Chapter 404: This Is True Love!

Huateng Electronics Group is currently under great pressure, not only to strive for a breakthrough in 2015 14nm process, storage, panels, 12-inch wafer fabs are speeding up the production, chip design and supporting application of scientific research investment, the same is a year billions of dollars on the pressure. Pen "Fun" Pavilion www.biquge.info

On this basis, Huateng Electronics Group also has the research and development of 5G communication technology, to support Inspur and Lenovo to overcome high-end commercial servers, and to support Huateng AMD's domestic joint venture Zhongtong Semiconductor to expand the business of X86PC chips and graphics processing chips.

At present, the most mainstream chip architecture in China is the CAPA-S2 architecture system independently held by ARM and Huateng Electronics Group, the former focuses on embedded chips and mobile phone smart chips, and the latter focuses on supercomputing, mainframe and servers.

ARM's 64-bit V8 architecture system, Huateng Electronics Group's two microarchitecture systems for high, medium and low-end, completely crush MediaTek and Huawei HiSilicon, compared with Samsung, it also has an advantage, and Qualcomm and Apple are the three major chip designers of the ARM system.

Because Huateng Electronics Group is directly involved in the research and development of V8 architecture, when launching the V8 system ARM64-bit microarchitecture of the Sinovel 6 processor, the speed is faster, in the face of Qualcomm's ARM32-bit V7 architecture based on the Krait Snapdragon 4, the same process, the performance is significantly stronger, and it basically occupies the upper hand in the high-end market in 2012.

In 2007, Huateng Electronics Group directly bought out the assets of DEC under Hewlett-Packard Group, won the ownership of the Alpha architecture, and on this basis, it joined forces with 56 institutes to invest heavily in changing the structural characteristics of the Alpha architecture reduced instruction set under the 64-bit system, and launched the fully autonomous CAPA-S2 architecture and S2150\S2230 two microarchitectures, focusing on the supercomputer, commercial server and artificial intelligence system market.

At present, in the CAPA-S2 architecture system, Huateng Electronics Group's Huabo 5 series chips, even if they use the 28nmHKMG process technology, the actual overclocking, floating-point computing power and power consumption are better than IBM's PowerG6, and compared with the PowerXcell processor, it is not a significant generation difference.

In the field of MIPS, Huateng Electronics Group took over Loongson halfway, and also through the capital operation of the parent company Huayin Consortium, through the investment in MIPS company and the joint development of 64-bit out-of-order dual-emission architecture system, jointly holding the ownership of MIPS, which is currently mainly used in embedded chips to provide industrial application system chips with lower power consumption than ARM architecture.

In the field of X86 architecture, Huateng Electronics Group uses the joint venture shell of "Zhongtong chip" and combines AMD with the HTX8480 launched by FX8320, which is basically the same as the performance of Intel Corei5-2300 architecture processor, the advantage is low power consumption, and even close to the low-power architecture of Intel Atom and VIA's Nano series, and has begun to occupy more share in the tablet PC, notebook PC, all-in-one computer and business jet market that does not pursue overclocking performance.

In contrast, AMD's independent high-performance FX8420 architecture has not performed well in the market due to excessive power consumption and heat generation problems.

It can be said that Huateng Electronics Group is a stronger Chinese version of Samsung Electronics, and its technical level and market share are among the best in the three major fields of panel, storage and chips that compete with Samsung Electronics.

At the same time, Huateng Electronics is the world's fourth largest telecommunications equipment manufacturer and 12-inch wafer supplier, and its R&D in the field of smart phones started earlier, with the most patents, and its global market share is higher than that of Samsung Electronics.

Through the capital operation of the parent company Huayin Consortium, taking advantage of the strategic development period from 2004 to 2012, Huateng Electronics Group has substantially owned the ownership of the three major chip architecture systems, and its strength in the field of chip design can fully compete with Intel.

The status and role of Huateng Electronics in China's semiconductor industry are also completely equivalent to Intel's leading and pivotal effect on Silicon Valley, which can be called the aircraft carrier and center of China's semiconductor industry.

The judgment of the White House Science and Technology Advisory Committee on this point is very accurate, and only by strangling Huateng Electronics Group can half of China's semiconductor industry and its development prospects be abolished.

Huateng Electronics Group has a very special role for the entire Chinese industry, although Huateng Electronics Group does not belong to the military industrial group, but, in essence, belongs to the upstream of China's military industry chain, providing chips and semiconductor basic devices for major military industrial groups and research institutes, as well as providing a full set of electrical and electronic automation and monitoring systems through the central control group.

Whether it is ship radar, aerospace, integrated power system, electromagnetic electronic system, software and hardware system, or other electronic and electrical components, Huateng Electronics Group is the most important upstream enterprise.

As early as the end of the 90s, Huateng Electronics Group has been involved in the integration of military and civilian science and technology, and has gone very deep on this road, developing basic technologies in a wide range of joint military industrial institutes, supplying military-grade basic devices, and using the speed of technological progress to continuously expand its own technology accumulation and market share in the civilian level.

The total market value of Samsung Electronics Group is 172 billion US dollars, and the total market value of Huateng Electronics is 284 billion US dollars.

Therefore, the United States now dreams of strangling Huateng Electronics Group, and the United States really did not expect that from 2004 to 2012, in just 8 years, the speed of development of Huateng Electronics will be so fast.

The United States may not be able to do it, because the global semiconductor industry has always been unpredictable, a situation a year, often a few years ago was ahead of the world, a few years later it will be a loss, DEC, IBM, AMD three generations of hegemon, now not all like years.

Xu Teng naturally didn't dare to be careless.

When Samsung and Intel successively decided to build a 12-inch wafer factory in the mainland in 2012, Xu Teng was not very nervous, after all, these two and Huateng Electronics Group are not dead rivals in the chip industry, and the customers are very different.

As soon as TSMC came, and it was in Ningzhou and Huateng Electronics' two major factories in Jiang and Ningning, it was too troublesome, especially TSMC's 20\16nm two-generation technology line, which was incompatible with Huateng Electronics.

Under the layout and efforts of the Huayin Consortium over the years, China's semiconductor industry is a "<" shaped layout, based on a large number of scientific research institutes in Jiangzhou and Ningzhou, expanding to the Yangtze River Delta and the Pearl River Delta.

Jiangning area, Huateng Science Research Institute, Institute of Computer Science, Chinese Academy of Sciences, 14, 16, 56, China University of Science and Technology, Jiangxi University of Science and Technology, Jiangxi University of Technology, ...... More than 20 research institutes of electronic systems and 12 985/211 universities are gathered here.

In this economic region, there are at least 1,300 chip design and supporting device companies in industrial fields such as automobiles, ships, aerospace, radar guidance, electrical and chemical industries, machine tools, and consumer electronics, basically covering half of China's chip industry.

These are the customer groups of Huateng Electronics.

TSMC is actually bound to build a factory in this region and put it into production at all costs, using the advantage of the technology generation gap to force Huateng Electronics Group to give up the chip foundry business.

Either be an enemy or a friend, that's what TSMC means.

Xu Teng must now talk to Jiangnan Province about this matter clearly, he will not prevent Jiangnan Province from absorbing foreign capital and using foreign capital, but give him half a year.

Before negotiating with Leader Jiang, Xu Teng was sure that his request was not too much, and Ningzhou and Jiangnan Province had no reason to refuse, which surprised him a lot.

Leader Jiang hesitated for a long time and was unwilling to express his position easily.

Negotiating, it always takes time.

Xu Teng was not in a hurry, at least not in a hurry for an hour or two, he just sat on the sofa in the living room and waited slowly, slightly shaking the cup of Longjing tea in his hand, and continued to give Leader Jiang a little time, so that the other party could think clearly before answering.

"Xiao Xu, in fact, the competition we are facing now is relatively large, and it is not as stable as you think. In the end, Jiang leaders still couldn't agree to Xu Teng's proposal, and if he really delayed TSMC's investment and let TSMC go to other provinces to negotiate, his dereliction of duty would be serious.

"There is always a trade-off in doing things, after you go back and discuss it with other leaders in the province, TSMC's 20nm/16nm process is relatively mature, and we now have a lot of differences between 28nm/14nm specifications, once it is put into production in the mainland two years in advance, it will basically rewrite the specifications of the entire continent's semiconductor process design, and the main customers will adopt his process design chips, Huateng Electronics Group itself is not exempt from vulgarity, otherwise, my loss will be greater. Xu Teng is to tell the truth, Huateng Electronics Group is basically losing money in the field of chip foundry, and the business that makes money is design and supporting applications, especially the final terminal smartphone business.

Once he is forced to worry about his life by TSMC, he can only reach an agreement with TSMC to give up the catch-up trend of chip foundry business, at least to ensure the hard-won chip design and terminal business.

Because in the field of global chip foundry, Xu Teng has another hidden backup option - GlobalFoundries, the world's sixth largest chip foundry company, originally originated from AMD, acquired by Silicon Silver SVB Company, Xujia's overseas fund and Middle East consortium, the current main production capacity is concentrated in Singapore, and it is also the most important semiconductor pillar enterprise in Singapore.

Although there are backup options, is Xu Teng willing?

Apparently unwilling.

What about the next generation of TSMC's 10nm/7nm process production line? If, four years later, TSMC uses the US technology blockade agreement as an excuse to re-locate its factory in Taiwan or Singapore?

Huateng Electronics Group's decade-long chip foundry and packaging and testing technology to catch up with the tide has come to an abrupt end and has been abandoned since then?

Leader Jiang may not know all this, he may be very clear, but he knows that it is impossible for the province to give up negotiations with TSMC, because TSMC's factory is not only the most advanced semiconductor production center in Asia, with an annual output value of tens of billions of US dollars, and the supporting Taiwan packaging and testing plant and wafer raw material factory have also promised to invest in Jiangnan Province.

Taiwan businessmen have been dealing with the mainland for so many years, how can they not know that this idea of the various provinces on the mainland is not only the transfer of the entire industrial chain, not only the output value of tens of billions of dollars a year, but also the world's first-class semiconductor industry, and once it settles in Jiangnan Province, it will also cut off the hope of other provinces.

At this moment, in the face of Leader Jiang's unexpected silence, Xu Teng vaguely guessed that this was an unprecedented fishing project, and Jiangnan Province had already taken the bait completely, biting it to death, and even did not hesitate to have a stalemate with the Huayin Consortium.

Jiangnan Province is not afraid of falling out with Xu Teng, because the investment scale of the Huayin Consortium in Jiangnan Province is very large, and it cannot run, and for the province, they have not treated the Huayin Consortium badly over the years.

For the province, they are not afraid of shadows, having said that, the real semiconductor industry center of Huateng Electronics Group is still in Jiangzhou, and Ningzhou is just supporting Jiangzhou.

In recent years, Jiangzhou and Ningzhou have cooperated in China's Silicon Valley, and most of the scientific research institutes and talents are from Ningzhou, but most of the output value is in Jiangzhou.

If the scope of the comparison is extended to the entire IT, manufacturing, and financial industries, the center of output value is Jiangzhou, and the situation is even more serious when Ningzhou is reduced to a vassal and supporting economy.

In 2012, Jiangzhou ranked sixth with 1,242.721 billion yuan, second only to Beijing, Shanghai, Guangzhou, Shenzhen and Tianjin, with an annual growth rate of 14%, and the growth rate was even higher than 13% of the two municipalities directly under the central government, ranking first in the country.

Ningzhou's urban GDP growth rate in 2012 was 11.4%, which was also very fast, but the total amount was only 950.63 billion yuan, ranking 9th in the country.

The two sub-provincial capitals of Jiangsu and Ningzhou, 140 kilometers apart, add up to the two, with a total population of 18.4 million, in the history of thousands of years, has been Ningzhou as the leader, until today, the number of universities and research institutes in Ningzhou is still much higher than Jiangzhou.

Until 2009, Ningzhou's GDP was still higher than that of Jiangzhou, and it fell behind in recent years, and the direction of talent flow was also obviously upside down.

According to the comparison of the GDP output value of the province, in 2004, Jiangnan Province was 3.2 times that of Jianghuai Province, in 2009 it became 2.1 times, and in 2012 it became 1.5 times, Jiangzhou as the capital of Jianghuai Province, accounting for half of the GDP output value of the whole province, but also rapidly driving the development of the surrounding four major cities of Gyeongju, Huaizhou, Tongzhou and Chengzhou, in the fields of automobiles, semiconductors, IT, financial industry, machine tools, chemicals, construction machinery, biopharmaceuticals, new energy, environmental protection and other fields are rushing to the top three in the country.

Jianghuai Province is developing fast and developing well, and Jiangnan Province is welcoming with both hands, but it cannot be changed from a win-win sister city and sister province to a follower, a backward talent, and all to the other party to do support.

Huzhou is a municipality directly under the central government, the national economic leader, Jiangnan Province has been supporting Huzhou for so many years, and now it has to make a supporting tool for Jiangzhou, which is really unbearable.

Therefore, this time, for Jiangnan Province and Ningzhou City, TSMC, ASE Group, MediaTek, Chimei, and AUO have jointly put into operation in Ningzhou, and it is an opportunity for the province to jointly create an IT science and technology park with Ningzhou.

It doesn't matter if it's a white cat or a black cat, it's a good cat if it catches a mouse.

What's wrong with Taiwanese enterprises, they are willing to go to Ningzhou to become bigger and stronger, and make output value, this is a good enterprise.

The Huayin consortium is a local enterprise, so what, you rob my people, take my land, take my money, and finally put most of the output value in Jiangzhou, this is a bad enterprise.

Even if this matter is at the top level, Jiangnan Province is also justifiable, has a clear conscience, puts the facts on the table, and is reasonable.

Oh, your Huayin consortium is willing to cooperate with the government's industrial policy in the UK, Sweden, and France, and has a high status in the country, so you don't need to cooperate, you can ignore the industrial needs of Jiangnan Province and put the best in Jiangzhou?

Jiangnan Province's attitude now is very clear, I don't ask you anymore, I will directly seek cooperation with Taiwanese investors, and it is Taiwanese investors who take the initiative to find me, because Taiwanese investors can see that I am not satisfied with you!

In such a situation, the meeting between Xu Teng and Jiang led by Jiang obviously did not produce any results.

Not only the shipbuilding industry, Jiangnan Province has actually asked Xu Teng and Huayin Consortium to help many times over the years, the matter of Shagang, the matter of Nangang, and the matter of Nanqi...... The Huayin consortium did not promise a single thing.

Roughly figure out the true intentions of Jiangnan Province, Xu Teng has nothing to be nervous about, according to the current situation, it will definitely go to the top, even if Jiangnan Province is justified first, in the end, he will have to give him a one-year buffer period.

When that time comes, he will negotiate with Jiangnan Province, and the price he will definitely pay will be less.

However, it is the general trend for these Taiwan-funded giants to settle in Ningzhou, and it is difficult to change.

What does Xu Teng say, generally speaking, Jianghuai Province is not like Jiangnan Province, which does not have the capital to negotiate with the Huayin Consortium, and has been serving the Huayin Consortium wholeheartedly over the years, and a province is tied to the Huayin Consortium.

The entire territory of Jiangzhou City has expanded to the second largest city in the country without a municipality directly under the central government, and the urbanization rate is second only to Tianjin, Shanghai and Shenzhen, and housing prices have always been controlled by the consortium.

The urban greening rate is 49.3%, the forest coverage rate is 22%, and it ranks among the top ten green lung cities in the country, and Jiujiang, Handan, Jingdezhen These cities are alongside, it can be said that it is definitely the most conscientious first-tier city in China.

Jiangzhou's environmental protection standards are also 05 national standards, but the implementation rate is high, the implementation rate is ruthless, heavy pollution enterprises immediately relocated, Jianggang Group is no exception has been remediated several times.

There is only one reason, the talent strategy of serving the Huayin Consortium is to rank among the advanced ranks of green lung cities and livable cities in the country, relying on these standards and Beijing, Shanghai and Guangzhou to compete for talents.

The province has not cared about the life and death of other prefecture-level cities, and on the basis of the six universities and six 985/211 universities in the province of Jiangxi University of Science and Technology, Jiang University of Technology, Jiangzhou University, Yangtze University, Jiang Normal University and Jiangxi Medical University, the main campuses of Huaizhou Institute of Technology and Gyeongju Institute of Chemical Technology have been relocated to Jiangzhou, and in 2009, they were upgraded to Jiangzhou University of Technology, and successfully declared as the seventh 211 university in the province.

On this basis, the province has carried out a "five-introduction and seven-out project" since 2009, introducing the Jiangzhou campus of the University of the Chinese Academy of Sciences, Tsinghua University, Harbin Institute of Technology, PLA Information Engineering University, and Naval Engineering University.

These things are really expensive.

There is no way, this is the demand of the Huayin Consortium, the province squeezes out the last bit of financial funds, and does not hesitate to use local debts to get it done, each prefecture-level city, which leader has an opinion, which leader goes down.

The provincial capital is the provincial capital after all, especially the provincial capital of the province with a large population, compared with the large-scale urban agglomeration of Jiangnan Province, Jiangzhou is unique in the province, and there is no problem of talent competition at all.

In 2007, Jiangzhou's permanent population was 7.12 million, 1.154 million lower than Ningzhou's, and by 2012, the permanent population had exceeded 9.5 million, and 75% of the new permanent population had a bachelor's degree or above.

In the past, no one dared to imagine that Jiangzhou could compete with Shenzhou, no one dared to imagine that Jiangzhou and Shanghai could form an equal status of industrial cooperation, and no one dared to imagine that the triangle of Nanjing, Shanghai and Hangzhou had actually become the triangle of Jiangsu, Shanghai and Hangzhou.

Jiangzhou is not like Shenzhou, there is no port, there is no stock market, it can develop to today's level, and the average house price is only equivalent to 58% of the average price of Shenzhou, in the final analysis, it is the Huayin consortium behind the control and support, and the provincial and municipal levels are also 100% support.

After all, Jiangzhou is a sub-provincial city merged together, and the land supply is much larger than that of Shenzhen, Wuxi, and the total area of Chinese cities ranks fourth, comparable to Daqing and Changchun, and the total urban area ranks fourth, comparable to Beijing, Shanghai, Guangzhou, and Shenzhen.

After all, Jiangzhou is an ancient city with historical heritage, although it is not as good as Ningwu, it is better than the high level of urban planning, and has foresight, with government laws and regulations to forcibly build a large number of Huipai water town buildings, and more than a dozen skyscrapers in the center of the city reflect each other, in order to win the top three positions of the most beautiful city in China, from 2009, a large number of buildings in the 80s and 90s of the last century were demolished on the grounds that the earthquake fire protection is not up to standard.

In May 2012, Jiangzhou City set a new goal to go to the next level, to be China's most scientific and technological city, the most dynamic city, the most beautiful city, the most livable city, the most natural city, the most humanistic city, the most pension city, there is no one of the 7 beauty indicators, and strive to meet all the standards in 2017.

All these determine that the Huayin Consortium will inevitably favor the sister city of Jiangzhou rather than Ningzhou.

Xu Teng has no experience in bargaining with the province over the years, basically, the Huayin Consortium invites a group of experts from home and abroad every few years to make an assessment and formulate a think tank report on the development plan for Jiangzhou and Jianghuai Province.

Therefore, how to say it, Xu Teng can only tell the truth to the leaders of Jiangnan Province, a pay, a return, a true love, a love, half-heartedly can not find true love.

Of course, Xu Teng deeply suspected that Jiangzhou's slogans of "2017, China's 7 U.S. indicators" and "2022, Asia's best city" were a bit too arrogant, coupled with the province's GDP growth of more than 12% for 7 consecutive years, which really stimulated Jiangnan Province, and became angry.

The problem is that there is no 7 US index, what does Jiangzhou take to compete with Beijing, Shanghai, Guangzhou and Shenzhen for talents, and the Huayin Consortium is now recruiting the best talents in the country, or even the best talents in the world, and it must consider the various settlement needs of others.

Xu Teng worked hard to invite a few doctors from the United States to come back, and when they arrived in Jiangzhou, they took a look, hey, all kinds of dirty mess...... Directly scared away, so how to do it?

Huateng Electronics Group went to Tsinghua University and Peking University to grab people, all of which competed with central enterprises, Huawei, Ericsson, Samsung, and Intel, and asked others to move their hukou to Jiangzhou after graduation.

Finally, I invited to come over, cultivate for a few years, compare all aspects of urban development, natural environment and living costs, people still want to go to Beijing, Shanghai and Shenzhen, and run away, that is even more of a loss.

Xu Teng still said the same thing, doing business, doing business, fighting is people.

A truly top-level scientific research leader is definitely more valuable than 10,000 ordinary college students, and 10,000 high-quality graduates from prestigious universities are definitely more useful than 10,000 ordinary second-class students.

Xu Teng has traveled so many countries and so many international cities in the world, he objectively said that Jiangzhou is less than the above, more than the bottom, and it is also one of the very few first-tier cities in China that can make a name for itself on the standard of "natural livability", which is really not easy, and the provincial and municipal levels have borne a lot of local debts for this.

Especially in the past two years, the haze problem is very terrifying, the housing price problem is very terrifying, Jiangzhou finally stood out in this context, standing out from the crowd, it is even more commendable, and it is definitely worthy of the title of "Huayin Capital" - Jianghuai Province used to be China's cement province, coal and iron province, petrochemical province, thermal power province, in order to achieve the "natural livable" standard, how much price has been paid in the past ten years, you can imagine it!

Not to mention anything else, among the sub-provincial cities in the country, Jiangzhou's local debt is definitely among the best, and the city's finances have been in deficit for seven consecutive years, not all to serve the needs of the Huayin Consortium.

The Yan leader in the province said that we don't bargain with the Huayin Consortium, we let Xu Teng speak with his conscience.

Xu Teng touched his conscience and found that he had not been eaten by a dog.

Comrades, this is true love.

Therefore, after Xu Teng met with the Jiang leader of Jianghuai Province, although he knew that the subsequent development of this matter would be very turbulent, he had no intention of making any concessions.

He will not solve the problem in a tough and tough way, he can only take one step and look at one step, hoping that the boat will naturally go straight to the bridge.

A few days later.

TSMC's Chairman Zhang probably knew some of the results of the meeting between Xu Teng and the relevant leaders of Jiangnan Province, and personally sent an email to Xu Teng, inviting Xu Teng to participate in the Taipei IT Technology Exhibition as the honorary chairman of the Taiwan Semiconductor Industry Association, inviting Xu Teng to make an opening speech, and also wanting to meet with Xu Teng.

This is to officially start the pace of negotiations.

After all, if Huateng Electronics Group wants to continue to maintain its advantages in 2012, beat Qualcomm in the field of mid-to-high-end ARM chips and maintain market share, it still has to cooperate with TSMC, because Intel cannot accept orders from Huateng Electronics.

In the field of global chip foundry, Intel, TSMC, and Samsung are the three giants, the real first-class echelon, Huateng Electronics Group can only be regarded as the fastest second-rate echelon, the overall technical strength is still insufficient, the accumulation is not deep enough, and the 14/10nm generation of technology will take at least 3 years to be mass-produced, and it is also a blank in the 20/16nm field.

When Qualcomm's next-generation ARM64-bit chip adopts TSMC's 20nm process technology, Apple's next-generation ARM64-bit chip will adopt TSMC's 16nm process technology, and even Huawei's small domestic rival HiSilicon also adopts TSMC's 20nm process technology, Xu Teng and Huateng Electronics Group will undoubtedly be in a very embarrassing situation.

When TSMC opened the factory to Jiangzhou again, to some extent, Xu Teng did not even have the right to negotiate, and could only accept TSMC's rules.

Xu Teng didn't even need to negotiate, and roughly knew that he could get the biggest advantage - TSMC's factory in Ningzhou could be a joint venture with Huateng Electronics Group, and TSMC retained absolute controlling stake and operational control to provide Huateng Electronics with 16nm process technology foundry Sinovel 7.

At the cost of Huateng Electronics Group's breakthrough in 14nm technology, such a promise is obviously unreliable, and for TSMC, the simplest and most effective, and absolutely deadly way is to directly acquire the equipment and production lines of Huateng Electronics Group in Hengqin Industrial Park.

Choose one of the two.

Xu Teng has to choose between a money-losing business with the largest loss side and a money-making business with the largest profit center.