"Chairman, at present, the situation of Huaxin International is very unoptimistic, and even unceremoniously said that it is ...... Dead. ”

The person who spoke, Chen Yue, who was originally puzzled, was very temperamental at the moment, it was her uncle, Chen Hefei, the former manager of the legal department of TOP Group.

Not only did she have no temper, but she didn't even dare to take a sip of the atmosphere, and made tea on the side carelessly.

Although Chen Hefei didn't say anything to her, he ......

It's one thing for parents to know, it's another for relatives to know.

It's one thing to understand or not to understand, and it's another thing to support or not to support.

The two big men in the office were in no mood to say anything at the moment, and they were smoking cigarettes with their heads shut.

In 1997, Zhang Rujing founded Shida Semiconductor in Yizhou Island, engaged in wafer foundry business, and quickly achieved mass production and profitability. In January 2000, without Zhang Rujing's knowledge, the major shareholder of Shida Semiconductor reached an agreement with Yi Semiconductor and was acquired by Yi Semiconductor for $5 billion, and the angry Zhang Rujing resolutely chose to resign. Immediately in April 2000, 52-year-old Zhang Rujing self-raised, with more than 400 outstanding engineers from Yizhou Island, America and other places across the ocean, set up Huaxin International in Huating, trial production in 2001, by 2003 revenue increased six-fold year-on-year, jumped to become the world's fourth professional foundry, sales in 2004 reached 975 million US dollars among the world's fourth largest chip manufacturing plant.

The rapid development of Huaxin International has caused unease among its main competitor, Yi Semiconductor Manufacturing Company.

In 2000, Zhang Rujing's Shida Semiconductor was suddenly acquired by Yi Semiconductor Manufacturing Co., Ltd., which was the first head-to-head confrontation between Zhang Rujing and Zhang Zhongmou, and Zhang Zhongmou's Yi Semiconductor used a price of 5 billion US dollars to merge and acquire Shida neatly, eliminating the threat in the bud.

In 2003, when dealing with Zhang Rujing's second startup, Yi Semiconductor Manufacturing Co., Ltd. was not so polite, especially since the company was still located in China, China, which has huge demand.

In March 2003, YIMC, which had collected evidence, suddenly attacked Huaxin International, and the location of the lawsuit was also very particular, choosing America California, demanding compensation of 1 billion US dollars, and Huaxin's income in 2003 was only 360 million US dollars, which is basically equivalent to fighting to the death.

Qingyun, who is familiar with the aftermath, knows very well that more than two months later, that is, in December of the same year, Yixin officially sued Huaxin International in Amerika for obtaining Yixin's trade secrets and infringing on Yixin's patents through various improper means, and launched the third intellectual property lawsuit against Huaxin International on almost the same grounds in 2004.

The lawsuit dragged on until 2005, and Huaxin was exhausted and chose to settle with Yijim, admitting 'improper use of Yijimc's trade secrets' in disguise and paying $175 million in compensation. In the "Settlement Agreement", the legal team of Yixin showed its power and set up a 'third-party escrow account', and Huaxin must deposit all the technology in this account for Yiji's 'free inspection', which fundamentally restricts the development of Huaxin International.

But the matter was not over at all, a year and a half later, in 2006, on the eve of Huaxin International's preparation for financing, Yixin made another move, accusing Huaxin International's latest 0.13 micron process of using Yixin technology, violating the "Settlement Agreement". Huaxin reacted strongly to this, resolutely denied its infringement, and prepared a large amount of evidence to prove its innocence. Since Yi Semiconductor Company still initiated a lawsuit in America California, Zhang Rujing chose to countersue Yi Semiconductor Company in the Yenching High Court.

This arrangement was very clever and unexpected by ISMC. Since the trial time in China is earlier than that of the California court, if Yiji chooses to actively respond to the lawsuit, then it must show the evidence in its possession, which gives Huaxin time to respond to and refute the evidence in the California court. Huaxin's lawyers are full of confidence in this, believing that although they may not be able to win in the 'home game', they can at least gain some space and time to maneuver.

Unfortunately, in June 2009, the BJ High Court rejected all of Huaxin's claims, and the lawsuit did not enter the trial at all. Three months later, the California court opened, and Yiji won the case again, and Huaxin International was forced to pay a greater price: on top of $175 million, another $200 million, plus 10% of the shares. Afterwards, the media on Yizhou Island proudly said: 'We have controlled half of China's local chip industry since then!' ’

At the moment of receiving the lawyer's notice, Zhang Rujing cried loudly in front of the phone, and on the third day, he took the blame and resigned and left Huaxin International, which had been fighting for 9 years.

Objectively speaking, Huaxin International did infringe on the intellectual property rights of Yi Semiconductor Manufacturing Company in the process of its creation, and Zhang Rujing himself admitted afterwards: "We did something wrong. But the price paid by Huaxin was too painful: the compensation caused the company to lose its vitality, basically lost the ability to invest and expand, and the management often fell into internal friction. In 2009, after the departure of the soul Zhang Rujing, the gap between Huaxin International and Yi Semiconductor Manufacturing Company in the manufacturing process became bigger and bigger, and this situation did not change until 2016, and at this time, Yi Semiconductor Manufacturing Company had already disappeared, and the gap was getting bigger and bigger.

In the 90nm era, Huaxin lagged behind Yiji by only one year, 65nm by two years, 40nm by three years, and 28nm by 6 years.

In 2006, when Huaxin first admitted defeat and compensation, the notorious Hanxin incident broke out in China's local chip industry, and the three major domestic CPUs organized by the state 'Ark, Zhongzhi, and Loongson' basically ended in failure, and the entire public opinion carried out indiscriminate verbal criticism of the semiconductor industry, and the negative evaluation was overwhelming, and China's chips once again entered the darkest moment.

As a result, at some point from 2000 to 2015, the national power that has always supported the development of semiconductors seems to have suddenly weakened a lot.

Huaxin has hardly received any official support in the six-year-long lawsuit, which is a huge difference from the grand occasion of "high-level appearance and official media cheering" in the Huaxing Communications incident many years later (both companies are state-owned major shareholders). And many production lines built by projects such as '909' have not received follow-up investment in upgrades and expansions. After Huaxin International was restrained by Yi Semiconductor Manufacturing Co., Ltd., the production lines of Huahong China Resources and other companies are aging year by year, and the gap with the world's advanced level is getting bigger and bigger.

In 2008, when Huaxin International was exhausted by Yiji, Wu Ping, who founded Spreadtrum Communications, also looked haggard: the company spent hundreds of millions of dollars to develop TD chips, but it was released by Huaguo Mobile and could not be commercialized; In the domestic mobile phone market, Yizhou Island MediaTek grabbed more than 90% of the share with cheap copycat solutions, and Spreadtrum's stock price fell to the bottom. At the worst of the stock price, it only takes $100 million to control Spreadtrum.

During the financial crisis, CIC bought a large number of shares in companies such as Da Mo and Blackstone in America, which made Wu Ping feel hot and tried to lobby to buy back control of Spreadtrum. The financial crisis has given us a once-in-a-century opportunity to spend a lot of money to save companies in other countries, but we should also spend a little money to buy Chinese high-tech start-ups. ’

But the reality is very skinny: for a whole year, Wang Shi came to a company.

……

Ask for a monthly pass~! Recommended Ticket~!

This chapter quotes a lot of external sources, although there is a written description of the author, but it is really shameless to dare to charge, the history is thick, but also priceless, this chapter is free

(End of chapter)