The Millennium Semiconductor Survival Guide.

Chapter 220 New Baidu Listing

The turning point in TSMC's history lies in the breakthrough of the copper process.

Before the copper process, most of TSMC's technology needs to rely on IBM, all the way to the copper process.

IBM wanted to sell their newly developed copper process technology to TSMC, but TSMC chose to refuse, hoping to do it alone.

Originally, Lin Benjian was a key core figure in the process of TSMC conquering the copper manufacturing process. Now that Lin Benjian is missing, the progress is not as fast as before.

If Lin Benjian joins, TSMC will only need to spend less than two years to conquer the copper process, while IBM's technology is not mature enough and has obvious defects.This will also cause TSMC to occupy more than half of the chip foundry market share after conquering the copper process.

Lin Benjian's idea is to cooperate with TSMC around lithography machines. Although TSMC is not as monopolistic as the future, it is also the head echelon of chip foundries.

When Xinxin Technology's own chip foundry is still in its infancy, it is necessary to choose to cooperate with TSMC and find a chip foundry to jointly promote the development of a new generation of lithography machines.

"I think under the current circumstances, we can cooperate with TSMC around chip technology.

After the launch of mobile phone integrated chips this year, even if we complete the establishment of the joint venture with Hua Hong, an 8-inch production line alone will not be able to meet the production capacity demand.

Secondly, TSMC has the need for technological breakthroughs, and we also have the need for technological breakthroughs. We can communicate with TSMC, and the technical patents in the process of conquering the 130nm process need to be mutually authorized.

For this reason, we can provide part of A1E chip orders to TSMC.Whether we are cooperating with TSMC or cooperating with other manufacturers in the chip field, we must give full play to our diversified advantages.

Xinxin Technology not only has lithography machines, but also chip design and chip foundry.

These can be used as bargaining chips. "

After Zhou Xin finished speaking, Guan Jianying added: "That's right, this is also Samsung's way of playing, Samsung likes to buy and sell.

For example, ask Samsung mobile phones to find Texas Instruments chips, and then ask Texas Instruments to hand over the chip foundry to Samsung.When cooperating with other manufacturers, Samsung will launch a bundled sales strategy combining memory chips, panels and chip foundries.

Our previous utilization around this area was not enough.Bundling is a very common strategy, and AMD also likes to sell CPUs and GPUs together.

Previously, Xinxin Technology did not consider our advantages in this area. When handing over the A1E chip foundry to Samsung, AMD and Texas Instruments, it did not force Xinxin lithography machines to be bundled for sale. "

Samsung used its advantages in memory chips and panels to obtain an OEM order from Apple. After becoming Apple's chip foundry partner, Samsung's chip foundry profits tripled in just four years.

80.00% of the profits from OEM A-series chips for Apple.

Mobile phone chip foundry is a big piece of cake. Cooperation in the semiconductor field is not just about profit. Technology is equally important. In more than a year, Mphone has activated more than 500 million units worldwide, including unsold inventory and Distributors don't have any inventory for booting up, and Matrix has ordered about 700 million A1E chips, which is an order close to 10 billion US dollars.

Even if the $10 billion order is divided into three parts, it is still a large amount. During the process, some requirements are put forward, such as the purchase of new core lithography machines, and some technical authorizations, and they will definitely agree down.This is not a harsh requirement.

I didn’t do this before, mainly because Guan Jianying lacked experience in this area. I was mainly engaged in the field of chip design before. The form of Xinxin Technology is very similar to that of Samsung. If I enter the field of panels and memory chips, then Just like Samsung.

This kind of comprehensive semiconductor company needs to make full use of its strengths to make up for its shortcomings.Guan Jianying lacks awareness in this regard.

And Lin Benjian did not work in TSMC like the original time and space. He belongs to Xinxin who came directly after working in IBM. With IBM's strong position, there is no technical weakness at all. Once they fall behind in technology, they will give up the entire business. .

Hu Zhengming said: "I took a look, and our orders for Samsung's chip foundry have exceeded three-quarters of their annual revenue, and we have a sufficient basis for negotiation.

We can cooperate with TSMC and Samsung at the same time. To a certain extent, Samsung also hopes to have more choices, instead of only choosing neon manufacturers in terms of equipment and raw materials.

We can use the lithography machine as an opportunity to cooperate with Samsung and TSMC.

After TSMC overcomes the 130nm process, it can give TSMC some orders for A1E chips. "

Hu Zhengming continued: "In addition, we don't have to focus only on Huahong. According to my knowledge, Motorola has an 8-inch chip production plant in Jinmen that is planning to transfer. We can consider introducing external capital and jointly acquire it."

In the first ten years of the 21st century, Huaguo's semiconductor industry showed a very strange trend. Huaguo's share in the global integrated circuit market is getting larger and larger. According to the statistics made by IDC in 2005, For example, the total revenue of global integrated circuits is 1920 billion U.S. dollars, and the total revenue of Huaguo market is 403 billion U.S. dollars, which is about 20% of the global market.

However, the annual revenue of Huaguo semiconductor manufacturers is only 25.6 billion US dollars, and more than 90.00% of the chips produced by Huaguo itself are overseas orders.China's domestic demand is strong, but China's local chip foundries need to produce chips and sell them to foreign investors, and then sell them to Chinese consumers.

The weakness of Huaguo's local consumer electronics brands has led to a very low proportion of Huaguo enterprises' profits in the entire upstream and downstream, and the technology-driven and provided jobs are also limited.

What Zhou Xin worries about is that he has not accumulated enough technology during the bonus period, and he will be very passive when the bonus period passes.

In particular, the development of chip technology is almost every three years, and it will take ten times the effort to make up for it.

Now that it can catch up with the last afterglow of advanced manufacturing processes, TSMC can break through IBM's blockade through self-research, and ASML can pull Nikon down by cooperating with TSMC.

After 20 years, even if the chip manufacturers join forces, it is almost impossible to create another ASML and achieve a technological breakthrough.

Of course, it does not mean that it will never be possible. It is just that if you follow the existing technology route, you will not be able to surpass ASML. If there is a revolutionary breakthrough in basic materials, such as changing from silicon-based chips to carbon-based chips in the future, chip raw materials will change from monocrystalline silicon to graphene. .

"In the past few years, Xinxin Technology will not pay dividends, and I will not use Xinxin Technology's book funds to do other things. All will be used for research and development, and to pay salaries to front-line engineers and R&D personnel.

Our welfare system is inclined to front-line engineers and R&D personnel. " Zhou Xin said.

"The other thing is that the cooperation with universities in Huaguo can not be limited to undergraduates. Graduate students in Huaguo will have more independent time. We can increase our attraction to them, and we can sign agreements in advance for qualified talents."

In this meeting of Xinxin Technology, everyone reached a consensus on the future development direction of Xinxin Technology. To be precise, Zhou Xin agreed with their ideas and put forward his own ideas.

"Robin, congratulations, Baidu's successful listing is also the completion of a phased goal in life." Zhou Xin, as Baidu's shareholder representative, invited to participate in Baidu's listing bell ceremony on NASDAQ.

After the merger of Baidu and Google, the websites of both parties were retained, and Robin served as the chairman and CEO of the board of directors, and then the founders of Google served as the chief technology officer and vice president respectively.

Robin was in high spirits at the bell-ringing ceremony for the listing. Today is his home court. Executives from financial institutions who participated in Baidu's listing all gathered around Robin, all kinds of flattery and flattery.

Even Zhou Xin, who used to be the focus of everyone's attention whenever he went to New York to participate in any event, paled in comparison.

However, as the host, Robin will obviously not ignore Zhou Xin. Zhou Xin, who holds 30% of the shares of the newly established Baidu, is the key figure for him to secure his current position.

Zhou Xin has always stood by his side, so he can naturally sit back and relax. Although the combined shareholding ratio of him and Zhou Xin does not exceed 50.00%, he also has some die-hard supporters among other small and medium shareholders. More than 50%.

It’s just that compared with the white supporters, no matter how hardcore they are, there are differences in culture and nationality. Zhou Xin's own identity and resources last week, Robin can be said to regard Zhou Xin as the most important thigh.

Zhou Xin looked at the energetic Robin in front of him, and remembered that when Riot Games went public, he also rang the bell on Nasdaq as a company representative, but he was not excited at all at that time.

Because He Time Warner completed the deal of the century on Quora just before the listing of Riot Games. After the deal was completed, the money he made was just a figure for him, and the listing of Riot Games did not stimulate his nerves at all.

Obviously, it was the first time for Robin to go public on Baidu. After Zhou Xin congratulated him, Robin gave him a hug: "Newman, thank you for your support all the time.

Without you, Baidu would not be where it is today. "

Robin looked around, looked at Baidu employee representatives and financial institution representatives one by one, and said: "Newman has almost participated in the whole process of Baidu from its establishment to profitability, and has always been Baidu's most staunch supporter.

Baidu looks forward to maintaining a good cooperative relationship with Newman in the future. Together, we have entered the 20st century from the 21th century, and hope to spend more time together in the future. "

Robin is a person with a strong desire to control, otherwise Yuanshikong would not have forced Xu Yong, the co-founder of Baidu, to resign on the eve of listing.

But the situation is different, and the approach is also different. Neither Baidu nor Google adopts an A/B share structure, because neither Baidu nor Google monopolizes the search engine market. Word.

Therefore, neither Baidu nor Google can become strong against financial institutions, and there is no way to talk about the structure of A/B shares.

In NewPay, the structure of A/B shares has become the default condition, and there is no need to mention this at all when financing.

Robin said this firstly to win over Zhou Xin, hoping that Zhou Xin would stand with him, and secondly to push up Baidu's stock price.

Most of the people here are executives of financial institutions. Zhou Xin's vision in the Internet field has been verified by enough cases. Zhou Xin is optimistic that Baidu can bring several points of increase to Baidu on the day of listing.

"No, no, I'm just an investor, and I've always said that ideas themselves are worthless, only when ideas are put into practice.

I've been very lucky to have someone help me turn my ideas into reality. "Zhou Xin didn't take the offer either, he didn't mention his support for Baidu, and he didn't want to be the most staunch supporter.

The merger of Baidu and Google, and then Robin as CEO was a good thing for Zhou Xin. Robin as CEO decided that the newly established Baidu would not invest as much in research and development as Google.

Robin will be a qualified manager, but he will not be an excellent technology leader. Zhou Xin believes that Baidu led by Robin cannot lead and guide the development of technology like the original Google.

At least without Google, there would be no Android, and when Android becomes vacant, someone will naturally fill it.

Zhou Xin has always planned to build Matrix into a high-end consumer electronics brand. Whether it is the A series of mobile phone chips or MOS, he does not intend to open it to the outside world.

But he also does not want to give up the market for opening up the mobile phone operating system, as well as Qualcomm's cake in mobile chips. Zhou Xin also hopes to intervene.

Therefore, he intends to take the opportunity of Xinxin Technology's upcoming mobile phone integrated chip to open up two fronts in the field of mobile phone chips in the future.

One is the A series of high-end chips, and the other is low, medium and high mobile phone chips for sale.

In terms of operating systems, it is entirely possible to establish a company in China that focuses on smartphone operating systems, and then acquire Android, using Android as a foreign aid, and the two will jointly create a mobile operating system that is open to the outside world.

When Zhou Xin was thinking about how to seize the opportunity in the mobile Internet era and go ahead of others, Robin, as a representative of Baidu, talked on stage:

"In the past year, Baidu successfully merged with Google in order to create a consumer brand that is more recognized by the world. The merger of Baidu and Google is not as easy as the outside world understands.

Because both Baidu and Google are successful companies and have achieved sufficient success in the field of search engines, the merger of the two also faces regulatory problems. The regulators will think that we have the risk of monopoly. How to avoid this risk, let the regulators I believe that the merger of Baidu and Google is to create a better choice, not to monopolize the market to obtain excess profits.

We put in a lot of hard work, and it was only last November that we got regulatory consent and finally got the merger. "

Baidu can merge with Google, because Wall Street is really powerful, and this pure monopoly behavior can be approved.Because it had not been approved before, Zhou Xin thought that American still had rules at all, but in the end the merger was successful, which made Zhou Xin realize that it was just that the operation was not in place.

(End of this chapter)