Chapter 405 East Window (Two in One)

DCM is confirmed!

Almost.

Goldman Sachs is confirmed!

Almost.

Deutsche Bank is confirmed... Oh, no substantial progress has been made yet.

After Fang Zhuo returned to Shanghai, he met with three investment institutions separately and adopted different attitudes.

DCM was already in the plan, and Connor, as he said, fully supported the project he valued.

Goldman Sachs became close to each other because of the two related transactions of Sina's private placement and Yike's listing. Although Xu Kaiwei is the chief representative of Goldman Sachs in China, he will still be affected by the voices of other business departments.

This is like risk hedging. Regardless of whether Bingxin can make money, Sina and Yike have already made up for the actual benefits. What's more, there is no problem with the overall inspection of the Bingxin project, so we have to invest!

As for Deutsche Bank, Fang Zhuo saw that Connor of DCM and Xu Kaiwei of Goldman Sachs were both in the conference room, and only Zhang Hongli of Deutsche Bank was in his president's office. About 30% of the content they talked about was related to Bingxin.

Fang Zhuo had a hunch about Zhang Hongli, who was very cautious in project investment.

In this case, let's put our energy in the right place first. As long as we can completely deal with Goldman Sachs and DCM, the financing progress of the Bingxin project will be completed by 99%. The difference between more than 500 million and more than 100 million is not the same.

In the first week of September, Fang Zhuo was in charge of Shanghai, and Qiu Ciyun was rooted in Luzhou. One continued to raise funds, and the other determined a suitable factory site.

With the gradual entry of funds from various companies, the proportion of CSMC shares, which is registered in the Cayman Islands, changed almost every day, gradually revealing the framework of the plan.

Fang Zhuo did not add a clause to transfer management rights in the draft agreement with DCM and Goldman Sachs. The difference between him and Zhang Rujing of SMIC is that he can firmly grasp the ownership of the company through equity.

With 30% of its own shares + 14.4% of Luzhou State Investment + 10% of the option pool held by a third-party company, it has absolute decision-making power. Even if IDG continues to raise funds in the future, it can still control the board of directors.

Picked an auspicious day to sign a formal agreement with Bingxin CSMC.

There was no champagne, no celebration banquet, no media reporters, and only Yike's people took a few photos.

In the photo, Fang Zhuo and Connor were both smiling happily, and Connor took the photo of the two shaking hands with the contract as a souvenir.

DCM came to China to expand its business. As a partner, Connor chose the semiconductor industry as his track. The two investment projects he was promoting were Bingxin and Zhongxin.

Needless to say, Zhongxin is about to go public, and its scale and performance are destined to perform well in the stock market.

Bingxin, as for its future prospects.

Connor believes that China's semiconductor industry will have a certain degree of rapid development, and his company will be able to make considerable profits from it.

Three days later, Goldman Sachs, which had previously maintained a tacit understanding with Deutsche Bank, also happily signed a formal agreement with Bingxin CSMC and also became a member of the company's board of directors, with Chief Representative Xu Kaiwei serving as a director.

So far, Yike Group, Luzhou State Investment, MIGA Fund, Goldman Sachs Group, DCM, and Huaxia Enterprise Investment have all reached cooperation with CSMC Bingxin, jointly investing US$750 million to build a domestic advanced wafer factory project.

Now, only Deutsche Bank and IDG have not completed their tasks.

Fang Zhuo did not contact these two companies immediately. He spent two days thanking various local governments, saying that if there was no cooperation this time, there would still be opportunities to build production lines next time, just like SMIC not only built factories in Shanghai.

In the future, Bingxin and local governments still have a lot of room for cooperation.

C held the first high-level meeting of the company. Five directors were supposed to attend, but four actually attended. The absentee belonged to MIGA Fund. Everyone knew the intention of setting up this seat and did not express any opinions.

Fang Zhuo, Xu Kaiwei, Connor, and Wu Hongquan, who represented Luzhou State Investment, were the four people who could vote on the spot and were effective in the board of directors.

Also attending the meeting were senior technical backbones such as Qiu Ciyun who returned from Luzhou, and Sun Qi, the supply chain director of Yike.

The main topic of today's meeting is international equipment procurement.

It is precisely because of this that Qiu Ciyun returned to Shanghai. He had previously drawn up a list of equipment, but due to Fang Zhuo's non-professionalism, he had to explain the situation in person.

"According to our previous two years of procurement experience, European equipment is easier to buy, but Asian equipment like Singapore is not easy to buy. They mainly consider their own industrial protection and will have administrative intervention."

"Israel is also good and is willing to sell equipment, but one bad thing about them is that the subsequent maintenance and upgrade costs are very expensive."

"SMIC's initial equipment replacement was purchased from Israel. After a year of use, the subsequent costs are almost catching up with the initial purchase of the equipment."

Qiu Ciyun in the conference room talked freely and introduced the procurement situation.

At the end of his speech, he added: "A lot of SMIC's second-hand equipment was obtained by relying on Mr. Zhang's connections. If we can't buy it, I'm afraid we will need to buy new ones. Moreover, I don't know much about the latest situation of international procurement. I'm afraid I have to go around to evaluate it."

Fang Zhuo listened very seriously. Although he didn't understand this field at all, he knew how to use people.

He first pointed to his own company's director, Sun Qi, and asked, "Mr. Sun has been doing business communications internationally for many years. Mr. Sun is in charge of the cooperation between Yike and Toshiba of Japan. Can we expand the scope of business next? Please discuss and give us a result."

Fang Zhuo signaled Sun Qi and Qiu Ciyun to communicate with each other. The former is proficient in international procurement processes, and the latter is familiar with equipment demand. They should be able to complement each other. As for Yike's supply chain, it is now very stable, so it is enough to promote a deputy.

"Mr. Xu, the new CFO recommended by your Goldman Sachs is very useful. Can you recommend someone else in the field of equipment procurement?"

Fang Zhuo turned his head and communicated with Xu Kaiwei who was sitting next to him. The meaning was very clear. However, after signing the contract, everyone was a family. Hurry up and provide help in equipment procurement.

Xu Kaiwei pondered for a while and said, "We are definitely willing to help and try to avoid problems at the equipment level, but to be honest, the help that Goldman Sachs can provide is more convenient in the United States."

Goldman Sachs is a global group, but its influence is naturally the strongest in the headquarters.

It's just that the scrutiny of American equipment procurement is the highest.

The influencing factors on both sides are intertwined. What will the final result be? We really have to try it out to know.

Fang Zhuo asked Qiu Ciyun's opinion again. If we can buy American equipment, then we will naturally buy American equipment. Most of it is the best.

So, let's finalize one thing first and adjust the purchase focus. Originally, the most strictly reviewed American equipment was put last, but now we will try it in the United States first. If it is not satisfactory, then consider alternative products.

"Is there any equipment we can buy in China?"

Fang Zhuo asked with a smile after the decision was made.

Qiu Ciyun thought for a while and replied: "Very few. SMIC also has a small amount of domestic equipment, but there is a problem. We still have to consider the subsequent technical upgrades. There is still a long way to go in this regard in China."

"Especially semiconductor materials, SMIC is almost all imported, and the gap in this regard in China is even greater than that in equipment. It may take more than a few years to catch up."

Fang Zhuo nodded slightly, not disappointed.

The most important task now is to build a combat-ready production line, just like the development of the country. Of course, we must take advantage of the advantages of economic globalization to actively develop, learn from each other's strengths and make up for our weaknesses. When one day we can really achieve scale and have an impact, we must prepare for risks.

The purchase of American equipment will be coordinated by Qiu Ciyun and Sun Qi, and then connected with the Goldman Sachs team in the United States. Intensive work will begin this month.

The meeting confirmed this point, and the second point discussed was the future market issue.

Although the production line has not yet been completed, the market discussion is not only about product sales itself.

The semiconductor industry is different from other industries. When foundries process upstream designed products, those IC design companies often provide some related technologies.

Like SMIC, they have successfully transferred a number of semiconductor processes and technologies below 0.21 microns from international giants such as Toshiba, Infineon, and Texas Instruments.

Of course, in addition to the technology transfer of international giants, the patented technology and independent research and development of partners are also important sources of technology.

Bingxin now obviously does not have the strength to aim at the world-class level of technology. What needs to be done is to negotiate some not-so-bad orders to polish the technology and process. Zhang Rujing can easily accomplish this because of his wide circle of friends.

Qiu Ciyun thinks this may be a challenge for Bingxin, and he is fully prepared.

"Yike and Toshiba have a very good cooperation, and the product supply contract has been signed for many years. I believe that with the breakthrough of Samsung's storage technology, Toshiba will be happy to transfer some of the technology."

"If they are unwilling to transfer technology, we will consider using alternative products. This is a small benefit."

Fang Zhuo laid out an arrangement that everyone expected, and then said: "As for other orders, don't worry too much for the time being. First, there is still time, and second, I have prepared a package plan."

Everyone in the conference room was waiting for Mr. Fang to finish his words, but Fang Zhuo didn't say anything.

"So, Mr. Fang, what is the package plan you are talking about?" Xu Kaiwei, the new director of CSMC, thought he could ask this question clearly.

"I can't say it for the time being." Fang Zhuo thought about it and felt that he was his own man, and added, "It is mainly to win orders from Philips and Texas Instruments. When there is progress, I will inform everyone."

Mr. Fang kept it a secret.

People in the conference room had some different ideas.

When Qiu Ciyun heard "Texas Instruments", he suspected that Mr. Fang would go to Mr. Zhang Rujing again. Mr. Zhang had worked at Texas Instruments for a long time before, and some of SMIC's orders were won through this relationship. But, can Mr. Zhang still help in this matter? He is not a saint!

Xu Kaiwei felt that Mr. Fang might be trying to boost everyone's confidence. The so-called "package plan" was probably fictitious. How could orders in the market be so easy to get? What's more, Mr. Fang was an outsider.

As for Connor, he happily prepared to wait for Mr. Fang's progress notification next time.

The meeting of Bingxin CSMC lasted for a long time, and when it ended, it was time for everyone to take action.

That night, Fang Zhuo sorted out a meeting content and sent it to Xiong Xiaoge, who was not yet a director but was mentally identified by himself.

After waiting for half an hour, he estimated that Lao Xiong would have a general impression and called him.

"Old Bear, we are working very hard here, why don't you IDG come?"

"Even if you IDG don't come, please hurry up and take the money from those kind-hearted people in the society, don't embezzle it."

"Old Bear, Old Bear, I know you are listening, don't hide on the other end of the phone and be silent."

Fang Zhuo said three sentences.

A few seconds later, Xiong Xiaoge's hoarse voice sounded: "I'm drinking water and taking medicine. I've been using my voice too much these days. IDG will visit Shanghai for inspection in two days. It is a joint investment between China and the United States."

"Okay, drink more water, see you in Shencheng."

Fang Zhuo got a satisfactory answer and quickly ended the call, not wanting to understand the working process.

Xiong Xiaoge held the phone and wanted to ask a few more questions about the project, but was choked in his throat. He couldn't help but cough again.

He shook his head, put down his phone, and continued to browse the meeting contents in his email inbox.

…

Just as the ice core financing was successful one after another and the work was in full swing, on September 20, an ordinary passenger plane landed at the Fort Worth International Airport in Dallas, Texas, USA on this ordinary day.

A group of people from Taiwan Semiconductor Manufacturing Co., Ltd. got on a special car to Texas Instruments, preparing to get the chip products sent from mainland China together with the company's legal representative.

The team that came to TI this time included Cai Lixing, general manager and chief operating officer of TSMC, Jiang Shangyi, senior deputy general manager of R&D, and Edward, general manager of the American subsidiary. They are not low-level.

"Mr. Cai, are the people from Hsinchu also moving together today?"

Jiang Shangyi asked Cai Lixing while sitting in the car.

Cai Lixing shook his head: "Wait until we finish comparing the chip technology and fixing the evidence, and then let the Hsinchu police participate in the investigation."

"Actually, it's impossible for SMIC's chips to change course immediately. People in the Hsinchu company can be controlled first." Jiang Shangyi said with a smile, "Don't let people escape."

They were discussing an internal technology leak that had been discovered within the company, and it was basically determined that an employee was transmitting confidential drawings to SMIC via email.

But after discovering this incident, he did not alert the snake, and planned to find more traces to convict him in one fell swoop.

At the same time, TSMC has long been determined to take action on chip technology ahead of schedule. This time it contacted Texas Instruments for final evidence collection.

"Mr. Cai, do you think SMIC can continue to be listed?" Jiang Shangyi said cheerfully.

"It will definitely go public. If it doesn't go public, it will be even worse. If we choose to launch it before they go public, SMIC will face a dilemma. They can only choose to bleed to go public." Cai Lixing said with confidence.

Jiang Shangyi nodded: "How can the Dongchuang matter last long?"

The group of people were talking and laughing as they drove into Texas Instruments' company, preparing to prepare a gift for SMIC, which was about to be launched.