Reinventing the Millennium

The domestic market situation of Yike mobile phones is very good.

This also means that the launch of Yike's own YMS will become more basic.

In addition, both Hanwang and Meizu have obtained mobile phone network access licenses and are making final preparations for the upcoming launch.

Needless to say, the communication with Yike YMS is very smooth. As for the latter, I had some doubts, but after carefully comparing the fluency differences and carefully explaining the differences in Yike, I felt that the overall situation was strong, so I went with it.

The mobile phone made by the team of former Changhong head Ni Runfeng may be launched in the middle of the year or in the second half of the year, and it will naturally be equipped with YMS.

Domestic brands are successful, but Samsung, which also uses Android system and will enter the domestic market, is different.

Yike Company contacted Samsung and discussed the issue of mounting, but Samsung refused without hesitation and would not consider the so-called YMS and related certifications.

If Samsung doesn't comply, there's nothing we can do but let it go.

Fang Zhuo is more concerned about YMS, which is related to mobile phone usage experience, but this is a job that is not taken seriously within the company. If there is a measurement standard, cloud computing has not even received everyone's attention.

The cloud computing department has gathered a group of engineers under the leadership of Wang Jian, the former vice president of Microsoft Research, to do cloud computing that everyone does not understand.

The problem is that although Wang Jian is a doctor, he is a psychologist, and according to the news circulated in the department, he is not very good at writing code.

This will inevitably be questioned.

Fang Zhuo looked through the work report and saw the description from a third-party perspective. When Wang Jian was questioned, he rarely defended himself. Occasionally, when pressed, he used himself as an example - "Does Mr. Fang know how to write code? The code is just written. Is it good?"

In response to this situation, we still need to make some statements.

Fang Zhuo thought about it again and again. He did not make a long speech or name anyone. He just gave instructions in a work email and copied it to multiple departments - "Cloud computing is a direction that has been proven at Amazon. It is difficult but worth the investment. Besides, no matter how difficult it is, can it be more difficult than conquering the advanced manufacturing process with ice core?"

Can a promising but difficult business be done?

There is an ice core supporting the entire frame. If ice core can do it, this can be done too.

Many people in the department saw the boss's attitude... It's not that they couldn't argue. Although they didn't know much about cloud computing, the most important thing was that the leader, Wang Jian, didn't look like someone who could accomplish this!

However, the boss said this, especially when you take out your beloved ice core, there is no need to go up and get into trouble, just let the facts speak for themselves.

Fang Zhuo could roughly guess what some people were thinking, and he was considering giving Wang Jian a platform at the annual meeting to see if he could promote the development of this business.

The New Year is approaching and the annual meeting is approaching. After years of hard work, I finally have relatively ample funds. In addition to considering the development of ice cores and the domestic semiconductor industry, Fang Zhuoren took the opportunity to sort out the entire framework during the past few days at Hang Lung 23.

At noon on January 19, Fang Zhuo sent Su Wei away. He felt that Mr. Su’s work on e-commerce in the past few days must have been greatly relieved. He always discussed cloud computing, semiconductors, Android systems, etc. with him leisurely. The development of mobile Internet and other directions.

In the past, although Teacher Xiao Su could talk about these things, she focused more energy and interest on Tesco’s e-commerce.

Does Mr. Su have any ideas about mobile phones or group work?

Fang Zhuo had this idea passed through his mind and opened the report from the service alliance and the integrated circuit industry investment decision jointly released by multiple departments that had just been officially confirmed yesterday.

But before he could take a second look, the landline suddenly rang.

The caller identified himself as Haydn, the director of the international data company IDC.

IDC is a world-renowned professional provider of consulting, advisory and event services for the information technology, telecommunications and consumer technology markets. It frequently publishes market information, forecasts and analytical articles on industry hot spots.

However, after just exchanging pleasantries with Haydn, Fang Zhuo became a little anxious when he heard the other party's intention.

"Mr. Fang, according to our statistics and estimates, Ice Core was selected into the top ten wafer foundries in the world in 2008. Congratulations to you. Ice Core is ranked fourth. If you don't mind..."

Top ten wafer foundries in the world!

Ice core!

Fang Zhuo only allowed the information to pass through his mind for a second before interrupting: "What? It's impossible. Is it a mistake? Where are you in the top ten in the world? You IDC must be rigorous and not attract people's attention!"

Ice cores have always been very low-key, especially after 65nm, the domestic media basically silenced it and did not publicize it.

How did it become one of the top ten foundries in the world?

Fang Zhuo was a little angry.

After hearing Mr. Fang's reaction, Haydn was stunned for a few seconds and said: "Based on our assessment, our inquiries and information collection from Ice Core customers, and disclosures from sources, Ice Core's full year 2008 Revenue is around US$1.4 billion, Mr. Fang, I just want to verify this data with you today."

"How is it possible that there are so many? IDC's name...is not worthy of its name." Fang Zhuo almost used the wrong idiom. IDC is indeed worthy of its name. This data is too accurate.

The so-called source is probably not Goldman Sachs or any shareholder.

Bingxin has always been secretive about its own business and revenue, but institutional shareholders can always know about it. Although they have said hello, they will disclose the information to the outside world if it is not guaranteed.

Throughout 2008, Bingxin's annual revenue was indeed US$1.4 billion, or US$1.418 billion to be precise, which is enough to become the world's leading wafer foundry.

The reason why there has been such great progress is because of the smooth operation of the 65nm production line.

In the first quarter of this year, the Luzhou factory's 65nm production line capacity ramped up, from 1.5W wafers to 2.5W wafers in March. The remaining three quarters were affected by the subprime mortgage and financial crisis, and the capacity utilization rate failed to meet expectations. When full, the average is only 80%.

Throughout the year, 1.5+1.5+2*10=23W tablets.

The price of Ice Core’s 12-inch 65nm process wafers is inferior to that of Taiwan Kee and UMC. Taiwan Kee is US$5,000 per piece, UMC is US$4,500, and Ice Core’s average is US$4,400.

The revenue contributed by the 65nm production line alone for the whole year was 23W*4400=1.012 billion US dollars.

The combined revenue of the Luzhou plant’s 130nm production line, Lin’an II plant’s niche storage, and Shencheng plant III sensor’s revenue is US$406 million.

Even though the most advanced mass production process in the world is 45/40nm, the relatively advanced 65nm process still pushed Ice Core into the top ten foundries in the world within more than a year of mass production.

This is a bit like the original SMIC, which became the fourth largest foundry in the world in just four years, relying on the rapid catching up and implementation of manufacturing processes.

This is one of the meanings of advanced processes.

Of course, big factory and strong factory are two different concepts.

Fang Zhuo thinks that Bingxin is not particularly big, let alone strong. Last year’s revenue was US$1.418 billion, the cost was US$1.338 billion, the gross profit was only 80 million, and the net loss was 290 million.

With this situation, why is it among the top ten or even the so-called fourth wafer fab in the world?

Your IDC bases its evaluation solely on revenue. Is there something wrong with this standard?

Fang Zhuo expressed his gratitude for the evaluation from IDC.

"Mr. Fang, IDC is absolutely professional. Based on the information disclosed by customers such as Qualcomm and AMD, as well as the situation of upstream raw materials, we believe that the ice core 65nm process has brought sales of up to 1 billion US dollars to the wafer factory, and the Shencheng factory The number of sensors produced bucked the trend and increased in the second half of the year, which is also a gratifying performance in the industry." Haydn roughly understood what type of boss Mr. Fang belonged to.

He emphasized politely: "Mr. Fang, IDC is very happy to see a company comparable to SMIC emerge in China. We also hope that Bingxin can achieve greater development in the future. This data verification is just for correction. Since If you have any objection to the numbers, we will compare the data carefully."

IDC cannot easily revise its conclusion. You are just the chairman of Bingxin. What do you know about revenue data?

Fang Zhuo heard the other party's insistence, frowned and asked: "Did you just say that Ice Core was fourth? Who are those in front of you?"

"Taiwan Journal, UMC, Chartered Semiconductor." Haydn said calmly.

"Where's their revenue?" Fang Zhuo asked again.

Hayden continued to answer: "Taiwan is US$10.6 billion, UMC is US$2.96 billion, and charter is US$1.74 billion."

Fang Zhuo pondered, the ones in front are still strong, especially the number one Taiwanese reporter is not the slightest bit stronger.

Haydn asked: "So, Mr. Fang, do you agree with Bingxin's revenue of 1.4 billion?"

Fang Zhuo said categorically: "There is a problem with this data. To be honest, Bingxin's revenue in 2008 was US$1.308 billion. There must be something wrong with your data."

Haydn was surprised and a little confused. Did his own data calculate an extra $100 million?

After all, this is the chairman of Bingxin, and he can also read reports.

"We will check the information and data again. If this is true, Bingxin would have ranked fifth last year, and the fourth place was SMIC's US$1.353 billion." Haydn made an assumption.

Fang Zhuo said "hmm" and then said, "You only arranged foundries? What about the entire semiconductor company?"

Hayden said regretfully: "We still have a ranking of the top twenty semiconductor companies in the world, but there is no discussion about Bingxin entering this ranks."

Revenue of US$1.4 billion does not rank among the top 20.

He added the data: "The 20th place is Nvidia with US$3.45 billion, and the first place is Intel with US$34.14 billion, but I am personally very optimistic about Bingxin's improvement on this list."

"The overall revenue of the global semiconductor industry in 2008 is estimated to be 266.6 billion, and the revenue of the top 20 semiconductor companies totals 166.26 billion, accounting for 62%."

Fang Zhuo sighed and pointed out what was wrong: "Bingxin is still in the red. I think ranking based on revenue alone is a very inaccurate measurement. It should be judged based on comprehensive profit, R\u0026D and other data. "

Haydn said politely: "The huge depreciation costs caused by the equipment will be quickly amortized in the next few years, won't it?"

Fang Zhuo stopped discussing, this man was knowledgeable.

65nm will be a popular process in the next few years, and the losses caused by equipment upgrades can be quickly made up.

The call from IDC is over, and relevant news will probably not be released too late.

Fang Zhuo thought about it again and again, forget it, celebrating the Chinese New Year can be regarded as a kind of recognition.

The most important thing is that I can't stop this assessment.

65nm is already a noteworthy process in the world, otherwise there would not be major international customers like Qualcomm and AMD. It is not easy to whitewash data.

Good news, Ice Core is the fourth largest foundry in the world.

Bad news, everyone will know that the fourth largest foundry in the world is Ice Core.

Fang Zhuo calmed down and realized that the third place was Singapore's Chartered Semiconductor, which was already a distant second. Let's try to climb up to a higher position in 2009.

However, AMD seems to be spinning off its foundry business, and it will become a major manufacturer.

Fang Zhuo actively pays attention to changes in the industry and is always looking for opportunities to fish in troubled waters or muddy the waters before fishing.

…

On January 20, Yike Group held its annual meeting.

In other words, the Yi Ke Department held its first official annual meeting.

Fang Zhuo soon discovered that something was not right. There seemed to be a lot of people coming this time.

Wang Yan from Sina, Qiu Ciyun from Bingxin, Pan Ben from Yike Europe, Xiong Xiaoge from IDG, Xu Xin from Capital Today, Zhang Xuebin from Changhong, etc... Oh yes, there is also Yu Hong who came back specially to attend the conference.

In addition, he also received a gift from Pengcheng, which was a model drone.

Fang Zhuo was test-flying in the office with great interest. He didn't know whether it was an operational problem or a model problem.

It only flew for thirty seconds, and then... it fell to the ground with a bang, the batteries scattered, and the propellers broke.

"It's a pity. Can DJI send another one? I promise not to try it indoors."

Fang Zhuo regretfully said to secretary Liu Zonghong who walked into the president's office.

"I'll ask over there, it should be no problem." Liu Zonghong thought this was just a toy, but this time it seemed that the other party had intentions.

Fang Zhuo packed up the drone himself and said casually: "Your annual meeting is quite big. Many people are coming from other places."

Liu Zonghong felt his heart freeze, and said tactfully: "It's all under the guidance of President Su. President Su has already made the framework. I just execute it. I don't do much work."

"Really?" Fang Zhuo laughed, "Brother Wang called me just now and told me what he wanted to say."

Liu Zonghong bit the bullet and said: "It's an event at the annual meeting. The degree of freedom will be higher. We have family members and friends. Mr. Su thinks this will be more interesting."

Fang Zhuo nodded. He didn't talk to Wang Fengyi in detail. Brother Wang was just a noisy person.

This annual meeting is also of special significance. After all, it is an event during the global financial crisis.

"Oh, since you have free speech, you inform Wang Jian and let him participate. Cloud computing is a direction worthy of everyone's consideration." Fang Zhuo said, "Bingxin, Bingxin..."

Liu Zonghong seized the opportunity and asked: "Mr. Qiu from Bingxin is also here, how should we arrange it?"

"Forget it, if Mr. Qiu is willing to speak, just do so. Bingxin actually needs to summarize and look forward." Fang Zhuo slightly changed his mind because of IDC's call.

Liu Zonghong nodded, the ice core remained unchanged, and Mr. Wang of cloud computing was promoted to representative.

Fang Zhuo put the remains of the drone on the table, looked at the time, and said, "Wait another half hour, Zhou Xin's family will come with me from here, and I'll see his daughter."

The Yike Annual Meeting was held at the World Financial Center, the tallest building in Shanghai. Zhou Xin was going there from home and happened to be on the way.

Half an hour later, Fang Zhuo held Zhou Xin's daughter in his arms and drove to the venue with a smile on her face as she called out "Uncle Fang".