Reborn in 2011, 985 missing from two copies

Chapter 444: Investing in Magic City, nine major projects!

Will achieving self-production of 28-nanometer chips in the second half of next year lead to a blockade?

Wang Yi was not worried.

After all, in the second half of next year, TSMC's 20nm SOC chips will begin trial production, and 16nm is also under development.

Xingyi Semiconductor is still half a generation behind, and the other party will not do anything desperate.

Once they are completely surpassed, they will become desperate.

Wang Yi was very clear about the other party's tactics.

And at that time, Wang Yi can also adopt Huawei's strategy and only disclose chip performance but not chip manufacturing process.

Even if it is produced in-house, competitors will think that the 28nm Kunpeng 906 SOC is a 40nm process and is just ridiculously powerful.

The most important things about a chip are performance and power consumption, or the actual experience. The nanometer process and the like are just one of the many core dimensions.

The emergence of Qualcomm and the assistance of Lei Jun have made chips a technology-oriented industry.

In fact, performance is the core.

For example, the 40nm Kunpeng 702 still beats the 28nm Qualcomm APQ 8064!

What Wang Yi wants to do is to gradually return the chip to its performance essence and forget about the process.

Let the mobile phone gradually return to the actual experience and forget about the parameters.

Never lose in terms of parameters and never win in terms of experience, isn’t that a joke?

In the afternoon, Wang Yi met with Mr. Zhou: "Thank you, Mr. Zhou. The successful acquisition of SMIC's Shanghai wafer fab was entirely due to Mr. Zhou's mediation."

"Mr. Wang, you are too polite. Shanghai has always welcomed high-quality enterprises, and an outstanding entrepreneur like Mr. Wang is most welcome."

Mr. Zhou smiled and said, "If Old Zhao wasn't watching too closely, I would have wanted to poach Xingyi Technology! Haha."

"Thank you Mr. Zhou for your kindness. Xingyi Technology will increase its investment in Shanghai."

"That's great." Mr. Zhou was delighted. Wang Yi said that it was worth it for him to put pressure on SMIC for Xingyi Technology. Then he changed the subject:
"However, the 12-inch wafer factory in Shanghai is too small, with a monthly production capacity of only 2.5 wafers. In the long run, it cannot keep up with the development of Xingyi Semiconductor."

Having said this, Mr. Zhou paused, and seeing that Wang Yi was very interested, he continued:
"But this wafer factory was developed earlier, and there is no space around to expand it again. Therefore, the Magic City plans to give you a larger piece of land to build a large wafer factory with a monthly production capacity of 100,000 wafers. However, you have to get the equipment and other things by yourselves."

Build another large-scale wafer factory with an area of ​​100,000 square meters and give away infrastructure and land for free!

This treatment is exactly the same strategy as in the imperial capital.

After all, the imperial capital has given such great preferential treatment, it would be unreasonable if the magic capital did not give the same.

Of course, the same appetite.

Naturally, Wang Yi would not refuse.

The land alone is worth 4 billion. Even if the land is given at a premium, its actual value is still 3 billion.

The infrastructure will cost another 90 billion, which is equivalent to an investment of 60 billion in Shanghai. Even if Shanghai does not need to pay for the land, it will still have to pay billion for infrastructure.

Xingyi Semiconductor will have to invest another 300 billion yuan to introduce equipment and production lines.

For Shanghai, 60 billion+ land in exchange for billion investment, especially for a high-end wafer factory, is a total bargain.

But for Wang Yi, the wafer factory is not enough and it will have to be expanded sooner or later. The Magic City is giving away both infrastructure and land, so there is no reason to refuse!

What's more, if Xingyi Technology wants to develop rapidly, it cannot avoid the national financial center like Shanghai.

"Thank you, Mr. Zhou. In this way, we will invest 300 billion to build the second Magic City wafer factory into a 28-nanometer wafer factory!"

"28 nanometer technology!" Mr. Zhou was shocked: "Can you do it too?"

“It’s already under development and hopefully it will be ready within two years.”

"Good, very good, great!" Mr. Zhou was delighted.

What an unexpected surprise!
In mainland China, a 40-nanometer logic chip is considered super advanced, and 28 nanometers is even better!

"Mr. Wang, this is amazing. Xingyi Technology is amazing." Mr. Zhou was so excited that he was a little incoherent:

"The Xingyi Automobile project you mentioned earlier was all because your subordinates were ignorant and didn't take it seriously enough. They are short-sighted and can't see the future of Xingyi Automobile and the strength of Xingyi Technology at all!"

"I scolded them and made a new plan!"

"Director Wang, please have a look!"

As he spoke, Mr. Zhou took out a cooperation agreement and handed it over.

Wang Yi took the investment plan, read it carefully, and was immediately shocked.

If the price given by Shanghai before was just a third-rate treatment, then this one now is a top-notch treatment.

First of all, in terms of land, 1500 acres of industrial land were directly planned in Lingang, valued at 35 billion yuan, and provided to Wang Yi free of charge.

Next is the qualification for manufacturing new energy vehicles. As long as Xingyi Automobile meets the basic conditions, Shanghai will immediately grant the qualification.

In addition, a five-year, interest-free loan of 200 billion yuan can also be approved.

All tax incentives have also been arranged.

Looking at these conditions, Wang Yi was completely moved.

This treatment is better than what Shanghai gave to Tesla in 2018.

The land that Shanghai gave to Tesla was only 1297 acres, with a market value of 98 billion yuan. Tesla spent 9.8 million yuan to acquire it, which is equivalent to giving away 88.2 billion yuan for free.

And 400 billion in low-interest loans at an interest rate of 3.9%.

The industrial land allocated to Xingyi Automobile is 1500 acres!
Just give it away for free, not even a 10% discount.

There is also a five-year loan of 200 billion yuan, with zero interest, not even any interest.

Although 200 billion does not seem to be as much as the 400 billion loan to Tesla, the current 200 billion is completely different from the 200 billion six years later, and is even more valuable than the 400 billion six years later.

For example, the industrial land in Shanghai currently costs only more than 2 million yuan per acre, but in six years it will cost more than 7 million yuan per acre!
Of course, for large projects like wafer fabs and automobile factories with subsequent investments of tens of billions, the land is basically sold at a 90% discount or even for free.

If there were no land concessions, who would be willing to invest tens of billions of dollars?
The preferential treatment that Magic City gave to Wang Yi was immediate.

1500 acres of industrial land, for free!

200 billion loan for five years, zero interest!

It is entirely possible to build the entire Xingyi Automobile Super Factory.

Even the most difficult qualifications for car manufacturing will be granted directly in Shanghai as long as the basic conditions are met.

What else can Wang Yi say?
There is nothing I can say!

It’s really perfect.

Of course, like the Tesla factory, the Xingyi Automobile factory also has a bet agreement:
First, the 200 billion interest-free loan is earmarked for a specific purpose and can only be used for the Xingyi Automobile project located in Shanghai.

Second, the Xingyi car must be successfully developed before the end of 2015 and put into mass production in 2016.

Third, starting from 2019, the annual tax payment will exceed 5 million!
If it is not completed, Xingyi Technology will need to pay in full for the 35 acres of industrial land worth 1500 billion yuan.

The first one is that the funds must be used for their intended purposes. There is no problem with that. After all, it is a zero-interest loan subsidized by Shanghai, and it is impossible for it to be spent on other projects.

There is no problem with the second time limit either.

If mass production cannot be achieved within three or four years, Wang Yi would want to find a stone to hit the head of the automotive department to death without the urging of Modou.

As for the third article, starting from 19, which is the fourth year after mass production, the annual tax will exceed 5 million!
This amount is very high, extremely high, and even difficult to achieve at the moment.

After all, there are very few new energy vehicles these days, and they are far less powerful than they will be many years later.

If development continues at this pace, it will be extremely difficult to pay more than 500 million in taxes each year.

But Wang Yi knows very well how fast new energy will develop in the future. Especially in ten years, the sales of new energy will exceed that of fuel vehicles!
Therefore, paying 5 million in taxes each year may seem difficult now, but it will be easy seven years later.

Of course, on the surface, Wang Yi looked embarrassed:
"Mr. Zhou, everything else is fine. But you also know that no one is optimistic about new energy vehicles. Coupled with the BYD spontaneous combustion and death incident, it caused a more serious backlash. Consumers are now somewhat resistant to new energy vehicles. Starting from 2019, paying million in taxes every year is really a bit difficult for a new company."

"This..." Mr. Zhou nodded: "What you said makes sense. After all, new energy is a brand new track. It is indeed difficult for a new company to achieve such high sales. So how much do you think is appropriate?"

Wang Yi thought about it and said, "Why don't we keep the tax quota unchanged at 5 million per year and increase the loan quota by another billion. Then I can develop a few more models. If the sales of one model are not enough, I can add more models. Maybe we can reach the tax quota of million!"

"One is not enough, add more!"

Mr. Zhou smiled and said, "Okay, then let's do as you said. A 300 billion interest-free loan, and taxes will exceed 2019 million starting in ."

"No problem." Wang Yi agreed readily.

It’s time to complain. Look, another 10 billion interest-free loan has been received.

Of course, there is a reason why Shanghai approved such a high interest-free loan to Xingyi Technology.

After all, Xingyi Technology has invested in building wafer factories in the capital and in the Magic City, both of which are super-large wafer factories with a monthly output of 10 wafers.

The combined investment of these two projects will be around 60 to 70 billion yuan.

In addition, the second and third phases of the expansion of the first plant of the Imperial Capital Wafer Factory will cost another 20 billion.

All added up, Wang Yi will have to spend 80 to 90 billion in the next two years.

Xingyi Technology is a large company and cannot afford the consequences. It may even have to take out large loans.

Since Xingyi Automobile doesn't offer interest-free loans, Wang Yi has no money to do it.

The Magic City can only grant interest-free loans.

As for not being able to pay it back?
That's not a problem either.

A monk can run away, but a temple cannot!

If there is any problem with the project, Magic City will immediately freeze the Xingyi Automobile Factory and then transfer it to other companies in a package to offset part of the loan and land costs.

Xingyi Technology will have to continue to repay the remaining part.

The 30 billion yuan loan is earmarked for the intended purpose, so Shanghai has no worries about unfinished projects.

Once Xingyi Automobile becomes bigger, the tax revenue, GDP, employment, etc. it will create for Shanghai will be immeasurable.

With the support from Shanghai, the Xingyi Automobile project has become very easy.

At least 30 billion interest-free loans are enough to cover all investments in the entire project from scratch, from research and development to mass production!
Wang Yi suddenly got rid of a big burden and no longer had to worry about making money for Xingyi Automobile!
It can be said that this is a win-win strategic cooperation.

"Director Wang, if you think there is no problem, then let's sign the contract directly?"

Mr. Zhou smiled and said that it was obvious that he had been prepared for this.

Wang Yi was speechless: "It is better to obey than to be respectful."

Soon, the two parties completed the signing.

A large 10-inch wafer factory that produces 12 wafers per month and a 1500-acre Xingyi automobile super factory!
Two projects, all signed.

In addition to the acquisition of SMIC's Shanghai wafer fab, Wang Yi has signed three major projects during this trip to Shanghai! It can be said that he has reaped a lot of rewards!
However, when Wang Yi thought everything was settled, Mr. Zhou took out a new contract:
"Mr. Wang, since Xingyi Automobile and Xingyi Wafer Factory are both in Shanghai, does your Xingyi Technology still need a Shanghai headquarters?"

Wang Yi: "..."

What can be said?
All I can say is: “Yes, it is necessary.”

Mr. Zhou handed over the contract: "In the Lujiazui area, we have built a 300-acre industrial park for you to serve as your Magic City headquarters."

Wang Yi took the contract and read it carefully.

The scale is similar to Xiaomi's previous capital headquarters. Since it is industrial land with low density, only eight office buildings are planned, which can accommodate 2 people.

Although it is also industrial land, the location is great.

For example, the SMIC Magic City wafer factory acquired by Wang Yi, which will be the Xingyi M1 wafer factory in the future.

As the number of wafer fabs increased, Wang Yi renamed them all.

The Xingyi wafer factory in the capital is named Xingyi B1 wafer factory. The newly built second wafer factory in the capital is named Xingyi B2 wafer factory.

The same is true for Shanghai. The SMIC wafer factory acquired by Shanghai was named Xingyi M1 wafer factory. The second wafer factory in Shanghai that was just signed was named Xingyi M2 wafer factory.

The subsequent Shenzhen wafer factory was named Xingyi S1 wafer factory...

It's so clear at a glance.

The Xingyi M1 wafer factory is located in the Zhangjiang Hi-Tech Park in Central, which is a good place.

The new wafer factory planned for Xingyi Technology is located outside the outer ring road!

Similarly, the Xingyi Automobile Super Factory is also outside the outer ring road!
But the Xingyi Technology Shanghai Industrial Park is different. As the Shanghai headquarters of Xingyi Technology, it is directly located in Lujiazui, in a prime location on the inner ring!

Therefore, for the same industrial land and the same industrial park, the inner ring can be several times more expensive than the outer ring!
An industrial park of just 300 acres would cost 15 billion, which is equivalent to the 600 acres outside the outer ring road!
However, according to the contract, the land worth 15 billion yuan was given away for free.

The only requirement is that Xingyi Technology’s Shanghai Industrial Park must be completed and put into use within three years and cannot be sold to the outside world within 20 years.

The reason why there are no other requirements is naturally because the location is too good.

If any company were to take over, they would put the building into use immediately after it was completed and could not be sold!

After all, it would cost 20 to 30 billion to build, and it is in such a good location, no one would want to leave it idle.

Wang Yi looked at Mr. Zhou and said, "Xingyi Technology's headquarters is located in Shanghai, so that's not a problem. But we also have Xingyi Real Estate, and we hope to get a piece of land near Xingyi Technology. Of course, the land price should be what it is, and there's no need for discounts."

Mr. Zhou understood what Wang Yi meant. Xingyi Real Estate was preparing to move out of Shandong Province.

Previously, Xingyi Real Estate acquired land in Jeju, an island city.

Settle in an industrial park, directly acquire land nearby, and build commercial housing.

This strategy is the best one.

Everyone knows that once the Xingyi Industrial Park is established, the surrounding housing prices will inevitably rise sharply. In the spirit of keeping the wealth within the family, Wang Yi will also acquire the land himself.

As for the Xingyi M2 wafer factory and Xingyi Auto Super Factory projects, Wang Yi did not take the land simply because the location was too bad, both were outside the outer ring road...

There are factories all around, and no one is willing to buy a house except the workers nearby.

And the workers nearby can't afford these houses.

But Xingyi Industrial Park is different. It is located in Lujiazui, where every inch of land is valuable.

As the headquarters of Shanghai, Xingyi Industrial Park is staffed by executives and elites of Xingyi Technology, with annual salaries starting at hundreds of thousands or even millions.

There are also other financial giants, technology giants, headquarters and branches of Fortune 500 companies, and many wealthy people around.

This kind of good place is worthy of Wang Yi's investment.

Moreover, Wang Yi’s attitude is very clear. There is no need for preferential treatment for residential land. The amount should be as much as it should be. The implication is that just approve more.

After all, the prices we get now are all the lowest prices.

If the bidding is carried out according to normal procedures, the residential land in Lujiazui's non-riverside prime land with a current starting price of 2.5 yuan per square meter can be snatched up by major developers at 3 yuan per square meter.

If we learn that Xingyi Technology is going to build its headquarters nearby, and everyone knows that Xingyi Technology's employees have high incomes and good development, then the floor price will not be able to stop at 3, but will go straight to more than 3.5.

If Wang Yi wants to get it, he has to spend 4 per square meter to bid for it!
The starting price was 2.5 yuan per square meter, and it was sold for 4 yuan. Wang Yi had no place to cry.

But if it is acquired directly together with Xingyi Industrial Park, the floor price can be directly acquired at the base price of 2.5 yuan per square meter, and the future profit will be high.

Even if it is not the top-notch land along the Huangpu River, it can still be sold for RMB 100,000 per square meter in five or six years.

A profit of 300% is not a problem.

As for why not take the prime land along the Huangpu River?
Firstly, the cost is high. As early as six years ago, the floor price of the top-tier land plots exceeded 20,000 yuan, but now it is not even available at 70,000 or 80,000 yuan per square meter.

Secondly, with such a good location, all the properties that could be sold have already been sold, and there is no land left.

Even if there is one occasionally, it will be sold at a sky-high price.

Even if the price is RMB 200 to per square meter and sold at RMB to per square meter, the profit margin is less than %.

It would be better to settle for the second best and choose a location near Xingyi Technology’s Shanghai headquarters.

Although it is some distance away from the Huangpu River, the land price is lower and the cost-effectiveness is higher.

With the support of Xingyi Technology’s Shanghai headquarters, it can be made into a luxurious large flat for smart housing and still be sold for more than 10 yuan.

Mr. Zhou put down his teacup and said, "Mr. Wang, I knew you wanted to get the land. Magic City also welcomes Xingyi Real Estate. In this way, there are four plots of land near Xingyi Technology Park."

As he spoke, Mr. Zhou took out a stack of information and handed it to Wang Yi: "Here on the west side, here. And here on the east side, here. You choose."

Wang Yi looked at it carefully.

The four plots of land are all in good locations, especially the two buildings on the west side. Although they are a short distance away from the Huangpu River, they are planned to be high-rise buildings and the Huangpu River can be seen from the high floors.

In addition, it is a short distance away from the river, so the climate is more suitable and more suitable for living.

However, the price is also higher. The floor price is 3.4 yuan per square meter. The two plots of land have a total construction area of ​​50 square meters, which requires 170 billion yuan to acquire.

The two plots of land on the east side are cheaper, with a floor price of 2.5 yuan per square meter. The total construction area is 40 square meters, which requires 100 billion yuan to acquire.

Wang Yi knew clearly that even if the two plots of land had a floor price of 2.5 yuan per square meter, if they were put up for auction, they would have to be sold for more than 3 yuan per square meter.

As for the two plots of land on the west side, the floor price can be auctioned at 4.5 yuan per square meter.

The transaction will be completed at a premium of 20%-30%.

There’s no way, the location is too good.

After completion, it will be no problem to sell it at 70,000 to 80,000 yuan per square meter.

Seeing Wang Yi staring at the two plots of land on the west side, Old Zhou smiled and said, "I knew you were eyeing the land on the west side."

"How about this, I'll give you both plots of land."

Boss Zhou waved his hand generously.

Wang Yi changed the subject and said, "Mr. Zhou, to be honest, I am also optimistic about the east side."

The corner of Zhou Lao's mouth twitched: "..."

"You kid, you're still ungrateful after getting such a good deal? I'm already generous enough to give you both pieces on the west side."

Wang Yi also knew that it would be difficult to do everything, but it was not impossible to talk about it:
"How about this, Mr. Zhou, we don't have to give away the land for Xingyi Technology's Shanghai headquarters. We can buy it with our own money. Sell all these four residential plots to me!"

Wang Yi calculated clearly that the 300 acres of industrial land at Xingyi Technology’s Shanghai headquarters was priced at only 15 billion yuan.

The two plots of land on the west side are worth 100 billion yuan. If you participate in the auction, even if the premium is 20%, you will have to spend an extra 20 billion yuan.

15 billion for 20 billion, that's a good deal.

More importantly, the 20% premium is based on the current price.

If we look at the price many years later, it won’t be 20%, maybe 200% or even 300%!

Wang Yi is well aware of how great the potential of Lujiazui is in the future.

"This..." Mr. Zhou thought about it and realized that a 20% premium would be 20 billion.

There wasn't much difference between 15 billion and 20 billion, so he simply said, "That's fine too!"

"I'll give you all five plots of land, four for residential use and one for industrial use, for a total of 285 billion!"

"But there is a condition. You have to locate Xingyi Financial's headquarters in the Magic City!"

"No problem!" Wang Yi readily agreed.

Shanghai is the financial center of the country, so it is no problem for Xingyi Finance to move here.

The underlying foundation of Changliao Payment is Xingyi Finance.

Maybe we can even get an Internet banking license.

However, this matter has not been officially announced yet, so Wang Yi cannot say anything. He can only move Xingyi Finance here as soon as possible and wait for Mr. Zhou to speak up!
What Wang Yi needs to do is to prepare as soon as possible.

"Mr. Zhou, it will take at least two years to build the Xingyi headquarters in Shanghai. To show my sincerity, I will first rent or buy an office building in Lujiazui as the Shanghai headquarters and move Xingyi Finance here." Wang Yi said with a smile.

"Mr. Wang is straightforward!" Mr. Zhou was delighted. This kid is smart.

It’s worth giving you so much land at the lowest price!

Local governments like these kinds of companies that are decisive and quick to act and invest or move in as soon as they say so.

"However, Changliao Payment still has to be established in the imperial capital. After all, the payment licenses are issued by the imperial capital." Wang Yi changed the subject.

Mr. Zhou nodded: "This is what we should do."

Of course, the capital must be a little unhappy about Xingyi Finance moving to the Magic City.

But it’s okay. If Wang Yi invests in another super large packaging and testing plant in the imperial capital, the imperial capital will not say anything.

The main feature is to soak up both rain and dew.

For a moment, Wang Yi felt like a scumbag.

In the future, the Imperial Capital headquarters will focus on technology, while the Magic Capital headquarters will focus on finance.

The next day, Wang Yi came to Mr. Zhou again and signed the agreement for five pieces of land.

At this point, Xingyi Real Estate officially entered the Magic City!
Five pieces of land at once!
Among them, four residential land plots total 600 acres, with a floor area ratio of 2.3, a construction area of ​​up to 90 square meters, and a total land price of 270 billion yuan.

There is also a 300-acre industrial land, which is as large as two residential areas and costs 15 billion yuan.

As for how to get the money?
Of course, you buy it first and then mortgage it to get a loan.

The Shanghai headquarters will be built as soon as possible, but the four residential plots will not be started for the time being. Construction will resume in 2016, sales will start in 2017, and all will be sold out in 2018!
All smart home luxury large flat!
But the selling price at that time will be sky-high!

(End of this chapter)