Chapter 114 [Joint Ventures That Make the Industry Doubt Life]

Luo Sheng continued: "Mr. Xu, I have taken a fancy to the company's high-quality and strong talent reserves, looking at the whole country, the best talents in the industry are basically concentrated in Huawei, and I have tried to poach, but with little success." ”

As soon as he heard this, Xu Zhijun laughed, and couldn't help but feel a little proud.

Indeed, it is difficult to dig people for Huawei, this is the consensus of the industry, although there are many resignations, but the talents that Luo Sheng wants are those who have not left.

Other companies want to get the talents of Huawei, and there is only one kind of talent that can get it, that is, they have almost earned it by fighting for the front line of Huawei, and they want to change to an easier job, so they take the initiative to leave, and such talents can be mined.

For this company, as long as employees dare to work hard, they dare to give a lot of money.

There is also a kind of elimination at the end, although it is a little worse, but how to say that it is also a former plough for employees, this brand is still very popular in the industry, just like the employees of Bluestar Technology are also popular in the Internet industry.

Luo Sheng added: "My cooperation vision is that in order to provide relevant talents, I will take the lead in technology development, but it is limited to the development of mobile terminal technology, and I really don't have time to do IC design for Huawei." ”

Obviously, Xu Zhijun heard the meaning of the subtext: as long as someone is available, there is a lot to do.

After the two sides met, they chatted for a long time, and they also talked about all aspects, both sides were engaged in technology, and Xu Zhijun had never had such a selfless discussion with a person who was an outsider.

During the exchange, Xu Zhijun accidentally said that he leaked, and Luo Sheng didn't know if he deliberately said it or really said it, but it didn't matter. Xu Zhijun told Luo Sheng about the secret research and development of a wireless terminal chip codenamed "Meili" within the company.

The project, which started last year, is also aimed at developing WCDMA's mobile phone chips.

However, Luo Sheng directly broke the shortcomings of the "Meili" project, and after the disclaimer, suggested that the team of Huawei might as well spend their energy and funds on 3G modems and AP application processors to accumulate strength, and even start the research and development and exploration of new 4GLTE technologies.

AP application processor, which is also being developed by Luo Sheng's "blue core" project, but this does not prevent technical discussions and exchanges between the two sides.

The more we talked, the more Xu Zhijun realized that Luo Sheng and the Cote d'Azur company definitely deserve to be taken seriously.

A non-plough person but so understands the worries, worries, thoughts, and actions of the plough for the moment, and they are all able to personally engage in technology development, so there is a natural chat.

The two sides met for the first time, and the exchange lasted for more than three hours before it ended, and Xu Zhijun also said goodbye and left.

During this time, Qin Weimu watched Huawei's people leave, and only the two of them were left in the reception room, and then said: "If you can reach a substantive strategic cooperation with Huawei, which is equivalent to having Huawei's endorsement, then I have a 90% probability that I can help you get a loan of 5 billion, or I don't need your equity pledge of Bluestar Technology." However, will the two sides finally be able to reach a cooperation? ”

Both parties were very satisfied with the conversation, but no legally binding agreement was reached, and it was impossible to reach cooperation just after meeting, and it was not uncommon for even a month to talk.

Luo Sheng said with a smile: "Although there is no absolute certainty, I can have a great sense of expectation for this cooperation." ”

After Xu Zhijun left the Cote d'Azur company, he did not leave Sioux City, but stayed in a local hotel, and stayed for a whole week.

During this time, Xu Zhijun frequently went in and out of the headquarters of the Cote d'Azur, and naturally negotiated specific cooperation issues with Luo Sheng.

On his sixth day in Sioux City, he was caught in the media frequenting the headquarters of the Cote d'Azur, and it was not long before the news reported it.

For a time, the Cote d'Azur company, which had been immersed in a low-key relationship for seven or eight months, was once again concerned by the industry.

The presence of high-level people in the Citte d'Azur is not surprising in itself, or even justified, because one only has to look at the general business projects registered with the Cote d'Azur to know that they are all players in the ICT sector.

But the question is, the founder of the Cte d'Azur company is not an ordinary person, but Luo Sheng, what kind of person is this? This is an existence that does not play cards according to routines, and is especially good at fooling investors and has not failed so far.

When the industry learned the news, many people surprisingly unanimously came up with the same idea: Should Hua Wei also be "fooled" by Luo Sheng to invest money in him?

This, this, this......

It's possible.

Soon, the answer to this question came to paper half a month after Xu Zhijun came to Suzhou City.

……

On December 23, 2004, Hua finally made an extremely bold and even crazy decision for the internal board vote, so that after the news was announced, countless people in the industry were shocked to drop their jaws.

At about 16 o'clock in the afternoon of this day, Xu Zhijun on behalf of the company, and Luo Sheng, on behalf of the Cote d'Azur company, held a temporary media conference in a local five-star hotel in Sioux City, officially announcing a strategic cooperation agreement reached by the two sides, and the city leaders of Sioux City attended it.

For Su Cheng, the landing of Bluestar Technology Company is almost happy, and Shencheng is very depressed, and he still can't figure out why Luo Sheng wants to move the company out.

The two companies have established a new joint venture, Lens Semiconductor.

This is a semiconductor joint venture company with independent accounting, independent sales, and focusing on independent research and development of integrated circuits.

Lens Semiconductor is headquartered in Sioux City instead of Pengcheng, and the company's registered capital is 2 billion yuan, which is jointly funded by Huawei and Cote d'Azur in proportion.

Huawei invested 1.32 billion yuan accounting for 66% of the equity, and the Cote d'Azur invested 680 million yuan accounting for 34% of the equity, and Xu Zhijun served as the first CEO of Lens Semiconductor and served as the company's legal representative.

The establishment of Lens Semiconductor is not only a big advantage for the Cote d'Azur in the eyes of the outside world, but also Luo Sheng himself thinks so, so he will shock the jaws of outsiders.

The shareholding ratio of the two parent companies is obviously dominated by the basic direction, but major strategic decisions require more than two-thirds of the voting rights to pass, that is, 67% of the votes, while Huawei only has 66%, so if the Cote d'Azur opposes, major resolutions cannot be passed, although there is no voting right, but it is indirectly equivalent to having a veto right to the resolution of major matters.

However, the resolution on general matters can be adopted by 51% of the votes cast.

At the same time, there are three special agreements between the two parties that are written into the articles of association and the shareholders' agreement.

【Article 1 Special Provisions】

Based on Lens Semiconductor, the two companies have broken through talent barriers and patent barriers in the field of integrated circuits.

But technical barriers still exist, after all, the core technology of two independently operated technology companies is the core competitiveness, but because the agreement stipulates that the two parties break through the patent barriers, the technology is who's own, but the two parties have the right to use each other's technology, but only in the field of integrated circuits.

[Article 2 Special Provisions]

When any party objects to the wireless terminal technology of Lens Semiconductor, it shall not be authorized to any third-party enterprise or organization in any form or for any reason. At the same time, Huawei promised to voluntarily give up its own end-consumer business and let its strategic partner Cote d'Azur do it, but Cote d'Azur's mobile terminal business must use Huawei's communication business.

This special agreement is very interesting, if you want to use Lens Semiconductor's technology for the end consumer business, you need to get the consent of the Cote d'Azur before you can use the Lens technology, and if the Cte d'Azur end consumer business wants to cooperate with a third-party company's communication business, you can only do so with the consent of the company.

The existence of the second special agreement is a necessary condition for the emergence of the third special reservation.

[Article 3 Special Provisions]

From 2005 to 2020, Ploughshare unilaterally invested R&D expenses for Lens Semiconductor every year, and the amount of investment was calculated according to 15% of Ploughshare last year's total sales, and there was also an additional guarantee of 500 million US dollars, for example, if Ploughshare was only 300 million US dollars for 15% of last year's total sales, an additional 200 million US dollars would be made up, in other words, Lens Semiconductor would invest a minimum of 500 million US dollars per year and there was no upper limit.

This is a unilateral investment by Huawei, and the Cote d'Azur does not need to follow up, but the proportion of equity held by both parties in Lens Semiconductor remains unchanged.

At the same time, Huawei invests 34% of the R&D funds for Lens Semiconductor every year for the research and development of wireless terminal technology, and as long as this fund is used for Lens Semiconductor, Luo Sheng has the final say on how to use it.

……

People in the industry and the media are stupid, 15% of sales, isn't this the proportion of R&D investment in the current year? All of them were invested in Lens Semiconductor, so what about their own R&D investment? An extra 15%?

It's simply not possible.

After the establishment of Lens Semiconductor, Huawei also requested that the core "blue core" project of the "Cote d'Azur Laboratory" of the Cote d'Azur company be spun off as a whole and moved into Lens Semiconductor.

At the same time, the core ASIC R&D project of Huahua was also spun off and moved into Lens Semiconductor.

Huawei injected R&D funds into the joint venture, of which 66% was used for R&D of its own core business, such as the research and development of communication baseband, 320G switching network suite and 10G protocol processing chips, etc., which are all research and development of Huawei's core chip technology for high-end routers.

In other words, how much R&D funds Lens Semiconductor invests in the future, Huawei will invest as much R&D funds as it does.

The establishment of Lens Semiconductor can be said to have completely bound the two companies together, truly breathing the same breath and sharing a common fate, which is N times more reliable than the community of interests reached between other companies.

This approach is equivalent to Huawei's core business, and the Cote d'Azur has to share 34% of the revenue, so the industry and the media can't figure out what kind of stimulus Huawei will agree to such an unbelievable agreement when they see the disclosed news and want to break their heads and lose their hair overnight.

What kind of trick did Luo Sheng use to make the plough "flicker" to this point.

In the eyes of the outside world, it is absolutely free to give.

This was the first thought of the outside world when they heard the news.

Not to mention, Huawei was indeed stimulated to finally sign this agreement.

After signing an internal confidentiality agreement, Luo Sheng personally took Xu Zhijun on a tour of the highly confidential [Azure] program, and almost completely carved out the ambitions of the Cote d'Azur in the era of mobile Internet, in which the so-called concept of mobile Internet is unknown.

This is the limitation of the times, and Luo Sheng is a person who has crossed the times, and he is an exception, not counting.

……