Reborn in 2011, 985 missing from two copies

Chapter 444: Invest in Magic City, 9 major projects!

Will achieving self-production of 28-nanometer chips in the second half of next year lead to a blockade?

Wang Yi was not worried.

After all, in the second half of next year, TSMC's 20nm SOC chips will begin trial production, and 16nm is also under development.

Xingyi Semiconductor is still half a generation behind, and the other party will not do anything desperate.

Once they are completely surpassed, they will become desperate.

Wang Yi was very clear about the other party's tactics.

And at that time, Wang Yi can also adopt Huawei's strategy and only disclose chip performance but not chip manufacturing process.

Even if it is produced in-house, competitors will think that the 28nm Kunpeng 906 SOC is a 40nm process, but it is ridiculously powerful.

The most important things about a chip are performance and power consumption, or the actual experience. The nanometer process and the like are just one of the many core dimensions.

The emergence of Qualcomm and the assistance of Lei Jun have made chips a technology-oriented industry.

In fact, performance is the core.

For example, the 40nm Kunpeng 702 still beats the 28nm Qualcomm APQ 8064!

What Wang Yi wants to do is to gradually return the chip to its performance essence and forget about the process.

Let the mobile phone gradually return to the actual experience and forget about the parameters.

Never lose in terms of parameters and never win in terms of experience, isn’t that a joke?

In the afternoon, Wang Yi met with Mr. Zhou: "Thank you, Mr. Zhou. The successful acquisition of SMIC's Shanghai wafer fab was entirely due to Mr. Zhou's mediation."

"Mr. Wang, you are too polite. Shanghai has always welcomed high-quality enterprises, and an outstanding entrepreneur like Mr. Wang is most welcome."

Mr. Zhou smiled and said, "If Old Zhao wasn't watching too closely, I would have wanted to poach Xingyi Technology! Haha."

"Thank you Mr. Zhou for your kindness. Xingyi Technology will increase its investment in Shanghai."

"That's great." Mr. Zhou was delighted. Wang Yi said that it was worth it for him to put pressure on SMIC for Xingyi Technology. Then he changed the subject:

"However, the 12-inch wafer factory in Shanghai is too small, with a monthly production capacity of only 2.5 wafers. In the long run, it cannot keep up with the development of Xingyi Semiconductor."

Having said this, Mr. Zhou paused, and seeing that Wang Yi was very interested, he continued:

"But this wafer factory was developed earlier, and there is no space around to expand it again. Therefore, the Magic City plans to give you a larger piece of land to build a large wafer factory with a monthly production capacity of 100,000 wafers. However, you have to get the equipment and other things by yourselves."

Build another large-scale wafer factory with an area of ​​100,000 square meters and give away infrastructure and land for free!

This treatment is exactly the same strategy as in the imperial capital.

After all, the imperial capital has given such great preferential treatment, it would be unreasonable if the magic capital did not give the same.

Of course, the same appetite.

Naturally, Wang Yi would not refuse.

The land alone is worth 4 billion. Even if the land is given at a premium, its actual value is still 3 billion.

The infrastructure will cost another 90 billion, which is equivalent to an investment of 60 billion in Shanghai. Even if Shanghai does not need to pay for the land, it will still have to pay billion for infrastructure.

Xingyi Semiconductor will have to invest another 300 billion yuan to introduce equipment and production lines.

For Shanghai, 60 billion+ land in exchange for billion investment, especially for a high-end wafer factory, is a total bargain.

But for Wang Yi, the wafer factory is not enough and it will have to be expanded sooner or later. The Magic City is giving away both infrastructure and land, so there is no reason to refuse!

What's more, if Xingyi Technology wants to develop rapidly, it cannot avoid the national financial center like Shanghai.

"Thank you, Mr. Zhou. In this way, we will invest 300 billion to build the second Magic City wafer factory into a 28-nanometer wafer factory!"

"28 nanometer technology!" Mr. Zhou was shocked: "Can you do it too?"

“It’s already under development and hopefully it will be ready within two years.”

"Good, very good, great!" Mr. Zhou was delighted.

What an unexpected surprise!

In mainland China, a 40-nanometer logic chip is considered super advanced, and 28 nanometers is even better!

"Mr. Wang, this is amazing. Xingyi Technology is amazing." Mr. Zhou was so excited that he was a little incoherent:

"The Xingyi Automobile project you mentioned earlier was all because your subordinates were ignorant and didn't take it seriously enough. They are short-sighted and can't see the future of Xingyi Automobile and the strength of Xingyi Technology at all!"

"I scolded them and made a new plan!"

"Director Wang, please have a look!"

As he spoke, Mr. Zhou took out a cooperation agreement and handed it over.

Wang Yi took the investment plan, read it carefully, and was immediately shocked.

If the price given by Shanghai before was just a third-rate treatment, then this one now is a top-notch treatment.

First of all, in terms of land, 1500 acres of industrial land were directly planned in Lingang, valued at 35 billion yuan, and provided to Wang Yi free of charge.

Next is the qualification for manufacturing new energy vehicles. As long as Xingyi Automobile meets the basic conditions, Shanghai will immediately grant the qualification.

In addition, a five-year, interest-free loan of 200 billion yuan can also be approved.

All tax incentives have also been arranged.

Looking at these conditions, Wang Yi was completely moved.

This treatment is better than what Shanghai gave to Tesla in 2018.

The land that Shanghai gave to Tesla was only 1297 acres, with a market value of 98 billion yuan. Tesla spent 9.8 million yuan to acquire it, which is equivalent to giving away 88.2 billion yuan for free.

And 400 billion in low-interest loans at an interest rate of 3.9%.

The industrial land allocated to Xingyi Automobile is 1500 acres!

Just give it away for free, not even a 10% discount.

There is also a five-year loan of 200 billion yuan, with zero interest, not even any interest.

Although 200 billion does not seem to be as much as the 400 billion loan to Tesla, the current 200 billion is completely different from the 200 billion six years later, and is even more valuable than the 400 billion six years later.

For example, the industrial land in Shanghai currently costs only more than 2 million yuan per acre, but in six years it will cost more than 7 million yuan per acre!

Of course, for large projects like wafer fabs and automobile factories with subsequent investments of tens of billions, the land is basically sold at a 90% discount or even for free.

If there were no land concessions, who would be willing to invest tens of billions of dollars?

The preferential treatment that Magic City gave to Wang Yi was immediate.

1500 acres of industrial land, for free!

200 billion loan for five years, zero interest!

It is entirely possible to build the entire Xingyi Automobile Super Factory.

Even the most difficult qualifications for car manufacturing will be granted directly in Shanghai as long as the basic conditions are met.

What else can Wang Yi say?

There is nothing I can say!

It’s really perfect.

Of course, like the Tesla factory, the Xingyi Automobile factory also has a bet agreement:

First, the 200 billion interest-free loan is earmarked for a specific purpose and can only be used for the Xingyi Automobile project located in Shanghai.

Second, the Xingyi car must be successfully developed before the end of 2015 and put into mass production in 2016.

Third, starting from 2019, the annual tax payment will exceed 5 million!

If it is not completed, Xingyi Technology will need to pay in full for the 35 acres of industrial land worth 1500 billion yuan.

The first one is that the funds must be used for their intended purposes. There is no problem with that. After all, it is a zero-interest loan subsidized by Shanghai, and it is impossible for it to be spent on other projects.

There is no problem with the second time limit either.

If mass production cannot be achieved within three or four years, Wang Yi would want to find a stone to hit the head of the automotive department to death without the urging of Modou.

As for the third article, starting from 19, which is the fourth year after mass production, the annual tax will exceed 5 million!

This amount is very high, extremely high, and even difficult to achieve at the moment.

After all, there are very few new energy vehicles these days, and they are far less powerful than they will be many years later.

If development continues at this pace, it will be extremely difficult to pay more than 500 million in taxes each year.

But Wang Yi knows very well how fast new energy will develop in the future. Especially in ten years, the sales of new energy will exceed that of fuel vehicles!

Therefore, paying 5 million in taxes each year may seem difficult now, but it will be easy seven years later.

Of course, on the surface, Wang Yi looked embarrassed:

"Mr. Zhou, everything else is fine. But you also know that no one is optimistic about new energy vehicles. Coupled with the BYD spontaneous combustion and death incident, it caused a more serious backlash. Consumers are now somewhat resistant to new energy vehicles. Starting from 2019, paying million in taxes every year is really a bit difficult for a new company."

"This..." Mr. Zhou nodded: "What you said makes sense. After all, new energy is a brand new track. It is indeed difficult for a new company to achieve such high sales. So how much do you think is appropriate?"

Wang Yi thought about it and said, "Why don't we keep the tax quota unchanged at 5 million per year and increase the loan quota by another billion. Then I can develop a few more models. If the sales of one model are not enough, I can add more models. Maybe we can reach the tax quota of million!"

"One is not enough, add more!"

Mr. Zhou smiled and said, "Okay, then let's do as you said. A 300 billion interest-free loan, and taxes will exceed 2019 million starting in ."

"No problem." Wang Yi agreed readily.

It’s time to complain. Look, another 10 billion interest-free loan has been received.

Of course, there is a reason why Shanghai approved such a high interest-free loan to Xingyi Technology.

After all, Xingyi Technology has invested in building wafer factories in the capital and in the Magic City, both of which are super-large wafer factories with a monthly output of 10 wafers.

The combined investment of these two projects will be around 60 to 70 billion yuan.

In addition, the second and third phases of the expansion of the first plant of the Imperial Capital Wafer Factory will cost another 20 billion.

All added up, Wang Yi will have to spend 80 to 90 billion in the next two years.

Xingyi Technology is a large company and cannot afford the consequences. It may even have to take out large loans.

Since Xingyi Automobile doesn't offer interest-free loans, Wang Yi has no money to do it.

The Magic City can only grant interest-free loans.

As for not being able to pay it back?

That's not a problem either.

A monk can run away, but a temple cannot!

If there is any problem with the project, Magic City will immediately freeze the Xingyi Automobile Factory and then transfer it to other companies in a package to offset part of the loan and land costs.

Xingyi Technology will have to continue to repay the remaining part.

The 30 billion yuan loan is earmarked for the intended purpose, so Shanghai has no worries about unfinished projects.

Once Xingyi Automobile becomes bigger, the tax revenue, GDP, employment, etc. it will create for Shanghai will be immeasurable.

With the support from Shanghai, the Xingyi Automobile project has become very easy.

At least 30 billion interest-free loans are enough to cover all investments in the entire project from scratch, from research and development to mass production!

Wang Yi suddenly got rid of a big burden and no longer had to worry about making money for Xingyi Automobile!

It can be said that this is a win-win strategic cooperation.

"Director Wang, if you think there is no problem, then let's sign the contract directly?"

Mr. Zhou smiled and said that it was obvious that he had been prepared for this.

Wang Yi was speechless: "It is better to obey than to be respectful."

Soon, the two parties completed the signing.

A large 10-inch wafer factory that produces 12 wafers per month and a 1500-acre Xingyi automobile super factory!

Two projects, all signed.

In addition to the acquisition of SMIC's Shanghai wafer factory, Wang Yi has signed three major projects during this trip to Shanghai!

It can be said to be a fruitful harvest!

However, when Wang Yi thought everything was settled, Mr. Zhou took out a new contract:

"Mr. Wang, since Xingyi Automobile and Xingyi Wafer Factory are both in Shanghai, does your Xingyi Technology still need a Shanghai headquarters?"

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