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Under the control of Kumho, even though Zhongjing Microchip can only engage in low-end chip foundry at this time, its profits are not low. Pen "Fun" Pavilion www.biquge.info

SVCD decoding chips do not have high requirements for wafer process technology, but the core intellectual property rights are held by Kumho, Deyi, and Scober, even if the price has been adjusted, the shipment price of SVCD decoding chips is maintained at more than 20 US dollars per piece, and Zhongjing Microchip can at least obtain more than one US dollar profit per piece from the SVCD decoding chip foundry order.

In the flash memory chip market, Kumho, Toshiba, and Samsung are divided into three parts, and all three are happy to enjoy the huge profits brought by flash memory chips. After Kumho completely digested the flash memory chip technology, in addition to meeting its internal needs, it mainly supplied to Scopper, and actively ceded other market shares to Toshiba and Samsung to digest, and the global shipment price of flash memory chips with 32M storage specifications remained above $60 per piece -- so that Scott Blazer's CEO Emmer gritted his teeth every time he saw Chen Xinsheng, Su Jindong and other Kumho executives, and Kumho's profits in flash memory chips were even far higher than the profits of iplayer product sales. After all, the marketing cost of iPlayer overseas sales is huge, and the sales of flash memory chips have almost no additional costs other than manufacturing and R&D. Kumho flash memory chips have monthly sales of more than $24 million, and gross profit margins are more than 60% or higher.

Such tacit cooperation also enables Samsung to maintain rational restraint when the Chinese market is suppressed by Kumho, and Zhongjing Microchip can also obtain a considerable amount of subsidized profits from the foundry orders of flash memory chips.

In these two cases alone, compared with other wafer foundries, Zhongjing Microchip can obtain at least nearly 20 million US dollars of additional income per year, which is particularly important for Zhongjing Microchip, which is in the early stage of growth. This also makes Sinochip still have the spare energy to make long-term and continuous investment in the research and development of wafer process technology under the pressure of survival in the early stage of growth.

After the private banquet at the home of Deyi CEO An Jibo, Zhang Ke, Chen Xinsheng, Liu Zhicheng and others all returned to the hotel by car, and An Jibo specially left Deyi Vice President Delfasi and Deyi China President Zhou Zhengqing to talk.

"According to the observation of the scientific and technological information search department, the invention patent applications submitted by ESS in the last few times should be closely related to the research and development of baseband chips," Delfasi said to Angel Bo in his private house, holding a red wine glass, standing in front of the windowsill and looking at the towering trees in the vast courtyard, "It seems that Kumho was planning to develop baseband chips when it first received digital mobile phone manufacturing technology from us...... It's just not clear where they've got? ”

Zhou Zhengqing sat on the side and said nothing, but he was surprised in his heart.

He didn't expect Kumho to have the courage to go to the baseband chip project, not to mention that Samsung had two folds on the baseband chip, and even IBM was defeated and suffered a big loss on the baseband chip; Kumho not only has the courage to embark on the baseband chip development project, but has already done so?

Anjibo smiled and said, "Zhang Ke, probably the most ambitious Chinese I have come into contact with," and recalled with a slight frown, "To this day, I still have the first email he sent me in my computer......"

Zhou Zhengqing said flatteringly: "It was Mr. Ann Jibo's email that created Kumho at this time. ”

"You can't say that," said Angelber, shaking his head and smiling, "There is an old Chinese saying, what is 'the golden scales are in the pool?'" An Jibo looked at Zhou Zhengqing unsurely, "If you want to rise, you have to rise, if you don't have that email, maybe you just missed the opportunity to cooperate with Kumho." ”

Zhou Zhengqing thought to himself that he didn't know where An Jibo heard such an ancient saying in China, and the meaning could still be understood, but he couldn't figure out the deep meaning of An Jibo, seeing that he appreciated Kumho's success so much, was he inclined to transfer the 0.18 micron wafer manufacturing process to Zhongjing Microchip this time?

Del Fasi could understand what Anjibo meant, and said with a smile: "I'm afraid that they are still hiding their heads and tails, and it's hard to judge......"

Hearing Del Fasi say this, Zhou Zhengqing understood a little.

Deyi has always focused on the development of high-end chips, even if Kumho successfully develops the baseband chip, it is unlikely to pose any threat to Deyi's high-end baseband chips, and the real pain is still those manufacturers who compete directly with Kumho in the terminal market. If Kumho succeeds in developing low-end baseband chips, then Kumho's cost advantage in the low-end mobile phone market will be too great - it is almost impossible to imagine who has the ability to completely suppress Kumho except for major high-end model markets such as RB in Europe and the United States.

How much has Kumho invested in technology research and development over the years? Zhou Zhengqing was pondering this question in his heart, would he discuss this issue with Chen Xinsheng straightforwardly tomorrow? I have been wondering in my heart. If Kumho has successfully developed a low-end baseband chip, the cooperation with Kumho in the field of low-end chip production is no longer a temptation that Deyi can refuse, unless it is a complete let go of the low-end chip market, otherwise, exchanging technology for increasing holdings is the best choice for Deyi - if Kumho is only half-baked in the research and development of baseband chips, it is even very likely to repeat the old path of Samsung, IBM, etc. There is no need for Deyi to resist the pressure of the media and the public to come up with the 0.18 micron wafer process technology.

In the Dallas Husum International Hotel, Zhang Ke, Chen Xinsheng, and Liu Zhicheng are also thinking about how to make Deyi make concessions, and of course they will not completely show the hole cards of technology to Deyi.

Showing the hole card, although it can persuade Deyi to transfer the 0.18 micron wafer process technology together, but Deyi is bound to ask for more shares, Zhang Ke would rather spend cash to buy technology from Deyi at this time, and do not want too much equity of Zhongjing Microchip to fall into the hands of Deyi.

At this time, Deyi has held 10% of the shares of Zhongjing Microchip, and Kumho's shareholding in Zhongjing Microchip is only just above the holding money, and the other shares of Zhongjing Microchip are scattered in the hands of Yunyuan Group, the Monetary Authority of Singapore and the management, so that Deyi's shareholding ratio of 20% is already the limit, but it is not clear whether 20% can satisfy Deyi's appetite.

Kumho gave up absolute control, but ultimate control could not fall into the hands of foreign capital.

The introduction of 0.25 and 0.18 micron wafer process technology, there will definitely be another high-specification large-scale wafer factory, compared with the first wafer factory, the construction of the second wafer factory by Zhongjing Microchip can get relatively limited financial support from the central and local governments, more than one billion US dollars of huge funds, to Kumho to bear more than half, Kumho will also feel pressure.

Kumho Sho has amassed more than $2 billion in funds, which seems to be a huge amount of money, but it is not enough to deal with existing projects.

Nearly half of the early reclamation project of the 10-million-ton steel industry base has been completed, and then Donghai United Iron and Steel and Dongshan Iron and Steel will officially merge to start the construction of the 10-million-ton steel industry base, with a large investment of 30 or 40 billion yuan, even if Kumho Commercial only accounts for 20% of the shares, it will have to solve the funds of 6 or 7 billion yuan by itself. There is also the iron ore project in Perth, Western Australia, and a billion dollars is just the bottom.

It is not difficult for Zhang Ke to understand why Samsung owed nearly $20 billion in foreign debt during the Asian financial crisis in '97 -- Kumho would not mind owing $20 billion in foreign debt for expansion if it had the opportunity.

At this time, Kumho only hoped that the state would not deliberately suppress it, and that the state would provide strong support in financing.

Zhang Ke participated in the final phase of negotiations for the introduction of the technology, which he stayed in Dallas until the end of August.

During this period, ESS also officially set up a mobile phone chip research department, hinting to Deyi that they have made key progress in the development of baseband chips, and no longer mind letting the outside world know their ambitions for baseband chips. Although the industry is full of doubts about whether Kumho can successfully develop a baseband chip, this hint is sent to Deyi.

Deyi finally agreed to transfer 0.25 and 0.18 micron wafer process technology to Zhongjing Microchip in the form of equity and cash, and Zhongjing Microchip obtained the relevant wafer process technology licensing, and Deyi's shareholding in Zhongjing Microchip increased to 15% plus 50 million US dollars in cash, and 5% of the stock subscription rights.

This is only the first step, and the transaction still needs to be approved by the board of directors of Deyi and the U.S. technology export regulatory department, as well as the approval of the board of directors of Sinochip Microchip. In addition, investing more than one billion US dollars to build a wafer factory in China also requires the approval of the State Council, the Planning and Development Commission, and other departments, and the deal will only be considered after all the approval procedures are completed.

Although it is unclear whether there will be a recurrence, there is still much that Kumho urgently needs to do, first of all, to convince the two major shareholders of the Monetary Authority of Singapore and Yunyuan Group to agree to increase their capital to build a second fab. If one company is unwilling, Kumho will have to bear an additional financial pressure of one or two hundred million dollars. Although the Monetary Authority of Singapore (MAS) has abundant funds, it is still a little timid to invest after the Asian financial turmoil, and it is not necessarily willing to increase the capital of Zhongjing Microchip; Yunyuan Group is in the process of industrial structure adjustment, and the financial pressure is relatively large; In addition, the management of Zhongjing Microchip's shareholding collective can't come up with much funds; Deyi doesn't mind injecting capital according to the shareholding ratio at that time, but Deyi only holds a total of 15% of the equity; The other 85 percent of the pressure was almost all on Kumho's head.