292 UMC News

At the end of the month, in the hot spring hotel, Li Feng, Wang Siqing, Lin Xilei, and the newly appointed assistant Lin Haifeng, Wu Jianmin, etc., sat in the living room together.

"The basic situation is that UMC is now ready to suspend trading and restructure the company. Xu Haifeng replied with a smile.

After Xu Haifeng's report, he also had a detailed understanding of the process, and he used to only use a phone call every day to understand the results of the daily negotiations.

Naturally, after the last meeting, UMC Cao Xingcheng and the management wanted to pull in new allies, basically all of the local big families on this side of Wanwan, such as the Cai family, the Gu family, the Wu family, and so on.

The main thing is to prevent Li Feng, who has deep pockets, from controlling UMC, and using local tyrants to balance Li Feng, a fierce dragon crossing the river, so as not to lose control of the company.

In Li Feng's planning, he focused on the semiconductor and financial industries from the beginning, of course, such as real estate or something, there is an opportunity to build a few buildings, it is still possible, finance and real estate have always been closely linked.

Wanwan is not as good as Hong Kong, most of the Chinese billionaires in Hong Kong are concentrated in the real estate industry, and most of the families in Wanwan are in the financial insurance and real estate industries, among which financial insurance is the most concentrated.

Naturally, the rise of the semiconductor industry and foundry was also accompanied by the rise of new rich, the most famous of which is Foxconn and the semiconductor and electronic foundries represented by TSMC.

In other industries, it is too difficult to become big, mainly because Wanwan is such a big place, and it is too difficult to develop industry or something.

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That is to say, there are now a total of 3 wafer foundries under UMC, and if you count the Lianrui that has been engulfed by the fire, there are only 4 factories.

In addition to these four wafer foundries, there are also several design companies that are independent from the design department, such as MediaTek, Lianyong, Lianyang, and Zhiyuan Technology. Li Feng asked with a smile.

"BOSS, that's true, although Lianrui was swallowed by the fire, now UMC is preparing to rebuild and is raising funds, so let's say that our insertion this time is just right. Xu Haifeng replied with a smile.

"Haha... Naturally, I watched the opportunity to come in, the financial crisis coupled with the fire engulfed, and faced with the fierce competition of Semiconductor Manufacturing Company, now Lianrui was swallowed by the fire, the competition is naturally at a disadvantage, and it takes time to rebuild Lianrui, this is the era of one step behind, one step behind, if you want to defeat TSMC and Zhang Zhongmou, then they will definitely seize the opportunity we sent to the door, building a wafer foundry is not cheap, hehe.... Li Feng said smugly.

According to Xu Haifeng's previous negotiations, Cao Xingcheng has a new plan, that is, to raise funds to rebuild Lianrui, which was engulfed in fire, and at the same time, he plans to add 1-2 foundries again, so that although he is at a disadvantage compared with Semiconductor Manufacturing Company in a short period of time, it can be at most 1 or 2 years, after the completion of the new factory, he will get rid of Semiconductor Manufacturing Company in one leap.

Naturally, the investment here is not small, and now the mainstream is the 8-inch production line, and the establishment of an 8-inch wafer foundry production line is almost an investment of 8-1 billion US dollars, if 2-3 start work together, this is nearly 3 billion US dollars, which is not a small amount.

After the new century, investing in a new 12-inch wafer foundry, the investment at that time will exceed 2 billion US dollars, I have to say that building a wafer foundry is indeed a super money-consuming project.

Those semiconductor design companies, where do most companies have the funds to invest, since there is a foundry like TSMC, it is no wonder, no wonder that the later TSMC can develop in full swing.

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At this time, Li Feng also has a more detailed understanding of UMC's assets.

Except for UMC's original wafer foundry, the rest of the factories are joint ventures with those IC (integrated circuit) design companies, and now according to Li Feng's investment requirements, it is hoped that UMC will be 100% controlled.

In this way, we are faced with a choice, what should be done with the shares of the design companies in which these factories are involved, whether to buy them back directly or to count them in the company to calculate the shares?

Although, Li Feng's willingness is best to buy back directly, but these design companies may not necessarily agree, unless you pay a sky-high price, Cao Xingcheng in order to win over the business against the semiconductor company, only together with these design companies to establish a joint venture foundry.

After the establishment of these factories, they also OEM their own chips for these design companies, and if there are no shares, these factories will have to produce their own chips or something, but they will have to compete with the rest of the IC design companies to grab orders.

Nowadays, whether it is TSMC or UMC, the business of wafer foundries is full, and the factories are simply too busy, and these IC design companies are naturally unwilling to give up their shares.

The second asset, that is, the equity of the company established by the separation of the design department, these companies are all controlled by UMC, I have to say that when he heard the news, Li Feng was very happy.

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At this time, MediaTek, Lianyong, Lianyang, Zhiyuan Technology and other companies were just separated and established in 96 and 97 years, and they were all controlled by UMC at first, that is, with the departure of Cao Xingcheng, these companies finally became independent.

Think about the future development, MediaTek is famous, known as the largest IC design company in Asia, and later generations seem to have a market value of tens of billions of dollars.

Similarly, Lianyang, Lianyong, etc., which are slightly inferior, have achieved outstanding results in their respective fields, but at this time, UMC is holding a series of companies including MediaTek, which can be described as a bright future.

UMC is also a publicly traded company, and its market value has plummeted due to the fire engulfing Novoray, the newest wafer foundry, and is now around $5 billion based on yesterday's closing price.

We're now offering more than 1% of the market value, and if we can get it through a $6 billion acquisition, it's definitely a profit, after all, just three factories are worth $3 billion. Of course, no one is so stupid that they would want to sell. Xu Haifeng smiled at everyone.

"Mr. Xu, next I authorize you to negotiate, in addition to our quiet acquisition of UMC's outstanding shares on the stock market, try to get as many shares as possible, the shares of several wafer fabs, you can also contact it, if you are willing to sell, it is naturally the best, if you don't want to, then wait until the time comes to merge into UMC and calculate their shares."

Mr. Wu, you also need to help here, most of the shareholders of these wafer factories are American design companies, you see if you can negotiate through our side to acquire their shares, and I will also mobilize my relationship to see if I can recover the shares as much as possible. Li Feng finally commanded.

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"BOSS, I think you should contact Bill Weilbe and Li Shanquan, I heard that they have a remarkable track record of acquiring semiconductor companies, and there are many possibilities that could put you directly on the board.

If you can get into the board of directors of those big names, if we have the leverage to get into a partnership with UMC, it will create the conditions for us to take a stake in UMC or even a controlling stake. Suddenly, Wu Jianmin proposed to Li Feng with a smile.

"Oh, what news did you get from Hong Kong before?" Li Feng asked with a smile.

In fact, Li Feng is actually generally clear about Bill Weilibei's acquisition of shares in semiconductor companies, after all, he ordered others to do it, and when there are results, people will send a briefing over.

"I don't know the specifics, but I didn't know until we talked a little bit about it when we were in Hong Kong. Wu Jianmin replied with a smile.

"Okay, then let's work together to take UMC as soon as possible, my goal is to at least become the largest shareholder, and it would be great if I could control it." Li Feng finally concluded.

"BOSS, I understand, if that's the case, I think we can set up a group holding company, such as the establishment of UMC Group Holdings, to fully control its wafer foundries and major IC design companies, such as MediaTek, etc. ”

Xu Haifeng replied with a smile and put forward his own opinions on the future development of UMC.

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"Haha, that's for the best, provided we can achieve our goals. Li Feng replied with a laugh.

"yes, we'll do our best, boss!" Xu Haifeng and Wu Jianmin echoed one after another.

“……”