As the chairman of SMIC, Zhang Wenzui understands the importance of technological leadership!

At present, IBM's 45-nanometer process technology has not yet been successfully introduced by SMIC. Xingyi Semiconductor's self-developed 40-nanometer technology has been successfully developed and mass-produced!

Then SMIC is still developing a 45nm product?

If you fall one generation behind, you are completely doomed!

What's more, IBM wants 30% of profits, which is not acceptable to SMIC.

Even if you accept it, it is meaningless.

Xingyi Semiconductor is mass-producing 40nm, and SMIC’s 45nm is not very competitive at all.

As a result, the wafer fab in Shanghai is indeed finished.

Now that Xingyi Semiconductor is interested in it, it is impossible to sell it.

After all, although the SMIC 12-inch wafer fab is nominally owned by SMIC, its actual major shareholders are state-owned enterprises and the government.

The major shareholder spoke up, and the top management of Magic City came forward...

No matter how you look at this situation, SMIC cannot refuse it.

What's more important is that the other party is talking about buying, not robbing, and will give you money!

This made Zhang Wen feel a lot better.

There is no way, SMIC is too short of money. It has suffered losses for years and is heavily in debt, and it is almost impossible to get rid of the problem.

All money borrowed from the bank carries interest. With so much debt, the interest alone is an astronomical figure.

If we sell the Magic City wafer factory and exchange it for money, it's not impossible to wait for a while.

In this way, it would be timely to build a new factory and wait until the 40nm process is completed before putting it into production.

It’s better than having factories now that don’t have 40nm technology and can only make 65nm or 55nm.

After all, it is really a waste to use such an advanced production line to produce 65-nanometer memory chips.

Existing orders can be transferred to 8-inch small factories without any problem.

In the field of wafer mass production, 12-inch wafer fabs are mainly used to produce high-end chips such as logic chips.

As for low-end memory chips, an 8-inch fab is enough.

Seeing Zhang Wen's silence, Mr. Zhao said with a smile: "Don't worry, this Magic City wafer factory will give you as much as you invest, and you will never lose money."

Mr. Zhou also said: "The entire 12-inch wafer fab in Magic City has a monthly production capacity of 25,000 wafers. Including land acquisition, construction, and equipment, you have invested a total of 10 billion. In this way, I will ask Xingyi Semiconductor to give you 12 billion!"

‘We can earn 2 billion!’ Zhang Wen sighed: “It’s not impossible, but...you have to add more money!”

Mr. Zhou: "..."

Mr. Zhao: "..."

The two looked at each other and smiled: "Okay, tell me how much it will cost!"

Zhang Wen thought about it and decided that asking for more would definitely be unrealistic.

The Modu wafer fab has a monthly output of 25,000 wafers, which is a small wafer fab. If you build one from scratch, the total investment will be about 13 billion based on the current cost.

They only spent 10 billion because it was built early and the cost six or seven years ago was much cheaper than it is now.

Selling more points nowadays is also a good thing.

"Well, let's just say 13 billion. To rebuild such a wafer factory would cost 13 billion! My equipment is all new and I'm going to use the 45nm process."

Mr. Zhou nodded: "Okay. Two options. Option 1, 13 billion in cash. Option 2, 12 billion in cash, and we will give you a land with twice the area to build a new 12-inch wafer fab."

Land with twice the area would cost 2 billion, and option two is equivalent to 14 billion.

Zhang Wen smiled and said: "Leader, let's get 12 billion + three times the area of ​​land. We at SMIC also want to become bigger and stronger!"

"Okay, then it's 12 billion in cash + land worth 3 billion. The excess will be treated as compensation." Mr. Zhou agreed readily.

"Thank you, leader." Zhang Wen was in a good mood. His originally gloomy mood was gone. This business made a lot of money!

10 billion investment, cash out 12 billion + 3 billion industrial land, equivalent to 15 billion, net profit of 5 billion.

Isn’t this return on investment higher than chip foundry?

SMIC has not had such a high return on investment for so many years since its establishment!

'How about I stop manufacturing chips in the future, build a wafer factory, and then sell it to Wang Yi?'

‘It doesn’t seem impossible!’

Zhang Wendu was shocked by his genius idea.

Of course, this is just a thought.

Now Xingyi Semiconductor has become a popular product, and major first-tier cities are rushing to introduce Xingyi Semiconductor to build factories. There will be no shortage of wafer factories in the future.

Mr. Zhou looked at Zhang Wen's uncomfortable expression and frowned: "What are you thinking about again?"

Zhang Wen waved his hand: "I'm thinking about how to tell the shareholders that this matter must be voted on by the shareholders' meeting."

"Haha, I believe in your abilities and methods." Mr. Zhou smiled slightly.

Currently, there are three factions in SMIC.

The first faction is the mainland faction, which is the major shareholder of SMIC, mainly the government and state-owned enterprises. They want to use SMIC to support the development of the mainland's semiconductor industry.

The second faction, the Taiwanese faction, are executives who hold real power and want SMIC to quickly internationalize and become bigger and stronger.

The third faction, the foreign capital faction, is the numerous foreign-funded enterprises whose ultimate goal is to achieve profitability.

In the end, the mainland faction and the Taiwan faction each took a step back, and Zhang Wen, who received support from the foreign capital faction, became the new chairman.

Zhang Wen, who has always been good at balancing the relationship between all parties, has outstanding abilities. In the next few years, he gradually calmed down the internal strife at SMIC, which also laid the foundation for the introduction of Mr. Liang many years later and the rapid development of SMIC.

Mr. Zhou was very reassured about Zhang Wen's ability.

If it had been anyone else, this would have been impossible.

But if Zhang Wen comes forward, everything will be completely stable.

The next day, SMIC held a board meeting.

Zhang Wen sighed: "Good news or bad news, which one should you listen to first?"

"It's bad news, it will save you great joy and sorrow." A shareholder said with a smile.

"Okay, the bad news is that our 12-inch wafer fab in Shanghai is being targeted by someone and wants to buy it! And there is pressure from senior management, so we basically have to sell it."

Everyone was silent for a while: "..."

The major shareholders have completely different thoughts, but many people feel a little aggrieved.

The mainland faction had received the instructions long ago and were relatively calm.

But the Taiwanese faction couldn't sit still, and they yelled:

"Is this too much? Who dares to rob our fab?"

"SMIC is the mainland's leading semiconductor company. Who has such a big reputation? Who has such courage?"

"We are short of wafer fabs, so what does it mean to build our own and seize our SMIC's wafer fabs?"

"A scholar can be killed, never humiliated, and never sold!"

…

Listening to everyone's words, Zhang Wen smiled slightly:

"The good news is that the price offered by the other party is very high. We invested 10 billion to build the Magic City wafer fab, and we can get 12 billion in cash and land worth 3 billion. We can build a new wafer plant three times the size

factory!"

Hearing this, the expressions on the faces of the shareholders of the Taiwan Island faction who had been yelling at each other changed, as did the words in their mouths:

"A 10 billion wafer fab, in exchange for a return worth 15 billion, seems reasonable."

"Yes, SMIC has earned a 50% return on investment."

"And the land worth 3 billion can definitely allow us to expand three times."

"Twelve billion in cash can also enable us to survive the current crisis."

"Actually, if the capital city hadn't forced it, I wouldn't have supported building this 12-inch wafer fab. Our process is not up to par, and it's a complete waste."

Even the shareholder who said he couldn't sell it even to death couldn't help but said:

"It's not impossible to sell. If you have money to develop new technology, when the new technology is implemented, a larger fab will be built. How good would it be?"

Looking at this scene, Zhang Wendu had a complicated look on his face. He had prepared the rhetoric all night, but it was of no use at all.

All I can say is that these people are reality, very realistic.

But after thinking about it, Zhang Wen knew the reason.

The mainland faction is all state-owned enterprises and officials. I am afraid they have received Mr. Zhou's instructions a long time ago, so they will naturally not object.

Foreign investors only want to make money, let alone oppose it.
To be continued...