Chapter 556 Acquisition of a Semiconductor Company

Ideal Technology has agreed to acquire Taiwei Semiconductor and has arranged a time for Zhou Jing to go to Suzhou in person to sign the agreement.

Acquiring a loss-making chip manufacturing company at a price of 93 billion is a very risky thing for a general technology company. If the operating situation cannot be quickly reversed after the acquisition, it will need to continue to invest large amounts of money to maintain the operation of the company. Semiconductor companies are already burning money.

Zhou Jing is definitely going to take a gamble, but 9.3 billion is not a small amount for Zhou Jing now.

The cash in Ideal Technology's account accounts for more than % of the total cash of several companies, which is currently more than 15 billion. After paying for the acquisition of Taiwei Semiconductor, the cash seems to be a lot in a short period of time, but Zhou Jing has spread his business too wide, and the company's production, supply chain, and research institute all require a lot of funds to maintain.

The domestic semiconductor industry is backward and has the attitude that it is better to buy than to make. It will not take the initiative to advance until it is strangled. Therefore, it is not feasible for the chip sector to rely on the domestic industrial chain. That is tantamount to waiting for death. Zhou Jing does not want to be helpless when being strangled in the future, so he can only prepare for the future by developing semiconductors himself.

After acquiring Taiwei Semiconductor, Zhou Jing's business layout has basically completed a closed loop, with smartphones as the core and both software and hardware taken into account. The operating system of the software segment has entered development, and the core chip design team of the hardware segment has been established and research and development began in September. Taiwei Semiconductor is responsible for production and research and development of lithography machine technology.

The signing date for the acquisition of Taiwei Semiconductor was set for September 26th. On that day, Bai Xiyao led the technical team from Tangdu to Suzhou, and Zhou Jing flew from BJ to Suzhou.

After signing the agreement, Zhou Jing and Bai Xiyao stayed in Suzhou for one night and then returned to Tangdu.

Other members of the technical team are stationed at Taiwei Semiconductor and are responsible for the organization and reorganization of company information.

"Ninety-three billion, plus seven lithography machines that haven't arrived yet, more than ninety-five billion. Do you feel bad?"

More than 9 billion is the largest one-time expenditure since the establishment of the company. Bai Xiyao is somewhat unsure and can only hope that Ideal Smartphone will develop well. With the company's current situation, it can only maintain its high R&D expenses if it sells more than 20 million smartphones every year in the future.

"You can't bring it with you when you're born, and you can't take it with you when you die. Just do it and it's done."

If Zhou Jing was stingy with money, he would not have achieved what he has today. Only by being willing to invest in entrepreneurship can one hope to get higher returns.

"I was born to be useful."

Bai Xiyao never thought of backing down.

It is indeed very frustrating to be controlled by others in core technology. In order to obtain the first launch qualification of foreign chips, domestic companies are scrambling to be others' grandsons. It is impossible to truly grow bigger and stronger if they cannot produce independent and reliable chips.

As long as Zhou Jing maintains his confidence, Bai Xiyao has nothing to fear.

Zhou Jing and Bai Xiyao arrived in Tangdu. Ideal Technology sent someone to pick them up at the airport, and the two went to the company first.

The chip design and development team of Ideal Technology is ready and waiting to start work on September 1st. The temporary research institute is fully equipped with equipment and instruments, all of which are the most advanced ones that can be purchased. If Zhou Jing personally participates in the design, with the advantages of the Ideal system, Ideal's low-end phones in 15 will definitely be equipped with independent processors.

What Zhou Jing is worried about is not chip design, but production. Without a breakthrough in lithography, everything will be in vain.

"We are preparing to have the chip design team take up their posts next Monday to familiarize themselves with the work environment. Do you have any instructions?"

Bai Xiyao looked at Zhou Jing and said.

"There are no instructions. Just keep working hard and try to defeat Qualcomm as soon as possible. This contains some of my chip design ideas."

Zhou Jing took out the hard drive from his bag and gave it to his best friend Bai.

"Do you still understand this?"

Bai Xiyao took the hard drive and plugged it into the computer and said.

"Just study. Being good at math and physics won't be a problem."

Zhou Jing said with a smile.

"Learn math, physics and chemistry well and you can travel the world. If you are so good at math, physics and chemistry, you can become a scientist if you pass the postgraduate entrance examination."

Bai Xiyao had no doubt about her male best friend's abilities. Zhou Jing's math, physics and chemistry were at the Tsinghua University level. If he could get above 130 in Chinese and foreign languages, it would be easy for him to get into Tsinghua University.

"It's okay not to take the postgraduate entrance examination. Practice is the fastest way to make progress."

Zhou Jing smiled faintly.

"To be self-taught, you must first have a genius brain, just like Steve Jobs, Bill Gates, and Mark Zuckerberg. You are better than these people."

Bai Xiyao used to think that Steve Jobs was amazing, and now her boss is a person like Jobs.

"I like to hear that."

Zhou Jing smiled and said.

Managing Director and Marketing Manager Fang Ming came to the office to deliver the sixth-day pre-sale data for smartphones.

"Demand analysis, let's see how the chip designed by Mr. Zhou works?"

Gu Jia took the information and turned the computer screen to Fang Ming.

Fang Ming moved a stool and sat down to watch. He had worked in semiconductor research and basic chip design. He was surprised by the chip design made by his boss. He continued according to the boss's design ideas and plans. The chip's launch line was very high. The boss's design plan had more potential than the current mainstream Qualcomm chips and iPhone chips.

"Mr. Zhou is more professional than the professionals. There is absolutely no problem designing according to this plan."

Fang Ming said after reading it carefully.

“Once the chip solution is determined, how long will it take to complete the design?”

This is the issue that Bai Xiyao is most concerned about.

"The first generation is more time-consuming. On the premise of having a reasonable design plan, it also depends on the level of the team. A mature company team can complete it in one or two years, but our company may need two to three years. The design also depends on the development speed of other high-end chips."

Fang Ming has confidence in Ideal Technology's R&D capabilities. As long as the boss is willing to spend money and has plenty of talent, it is not impossible to catch up with other mainstream chips in terms of process in seven or eight years. This is also the advantage of the land of Shenzhou. China has sufficient talent and is able to endure hardships, both in ancient and modern times. This is why Shenzhou is immortal.

Bai Xiyao nodded and let Fang Ming go ahead and get busy.

Zhou Jing took the pre-sale report of Ideal smartphone from her bestie Bai. Since its release on August 1, by the afternoon of the 1th, the pre-sale of Ideal had exceeded , and the pre-sale of Imagine exceeded . Such pre-sale volume should be second only to the new phones from iPhone, Samsung and HUAWEI.

It’s a great deal to add smart speakers as a pre-sale benefit.

"I got news from suppliers that other mobile phone manufacturers reduced production just after mass production of Bluetooth speakers. I guess they are all researching smart speakers."

Bai Xiyao moved her chair back, put her legs on the table and said.

"They are not interested in researching audio right now, but they are definitely researching how mobile phones can deal with our threats."

Zhou Jing predicts that the launch of Ideal smartphones will cause a sharp drop in sales of domestic smartphones such as HUAWEI and Xiaomi, and iPhone and Samsung will also be significantly affected.

Bai Xiyao said: "Yes, if we replace Huawei as the largest domestic brand, our smartphone sales should reach 30 million units next year."

Zhou Jing's goal for 13 is to sell million smartphones. If achieved, HUAWEI's sales will be halved, and Ideal will also take over a large part of the market share of other competitors.

"We should save money in the remaining months of this year, right?"

Bai Xiyao threw the company's latest cash vault report to Zhou Jing and said.

"It's not a big problem."

Zhou Jing took a quick look. After acquiring Taiwei Semiconductor, he still had to maintain Taiwei's normal operation and R&D. In addition to the more than 9 billion yuan for the acquisition of Taiwei, another 2 billion yuan had to be allocated to Taiwei. After the allocation, Ideal Technology would have more than 3 billion yuan in cash left on its books this month, excluding accounts that have not been collected. Ideal's traditional mobile phones could bring the company 70 to 80 billion yuan in net profit every month, and the company's operations would not have any problems.

“The children’s watch will be released next spring.”

After resting in the office for a while, Bai Xiyao took Zhou Jing to the R&D department.

"The batteries of children's watches must be tested more rigorously, especially for water resistance and impact resistance, to ensure that the batteries do not leak, burn or explode after short circuiting or deformation." Products aimed at children are very sensitive. Children's watches can have worse performance but there cannot be any safety issues. Children's emergency response is slow, and the consequences of something worn on their wrists burning or exploding are self-evident.

"I know. I will personally participate in the test."

Bai Xiyao knew the seriousness of accidents involving children's watches and did not dare to take it lightly.

"Twenty hours of battery life is enough for a children's watch."

Zhou Jing said that reducing the energy density of the battery pack can greatly improve safety.

"OK."

The smartphone R&D room of Ideal Technology's R&D department has started the R&D work on the second-generation Ideal smartphone. The second generation is based on the first generation. With the experience and technical foundation of the first generation, the development of the second generation went much more smoothly. If the hardware is just assembled, half a year is enough for the R&D cycle. The reason why Zhou Jing started the second-generation development so early is to allow the team to study the hardware and lay the foundation for independent research and development.

CPU, GPU, analog chips, etc. are handed over to the Chip Research Institute, and other hardware is temporarily jointly researched by the R&D department of Ideal Technology headquarters and related companies. The most core and difficult hardware is the processor. As long as the screen, hard disk and many other accessories are given orders for low-end machines in the domestic industrial chain, the industry can be upgraded in a few years.

"Boss Zhou, Boss Bai."

Zhang Yonghua, director of the R&D department, came to the smartphone R&D room.

"After the first generation of smartphones are launched, we should pay attention to the market feedback collected by the sales and after-sales departments, and make corrections if there are any product problems reported online, and encourage others if there are none."

Zhou Jing nodded and said.

The company's operations department, after-sales department and other departments will specifically handle issues related to ideal products raised online. To achieve long-term development, quality comes first.

"Okay, Mr. Zhou."

Zhang Yonghua put his hands behind his back and was very respectful to Zhou Jing, his boss who was ten years younger than him.

After leaving the smartphone R&D room, Zhou Jing went to the R&D rooms for children's watches, tablets, laptops, smart screens, Bluetooth headsets, etc.

Zhou Jing regards PC chips as the next research and development focus. The ideal laptop is planned to be released in 15 or 16. If all goes well, the first launch can use self-developed chips and systems. The first phase of the ideal computer will focus on thinness and lightness. The performance of thin and light laptops is limited, and the requirements for chips are relatively low.

"Traditional bulletproof mobile phones have already started mass production and are being sold to the Middle East. Smartphones are still being tested. However, when it comes to electronic products, the Middle East tends to choose Western, Taiwan, and RB products."

Bai Xiyao talked as she walked.

"It's normal. Brands will choose us if they promote us."

Of course Zhou Jing knew this; they would understand after experiencing the inhumane beatings in the West.

"The African market is also difficult to enter. They have no money and we cannot digest their resources."

“We will sell as many as we can. We don’t need to compete with Huawei for the African market.”

Zhou Jing understands the situation in Africa. He knows that they cannot compete with Huawei there. Huawei itself is engaged in communications. Zhou Jing also does not want to compete for too much market share with Huawei in China. Mr. Lei is right when he says that it is a blessing for domestic technology companies to have friendly competitors like Huawei, including those that make mobile phones.

HUAWEI has extensive business operations and good corporate performance. It is willing to invest heavily in research and development, which will help domestic technology and industry progress. When domestic technology and industry become stronger, friendly competitors can also benefit from it. As long as there are options domestically, there is no need to beg foreign companies for favors.

Moreover, you can act rogue towards domestic competitors. For example, you can use the patents of domestic competitors without paying patent fees. If you are sued, you can sue the competitors in return to invalidate the patents. Even if you lose the lawsuit, you will not be severely fined. Acting rogue towards foreign companies will make you kneel down and beg for mercy in minutes.

So even though HUAWEI phones are now Ideal Technology's biggest competitor, Zhou Jing does not want to compete with HUAWEI, as harmony brings wealth.

Zhou Jing checked every department of Ideal Technology. The smartphone is about to be launched on the market, and it is time to test the coordination ability of various departments of Ideal Technology. Any problem in the production department, sales department, marketing department, and after-sales department will affect the overall situation. Among these four departments, Zhou Jing is most worried about the production department.

The production department is not only responsible for production, but also for the supply chain. The suppliers of core hardware for smartphones are basically foreign companies. If any supplier has a problem, the company will face a crisis. As the boss of the company, I dare not bargain loudly with foreign suppliers. This feeling is very unpleasant and cowardly.

Discussions are already underway to establish a joint research institute with Xi'an University of Technology. Next, Zhou Jing plans to carry out targeted R&D cooperation with other domestic science and engineering universities.

After get off work, Zhou Jing went to his mother-in-law's house for dinner. He didn't have time to go back to Tangdu this time, so he stayed at his mother-in-law's house for one night and returned to BJ the next morning. He went to Gu Jia to pick him up at the airport, had some fast food near the airport, and went to Chuangzhi Technology.

"When you're not around, Zhou Zhou will really miss you. She'll scream when she sees your photo."

Gu Jia said with a smile.

"He's almost seven months old, and he's growing fast." Zhou Jing put his hand on Teacher Gu's leg and said, "Can you bear to see Zhou Zhou grow up?"

"You can't bear it?"

Gu Jia asked back with a smile.

"When children grow up, it means we grow old."

Zhou Jing smiled and sighed.

Gu Jia also sighed softly. Sometimes she hoped that her children would grow up quickly. When she thought about how she would get old when her children grew up, she felt a little sad. She hoped that her children would grow up slowly.

“When will Taiwei Semiconductor be profitable?”

Gu Jia held the steering wheel with both hands, glanced at the boy and asked.

“It’s difficult in the short term, and the losses may continue for three or four years.”

Zhou Jing shook his head. There are many semiconductor companies in China, but they are all in the mid- and low-end market with low profits and fierce competition for orders. Before Ideal Technology develops valuable mobile phone chips, Taiwei Semiconductor will find it difficult to make a profit. Zhou Jing's main purpose in acquiring Taiwei is to research lithography machine technology.

We are currently facing a rather troublesome problem: whether to lay off employees if there are no orders after the acquisition of Taiwei.

“What is the maximum loss per year?”

Gu Jia said with concern.

"Four or five hundred million."

"take it easy!"

Even though Gu Jia doesn't understand technology, he knows that this kind of investment is necessary. If you don't conquer technology, you will always fall behind.

After handling some work at Chuangzhi Technology, Zhou Jing and Gu Jia left work early and went home.

"Guess who I am."

After returning home, Zhou Jing went to the bedroom and gently covered the child who was playing with his mother and said.

"Hehe~" the little girl rubbed Zhou Jing's hand and said in a baby voice: "baba~"

"It's obviously mom."

Gu Jia said softly.

"The little cutie is so smart. He asked daddy to hug him."

Zhou Jing did not pick up the child immediately.

"bababo, bo~"

The little girl stretched out her hands, very anxiously.

(End of this chapter)