Shenzhen, October 22, 1994. The headquarters of Xinchuangxin Company.

Xinchuangxin burned money in the memory chip market, causing serious dissatisfaction among many small and medium-sized shareholders, and after that, some small and medium-sized shareholders jointly requested to convene an extraordinary board meeting.

Of course, major shareholders avoid suspicion and do not participate in investment. The proposal jointly signed by many other small and medium-sized shareholders was passed, and Xinchuangxin had to convene a board of directors to communicate with the representatives of small and medium-sized shareholders.

Although, these small and medium-sized shareholders only do not have professionalism and long-term vision, but are more of a sense of existence. However, as a listed company, it is still important to appease small and medium-sized shareholders. This is image engineering, if, outrageously, the minority shareholders are a fart, then ...... In the future, it will be difficult to raise funds in the capital market.

The capital market, in addition to looking at the quality of the company, but also looking at the image.

The image of the enterprise is not good, so that small and medium-sized shareholders are not at ease, perhaps small and medium-sized shareholders have no way to take the vested interests of major shareholders. However, the future financing projects of major shareholders can be disrupted by small and medium-sized shareholders.

To put it simply, if the small and medium-sized shareholders of listed companies, especially the domestic small and medium-sized shareholders who govern the country by making trouble, really join forces, they will not succeed enough and will fail more than they will fail.

Hu Weiwu, CEO of the interim board of directors, explained: "Xinchuangxin was listed in December last year, and it has been nearly a year now. During this year, the funds to be raised by Xinchuangxin will basically be used for business development, and all major projects will be publicly disclosed in a timely manner. As a 9-year-old company, we have achieved the sixth place in the world's semiconductor industry in terms of revenue, and in terms of profit, it is second only to Intel. The growth rate should be extremely fast among the world's mainstream semiconductor manufacturers...... Because the professional barriers of the chip industry are very high, it cannot be managed according to the traditional enterprise management model, and it requires the professionalism and foresight of the management and the parent company for the industrial strategy, and the layout needs to be laid out with a long-term and larger vision. If we cater to the short-term interests of shareholders and serve the short-term profits on the financial statements, then it will inevitably be detrimental to our long-term development. For example, when we invest in the memory chip industry, in fact, we use the 1-micron process that has been phased out in the CPU process, and use the 1-micron process process to make DRAM chips, which costs a higher one-time investment, and even, in order to strategically expand the market share, we have to set a relatively low price. However, in the long run, this is very cost-effective, after all, the efficiency of selling memory products and capturing the market by allowing consumers and manufacturers to promote them at low prices is far more effective than advertising and marketing. ”

"However, in violation of modern enterprises, specializing in one field and focusing on the main business, can we have a more competitive advantage. For example, Japanese companies in the chip industry, basically, lack foresight, and do whatever chips they see are profitable, but as a result, nothing is done well, and now Japanese chip companies have relatively low profit margins. However, Intel Corporation decisively cut off non-core businesses, such as DRAM, and focused on making CPUs, so in the 80s, it was reborn from the ashes and the scale went to the next level. A small shareholder questioned very imposingly, "Xinchuang Xin, why can't you focus on making CPUs like Intel? Intel focuses on CPUs, isn't the profit growth rate very fast and stable? Compared with CPUs, memory should be a sunset industry, American companies in the 80s, a large number of withdrawal from the DRAM market, which proves that this market has no future!"

"Was it smart for Intel to axe the DRAM project in the mid-80s? Actually...... It was a stupid decision, and in less than 2 years after cutting the DRAM project, the DRAM industry began to warm up. Intel was basically the most pessimistic time in the industry, blindly cutting the meat and cutting the DRAM project. Hu Weiwu said, "Samsung, which made the opposite decision with Intel, entered the DRAM chip industry at the risk of losing money in production and the loss of the whole industry." After that, it took less than two years to make profits rise because the supply of chips in the DRAM market exceeded demand. Since then, Samsung has lost less than $500 million in the early stage and has reaped more than $3 billion in annual revenue, ranking within the top 10 in the global semiconductor industry. When Intel abandoned the DRAM chip market, the global DRAM chip market was less than $3 billion, and in ten years, the DRAM market size has increased eightfold. Assuming that Intel does not give up, but expands production capacity against the trend, then, at least, it will not be worse than Samsung Semiconductor in the DRAM market. However, Intel is smart enough to give up, cutting DRAM is only a short-term cost saving, in fact, there is no need to cut at all, at most two or three years, it can turn losses into profits, Grove will throw away the burden that is not a burden at all, and spend hundreds of millions of dollars to place the employees of the laid off DRAM chip factory. This is obviously a very stupid business decision, but just because Intel did well in the CPU chip market later, it is considered a great decision! In fact, Intel's prosperity in the CPU market has nothing to do with whether it cuts DRAM projects or not. ”

With Hu Weiwu, he directly ridiculed the management of Intel Corporation and the media.

Intel is reducing its own production capacity to contribute profits to competitors in the DRAM market.

This kind of cutting meat at the end of the bear market, cutting it is a big bull market, and it is a wise practice to be boasted by the CEO of Intel Corporation.

At the beginning, Intel itself believed that it was right to cut DRAM, and thought that cutting the DRAM project would make X86 chips better.

But after the 90s, Intel has regretted it and figured out that the success of the X86 chip has nothing to do with whether the DRAM project was cut in the 80s.

After that, it repeatedly tried to make a comeback, smashed an unknown amount of capital, and tried to regain the DRAM market, but failed again and again.

In later generations, Intel could not gain a foothold in DRAM chips, but like Japanese manufacturers, it was nailed to the flash memory chip market. We will never make the mistake of the DRAM market again and give the cake to the Koreans.

There is no need to be superstitious about the model of Silicon Valley, although in the field of pure technology, regardless of nationality, the technology is accurate in any country and market. However, there is no need to copy the management experience, that thing, when it is successful, whatever you say is right. After failure, whatever you do is wrong.

"Xinchuangxin has its own development route, we do chip design and manufacturing, not limited to CPU or other! This does not mean that we are not professional, in fact, we have been thinking, reasonable use of resources in hand, to shareholders to earn benefits! For example, in the industrial field, a large number of industrial control chips are needed, and many chips do not have high requirements for performance, as long as they are stable and sufficient, so some of our 1.5 micron and 1.2 micron process processes can still exert waste heat and gain a lot of market in the industrial field. Even,Inconspicuous remote control,In fact, it is also necessary to use chips,At present,Household appliances all over the world,Remote control needs a large number of cheap and reliable chips,For example,Konka will book 10 million remote control chips from us a year,Each chip costs 8 yuan,It is also worth 80 million yuan of cake,And other TV manufacturers,All use our chips,Only this inconspicuous market,Can create hundreds of millions of yuan in revenue...... These mosquito meats may be small, but every piece of the market is profitable. The semiconductor chip market, in our eyes, is an infinite market, and it will not draw a line by itself and limit its own development. On the contrary, we believe that all-round development is more in line with our actual situation. ”

Hu Weiwu constantly explained the long-term development goals of Xinchuangxin.

In fact, the semiconductor market is not just about electronic components in computers and mobile phones. In fact, the scope of application is broader than ordinary people imagine.

Smart production capacity such as computers and mobile phones may have higher requirements for the process.

However, many are fields, in fact, there is no requirement for the process, and the more important thing is that the quality is reliable, the technology is mature and it is cheap! The price cannot be sold as an advanced chip, but as an ordinary industrial product.

The process of many low-end industrial control chips and remote control chips does not need to be greatly upgraded for decades.

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