The rise of nanometers

Just after Huang Xiuyuan inspected the Sun Valley Industrial Park, it was also the third day after the Dragon Totem new product launch conference.

Headquarters of Datang Group.

A business negotiation officially kicked off the all-out attack from textile semiconductors to photolithography semiconductors.

MediaTek Chairman Cai Mingjie and General Manager Xie Changhua were sitting in the conference room. The ample air conditioning made them feel a bit chilly.

Datang's deputy general manager Dou Jianfang was opposite the two.

"Mr. Cai, let's tell the truth! Your company's price is too high. 51% of the shares, 8 billion yuan, is obviously not in line with the actual value."

Cai Mingjie frowned slightly, but he had no confidence: "Mr. Dou, this price is already very cheap."

MediaTek’s 51% stake is worth 8 billion yuan, which seems to be very worthwhile. After all, MediaTek’s market value at its peak was close to 200 billion yuan.

It's a pity that a phoenix in the water is not as good as a chicken. After suffering continuous impacts, MediaTek's value has long been reduced to less than before. The current market value is less than 18 billion yuan.

And as time goes by, more and more domestic semiconductor design companies have emerged, which are fully impacting MediaTek's only remaining market.

Xie Changhua thought for a while and asked tentatively: "Mr. Dou, how much do you think is appropriate?"

"2 billion 67%." Dou Jianfang said calmly.

"What?" Cai Mingjie's face darkened. It was obvious that he found this price unacceptable.

But Dou Jianfang, who was firmly seated in Diaoyutai, said casually: "If your company feels it is inappropriate, then we will not force it. After all, it is not sweet to force things."

Damn it, isn't the melon sweet that you are still forcing yourself to do? Cai Mingjie cursed in his heart, but he quickly calmed down.

Sometimes under the general trend, we really can’t help ourselves.

MediaTek is in a very bad situation at this time, because their chip design tends to rely on photolithography semiconductors, and the current situation in the photolithography semiconductor camp is in full decline.

As for the transition to textile-based semiconductors, the technological path of the industry cannot be completed by just tapping the head.

In order to develop the textile-based semiconductor system, the Suiren Department used all-out courage, coupled with various layouts and technical reserves, to launch the textile-based semiconductor system.

MediaTek is just a company, and the area where it is located is very embarrassing. The Textile Law Semiconductor Alliance has been suppressing the semiconductor industry in Nanbo Bay, and naturally it will not authorize the other party to use its patents.

The field of semiconductor design is very patent-hungry. It does not have patents. Once it enters the field of textile semiconductor design, regardless of whether there are orders, the patent authorization alone is enough to make it difficult for MediaTek to move forward.

Obviously, Datang is determined to buy MediaTek. If MediaTek does not agree to the acquisition plan, Datang will not lose anything, and its development will be slower at most.

Datang plans to merge with MediaTek because it lacks chip design and hopes to acquire the chip design capabilities of MediaTek through the merger.

Just like ZTE is eyeing UMC, Ziguang is also eyeing Hynix, and Huawei is also having private negotiations with TSMC.

Obviously, various companies in the textile industry have shown their fangs and are preparing to gradually merge with companies in the photolithography semiconductor industry, absorbing each other's technology and completing the expansion of their own industrial chains.

Dragon Totem's comprehensive industrial chain, which covers everything from top to bottom, can not only lower the overall cost, but also ensure its invincibility. Dragon Totem and Samsung are role models for many domestic semiconductor companies. .

Of course, this is the ambition of big business.

For small and medium-sized enterprises, it is more suitable to engage in small links in the professional field. After all, the entire industry chain requires huge funds and tests internal coordination capabilities.

MediaTek, which is now in crisis, urgently needs to gain entry into textile semiconductors. This is also the origin of this negotiation.

In fact, this is not the first time that the two parties have negotiated. They negotiated once in August and October last year.

It's just that Datang's prices are getting lower every time, but MediaTek comes to the door again and again. At first, Cai Mingjie also proposed a share swap plan. Unfortunately, his wishful thinking was undermined little by little with the sudden changes in the market. Messy.

Now Cai Mingjie no longer dares to ask for any exchange of shares, but only asks Datang to give him a way out.

In this kind of business negotiation, the status of the two parties is often unequal. Just like when the country introduced foreign investment, the price was basically cabbage price, or even discounted.

Today's Nanbo Bay semiconductor companies are facing this helpless situation.

Since the second half of last year, among the semiconductor companies in Nanbo Bay, many small and medium-sized enterprises have been merged by domestic companies, and talent has been lost like crazy.

Cai Mingjie and General Manager Xie Changhua discussed for a while. Both of them understood that 2 billion 67% of the shares were equivalent to giving away for free. The problem was that they had no room for bargaining.

The longer time passes, the lower MediaTek's value will be and the greater their losses will be. Once the company goes bankrupt, the losses will be even greater.

Cai Mingjie was still making his final struggle: "Mr. Dou, how about 5 billion and 60%?"

"Absolute holding is the bottom line, 2.3 billion 67%."

The two sides grinded their teeth for a long time, and Cai Mingjie and Xie Changhua used their lunch time to discuss with other shareholders for more than an hour.

Finally, around 5 p.m., both sides reached an agreement.

Datang acquired 67% of MediaTek's shares at a price of 2.7 billion yuan. Datang absolutely controls MediaTek. As soon as the cooperation memorandum was signed, the two parties issued announcements.

Although this news aroused a lot of opposition among the people in Nanbo Bay, no matter how loudly they talk, it will not help.

Even if a special bill could be passed to prevent this transaction, no force is willing to take the lead.

Because of the current situation, if MediaTek does not agree to the acquisition, it will be finished sooner or later. By then, the Western capital that invested in MediaTek will suffer even more losses.

In this strange calm, Datang successfully merged with MediaTek and officially kicked off.

Major domestic semiconductor companies have issued intensive acquisition offers to semiconductor companies in Nanbowan, Korea, and Japan.

Among them, the three largest acquisition offers are Huawei's acquisition of TSMC, China Samsung and Dragon Totem's acquisition of Korean Samsung, and Ziguang's acquisition of Tokyo Electronics and Hynix.

Although we don’t know how many companies will be acquired in the end, the offensive of textile semiconductors has made photolithography semiconductors lose ground.

Intel, GlobalFoundries, and Texas Instruments can only stay in North America, catching up while trying to win over Xizhou semiconductor companies.

Xizhou Semiconductor also understands the truth that once the Silicon Valley system falls and the Textile Semiconductor Alliance loses its checks and balances, it can definitely destroy the Xizhou Semiconductor industry with one punch.

In fact, the Xizhou Alliance did not expect that the Silicon Valley system would lose so quickly, which caught them off guard.

Originally, Xizhou Semiconductor planned to sit back and watch the tigers fight and secretly develop its own independent semiconductor industry. However, everything changed too fast. Xizhou Semiconductor, which responded very slowly, felt that the world had changed as soon as it woke up.

Now they have to keep the Silicon Valley system. Even if all their agencies are exhausted, they still cannot stop the general trend from crushing them.

On the other hand, the wave of mergers and acquisitions in the semiconductor industry in Northeast Asia is also intensifying.

Especially with the complete withdrawal of US troops from several bases stationed in Goryeo on March 12, the situation became further clear.

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