If you cheat, money will follow

Chang Le was not surprised that Mr. Jiang said he opposed the acquisition. He said nothing and waited for the next step.

"However, if your company insists on acquiring, as a D member, I will definitely support and cooperate fully, but..." Mr. Jiang changed the subject:

"It's very difficult."

After speaking, Mr. Jiang looked at Chang Le and remained silent for a few seconds.

Chang Le smiled and said, "Mr. Jiang, can you tell me the reason? I want to understand."

"Of course, I will tell you my thoughts exactly." Mr. Jiang smiled heartily.

"Needless to say, our company has been very difficult in recent years, and many things have happened, resulting in many conflicts within the company."

"To solve this problem, it is urgent to introduce large funds into the company, which will relieve the company's liquidity pressure on the one hand and ease the company's internal conflicts on the other."

"In addition, another important thing is to find someone with industry experience, technical background, and management capabilities to take charge of the company..."

"I know my situation, and I probably won't be able to survive it for long."

"At this critical moment, I sincerely hope that your company will not get involved and disrupt the company's internal plans again, because the semiconductor industry is really not an ordinary industry..."

"Moreover, our company has as many as 75 shareholders, each with different purposes and different interest demands. It is time-consuming and labor-intensive to negotiate with each company, and it may not be successful..."

"The semiconductor industry is a grand, sophisticated and sophisticated industry. The industrial chain is not long, but the coverage is very wide."

“The capital requirements are high, the technology requirements are intensive, development is not difficult, and coordination requirements are high, which is difficult for other industries to compare with.”

"No country has the ability and strength to continue to undertake, cover and advance in depth the materials and equipment in the upstream, the design and manufacturing in the midstream, and the supporting products at the bottom."

"Even if it is as strong as North America, it only controls the most profitable upstream IC design end. Most of the other links such as wafer materials, IC manufacturing, packaging and testing are let go. Through technical control, we can change what we can and move what we can. "

"Globalization is a major trend, and international division of labor and cooperation are inevitable."

“In the field of semiconductors, you don’t need to be proficient in everything. You only need to achieve a leading position in a certain link and a certain field, and then you can gain the right to speak in this industry and go broad, stable and far.”

“SMIC has been based on this consideration since its birth, sharing investment costs, reducing the difficulty of acquiring technology, and avoiding policy risks through balanced distribution of equity...”

"It is more conducive to uniting all forces that can be united and providing multi-party support in terms of capital, technology, and production capacity orders, so as to develop rapidly."

"The current difficulties are only temporary and can be solved through coordination."

"But if more than 70 global shareholders are turned into just a few shareholders, or even one shareholder, technology, equipment, and orders will all become obstacles. SMIC will be no different from other second- and third-rate semiconductor foundries in China and miss development opportunities."

…………

Chang Le walked out of the SMIC headquarters and looked back. He felt regretful about this international column company, but it was only a little regretful.

Mr. Jiang is right, dozens of shareholders are talking one by one, talking about the year of the monkey and the month of the horse, and it is not ruled out that new problems will arise.

And from a market perspective, if you are not a shareholder, who will play with you?

The plan does not have to be SMIC, there are alternatives.

The acquisition of a wafer foundry is just to adjust part of the production capacity to support, verify and develop simultaneously with microelectronic equipment factories.

Only mature processes that meet the stage requirements are needed.

There is no need to pursue advanced processes that pursue extreme line widths.

The reason why I chose SMIC in the first place was mainly due to some otaku plot in later generations, hoping to make its bloodline more pure and easier to slap in the face.

Avoid walking the tightrope for decades, where it’s hard to make decisions.

The other party is a legendary figure, and he is also the balancer and key figure in the current internal conflicts of SMIC.

His attitude of non-support is so clear, so there is no need to force it.

Considering the other party's qualifications, connections, reputation, etc., being able to explain so many reasons to Chang Le with sincerity and in a polite, tactful and candid tone has already given him enough face.

From the other party's standpoint and perspective, there is nothing wrong with viewing and analyzing things this way.

After all, historical limitations are objective and universal.

Who could have predicted that the domestic economy would develop so rapidly in the next few years?

Is the demand for upward impact on mid- to high-end industries so urgent?

Who could have predicted that Europe and the United States would react so violently? Such mean means?

The situation is undergoing major changes that have not been seen in a century. The magnitude of the changes, the depth of the changes, the intensity of the frictions, and the frequency of frictions are unimaginable.

…………

After leaving the SMIC office building, Chang Le quickly got on the A6 parked on the roadside.

"Boss? How is the communication?" Zhao Zhiwei asked.

"It's a communication failure. The other party's attitude seems polite, but very firm. He just doesn't want us to get involved and break the balance. He still hopes to become a big player in this industry through international division of labor and cooperation." Chang Le said.

"Then, what should we do?" Zhao Zhiwei asked.

"There is no need to waste time with them, and we don't have that much time to waste it. Let's start the alternative plan." Chang Le said.

"Alternative plan? Okay! I'll contact them tomorrow."

The so-called alternative plan refers to Huahong Semiconductor.

In later generations, Huahong Semiconductor and SMIC were known as the two leading foundry companies in China.

However, there are obvious technological generation differences between the two, and their development areas and product offerings are also completely different.

Integrated circuit manufacturing can be divided into two types: logic technology and specialty technology.

Logic technology pursues smallness, is driven by Moore's dividend, and pursues extreme line width. Products include logic devices and memory chips.

Ten years later, process nodes will generally be below 10 nanometers.

The characteristic craftsmanship pursues reality and does not pursue the ultimate line width, but meets various physical needs in existing life.

Specific product categories include image sensors, power devices, power management chips, radio frequency devices, embedded memories, etc.

Process nodes are generally above 28 nanometers, and micron-level products are also mainstream.

SMIC's development strategy mainly focuses on logic technology and pursues breakthroughs in advanced processes.

The investment cost is high, the technical requirements are high, and it is very dependent on high-precision materials and equipment such as photolithography machines, and domestic products cannot be replaced.

Therefore, once it was included in the entity list and cut off equipment supply and technical support, SMIC struggled.

Huahong Semiconductor focuses on unique processes.

The unique process does not rely on advanced manufacturing processes, nor does it rely on high-precision high-end equipment.

The input cost is low, the production cost is low, and many domestically produced equipment and materials meet basic needs.

Therefore, future North American entity lists cannot restrict Huahong, and even if they are restricted, they will have little impact.