Chapter 1097: The truth is revealed

Chi Zuoxue knew a little later that the senior executives of Kumho, Yunyuan, Deyi and Zhongjing Microchip gathered in Singapore.

Lee Xiancheng is a prominent figure in the Lee family in Singapore. It is difficult for him to hide his entire reception activities. The media may choose to forget them when reporting publicly, but it is difficult to hide some news from people in the circle.

Chi Zuoxuezang guessed that Kumho, Deyi, Yunyuan and Singapore have been conducting close consultations on the investment issues of Zhongjing Microchip’s new factory for this period. The investment of $30 to 4 billion is considered a rare large-scale project in RB. It is not easy for the major shareholders of Zhongjing Microchip to reach an agreement on investment and engineering construction issues. Each shareholder has different interests. Even if Kumho still holds the dominance of Zhongjing Microchip, the two shareholders of Deyi and Singapore authorities are very important and cannot be ignored.

As usual, such negotiations will be carried out secretly under the water. Once prominent figures from all parties are heard of the news, it almost means that the negotiations have entered the final stage. Perhaps it will not be surprising that the agreement will be signed before the dinner party.

What puzzled Chi Sashuzo was why the final negotiation site was chosen in Singapore? What kind of agreement did they reach?

At this time, among the major shareholders of Zhongjing Microchip, Kumho Commercial holds a controlling stake. Even if Deyi exercises the 5% share subscription authority in the future, Kumho Commercial's shareholding ratio will lose its absolute controlling stake after it drops to 47%, its status will still be far higher than other shareholders.

Deyi holds 15% of Zhongjing Microchip's equity at this time and also has 5% of the subscription rights. It is also the main technology supplier of Zhongjing Microchip, and its status should be said to be second only to Kumho Commercial.

The Singapore authorities' shareholder status is even worse than that of Deyi, and its importance is even less than that of management shareholders.

The most critical negotiation choice was carried out in Singapore, which was somewhat puzzling.

In a residence in Beijing, Hirozo Ikesa stepped barefoot on the cold floor, stood in front of the floor-to-ceiling window, looking at the golden sunset in the west, frowned slightly. Although he knew that the mystery would be revealed soon, he was even more worried that the mystery was too far from what he had imagined before.

Ozawa sat in front of the short table and squinted his eyes at the bushes under the sunset outside the window.

Huaxia NEC will follow Zhongjing Microchip and launch a 0.25/0.18 micron wafer fab project. In addition to introducing technology from NEC or Panasonic, Japan even needs to provide a large amount of Japanese yen policy loans to alleviate the pressure on construction funds. China's central government is not very rich, with US$30,000 or more, enough to build a large nuclear-powered aircraft carrier.

As the full-minded person in charge of the Japanese side, Ozawa Yu has a lot of pressure on his shoulders; in comparison, Ikesa Hidehide hid behind the scenes to command, so he doesn't have to bear any responsibility. The current situation is quite clear. Although the previous plan is perfect, the efforts to block Kanho in terms of funds can be said to be a complete failure.

Who would have thought that Microsoft would eventually accept a $900 million offer for 30% of Global Music Online's equity?

This news will also stimulate the confidence of Chinese businessmen in Southeast Asia in Kumho Business. Kumho Business's financing capabilities in Hong Kong have been greatly enhanced in Southeast Asia. Even if Kumho Business does not reduce Quantum Online's stock, there will be no major problems in raising the construction funds for the two new wafer fabs.

Is it wiser to terminate the new construction plan of China NEC? Xiao Xiongze thought so in his heart.

Chi Zuoxue's mind was not on this at all. He turned around and asked: "Why did they choose to hold the final negotiations in Singapore... There is no clear news that the continuous huge losses of Chartered Semiconductor in recent years have made Singapore's Temasek and the government investment group regard the investment in wafer factories as a daunting opportunity?"

"Maybe Singapore sees Kumho's rapid growth, even if it faces great risks in wafer fab investment, it may be expected to cooperate in other fields to reduce the risks in wafer fab investment," said Ozawa Yu. "If Kumho is willing to transfer some of the equity of the core companies, I think Singapore will not be too stingy..."

Hirozo Chi knew what Ozawa Yu meant. If Kumho was willing to accept the infiltration of the Singapore authorities, Kumho would become more difficult. Not to mention the more mysterious Singapore government investment group, Temasek Investment Group could easily mobilize tens of billions of dollars of capital. Kumho's rapid growth combined with strong capital will become a daunting monster.

Li Xiancheng, a senior director of Temasek Investment Group and a core member of the Singapore Lee family, attended today's hospitality event throughout the whole process. Maybe he had a deeper intention.

Although there is such a possibility, Ji Sashuzo still shook his head and denied this possibility, saying: "Kanho's foundation is not deep enough at this time. If he accepts Temasek's penetration, it is easy to turn against Temasek... Zhang Ke will not be so stupid. Of course, it is normal for Temasek to have such an intention. If it is possible, buy the entire Aida Group with 10 billion US dollars, will you do it?"

"It seems that there is no need to discuss this." Ozawa Yu said. Although Kumho has placed all its overseas business under Kumho Commercial, which has made the overseas profits shared directly by Aida Group, Kumho is really willing to let Aida Group go public overseas. In the current capital market environment, the market value exceeds 20 billion US dollars, which is unbelievable.

When Kim Nanyong knew that important figures of Zhongjing Microchip's major shareholder gathered in Singapore, he rushed over to meet Lee Jae-soo.

"This is a handwritten letter from the headquarter..." Lee Jae-soo sat calmly behind the desk, pushed a fax to the table and asked Kim Nam-yong to pick it up and read it.

"The turmoil in the Asian wafer market is intensifying, and Singapore's fabs are difficult to survive. It is a region with fierce competition that transfers products with low cost. Focusing on developing advanced processes in the local area is a shortcut to Singapore's fabs. The Singapore authorities seem to have this understanding..."

Kim Nam-yong looked at the fax written by Lee Kun-hee and was stunned for a long time before saying, "Chi Zuoxu-soo has done so much effort. At the beginning, he is just shooting around an empty target?"

"I believe this will be a result soon," said Lee Jae-soo.

Singapore is actually a link in the European and American industrial interest chain. Without the acquiescence of the West, it is impossible to unilaterally transfer higher-end wafer process production lines to the mainland. Kumho and Deyi reached a technology transfer agreement and obtained approval from the US government. In fact, it can also be said to be a license to transfer Singapore's 0.25\0.18 micron wafer production lines to the mainland.

Neither Kumho nor Zhongjing Microchip or Deyi publicly announced that it would build a new factory.

"Do I need to spend all my money to buy the stock of Chartered Semiconductor?" Jin Nanyong joked.

"I'm afraid it's too late. Before the London stock market opens, the mystery will probably be revealed." Li Zai-soo said that Chartered Semiconductor is listed on the London Stock Exchange Market. The London Stock Exchange Market opens at 4 pm Beijing time. Li Zai-soo looked at the watch and it was already 2 pm. He thought that the mystery might be revealed in two hours. "Chartered Semiconductor now has six lines of 0.35 microns, ten lines of 0.25 microns, eight lines of 0.18 microns, and six lines of 0.13 microns are temporarily frozen. The greatest possibility is that Chartered will transfer most of the 0.25 microns and a small part of the 0.18 microns eight lines to Zhongjing Microchip, and obtain funds to restart the 0.13 microns project..."

All the wafer factories of Franchise Semiconductor are built in Singapore. Singapore’s electronics industry is narrow, and the various costs of entering Singapore remain high. In the 0.35/0.25 micron-level wafer foundry market, Franchise Semiconductor has lost its competitiveness and has maintained a meager profit in the 0.18 micron-level foundry market...

People's thinking is really strange. Once they are clear, they will suddenly become clear and can think of anything thoroughly. But before, I never thought that Jinhu could find a way.

At this moment, the administrative secretary knocked on the door and walked in: "Latest news, Temasek Investment Group, Chartered Semiconductor and Zhongjing Microchip will hold a joint press conference at three o'clock at the Fulton Hotel in Singapore..."

"Is there any live news broadcast?" Jin Nanyong asked.

"No," replied the Administrative Secretary, "the staff of the Headquarters Economic Research Institute are in Singapore and will attend the press conference."

"I can almost catch up with the live news broadcast." Lee Jae-soo said.

Kim Nam-yong sat in Lee Jae-soo's office and waited for news from Singapore to come back. The joint press conference was held on time at three o'clock. The press conference time seemed to be very short. At three o'clock, the content of the press conference was faxed. The final agreement between Chartered Semiconductor, Temasek and Zhongjing Microchip was reached for assets for equity and cash.

Temasek injected the equity of Zhongjing Microchip, owned by its subsidiary DBS Bank, into Franchise Semiconductor at the original price. Franchise Semiconductor sold its two lines of 0.35 micron, six lines of 0.25 micron, and two lines of 0.18 micron to Zhongjing Microchip for a discount of US$1.6 billion, and fulfilled its joint investment obligations for new factory construction.

In the end, Franchise Semiconductor will obtain 15% of Zhongjing Microchip's equity and $1.3 billion in cash. In addition to obtaining part of the construction funds needed for the advanced wafer manufacturing production line, the most important thing is to convert most of the loss-making assets into high-quality equity assets; on the other hand, the high-priced sale of the loss-making assets will also make up for the huge losses in the previous period to a considerable extent. Franchise Semiconductor will also obtain a large number of chip foundry orders from Deyi and Kumho to enhance profitability.

Temasek Investment Group seems to have not made any profit at first glance, but it has improved the financial situation of Chartered Semiconductor. Chartered Semiconductor itself is Temasek's biggest burden in recent years. It is Temasek's biggest profit. In addition, it also expands its control over Chartered Semiconductor and guarantees its influence on Zhongjing Microchip through Chartered Semiconductor.

For Zhongjing Microchip, Jinhu and Deyi, the budget for Zhongjing Microchip's Xinpu factory expansion and the construction of two factories will be reduced to around US$2 billion, avoiding the huge additional losses caused by the explosion of production capacity in the Asian wafer market.

Although Zhongjing Microchip attaches great importance to the training of local engineering and technical personnel, it only took two years to pay attention to it. The training of senior engineers in the wafer process takes five years or even longer. At this time, Zhongjing Microchip's daily production and process research and development mainly relies on nearly 300 externally hired middle and senior engineering and technical personnel. Although technology can be obtained from Deyi, the technology of digesting Deyi and building and operating the new factory, Zhongjing Microchip still has serious shortage of qualified middle and senior engineering and technical personnel.

Franchise Semiconductor has a mature production system and operation in 0.25 microns and 0.18 microns, and has also trained a large number of engineers. Franchise Semiconductor adjusted its business strategy this time. Even if a new wafer factory of 0.13 micron is built, its production capacity will be compressed to a considerable extent. A group of engineers will be idle and can be transferred to Zhongjing Microchip to support the construction and operation of the new factory.

In the final agreement reached with Chartered Semiconductor, Zhongjing Microchip includes terms of engineering technical assistance and engineer delivery. The first batch of chartered will send 100 engineers to Kingsoft to participate in the construction of the 0.25 micron wafer fab.

Kim Nanyong sat in Lee Jae-soo's office and carefully polished the open cooperation agreement between Zhongjing Microchip and Chartered Semiconductor. Before he knew it, four o'clock passed. Beijing time was the opening of the London stock trading market in the morning. Lee Jae-soo walked out for a while, walked back to the office, and asked Kim Nanyong: "You have not been able to buy Chartered stocks with all your money. Do you know how much you lost?" He sat back in his seat and turned the display screen to Kim Nanyong to see the stock price of Chartered Semiconductor soaring like a torrent.

"It's only 500%. If you're so passionate, you may fall back..." Jin Nanyong smiled helplessly. Franchise Semiconductor suffered losses for nine consecutive quarters, and it was considered a plague stock in the London stock trading market. At this time, the stock price soared. This shows how popular the cooperation agreement with Zhongjing Microchip is in the market. To put it in detail, the major shareholder Temasek Investment Group made the most profits on the books. Japanese chaebols such as Mitsui also wanted to destroy the cooperation between Zhongjing Microchip and Franchise Semiconductor.

Lee Jae-soo sighed slightly and said, "I really don't know what Chi Zuoxuezang would think? In addition, you accompany me to Wenzhou tomorrow..." Not only will Samsung Hongxin's fab project be accelerated, but in the face of such a fierce Kumho, Samsung's other industrial layout in China must be accelerated.

After that, Zhang Ke had no chance to get along with Jingmeng alone in Singapore. He left Singapore on the 10th and flew to Jinshan via Hong Kong.

Students at the University of Hong Kong have begun to enjoy a one-month winter vacation, and Tang Jing returns to Kingsoft two days earlier than Zhang Ke.

When Zhang Ke arrived at Jinshan, he naturally hoped to take Tang Jing to Xu Xueping's house for a meal at night, or cook directly at Tang Jing's house to cook delicious food for everyone. Before anyone could enter the pick-up hall, he stood in front of the luggage conveyor belt with the staff waiting for his luggage. Through the floor-to-ceiling glass, he saw a group of people standing together in the pick-up hall. Tang Jing stood beside Zhao Youlun and waved excitedly to this side.

Before boarding the plane, she specially called Tang Jing and asked her to pick her up the plane. She rushed by Dongtang at dusk and saw the birds in Dongtang coming back late. However, she didn't expect that Zhao Youlun came over to join in the fun, and there were a bunch of accompanying officials next to Dai.

Zhao Youlun couldn't wait to see Zhang Ke. He knew that Zhang Ke would go to Kingsoft today, but he didn't know where he transferred, and he knew the specific flight. He stared at Tang Xueqian's daughter and followed him to the airport to intercept Zhang Ke.

Zhang Keyou and Zhao Youlun communicated with Jinho's investment plan, but in Zhao Youlun's opinion, the previous communication was just Zhang Ke who drew a big cake for him. Before it was truly implemented, even if Zhang Ke brought him a project plan worth hundreds of pages thick for him, Zhao Youlun would not dare to have too much expectations... The 10 billion yuan pulp project is still a big cake painted on paper?

It was not until the cooperation agreement between Zhongjing Microchip and Chartered Semiconductor was announced and the construction plan of Zhongjing Microchip's new factory was unveiled and revealed its true face. Zhao Youlun believed that what should come was finally coming. However, Zhongjing Microchip introduced ten lines from the charter this time, several lines were placed in Kingsoft and several lines were placed in Jianye, and which new factory broke ground first? These issues were all unresolved, and Zhao Youlun naturally couldn't sleep or eat.

As the economic, cultural and political center of Jiangnan Province, Kingsoft has not introduced $1 billion investment projects so far, which is really embarrassing to say.

The negative impact of the collapse of Jinshan Lake on Jinshan Lake has on Jinshan is too great. In addition, the current focus of economic work in the province is on Xinting. Although Zhao Youlun is in power and has the position of secretary and mayor, his life is not easy.

Seeing Zhang Ke walking into the pick-up hall with his arms folded in his arms, Zhao Youlun didn't care about his little lover's rush to be intimate after leaving, and took the lead in meeting him. He smiled cheerfully and said, "Will you pass by Jinshan secretly and not shoot at all? I'll be here tonight, and you can choose the place."

"Let's do it," Zhang Ke also knew that he could not get rid of Zhao Youlun. He looked at his watch and said, "I plan to get off the plane and go to Dongtang to watch birds, and then go to Uncle Xu's house with Tang Jing for dinner. If Secretary Zhao can accommodate my time, he will go to Uncle Xu's house with me for a meal..."

It would be better to have the opportunity to be intimate with Xu Xueping, Secretary of the Provincial Party Committee, Zhao Youlun nodded quickly and agreed: "This is the best. The Dongtang project has also entered the early stage. I was about to take time to take a look..."

With one more Zhao Youlun, the family banquet will not be a family banquet. Tang Xueqian is in Xinting, and Gu Jianping does not come to join in the fun. Zhang Ke and his friends took a bus to Dongtang, and did not waste much time to watch the birds return late, so they drove directly to Xu Xueping's residence in the hospitality hotel of the provincial government. Xu Xueping returned home from the provincial party committee in advance and invited Liang Weifa to dinner at home. Knowing that the Kingsoft Factory project also touched Liang Weifa's thoughts.

Xu Xueping’s residence in Jinshan, with the trees in front of and behind the house, the trees were deep and pure. Even if it was cold and painful, there was not much depression.

Zhang Ke, Xu Xueping, Liang Weifa, and Zhao Youlun sat in the study and chatted. At this point today, Zhang Ke no longer kept it a secret and said directly: "Zhongjing Microchip will have eight lines on Kingsoft, two lines on 0.35 micron threads and six lines on 0.25 micron line lines. Kingsoft's investment budget is about 1.6 billion US dollars. It is said outside that Zhongjing Microchip will build two new factories. In fact, it is not the case. The two lines with 0.18 micron threads will be merged into the Xinpu factory without building another new factory..."

Zhao Youlun didn't expect that Kingsoft would get 80% of the $2 billion investment. When rubbing his hands, he naturally felt unspeakable excitement, but he was also wondering: Will Zhongjing Microchip's plan make Jianye full of opinions? He thought so in his mind, but he wouldn't say it out. The selfish idea was that Jinhu and Jianye really had friction.

Zhang Ke also said: "The licensed semiconductor has six lines with 0.35 micron threads. In addition to the two transferred to Zhongjing Microchip, it will also invest in the construction of a new factory in Jianye to place the remaining four lines. Regardless of whether the investment of Huaxia NEC can be implemented, Jianye will usher in a third wafer fab..."

"Oh, so that's how it's arranged!" Liang Wei said with a hint. Jinhu finally introduced another wafer factory to Jianye, which will make the foundation of Jianye's electronics industry deeper.

"Zhongjing Microchip is still mainly to meet internal orders in Jinhu and will not develop OEM business on a large scale. Therefore, this time, it did not take up all the production lines that the franchised wanted to eliminate, but instead persuaded the franchised to go to Jianye to build a new factory in person. However, Jinhu will also invest in a small amount of shares in the new factory invested in Jianye..." Zhang Ke introduced.

Xu Xueping smiled and said, "You always don't forget to give others a stick..."

Zhongjing Microchip mainly meets internal orders of Kumho, but the franchised wafer factories invested in Jianye are mainly foundry business. The franchised long-term losses are not because of the poor technology and poor management of the franchised, mainly because of the high costs of Singapore and the local electronics industry structure is too narrow. Once the franchised moves the production line to the mainland, it can make up for the previous disadvantages to the greatest extent and exert its maximum competitiveness. At that time, Huaxia NEC will be directly threatened by competition from the franchised new factory.

It would be a hell that Huaxia NEC can compete for new franchise factories in the foundry market.

The information disclosed by Chartered Semiconductor this time does not mention the plan to build a new factory in Jianye. It is thought that Ge Jiande and others will continue to rush, and then choose to slap them after they are most proud of themselves.

Zhang Ke smiled and said, "No matter what, Kingsoft Factory will break ground first, and the announced factory construction budget is US$1.2 billion..."

Liang Weifa was thinking about another question in Zhang Ke's words and asked: "Zhongjing Microchip will add ten new lines this time, and they are all mainly to meet internal orders in Kumho?"

Send a reminder to Liang Wei that Zhao Youlun also realized the subtleties. He has recently studied the knowledge of wafer manufacturing. Zhao Youlun silently calculated in his mind that if ten new lines are added, Zhongjing Microchip will have sixteen wafer production lines, and the yield rate and yield rate are both ideal, which can almost meet the production needs of more than one billion chips every year. Will Kumho's future internal orders be so huge?
Chapter completed!