the entire electronic semiconductor industry, we only need to fill in the gaps and improve the layout of upstream raw materials and key production equipment, and we can basically meet Wang Yaocheng's demanding requirements.
In the field of LCD panel production
Japanese-owned Shin-Etsu Chemical and Sumitomo Chemical are also indispensable suppliers. Therefore, it is particularly important to invest in these two companies, which is related to the production and supply of raw materials for the core industry of the consortium.
Both of these companies are Japanese consortiums, one belongs to the Mitsui Consortium and the other belongs to the Sumitomo Consortium. It is absolutely impossible for the Royal Family Fund to control them, and Fuso people are not short of these two funds.
The Royal Family Fund can only settle for a shareholding, which is fine. As the world's largest customer of raw materials, it is a win-win situation to have a close relationship between the two companies.
The most critical thing is the board seats and voice, which has become a difficult point in the negotiations between the two parties.
Royal Family Fund insists on holding no less than 20% of the equity and obtaining corresponding board seats, and will never back down on this requirement.
For the Japanese side, 20% equity is no problem, but the corresponding board seats are definitely not enough, and they will never retreat.
The two sides are deadlocked on this key point.
In the study
Wang Yaocheng lit up the cigar and took a deep breath, then slowly exhaled it, letting the strong smell of cigar smoke linger in the study room. He felt that his mind was analyzing the pros and cons in an instant, and finally made up his mind.
It seems that Japan is still going to have a go in the near future. The main target is Shin-Etsu Chemical, which is owned by Mitsui Consortium. It would be better if Sumitomo Chemical can be negotiated together.
This matter cannot be delayed any longer and should be carried out as soon as possible.
Shin-Etsu Chemical Industry Co., Ltd. is the world's largest supplier of silicone and a well-deserved upstream raw material giant in the semiconductor industry. It produces high-quality PVC, organic silicon, semiconductor silicon, electronic functional materials and chemical materials. Its products are outstanding worldwide.
reputation.
As early as 1939, Shin-Etsu Chemical Co., Ltd. began to produce silicon products. In 1967, it entered the high-purity rare earth industry. In 1979, it began to enter the quartz synthesis industry.
After the rapid development of Japan's semiconductor industry in the 1980s, Shin-Etsu Chemical Company now controls most of the world's silicon production and other high-end chemical materials. Its overseas turnover is as high as 71%, and it is an important raw material supplier for the semiconductor and LCD panel industries.
business.
Shin-Etsu Chemical Co., Ltd.'s revenue in 2003 reached 1,000.7 billion yen (approximately US$8.9 billion), with a net profit margin of 14.91%, approximately US$1.327 billion. It is a very outstanding multinational chemical company.
Operating conditions have steadily improved over the years, and profit margins have always remained high, as stable as an old bull.
If we make an analogy, it is similar to Corning, which has been owned by Royal Family Fund for 150 years. They are both stable and high-quality companies.
For the Royal Fund, which holds a large amount of cash, investing in Xingyue Chemical Co., Ltd. is definitely a good deal that ensures a steady profit without losing any money. It not only ensures the security of the supply of raw materials for the core industry, but also enables stable and efficient returns.
Wang Yaocheng is not worried that the Mitsui Consortium will veto the mutual equity transaction. This strategic alliance of interests is beneficial to both companies. The key is that he is afraid that the conditions cannot be negotiated.
I don’t want to give you what you want, and the other party doesn’t accept what you want to give. This is the difficulty of the problem.
The Mitsui Consortium now has rare goods, and always hopes that the Royal Family Fund will come up with better bargaining chips. Wang Yaocheng holds many coveted trading chips, which are enough to impress the Japanese chaebol, which is known as an "economic animal".
In other words, the Mitsui Consortium is unwilling to accept cash in transactions and prefers to hold stocks of companies with promising prospects.
As long as he brings out the bargaining chips that he likes, there's no need to worry about the big thing happening!
Judging from the news coming back from the front negotiation team;
The Mitsui Consortium has taken a fancy to the equity of Hynix, a manufacturer specializing in the production of DRMA memory chips. Its international market share has reached 42.2%, and it is now making money every day.
The Sumitomo Foundation is interested in Atlantic Jinko, which is also a hen that can lay golden eggs and is also a leading company in the field of electronic semiconductors.
None of these little devils are stupid. They all have their sights on the best core companies of the Royal Family Fund. Their demands are just on the edge of what Wang Yaocheng can bear, but they are not too outrageous.
Wang Yaocheng took a deep breath of the cigar, and under the stimulation of nicotine, his thinking became more active, and an inexplicable smile appeared at the corner of his mouth;
Huh, I'll give you whatever you want. Wouldn't that make me lose face?
During negotiation, you must have a deep understanding of the other party's mind. It is a process of mutual compromise and seeking new solutions, rather than giving what you ask for. That is not called negotiation, just raise a white flag.
Now that the oligopoly pattern of the semiconductor industry has taken shape, the Japanese consortium is nothing but jealous of the monopoly profits of the above-mentioned companies, making money faster than printing money, which is really envy-inducing.
Wang Yaocheng really needs to improve the upstream raw material industry chain, but he does not want to diversify his core industry holdings. He has a better idea.
Among its peripheral industries, Marvel Animation holds more than 80% of its shares, and its current market value is around US$92 billion. It is a good time to appropriately reduce its weight.
This high-quality asset has attracted countless media and entertainment industry tycoons to covet it, and Japanese consortiums will also be interested.
Wang Yaocheng's judgment is based on the character of Fusang people.
"The Chrysanthemum and the Sword", which is very representative of the Fuso people's character, is essentially a product of contradictions. They adhere to tradition but have the courage to learn, are extremely confident but obey the strong, which is a contradictory dual personality.
After World War II
I was pushed to the ground and rubbed again and again by the American daddy. I was so shocked that I completely lost my self-confidence. I developed an extremely sensitive and face-saving mentality, and attached great importance to international perceptions.
Especially the opinions of Americans can even influence government decisions.
late 1980s,
During the Fuso economic bubble period, Fuso went to the United States to purchase assets on a large scale, entering Hollywood and buying iconic assets such as the Rockefeller Building. It was at this time that right-winger Shintaro Ishihara wrote "Japan Can Say No", which fully reflected the extreme expansion and lack of
The ambivalence of confidence.
This kind of behavior is just hoping to be re-examined by the American father, which is essentially a manifestation of lack of self-confidence.
Entering the 21st century
Fusang society has ushered in a lost decade. Seeing the US economy in turmoil, the Four Little Dragons of Southeast Asia rising one after another, and the Chinese dragon taking off economically, the people in Fusang society have mixed feelings.
Throwing out this bait, taking a stake in American Marvel Animation is an investment that is both honorable and respectable. It is supplemented by a gambling agreement that ensures profit without loss. I believe that more than 60% of the Japanese consortium may accept it. Wang Yaocheng is very confident that the other party will not be able to bear it.