Chapter 176: Bay Island Semiconductor
"Ah, Uncle Chen, you guessed right!"
"You told me about your plan before, and today you suddenly came to the door, either there was a problem with the introduction of equipment, or there was a problem with the funds. You won't come to me if there's a problem with the introduction of equipment. Then it can only be a matter of funding. ”
Holding the teacup and brushing the tea foam, Chen Shulin continued: "However, let me first explain that the previous 5 million US dollars, in fact, you can invest wherever you want, that is the heart and gift of me and your aunt to you, and I never thought about what you want in return." Do you understand?"
"Understood!" Yu Zixian was very moved, and the other party directly gave him a gift of 5 million US dollars!
Is this what it's like to be a local tyrant!? But I also really feel the pride of the top rich. I just helped the other party, even if it was the final result to save the other party, but the cause was to save myself.
"Well, now you can go ahead and talk about your problem and how much money you need?"
"Uncle Chen, speaking of which, this matter is also related to the TSMC on Wandao Island...... Now, ASML plans to resell two lithography machines that were originally intended for TSMC to resell to us, although it is a 1.5 micron process, but it is very close to our needs. It is also the best performance and cost-effective product we can find at present! The most important thing is that these two lithography machines are in stock, and they are in the warehouse of TSMC. So, our previous plans were ahead of schedule...... The 12 million equipment and installation and commissioning costs need to be followed up in a timely manner......"
"Well, isn't the best equipment for lithography machines made in this room? Why is ASML the best choice now?!"
"Uncle Chen knows?"
"I only had a general understanding before, but recently I have begun to pay attention to it, just to understand how the semiconductor industry you invested in is developing now?"
"Indeed, the lithography equipment of this early period is the best in terms of performance and reliability, but because of the alliance between myself and the Americans, the export of these high-precision equipment is deeply affected, that is to say, they don't sell us the equipment we want to buy, so we can only find another way. We buy equipment that is even seriously behind the equipment of Bay Island...... As for the mainland's semiconductor and other scientific and technological levels, Uncle Chen doesn't know if he has understood it...... Affected by the Batumi embargo, it is impossible to introduce advanced technology normally, and the mainland's own semiconductor level is seriously lagging behind the international level, so it is seriously constrained in industrial development......"
"Hey, Bay Island, the death of the country! Batumi, the pain of the country!"
In the past few years, Chen Shulin has helped the mainland develop and invest in the paper industry, and in the introduction of some new technologies and equipment, he has been influenced by the United States and Europe, and has to take other measures...... So he knows about the existence and influence of Batumi.
However, the good thing is that the paper industry is not a very important industry, so the impact of the US-EU embargo on Batumi is limited, and I understand the pain that Yu Zixian said.
"Zixian, I don't know much about the semiconductor industry in Wandao, but I still know a little bit about UMC. Because, I am also one of the shareholders of UMC. ”
"What, Uncle Chen, you are actually a shareholder of UMC?"
"Yes, although there are not many shares, there are 5%, which is considered a major shareholder among ...... small shareholders."
Seven or eight years ago, Chen Shulin, who focused on the great cause of papermaking, rarely paid attention to industries outside the paper industry in line with the concept of doing familiar but not living.
It was only in 1983 that when the Wandao Industrial Technology Research Institute Electronics established Lianhua Electric, because the Wandao was dominated by small and medium-sized enterprises, the risk of semiconductors was too large, and private enterprises were reluctant to invest, and the government finally took the initiative to invest in 70% of the shares, and private enterprises accounted for 30%.
Of the 30% shares, 5% belongs to Chen Shulin.
Originally, Chen Shunlin didn't want to invest in it, but because of Cao Xingcheng, who was the deputy general manager of Lianhua Electric at the time, Chen Shulin, as a wealthy man on Bay Island, was persuaded by Cao Xingcheng to invest some money.
After giving money, Chen Shulin after investing, will the investment of this money be regarded as a contribution to Bay Island...... Even the annual reports sent by UMC in the past two years are rarely looked at carefully, just looking at the profits, and of course the results are not good, either losing money or being flat.
At the beginning, Cao Xingcheng was able to persuade Chen Shulin to spend NT$5 million to invest in his unfamiliar semiconductor industry, perhaps from the difficulties of the start of the Bay Island semiconductor business, Chen Shulin was already destined to join.
And when Chen Shulin met Yu Zixian, it was already destined that Chen Shulin would definitely invest in the Bay Island semiconductor industry and start the second glory of his career!
On February 7, 1974, at the Xiaoxinxin soybean milk shop on Huaining Street in Taipei, Sun Yunxuan of the Ministry of Economic Affairs, Fei Li, Secretary General of the Executive Yuan, Wang Zhaozhen, Dean of Industrial Research and Technology, and Pan Wenyuan, director of the research office of RCA (Radio Corporation of America) in the United States, held a breakfast meeting together and put forward a plan for the development of semiconductors. The conference became legendary with the success of Bay Island Semiconductor.
After that, Wandao invested 10 million US dollars as start-up capital for the development of IC, and in September, the Electronics Industry Research and Development Center was established in the Wandao Industrial Technology Research Institute. This decision cannot be seen as an independent decision of technocrats, but in fact is the result of interaction between the government and a wide range of overseas Chinese experts, who convened an electronic technology advisory board in the United States in October to participate in evaluating the strategic direction of technology transfer.
At that time, the technology blockade of semiconductors in the United States was not as strict as it is now, and Bay Island was able to obtain slightly backward technology. A group of people with the Institute of Electronics of the Industrial Technology Research Institute as the core are responsible for the transfer of this technology, and Cao Xingcheng is one of them.
Wandao has confirmed plans to develop semiconductors by importing technology from overseas, mainly consumer semiconductors, especially electronic watches. Bay Island invested $3.5 million, and more than 40 researchers went to the RCA in the United States to study, and the full set of imported technologies, circuit design, mask manufacturing, wafer manufacturing, packaging and testing technology, including production management, and the agreement stipulates that RCA must buy back products. At that time, the pilot plant established by ITRI applied the technology to the ICs needed to produce electronic watches, and the yield rate soon exceeded the RCA, and Wandao became one of the three major export areas for electronic watches.
And the future head of Lianhua Electric, Cao Xingcheng, has lived a hard life.
When he was in middle school, he went to Taipei to study alone, because he had no money to rent a house, he lived in a tin house with the tricycle drivers, and studied every day while experiencing the life of the bottom of the society.
After graduating from high school, Cao Xingcheng was admitted to the Department of Electrical Engineering of Bay Island University with high scores, and then studied for a master's degree at the Institute of Management Science of Taipei Chiao Tung University. His first job was as a civil servant in the "Ministry of Economy" of Bay Island, and because of his outstanding performance, he was named soon after entering the newly established Bay Island Industrial Research Institute, and rose from a small researcher to the deputy director of the Electronics Institute.
During the period of the Industrial Technology Research Institute, Cao Xingcheng's brain was notoriously good, and he was nicknamed "the king of ideas". He is also very good at colleague relations, when "Dragon Gate Inn" was on fire, his subordinates gave him the nickname "Cao Gonggong", Cao Xingcheng didn't care about it and gladly accepted it.
Cao Xingcheng's civil service period was the prologue of the semiconductor industry in Bay Island, and he participated in the whole process.
Based on this technology, with the strong support of Sun Yunxuan, the Ministry of Economic Affairs, the Institute of Electronics planned to establish an integrated circuit company. Because the name of the original shareholder company has the word "Hua" in it, the company was named Lianhua Electric, which was later known as Taiwan Union Electric.
Who will manage a group of technical men running a company? Cao Xingcheng was pushed to the front of the stage. Hu Dinghua, director of the Institute of Electronics, fell in love with Cao Xingcheng, a master's student, among a group of doctors-doing research is not the same as running a business, Cao Xingcheng does not say much, but there are many opinions and a big pattern.
But at the time, it wasn't a pretty bad deal. Because of the ultra-high threshold of the semiconductor industry, the outside world generally looks down on UMC, and his friends persuade Cao Xingcheng to stay "in the system" and go out to bear his own profits and losses. Cao Xingcheng also hesitated, but finally decided to break through. He not only made his own great achievements, but also helped the economy of Bay Island break into a new world.
Hu Dinghua determined that Cao Xingcheng had a big picture, and this judgment was very accurate. UMC's starting point, like other semiconductor companies, is not only very hard, but also can only run along.
In 1983, at the age of 33, Cao Xingcheng took office and became the deputy general manager of UMC.
Not long after Cao Xingcheng took office, he realized that such a model would not have a bright future, so he came up with a semiconductor foundry plan for the first time. According to his statement, in 1984, Cao Xingcheng asked someone to bring a proposal for the wafer foundry model to Zhang Zhongmou.
After taking office, Cao Xing became a businessman, and acquired related technologies, and in the case of tight funds, he set his sights on Chen Shulin, a fellow villager who was already a local tyrant on Bay Island. Under the recommendation of the president of the Bay Island Political Research Institute, Cao Xingcheng successfully hooked up with Chen Shulin...... In the end, under Cao Xingcheng's stubborn stalking, Chen Shulin took out of his pocket and occupied 5% of the shares.
At that time, Zhang Zhongmou had just stepped out of Texas Instruments and served as the president of General Equipment Company. He was very close to the "Ministry of Economy" of Bay Island and was hired as a science and technology consultant. Cao Xingcheng elaborated on the benefits of semiconductor foundry in the proposal and proposed to cooperate with Zhang Zhongmou, but did not receive a response from the other party.
A year later, Zhang Zhongmou was invited to return to Taiwan to serve as the president of the Bay Island Industrial Research Institute, and with the support of the authorities, he founded TSMC, the first semiconductor foundry model. At the same time, Zhang Zhongmou also served as the chairman of UMC and became Cao Xingcheng's immediate boss.
Cao Xingcheng said that he never expected that the first thing this famous semiconductor giant did when he returned to Taiwan was to copy his own ideas. However, people had to bow their heads under the eaves, and Cao Xingcheng could only press down his indignation.
After many years, when UMC was able to wrestle with TSMC, Cao Xingcheng mentioned this past to the public, but Zhang Zhongmou never responded. The outside world is arguing endlessly about this, and only God knows the merits.
Fortunately, Zhang Zhongmou left him a chance to "take revenge". Founded TSMC and also managed TSMC, Zhang Zhongmou's focus is naturally more inclined to the TSMC that he nurtured.
In 1988, TSMC won a large order from Intel, and the road to foundry was on the right track, while on the other hand, TSMC was still struggling with IC design and manufacturing.
The time of "accompanying the prince to study" did not last long.
In 1991, at this time, Cao Xingcheng, who was already the general manager of UMC, was planning to remove Zhang Zhongmou from the position of chairman of Lianhuadian!
The reason is that UMC and TSMC are not given the same treatment, indicating that the two are about to officially break up.
After this incident, I was deeply impressed by the development of the semiconductor industry in Bay Island in the next ten years.
The "recall and rupture incident" caused an uproar on Bay Island, and Zhang Zhongmou's position at this time was not as unbreakable as it was 20 years later, which received a lot of rumors. But Zhang Cao's battle is a good thing for the Bay Island industry, and the pattern of the two heroes has begun.
Zhang Zhongmou was dismissed, and Cao Xingcheng naturally took over as chairman, and UMC entered a new stage of development. In the past few years, UMC has adopted a parallel strategy of semiconductor foundry, IC design business, and SRAM (static random access memory), with each of the three major businesses accounting for more than 30%.
In terms of IC design, UMC is blooming everywhere, from VCD chips to automotive chips, they do everything and do well, but Cao Xingcheng is not satisfied, he is waiting for an opportunity to take back "something that belongs to him".
In 1995, Cao Xingcheng's opportunity finally came. This year, the wafer foundry was fully accepted by the industry, and TSMC received a steady stream of orders, but the production capacity could not meet the demand. At a good time, TSMC chose to let customers pay a deposit to pre-purchase production capacity, a strategy that caused dissatisfaction among some customers.
Seizing this opportunity, Cao Xingcheng gave UMC a big change. He announced that UMC has completely transformed from an IDM to a wafer foundry, and the original IC design department has been spun off into a separate company, and UMC is only responsible for controlling the company, not for specific operations.
This change may seem sudden, but it is actually the result of Cao Xingcheng's expectations for many years.
Like Zhang Zhongmou, although they are both from professional classes, Zhang Cao and the others are not technical professionals, but specialists in management technology.
Cao Xingcheng left a lot of well-known strokes in management. In the early days, when he was the general manager of UMC, he pioneered the dividend and share distribution system, proposing that every employee should be the boss, a strategy that attracted Bay Island technology companies to follow suit, thus attracting a large number of overseas talents.
Cao Xingcheng is a big fan of the "28 rule", and he firmly believes that more than 80% of a company's results are created by 20% of people, so he pays special attention to these people, and distributes 80% of the company's profits to the top 20% of performers.
In addition to making profits, Cao Xingcheng also understands the psychology of the elites very well. He has been promoting within UMC: "It is our highest honor to go out and open up territory. "Encourage the heads of departments to set up new companies on their own, serve as general managers, and play a role with UMC.
This model gives UMC a strong degree of independence and sets the prerequisites for UMC's complete OEM transformation.
After the transformation, Cao Xingcheng's strategy of encouraging territory expansion has reaped the rewards of a blowout. A number of well-known companies, such as MediaTek, Novatek, Lianyang and Faraday, have all been transformed from UMC's departments, and the heads of these departments have turned into the bosses of the enterprises, forming a growing "Lianjia Gang".
And Chen Shulin said so much about the development of the semiconductor industry in Bay Island and Cao Xingcheng, Yu Zixian is looking at the status of TSMC 20 years later, Cao Xincheng is a talent......
It's just that, with Yu Zixian's current ability, he obviously can't gnaw!
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