My Age of Investment

   Chapter 1102 Copy Homework

  After listening to Xia Jingxing’s explanation, many people showed a suddenly realized expression.

  It can be regarded as a new understanding of the role and significance of the Renaissance Industry Industry Fund.

  It’s good for entrepreneurs to have core-making feelings, but they can’t be eaten. If China’s chip industry is to develop better and better, it is necessary to develop a successful business model and follow the path of sustainable development.

  Now they have touched some of Xia Jingxing’s business operation ideas.

  First, the fund invests heavily in start-up chip companies, which can eat up the development dividends of China's chip industry, and the profits will feed back to the revival industry to help its development;

Second, investing in various chip companies, including mobile phone chips, IoT chips, automotive chips, etc., is equivalent to sorting out and selecting the supply chain of the industries under the Fuxing Industry Group, and at the same time giving money and orders to help its development. When the invested company develops well, the Renaissance Industry Fund as a shareholder will also benefit;

  Third, the chip companies that have received investment have entered into cooperation with Fuxing Semiconductor, which in turn will give Fuxing Semiconductor foundry orders to help Fuxing Semiconductor grow.

  If a commercial closed loop is formed like this, the development of Fuxing Semiconductor and even the entire Fuxing Industry Group can be plugged in a pair of wings and fly high.

  This integrated development path of marketization, industrialization, and financialization seems to be stronger and more scientific than just smashing 100 billion in research and development.

  In fact, Xia Jingxing did not expect to be as complicated as theirs, but insisted on his industrial investment philosophy of "A single flower is not a spring, a hundred flowers bloom in a garden".

  This is the same as the barrel effect. How much water a bucket can hold depends on the shortest piece of wood.

  Even if Fuxing Semiconductor is at the pinnacle of chip manufacturing, international manufacturers will not give orders, and the import of manufacturing equipment will be banned, and immediately cool off.

  To break through this shackle, we can only take the road of "common prosperity" and take the overall level of China's chip industry to a higher level.

  In the short term, this goal is a bit out of reach.

  But if you look at it separately, the Fuxing Industry Group's own industry competes for resources in overseas markets, and then orders the supply chain to domestic manufacturers. Doesn’t it mean leading everyone to get rich together and be well-off?

  In addition, the Renaissance Industry Industry Fund also provides financial assistance, so that domestic manufacturers can increase their research and development efforts and try to make some breakthroughs in technology.

  Multi-pronged approach, the overall chip industry level can advance by one point is one point.

  There are not many shortcuts to upgrade the chip industry. We can only accumulate strength step by step in this way. Only when the husband survives can we talk about innovation and transcendence.

  If you change a country, like a company, like Wisdom Fruit, you only need to focus on the chip design, because no one gets stuck.

  But Renaissance Industry can’t do it, so I can only choose to drag everyone forward together.

  Fortunately, Envision Capital has been responsible for transfusing blood to Fuxing Industrial Group, otherwise the initial investment alone will not be able to support it.

  Xia Jingxing raised his hand and signaled Liang Mengsong to continue speaking, and raised all the difficulties.

Liang Mengsong understood, and then reported: "The magic city is an 8-inch wafer fab. Now major wafer foundries in the world are investing in large-scale 12-inch wafer fabs. I think we must seize this transformation opportunity. , Can't be left behind.

  The larger the wafer size, the higher the available efficiency.

  Compared to 8-inch wafers, 12-inch wafers have more than twice the usable area, which is more cost-effective.

  The products cut from 8-inch wafers are mainly used in standard logic, embedded non-volatile memory, mixed signal, radio frequency, image sensor, power management, power device and other chips.

   Most of the 90-nanometer and more advanced processes are using 12-inch wafers.

  What caused this?

  As we all know, the larger the silicon wafer, the more pieces will be cut, and the more material will be saved.

  At the same time, due to the high cost of chip manufacturing in advanced processes, it is more economical and more cost-effective to use 12-inch wafers for advanced chip manufacturing.

  My suggestion is that the second factory in Beijing should be built as a 12-inch wafer foundry. "

  Xia Jingxing nodded slightly, “It will take at least more than a year from planning to building the factory and then to putting it into production.

  After more than a year, the operation of the Magic City Factory should be on the right track, and mass production has also been achieved.

  At this time, the Beijing factory can undertake the task of breaking through the 65-nanometer process. "

  Liang Mengsong smiled and said: "Yes, that's what I mean. We can't relax the least in the pursuit of advanced manufacturing processes, otherwise we will be thrown out of three generations of technology."

  Xia Jingxing asked: "What is the budget investment?"

Liang Mengsong replied: "At least US$2 billion is needed to invest, and US$3 billion is the best, because the wafer fab production line and supporting plants of the Magic City Factory have already allocated our first batch of US$1 billion to the spenders. Eight.

  We need a certain amount of capital to maintain the company's daily operations, because the Magic City factory has not yet generated positive cash flow.

  Wages of employees, R&D investment, etc., all require a lot of money.

  Even without considering the problem of factory depreciation, it was difficult for us to achieve profitability in the previous year or two. "

  It was said that although the shareholders present knew that the chip industry was a bottomless pit, they did not expect Liang Mengsong to be so tossed.

  It’s only a little more than a year, and I won’t mention it when the 1 billion dollar is almost tossed, and then at least 2 billion US dollars will be invested.

  They found that if you continue to develop at this pace, Mr. Xia’s 100 billion fund does not seem to be a big number. A few years can bring you misfortune.

  Someone looked at Xia Jingxing, wanting to see what Xia always looks like.

  Xia Jingxing's face was as usual, and his performance was very calm.

  He glanced at all the shareholders, and without asking more questions, he knew that this group of people could not count on it for the time being, and Fuxing Semiconductor had to raise the second round of financing by himself.

   "Make a plan, and then start negotiations with the Beijing government as soon as possible. The Renaissance Industry Industry Foundation will transfer the money to the account in several sums, and use the best plan you said to allocate a total of 3 billion US dollars."

  Xia Jingxing’s refreshment surprised Liang Mengsong very much, and he couldn’t say anything he had prepared.

   But he still said a few words to prove that he was not fooling around.

  "Fuxing Semiconductor is now in the catching-up stage. Huaxin International also burned more than 2 billion US dollars in the first few years of its establishment. It was not until the year that it went public in 2004 that it achieved its first annual profit.

  Huaxin’s development path is worthy of our reference. Spring will definitely require a lot of sowing, and autumn can usher in the harvest. "

  Xia Jingxing waved his hand, “Without explaining too much, I have studied the development history of Huaxin and some of their layout.

  I didn’t think Zhang Zong was so great before. After I joined the semiconductor industry, I knew how great he was. "

   These remarks are the admiration of Xia Jingxing from the bottom of his heart, because Zhang Rujing personally does not have such a strong financial strength as him. He has drawn more than two billion US dollars of international capital for Huaxin based on his own industry status, and then rushed all the way.

  In 13 months, the Magic City 8-inch wafer fab was completed and put into production;

  The following year, the construction of a 12-inch wafer fab in Beijing began in 2002;

  In the third year, together with Intel, was selected as the world’s best semiconductor factory of the year;

  Listed in the fourth year and achieved profitability, and at the same time became the third largest foundry in the world;

  Fifth year revenue exceeded 1 billion U.S. dollars...

  You should know that after more than a decade, Huaxin has been only ranked fifth in the global foundry market.

  In other words, after more than ten years of development, it has gone backwards...

  Before Gulf Power did not make a move, the development of Huaxin in the first five or six years was like a smashing batch.

  Because they are indeed excellent, Xia Jingxing and Liang Mengsong are not embarrassed to admit that Fuxing Semiconductor is copying Huaxin’s work.

Deng Yuanjun said suddenly: "I remember that the Magic Capital government promised us? When Fuxing Semiconductor's 1 billion US dollars investment is in place, and the factory is built, the equipment is installed, and the formal operation begins, it will give us a loan depending on the order situation. support."

  Liang Mengsong nodded, "Yes, there was such a promise. If they can give us hundreds of millions of dollars in loans, the financing can be less financing, and it will be enough to raise 2 billion US dollars.

  After the Beijing factory is put into operation, we ask the Beijing government for a loan of hundreds of millions of dollars. "

  Xia Jingxing's heart moved. Liang Mengsong led the team to engage in technical research and technical management. It was okay, but his ability to deal with the government and financial management was a bit weak.

   Looking back, we have to arrange for a CFO from mainland China who is familiar with the market to come and help him share the work.

  "If Fuxing Semiconductor conducts Series B financing, how will the valuation be calculated? It has not yet officially operated, and revenue is about no."

  Xia Jingxing looked at the shareholders present while speaking.

   "Slightly more than the $1 billion invested will do, and it's not much higher."

   "I think it will work, so I can estimate it. Don't delay the development."

   "Yes, Jingxing, you can just make a decision directly."

  ……

  Shareholders are very Buddhist and seem not to care about valuation issues at all.

  This is because everyone present is holding shares and holding fund shares in the Renaissance Semiconductor and Renaissance Industrial Industry Fund.

  If the Renaissance Industry Fund invests in Renaissance Semiconductor, it is about the left hand to the right, so everyone is not particularly concerned.

Knowing this, Xia Jingxing stopped consulting the opinions of others, and said: "Well, it is enough to arrange an accounting firm to audit the company, and then the Fuxing Industry Industry Fund will directly inject funds for Fuxing Semiconductor to promote the Magic City Factory. Mass production and construction of the second fab."

  (End of this chapter)