Reborn in 2011, 985 missing from two copies

Chapter 445: North-South diversion strategy, acquisition of ASE packaging and testing plant!
When the land was acquired, the floor price was 2.5 yuan per square meter and 3.4 yuan per square meter. Adding several thousand yuan in construction costs and marketing costs, the total investment in the four projects will exceed 200 billion yuan.

The prime location in Lujiazui will be put on sale in 2017-2018, and when it is developed into a high-end improved large flat, the price will be 12 to 16 yuan per square meter.

With a total investment of more than 200 billion, it is no problem to make a profit of more than 1200 billion.

Net profit is as high as 100 billion!

It can be said that the hundreds of billions of profits from these four plots of land alone are enough to cover the total expenditure of a large 10-inch wafer factory with a production capacity of 12 pieces in three months, as well as the total expenditure of R&D of 28-nanometer process!
In recent years, prices have not risen excessively and the currency has remained relatively stable.

28 billion is enough to build a large-scale wafer factory with a capacity of 300 nanometers and a monthly output of wafers.

But in a few years, building a large-scale wafer factory with a 10-nanometer capacity and a monthly output of wafers will cost billion or even more.

Similarly, a few billion RMB is enough to develop 28-nanometer technology at present.

But in a few years, the research and development of 10-nanometer technology will cost tens of billions.

If we develop 7-nanometer technology, the difficulty will increase several times, and the research and development costs will also increase several times.

Similarly, 7 nanometers requires multiple exposure technology, and the number of DUV lithography machines required will also increase several times.

By then, both the cost of building a wafer fab and the cost of producing 7-nanometer chips will skyrocket several times.

There is nothing we can do about this.

As for the price reduction of lithography machines?

Don't even think about such a good thing.

In a monopoly industry, there is no such thing as price reduction.

It's a one-sided seller's market, so you have to buy even if the price goes up.

Unless domestically produced DUV lithography machines are developed and completely replaced, lithography machines will become very cheap.

For example, before the domestic breakthrough of MRI machines, giants such as Siemens monopolized the market and sold one for 3200 million yuan.

After the domestic breakthrough, the price of MRI machine directly reached 290 million!
Similarly, the current DUV lithography machine cost ASML 3.5 million yuan per unit before it was domestically produced. Once it is fully domestically produced and the technology is equal, the price can be reduced to less than 1 million yuan through mass production!
The profits from the four plots of land in Shanghai could earn over 100 billion yuan, and Wang Yi couldn't help but feel in a good mood.

"Mr. Wang, you have gained a lot from this trip to Shanghai. Why don't you stay in Shanghai for a few more days?" Mr. Zhou said with a smile.

Wang Yi nodded: "Yes, I plan to go to ASE's packaging and testing factory to see if I can acquire it."

"You want to acquire a packaging and testing factory!" Mr. Zhou instantly understood Wang Yi's idea.

"That's right. We have two wafer fabs in Shanghai, so we naturally have to acquire a packaging and testing plant. This way, we can provide a one-stop solution for chip mass production and chip packaging and testing."

According to Wang Yi's plan, mobile phone factories/foundries, wafer fabs, and packaging and testing plants will be divided into north and south.

At present, the second phase of the Xingyi mobile phone J1 super factory in Jeju has been fully delivered and is in trial production.

It will be fully operational by the end of the month, and the annual production capacity will increase from the originally planned 16 million units with 5000 hours of non-stop production to 24 million units with 7500 hours of non-stop production.

The Xingyi factory in the imperial capital has also increased its annual production capacity from 16 million with 3000-hour non-stop production to 24 million with 4500-hour non-stop production.

Starting next month, Xingyi mobile phone's annual production capacity will reach 1.2 million, and monthly production capacity will reach million.

Such a terrifying production capacity can basically cover the sales of the Xphone 2 Kunpeng version.

After Double Eleven, the monthly sales volume of Xphone 2 in China will drop to around million, or even below million.

Including parallel imports sold overseas, monthly sales are estimated to be around 1200 million.

After all, the Double Eleven promotion can create sales records, but it will also consume a lot of potential purchasing power.

In addition, since the xphone 2 has passed its golden selling period of the first three months, its subsequent sales volume has naturally declined a bit.

In this way, Xingyi Technology's own factory is sufficient to produce 2 million Kunpeng version xphone s.

If we add another 200 million Qualcomm versions of Xphone 2 manufactured by BYD, that would add up to 1200 million Xphone 2s a month, which is more than enough to sell.

As for the J2 Super Factory of Xingyi Mobile Phones in Jeju, it is still under construction and will be delivered in two phases in the middle and second half of next year.

Before delivery from the J2 Super Factory, the Kunpeng version of Xphone 2 was produced by the Jeju J1 Super Factory and the Capital Factory.

The xphone 1, xphone 1 pro and the borderless thousand-yuan phone are outsourced to BYD.

This achieves a north-south diversion.

Similarly, the wafer fab will also be divided into north and south.

The Xingyi B1 wafer factory in the capital mainly mass-produces Kunpeng 702.

月底B1晶圆厂的良品率有望达到95%，月产能超过1500万颗，能够生产1500万颗鲲鹏702。

The remaining 5% of inferior chips can be made into about 80 low-frequency Kunpeng 700s.

After these chips are produced, they will be sent to the Shanghai packaging and testing factory for packaging and testing at low cost and high efficiency via the Beijing-Shanghai high-speed rail.

After the packaging and testing is completed, the Kunpeng 702 chip is sent to the Jeju J1 super mobile phone factory, the tablet factory, and the mobile phone factory in the capital via the Beijing-Shanghai line for the production of the Xphone 2 Kunpeng version and the Xingyi tablet X1 Ultra version.

The M1 wafer factory in Shanghai mainly produces the low-frequency Kunpeng 700, and can produce more than 1500 million Kunpeng 700s every month.

Kunpeng 700 is a castrated version of Kunpeng 702. During the R&D and design stage, the main frequency of the quad-core CPU was reduced from 1.7G to 1.3G, and the GPU was directly designed as a three-core.

Therefore, the production difficulty of Kunpeng 700 is much lower than that of Kunpeng 702, and the yield rate is naturally higher. As the proficiency increases, it is expected to exceed 97%.

As for Kunpeng 500, there was no research and development at all. It is simply Kunpeng 700 with the core locked and frequency reduced through an algorithm, and it is just renamed.

To put it bluntly, Kunpeng 500 and Kunpeng 700 are the same chip, only the algorithm has been castrated.

Of course, 3% of the Kunpeng 500s are truly defective and are manufactured using inferior chips from the Kunpeng 700. After all, they cannot be wasted.

The remaining more than 97% of Kunpeng 500 are actually Kunpeng 700, which just locks the core and reduces the frequency through algorithm.

The Kunpeng 1 produced by the M700 wafer factory will be sent to BYD's foundry after packaging and testing in Shanghai for the production of xphone 1, xphone 1pro, Xingyi tablet X1, and X1pro.

On the xphone 1 and Xingyi Tablet X1, an algorithm will be used to lock the core and reduce the frequency, and the chip will be renamed Kunpeng 500.

Of course, if you want to cut down a little, you can also change it to Kunpeng 506: quad-core CPU 1G main frequency, triple-core GPU slightly downclocked, used for xphone 1 and Xingyi Tablet X1.

Next year's borderless mobile phone will be a little more castrated and changed to Kunpeng 500: quad-core CPU 1G main frequency, dual-core GPU, used in the 999 borderless mobile phone.

In this way, the Wujie phone that starts at 999 yuan and the Xphone 1 that costs more than 1 yuan can be distinguished, and the Xphone will not be criticized for using the same chip as the thousand-yuan phone.

Compared with Kunpeng 506, Kunpeng 700 has better performance. The CPU and GPU are both downclocked by algorithms, which will not affect the sales of xphone 1pro and Xingyi Tablet X1 pro.

Anyway, they are all Kunpeng 700 chips, so it is easy to castrate the algorithm and change the name.

As for cracking the castration algorithm and achieving full performance?

The XOS system has changed the underlying architecture of Android and re-encoded it. If the other party can crack it, it will be considered a powerful one.

But there is a high probability that it will become a brick!
If there really is such a talent, Wang Yi will hire him with a high salary!
More importantly, the algorithm tuning and heat dissipation of the SOC chip are carried out according to the core and frequency of the SOC chip.

The Kunpeng 500 has low heat generation after core locking and frequency reduction, so the cooling module of the borderless mobile phone can be adjusted casually.

Once cracked, the performance of Kunpeng 700 is fully released, and the heat is severe. The cooling module of the borderless mobile phone can't bear it at all. When the phone overheats and triggers the core locking and frequency reduction mechanism, the performance of Kunpeng 500 will still be achieved.

It's purely unnecessary.

The same is true for Kunpeng 506. The heat dissipation design of xphone 1 has no problem running the performance of Kunpeng 506, but if it is equipped with Kunpeng 700, it is totally insufficient.

After all, the xphone 1 is a dual-core phone, and the original cooling module was also designed for Qualcomm dual-core. The quad-core Kunpeng 506 can still handle it after frequency reduction, but the Kunpeng 700 with full performance cannot handle it.

In this way, all the water is divided between north and south.

The new flagship is produced in-house, while the others are outsourced.

When the packaging and testing plant in the capital goes into production next year, the flagship chips produced in the capital will be packaged and tested directly in the capital, and then shipped directly to the factories in the capital and Jeju.

By then, from chip factories, to packaging and testing factories, to mobile phone factories, all will be diverted to the north and south!
This is Wang Yi’s overall plan.

After having lunch with Mr. Zhou, Wang Yi returned to the hotel in the afternoon and held a video conference with Song Sining.

"Looking at your current state, it seems that you have gained a lot from this trip to the Magic City." Song Sining said with a smile.

Wang Yi nodded: "Nine projects, eight have been finalized!"

"???"

"Nine projects?" Song Si Ning was confused:
"We acquired SMIC's Shanghai wafer fab, ASE's packaging and testing plant, and the Xingyi car project, so there should be at most three. How can there be nine?"

Wang Yi smiled and said: "We have completed the acquisition of SMIC's wafer fab, but its monthly production capacity is only 2.5 wafers. Shanghai has built us a large wafer fab with a monthly production capacity of wafers."

Song Sining: "..."

"In addition, a 300-acre industrial park has been planned in Lujiazui to serve as the headquarters of Xingyi Technology in Shanghai."

Song Sining: "..."

"Near the industrial park, I won four more residential land projects with a total construction area of ​​4 square meters. I spent 90 billion yuan, all at the reserve price."

Song Si Ning didn't know what to say: "..."

"We have also negotiated with Xingyi Automobile."

"So that's it." Song Si Ning suddenly realized: "Two wafer fabs, a Shanghai headquarters, a Xingyi Automobile, plus four residential projects, and the ASE packaging and testing project, that's nine in total!"

"Yes, the other eight projects have been signed. Now the only thing left is the acquisition of ASE's packaging and testing plant. Mr. Hu is pushing it forward here."

During this trip to Shanghai, Wang Yi's original plan was to acquire SMIC's Shanghai wafer factory and ASE's packaging and testing factory.

By the way, let’s see if the Xingyi car project can be promoted. If not, Wang Yi will change the city layout.

He wouldn't hang himself in one city.

Unexpectedly, not only did the Xingyi car project succeed, but we also added six more projects. It can only be said to be a pleasant surprise.

"The assistant is sorting out the information and will send you the contracts for these projects soon. You will have to keep an eye on the Shanghai headquarters afterwards." Wang Yi said.

"Okay, I'll take care of the Meiyou Technology matter and come over."

Song Si Ning knew that she would be living in the Magic City from now on.

Meiyu Technology in Jeju has already been on the right track, so it is enough to hand it over to Chen Chuanqing for management.

As Song Sining was the vice president of the group, it was natural that she would be responsible for such a major task as opening up the headquarters in Shanghai.

Especially in Shanghai, there are Xingyi Automobile, two wafer fabs and other projects. In terms of strategic significance, it has surpassed Jeju and is second only to the imperial capital.

It was natural for Song Si Ning to come and take charge. After all, Wang Yi had to return to the imperial capital and could not live in the magic city permanently.

Of course, Wang Yi has another consideration. Lin Shu is in the imperial capital, and Song Sining is in the magic city.

The king does not see the king.

Good.

"It's here. It's been sent!" Song Si Ning said, opening the email:

"Don't mention it, the location of the Magic City headquarters is really good, in the inner ring, Lujiazui, it has a bright future. There are also four residential buildings and 900,000 square meters of construction land. It's a big deal!"

Wang Yi smiled faintly: "There is no rush for the four residential projects. Just put them aside for now. Construction will start in 2016 and sales will start in 2017. They will be sold out in two years. Let's build the Xingyi Technology Shanghai Industrial Park first."

"Okay, leave it to me!" Having experienced the construction of Jeju Miyu Science and Technology Park, Song Sining is very experienced.

"Also, when you come to Shanghai, rent an office building or buy one and build your Shanghai headquarters first. Xingyi Finance should also move here."

"Office building..." Song Si Ning smiled: "Chairman, you forgot that we bought the office building that Xiaoi Robot rented. We can use it first."

"Yes, little i robot, I forgot about this." Wang Yi suddenly realized.

Originally, Xiaoi Robot rented an office building. After Wang Yi acquired Xiaoi Robot, he let Song Sining take over the entire office building.

We also recruited some AI talents to achieve the expansion of Xiaoi Robot.

However, as Xingyi Technology had more and more business units, Wang Yi became forgetful.

"Okay, then we'll use the Xiaoi Robot's office building first. If that's not enough, and there's a suitable industrial park or office building with a good price, we'll just take it."

These days, buying high-quality assets in first-tier cities is a good investment.

Even if you buy it, you can mortgage it to the bank and then take out a loan, and you can make a lot of money by paying the loan interest every month.

In the next few years, the annual growth rate of Shanghai's housing prices will be as high as 30%-40%, and the loan interest rate is only a few percentage points...

Rent is more expensive than interest!
"Okay, then I'll ask someone to take a look and see if there are suitable office buildings and industrial parks, and then we'll buy them." Song Sining understood what Wang Yi meant.

In fact, Xingyi Technology and Mayu Technology have bought a lot of assets in first- and second-tier cities across the country.

For example, of the Xingyi flagship stores, Mayu flagship stores, and Xingyue flagship stores in first- and second-tier cities, only 30% are rented, and the remaining 70% are purchased directly!

But in third- and fourth-tier cities, the situation is completely reversed. More than 70% of properties are rented, and only 30% of properties in prime locations are purchased.

Not to mention fifth, sixth, seventh and eighth tier cities, where all the houses are rented.

There is no other reason. When housing prices rise, these cities are the last to rise.

When housing prices collapsed, these cities collapsed the fastest.

There is definitely little room for appreciation and poor ability to maintain value.

In addition, with the serious outflow of population after many years, the housing prices that have finally exceeded 10,000 yuan will quickly fall back to 4,000 to 5,000 yuan per square meter, returning to a level similar to the current level.

Even at four or five thousand, no one wants it. In a word, there is no liquidity.

Once you buy it, it's a waste of money.

This type of asset is suitable for rent.

On the contrary, some Xingyi stores in towns and villages purchased them directly.

It's nothing, the town assets are all very cheap, the rent for the next ten years is enough to buy the property rights directly...

"And the Xingyi Automobile Division has also moved from the Imperial Capital to the Magic Capital! From now on, the research and development of mobile phones and semiconductors will be in the Imperial Capital, and the research and development of automobiles and three-electric systems will be in the Magic Capital."

"Okay!" Song Si Ning took note. "It's fine to put Xingyi Automobile in Shanghai. It can radiate to the northern region to the north, the southern region to the south, the central region to the west, and the port to the east, which is convenient for export."

"That's right. Shanghai has unique advantages in making cars. Moreover, new energy vehicles have a big problem of attenuation in winter, so they are obviously more suitable for the south and have a larger market in the south."

Wang Yi knows clearly that two-thirds of the future sales of new energy will be concentrated in the south.

It's simple. In winter, it's cold in the north and the battery life is reduced by half.

For this reason, many northerners simply gave up on trams.

But in the south, the winter is not too cold, the battery life is only slightly reduced, and the cost of new energy vehicles is much lower than that of gasoline vehicles, making it a paradise for new energy vehicles.

Of course, Xingyi Automobile will definitely start with the extended-range model, and the first few years after mass production will all be extended-range vehicles.

There is no way, battery technology is still relatively poor these days.

Typically, the cost is high, the range is low, there is no future in pure electric vehicles, and it is easy to cause range anxiety.

Extended-range electric vehicle is the way to go. Even if you run out of electricity, you still have oil, so there’s no need to panic.

Many years later, when there will be a huge breakthrough in battery technology and fast charging stations can be seen everywhere, a pure electric car worth more than 100,000 yuan can easily run 500 kilometers. At that time, it will be suitable to buy a pure electric car.

By then, there will be no need to worry as long as the journey is not 800 kilometers.

After all, if you drive 300 kilometers, charge the battery in a service area, and sleep for 20 minutes, then when it is fully charged, you can run another 300 to 400 kilometers.

What's more, in the future, pure electric vehicles with a range of thousands of kilometers will not be a problem.

But that will be at least ten years later.

Before that, extended-range is still king.

In the evening, after a busy day, Mr. Hu finally returned to the hotel and found Wang Yi:
"Chairman, we have been talking with ASE for two days and have made some progress. The other party said they would consider selling, but the price has not been agreed upon."

"Has the price not been agreed upon? A 20% premium is acceptable." Wang Yi said.

Mr. Hu sighed, "That's what I thought too. The market value of ASE's Shanghai Packaging and Testing Plant is around 15 billion. We offered 18 billion, a 20% premium, which is a reasonable price. But they want 25 billion!"

"25 billion?" Wang Yi frowned. For a packaging and testing factory worth 15 billion, you can ask for 18 billion or even 20 billion. We can negotiate.

Now Xingyi Semiconductor is in need of a packaging and testing factory, so it’s easy to exchange money for time.

But it costs 15 billion, which is a premium of 66.67%, or 10 billion. This is treating Wang Yi as a big victim.

"ASE, you have a big appetite. If that's the case, we won't acquire it. It's not a bad idea to look at other packaging and testing factories, even if the equipment and production lines of domestic packaging and testing factories are slightly inferior to ASE."

"That's what I thought, too. If we can't come to an agreement, we'll just give up. But the director of ASE said that their chairman will come to Shanghai tomorrow and hopes to meet you. From what he said, there's still hope for this matter, but their chairman wants to meet with you."

"Meet me in person?" Wang Yi smiled faintly: "As the world's number one packaging and testing giant, ASE occupies more than 20% of the global market, which can be regarded as a leader. Their chairman personally invited me, so I have to give him face!"

Originally, Wang Yi was too lazy to show up in person, but in order to acquire the Magic City Packaging and Testing Factory and solve the urgent problem, he still had to meet.

After all, he is a leader in the packaging and testing field and the founder of a top semiconductor giant.

Taiwan’s semiconductor deployment is actually quite interesting.

MediaTek is currently the world's second largest chip design giant, second only to Qualcomm.

Although they are all low-end chips, and even used exclusively for copycat phones, they are large in scale and their revenue is higher than that of Samsung and Nvidia.

TSMC is the world's leading chip foundry giant.

ASE is the world's number one packaging and testing giant!

Three companies, three fields, from chip design to wafer manufacturing, to packaging and testing, directly achieved a one-stop closed loop.

Wang Yi couldn't help but want to applaud. He will make arrangements!
In contrast, the layout in the mainland is much worse.

In terms of chip design, HiSilicon Semiconductor is still in its infancy and is not as strong as MediaTek at the moment, but it has a promising future.

In terms of wafer foundry, SMIC is stuck at 55 nanometers, which is far behind TSMC's 28 nanometers.

When it comes to chip packaging and testing, Changdian Technology, Tongfu Microelectronics, and Huatian Technology are all doing well.

Even though it is not as good as ASE at the moment, it is still doing well.

Overall, it is much worse than Taiwan.

But with Xingyi Semiconductor, there is still hope of catching up.

As for the purpose of the chairman of ASE wanting to meet Wang Yi, Wang Yi also had a guess, it was most likely for orders.

Qualcomm, Nvidia, and ASE have all received news about Xingyi Semiconductor's self-developed 40nm chip.

In addition to the high sales of Xingyi mobile phones and Xingyi tablets, the orders for self-developed 40nm products are also in the billions.

The number of chips that need to be packaged and tested every year is also in the billions!
ASE was so jealous of such a large order that the chairman even flew over in person.

All we can say is that everyone has his own agenda.

Wang Yi has set his eyes on ASE's Shanghai packaging and testing plant, and ASE has set its eyes on Xingyi Semiconductor's self-developed billion-level chip order!
As for the final result, it depends on the tactics of both sides tomorrow.

The next day, Wang Yi came to the Shanghai headquarters of ASE and met Zhang Sheng, the chairman of ASE and founder of ASE Group.

"Boss Wang, I've heard of you for a long time, but I didn't expect you to be so young!"

Zhang Sheng smiled and held out his hand: "You are so young, but you have achieved so much that I admire you. You are really young and promising."

Wang Yi smiled faintly: "Mr. Zhang, you are overpraising me. You founded ASE Group and made it the world's leading packaging and testing giant. That's really amazing."

It was a business scene of mutual praise, and the atmosphere was very harmonious.

"Please, Mr. Wang, I have prepared tea!"

The two came to the reception room, exchanged some pleasantries, and got straight to the point:

"Mr. Wang, you want to acquire ASE's Magic City packaging and testing plant. It's not impossible. The price of 25 billion is not high, and it's even very cost-effective."

"Mr. Zhang, it's 10 billion higher than the market price, so it's not a good deal. If it was 18 billion, I wouldn't say anything."

Zhang Sheng laughed and said, "It's not that simple. The Magic City Packaging and Testing Plant is indeed worth 15 billion, so I can give it to you at 18 billion. The extra 7 million is the technology licensing fee!"

"If you have a packaging and testing factory but don't have the packaging and testing technology, it's useless, right?"

"You will transfer the packaging and testing technology for 7 million?" Wang Yi was a little unconvinced.

This is ASE's signature skill, although Wang Yi can't use it.

"The 7 million is just a technology license. We need our technicians to operate and help you produce. You just need to pay their salaries. In addition, your people are prohibited from contacting to prevent technology leaks."

Wang Yi was speechless: "..."

This guy’s brain is full of tea eggs?
(End of this chapter)