I haven't been a boss for many years

Chapter 589 Semiconductor Industry

Wang Yongqing welcomed Taoyuan Hotel: "Mr. Zhang, long time no see!"

"Boss Wang, you are safe and sound." Zhang Guobin hurriedly shook hands and greeted.

"Thanks to Mr. Zhang, the business is going well. Come here, please!" Wang Yongqing is very good at chatting, and has the temperament of an old-fashioned businessman. Taiwan and Island businessmen are also well-known cowhide kings. No matter whether the business is doing well or not, bragging is always indispensable. .

He raised his hand to invite Zhang Guobin to enter the box, and sat down to drink tea. Zhang Guobin swept his eyes and asked aloud, "Where is Dr. Zhang?"

Zhang Zhongmou, the founder of TSMC, was born in Ningbo, Zhejiang Province in 1937. He is a standard scientific research genius. At the age of 24, he obtained a master's degree from MIT and a PhD from Stafford.

Stepped into the semiconductor industry with the founder of Intel Corporation "Gordon Moore", and entered Texas Instruments at the same time as Jack Kilby, the inventor of the integrated circuit, and became the pioneer of the world's semiconductor industry.

He has successively served as a member of the MIT board of directors, a consultant of the New York Stock Exchange, a consultant of Stafford University, and an academician of the Taiwan Academy of Mechanical Sciences.

His academic level of proficiency in scientific research and the changes of the times he has personally experienced have made Zhang Zhongmou an academic businessman with vague national concepts and strong business awareness.

In academia, people who can realize scientific research results are far stronger than those who work hard and apply for subsidies with a bunch of papers.

Two years ago, Zhang Zhongmou was invited by the Taiwan Provincial Academy of Sciences to resign from his high-paying position at Texas Instruments and return to Taiwan to prepare for TSMC.

Zhang Guobin thought that he would have the opportunity to meet and make friends with the famous chip king in Asia. Unexpectedly, Wang Yongqing received him alone and said aloud: "Zhong Mou is investigating the company's site selection in Hsinchu Science Park, and I don't have time to meet Mr. Zhang, and Zhong Mo Mou’s company is led by the Taiwan government in financing, and it is stipulated that only Taiwan companies can participate in the financing, even if Brother Zhongmou comes.”

Zhang Guobin had a keen mind and asked, "So, this time, Boss Wang privately invited me to participate in the financing?"

Wang Yongqing smiled and said, "Mr. Zhang seems to be very interested in the semiconductor industry."

"Since I have the opportunity to join, I will reciprocate and give Mr. Zhang a favor. Thank you Mr. Zhang for introducing me to do business in the north."

"Hahaha!"

Zhang Guobin laughed loudly, took out a cigar, and praised: "It seems that I really didn't miss Boss Wang as a friend. Boss Wang can introduce the situation of TSMC."

Although TSMC has not yet opened for business, the company name has been registered, the legal procedures have been completed, and preparations for the location of the laboratory and factory are in progress. Everyone in Taiwan knows that Academician Zhang is going to start a new company, but few people can imagine the future The prospect of "TSMC".

Wang Yongqing is one of the few people.

He patted the chair and sipped the tea ceremony: "Zhongmou and I are family friends, and the money for his study abroad is also funded by my father."

"Later, he learned a lot, studied for a master's degree and a Ph.D., and joined Texas Instruments at the age of 27. From the first and only Chinese employee of Texas Instruments, he became the vice president of the company and the third person after 15 years. .”

"When Texas Instruments was in charge of the integrated circuit department, it was committed to the development of the semiconductor industry, but it seems that Texas Instruments' investment in semiconductor research is not enough."

"At the kind invitation of the Taiwan government, he chose to return to Taiwan Island to start a business. From the first day he returned to Taiwan Island, he was determined to build a semiconductor industry for Taiwan Island."

From the perspective of an overseas Chinese, Zhang Zhongmou is definitely an outstanding man of his generation and a model for overseas students.

He is the idol of tens of millions of Chinese students at MIT.

"The establishment of TSMC this time is to manufacture products for semiconductor design companies around the world and to be a link in the global chip supply chain."

Do computers, mobile phones, automobiles and other electronic industrial products.

As long as chip computing is involved, semiconductor garden transistors are absolutely inseparable.

Currently Intel, Samsung is the tech industry giant.

All of them independently produce chips and produce wafers.

This will result in different packaging modes of various electronic products, and there is no unified standard, which in turn will result in limited production capacity, slow chip production, etc...

TSMC's wafer foundry is actually making a standard component for use by various manufacturers, saving manufacturers' industrial costs.

Direct purchase is cheaper than maintaining a scientific research and production line. Standard parts can also promote the development of the chip industry, just like a unified mobile phone charging interface, everything is convenient brought by "standards".

Correct.

To put it bluntly, TSMC, which is well-known and has a market value of trillions, was originally a foundry factory, but the foundry industry is relatively sophisticated.

Later, the continuous tide of the electronics industry in the 90s and 20s pushed TSMC to a higher level.

Coupled with TSMC's first-mover advantage, the products have become more and more sophisticated, and until 21 years, 3nm chips have been mass-produced.

The science and technology industry is an industry that requires scientific research, time, funds, and continuous precipitation.

The earlier the company gets on the same track, the more advantageous it will be.

What Zhang Guobin values ​​is TSMC's first-mover advantage.

Zhang Zhongmou's genius belongs to genius.

Are there still so few geniuses in this world?

"It's a pity that the first administrative official who promised to support Zhongmou's entrepreneurship fell last year. The new officials have new projects and reduced investment in TSMC."

"Originally, the Taiwan government will invest 800 million US dollars, provide policy support for a period of five years, reduce water, electricity and rent, and hold [-]% of the shares."

"A company with a US capital background invested 500 million US dollars and holds 300% of the shares. Brother Zhong Mou personally invested [-] million US dollars to establish and manage the company and only owns [-]% of the shares."

"But because the Taiwan government has reduced the amount of investment, Brother Zhong Mou had to take out [-]% of the equity for private placement."

Zhang Guobin asked, "How much investment has the Taiwan government reduced?"

"It has been reduced to 500 million US dollars, but the policy support is still there, but the shareholding remains unchanged." Wang Yongqing smiled wryly: "My Nanya circuit board company can also be regarded as a technology industry, and I have a good relationship with Brother Zhongmou."

"I have the first batch of qualifications to participate in private placement."

Sure enough, no one can escape the influence of officials in the high-tech industry everywhere.

After all, it is a big piece of fat. You have the ability, but others have the market and iron fists. If you want to make money, you still have to cut the meat.

Zhang Guobin nodded: "Boss Wang, how much equity can you subscribe for?"

"Five percent!" Wang Yongqing said aloud: "In this private placement plan, one person can subscribe up to five percent of the equity, and each one percent of the equity is 70 US dollars."

The price is not too high.

However, the angel round is jointly invested by Taiwan government and US capital.

This time it is the second round of financing, and the equity price will naturally rise. Although TSMC has not produced a single wafer, but with the endorsement of the qualifications of the Taiwan government and the founder, the equity price will definitely not be cheap.

"Then let's pledge to raise five percent of the equity." Zhang Guobin asked aloud, "I want to pocket all five percent of the equity. What does Boss Wang think?"

Wang Yongqing smiled: "I invited Mr. Zhang here as a friend. I can't do things that block my friend's money. Besides, I am not optimistic about the prospects of TSMC."

"The current market for electronic products is too small. Even if TSMC can finalize the orders of major groups, the initial equity will not reach 50 US dollars per share."

"I fully believe that TSMC can make money, but I still have doubts about whether TSMC can achieve an annual revenue of hundreds of millions or hundreds of millions."

In fact, the five-point equity is too small, and the cash flow invested is too large. For Wang Yongqing, it is more than three million U.S. dollars, so it is better to continue to grow the Nanya circuit board company.

If ten or twenty points are different, it is a big gamble, and the benefits will be huge.

The big bosses don't like the small business with five points, and Zhang Guobin wants to pick up the loopholes.

Of course, if you are not a reborn person, it is really hard to believe that the chip market will explode, and it is even more difficult to imagine that in the next [-] years, the two major industries of Taiwan’s GPD will be TSMC and fraud.

Yes, other tourism, fruit, finance, construction and other industries will be blown away by the wind.

Only TSMC and fraud are standing still!
Lao Ma thought about selling penguins halfway through his business. The shopping mall is so weird, luck and strength are crucial.

"Since this is the case, I would like to thank Boss Wang for the profit, but I want to inject capital in the name of Boss Wang's company, and I hope Boss Wang will save face." Zhang Guobin smoked a cigar and weighed it.

Wang Yongqing was stunned for a moment: "Mr. Zhang wants to exchange shares?"

This point is very simple in terms of business. There is a certain gap between Formosa Plastics Group and Yihai Group. The replacement of equity is a good thing for Formosa Plastics.

It can ensure that Boss Wang's funds are safer and his investment is more diversified. From a political point of view, there are certain risks in the exchange of equity between Hong Kong and Taiwan companies.

The shares held by the Formosa Plastics Group after the exchange of shares are equivalent to Yihai Group's holdings in disguise, wearing a vest, but it is easy to find out if you do a shareholding penetration investigation.

Zhang Guobin just hopes to be a pure behind-the-scenes shareholder, so as not to be washed out by the shareholder meeting again and again during the rapid development period of TSMC.

The Taiwanese government and American capital will exclude pro-China capital from overseas high-tech investment. As someone who has experienced the trade war, he has to plan ahead and prepare more than [-] years in advance.

Because the Sino-Western relationship in the international situation has not changed substantially in more than thirty years, but don't think too much about the Taiwan government and the Yankees!
"I don't think there is any need to replace the shares. I will pay and the shares will be registered under the name of Formosa Plastics Group." Zhang Guobin explained.

Wang Yongqing was greatly astonished: "Zhang Sheng, you don't even sign the share contract, and you don't have legal endorsement, so you have to invest [-] million US dollars?"

Zhang Guobin puffed on his cigar, and said confidently: "Business is all about letter, letter is not written in the contract, it is written in the heart!"

"How do you do business during a war? Don't rely on a letter. People in the past can do it, why can't we? Boss Wang introduced me to do business this time, so I completely trust Boss Wang."

It is definitely good for most businesses to have a contract, but some businesses can only enter the village secretly, and do not shoot guns, credit becomes very important.

Wang Yongqing shook his head and said with emotion: "Mr. Zhang is very old-fashioned, so I won't say much. Formosa Plastics Group will be optimistic about these five points of equity for Mr. Zhang."

(End of this chapter)