Huawei also achieved an operating income of almost 150 billion yuan last year, with a net profit of more than 10%.

Although there is no way to compare with later generations, in this era, it is actually a very powerful existence.

In particular, many of Warwick's businesses come from overseas, and in 2009, the impact of the financial crisis was very huge.

Warwick's opponents are basically reversing.

Alcatel-Lucent reported revenue of 15.16 billion euros last year, while Nokia Siemens' revenue fell 12.5 billion euros by 11% and 18% year-on-year, respectively.

Cisco and Ericsson, which ranked first in both fixed and mobile devices, are no exception.

Cisco, which had revenue of $36.1 billion last year, fell about 9 percent, while Ericsson, which had $27.1 billion, performed better, but also fell 0.1 percent.

In this case, Warwick can achieve a revenue growth of 19%, which is definitely very good.

Of course, compared with Nanshan Group, there is still a relatively large gap.

After all, it is 150 billion VS 520 billion, which is several steps behind.

Even so, Huawei is also a private enterprise in Lingnan Province second only to Nanshan Group.

In the whole of China, there is basically no private enterprise that can fight better than the two of them.

Two powerful private enterprises have joined forces......

Xu Jun is really a little excited!

"Mr. Cao, are you serious?"

Xu Jun stared at Cao Yang, who was a round younger than him in front of him, and his mood was a little complicated.

If anyone can change the strategic development direction of Huawei HiSilicon, it is estimated that Cao Yang will be counted as one.

After all, Nanshan Semiconductor's actions in the chip industry have always been watched by Huawei.

The most important thing is that Nanshan Group's investment in R&D in recent years is very exaggerated, and there is no domestic company that can compare.

Its level of madness can only be slightly compared with Warwick.

The more this is the case, the more Xu Jun admires the Nanshan Group.

Therefore, it is necessary to hand over the foundry business that Nanshan Semiconductor can do in the future.

"You know better than me how much the domestic chip industry is different from the international one."

"In 2009, chips have surpassed oil to become China's largest import commodity, consuming more than 100 billion US dollars of foreign exchange a year."

"Crude oil can also be replaced by natural gas, solar energy, nuclear power, etc., but chips are different, it is the foundation of the information industry, and has always accounted for more than 80% of the sales of global semiconductor products, known as 'industrial food'."

"Chips are used in almost all electronic devices in automobiles, computers, household appliances, digital electronics, automation, electrical, communications, transportation, medical, aerospace and other fields."

"The chip industry is a basic, critical and strategic industry in the national economy, and every $1 of output value can drive $100 of GDP."

"Huawei and Nanshan Group are both big consumers of chips, if they can't control the production and supply of chips in their own hands, there will definitely be accidents in the future."

"This speculation sounds completely fanciful and unreliable, but it is entirely possible."

As soon as Cao Yang said this, Xu Jun couldn't help but straighten up.

It doesn't seem impossible!

After all, as an old man of Warwick, he is very clear about the company's development goals.

If this goal is achieved, it will certainly threaten the interests of American corporations.

If you are sanctioned then......

"Mr. Cao, what do you think the United States will use if it really wants to deal with us?"

Now that this topic has been discussed, Xu Jun feels that he can have a good exchange with Cao Yang.

After all, he still admires Cao Yang's vision very much.

Looking at the layout of Nanshan Group over the years, you can find the wonders.

The more insiders you are, the more you understand the power.

"It's very simple, people have a bunch of tricks."

Seeing that Xu Jun was discussing this issue with himself very seriously, Cao Yang didn't mind "revealing" a little bit of news.

"For example, directly restricting chip companies in the United States from selling a certain type of chip to you, which is a relatively simple sanction."

"For example, you can restrict all American companies from doing business with you, whether it's buying or selling."

"With the influence of the United States, as soon as this sanction comes out, the impact is absolutely huge."

"No matter how serious it is, people can completely restrict all manufacturers who use the patents or equipment and raw materials of American companies, and they can't have any transactions with you."

"This move directly expands the scope in all directions."

Hearing Cao Yang say this, Xu Jun couldn't help frowning.

Although he felt that the business methods of the Americans were disgusting, this practice was ......

Shouldn't that be the case?

"Mr. Cao, the international economic market is now promoting a free economy, and this kind of obvious interference in the operation of enterprises should not be supported, right?"

"At most, it is to restrict in the high-end field, which has been done countless times in the past."

Obviously, Xu Jun still has illusions about the United States.

I feel that the other party will not easily use administrative means to deal with a company without limits.

That's too bad for your image, isn't it?

"Mr. Xu, it's not easy to get support?"

"Directly give you a charge of endangering national security, and then restrict you through special laws and regulations."

"People can deal with you in a legal and compliant situation, and they don't break the rules at all."

"When the time comes, you don't know how to resist if you want to!"

As soon as Cao Yang said this, Xu Jun was silent.

He is not stupid and sweet, and naturally he can understand what Cao Yang said.

It's just that I can't accept such a thing for a while.

After all, in the past ten years of development, Warwick has not encountered this kind of situation of being targeted by a country.

But listening to Cao Yang's words, if Warwick really reaches the world's first place in the field of communications in the future, and knocks down the competitors of the United States and Europe, then everything is really possible.

It seems necessary to plan ahead now.

"Mr. Cao, from chip design to wafer production, all the way to packaging and testing, all by yourself, such an approach is not the international mainstream practice, and the risk is very great."

"Did you let Nanshan Semiconductor choose this path because you took into account the situation that it would be sanctioned by the United States after it developed and grew in the future?"

Combined with some practices of Nanshan Semiconductor in the past, Xu Jun boldly gave a guess.

"That's right, that's okay for you to understand."

"Of course, the chip industry is very important, whether it is for Huaxia or Nanshan Group."

"That's why I hope to keep most of the chips in my own hands, so that all the chips used by Nanshan Group can be bought in China."

"In this way, some risks can be avoided to the greatest extent."

"But I also know that this kind of development path is very expensive and risky."

"Just building dozens of wafer factories is something that costs hundreds of billions of yuan, and ordinary enterprises can't support it at all."

"I am very confident in Nanshan Semiconductor and in the economic development prospects of Huaxia."

"But with such a big investment, I still feel a little pressure, and it's quite difficult."

"In particular, Nanshan Semiconductor has now officially launched the construction plan of the second factory and the Lingnan factory in Modu."

"We plan to build a 12-inch wafer factory with a monthly output of 50,000 wafers and an 8-inch wafer fab with a monthly output of 100,000 wafers within next year."

"If all goes well, then it is possible to further start the construction of a fourth fab by the end of this year, so that our wafer production capacity can be rapidly increased."

"With such a rapid development pace, the demand for funds and talents is particularly large."

"I'm not polite to tell you, I don't have much pressure on funds for the time being, whether it is Nanshan Group's own funds or looking for bank loans, it can be done."

"But in terms of talent, it's actually a bit stretched."

"If we can build a number of wafer fabs with Huawei HiSilicon, and the two sides can share the risk and build a talent team together, then it can greatly alleviate the pressure in this regard."

Cao Yang had already felt that Xu Jun was a little moved, so he was very honest and said his thoughts.

Although he also knew that such a major decision, it was definitely not something that Xu Jun could make alone.

But as long as Xu Jun can accept it, then Cao Yang believes that he can convince the leadership internally.

For Cao Yang, the development path of Nanshan Semiconductor is definitely relatively arduous, and he was willing to accept some state-owned investment before, which also considered many factors.

Even if he discussed some support plans with the executives in the group, he didn't think that Nanshan Semiconductor would be able to make money in the next five years.

Even in order to maintain their competitiveness, even if they have the ability to make money, they must take it easy, and first grab the market to the greatest extent.

You are a newcomer, if the price of the product is not advantageous, it is really difficult for people to give up chip giants such as Infinery and NXP.

Especially in the field of high-end chips, even if Nanshan Semiconductor has relevant capabilities in the future, there will definitely be many companies that will not necessarily consider using Nanshan Semiconductor.

Unless it's tempting in terms of cost!

"Mr. Cao, I will go back and report to the board of directors about your proposal."

"Personally, I support the construction of a part of the fab with Nanshan Semiconductor."

"Huawei HiSilicon also needs some fabs to produce its own chips."

Xu Jun did not hesitate any longer, and gave his answer with certainty.

Cao Yang was not surprised by this.

Even after communicating with Xu Jun, he also took the initiative to call Wang Fu of BYD.

"Mr. Wang, is BYD Nanshan Semiconductor Research Institute interested in investing in its own wafer factory and packaging and testing factory?"

Everyone is so familiar with each other, and Nanshan Semiconductor has also gained a lot of presence in the industry in the past few days.

So Cao Yang directly entered the theme with Wang Fu.

"Nanshan Semiconductor's Magic Capital Factory has just been put into operation, are you ready to build a new wafer factory?"

Regarding Cao Yang's call, Wang Fu felt quite surprised.

is also involved in the semiconductor business, and he has a good understanding of the industry.

At present, there are a large number of wafer fabs in the world whose production capacity is vacant, and the fab expansion plans of many chip giants are still tentative.

In this context, Nanshan Semiconductor is making great progress to continue to build a wafer factory, which is still a bit surprising.

"The production capacity of the Modu factory cannot even meet the needs of Nanshan Group itself."

"With the development of electric vehicles and smartphones in the future, the demand for chips will only increase."

"Chips are already the most important components imported by Nanshan Group from overseas, and I don't know when this situation will become a huge pit."

"So as long as Nanshan Semiconductor's production capacity is not 100% able to meet the needs of Nanshan Group, the pace of wafer factory construction will not stop."

"Frankly speaking, Nanshan Semiconductor has prepared to build two more wafer factories as a sole proprietorship, and the construction will officially start in the first half of this year, and the preliminary preparations have already begun."

"But I don't think these rhythms are enough, so I thought if we could make good use of our two joint ventures."

Since BYD and Nanshan Group have their own wholly-owned semiconductor divisions, BYD Nanshan Semiconductor Research Institute has been relatively small in recent years.

But there are also thousands of researchers in it, and it is entirely possible for them to help build a fab.

This is also one of the fastest ways that Cao Yang can think of to expand the scale of the fab.

At the same time, this is also one of the all-round development plans.

Nanshan Semiconductor built a number of wafer factories by itself, cooperated with Huawei HiSilicon to build a number of wafer factories, and then cooperated with BYD to build several wafer factories.

At that time, the focus of different fabs will be different, but they are all to meet the domestic demand for chips.

In the future, Nanshan Semiconductor will bring the two companies together to make Huaxia's chip industry competitive in the world.

In addition to this, Nanshan Equipment is now working on chip production equipment.

It is estimated that it is very difficult for other manufacturers to give up the mature equipment of ASML and other international manufacturers and choose the products of Nanshan Equipment.

At least before Nanshan Semiconductor adopts a large number of Nanshan equipment products, other manufacturers will not consider it.

But if it is a wafer factory cooperated by Nanshan Semiconductor, BYD and Huawei HiSilicon, the situation is different.

To a certain extent, Cao Yang's choice to speed up the pace of building a wafer factory is also for the sake of Nanshan Equipment's business expansion.

After all, if Nanshan equipment wants to form competitiveness in chip equipment, it must have a large number of wafer factories to stand up and use its equipment, otherwise there will be no meaning.

"Our energy in the past two years has mainly focused on IGBT and other power components, Mr. Cao, are you also interested in these things?"

With the gap between BYD and Nanshan Group expanding, Wang Fu now has a relatively light view of the competitive pressure brought to him by Nanshan Group.

Therefore, I am also willing to communicate with Cao Yang on the direction of chip development.

"IGBT power components have a large number of application prospects in electric vehicles and plug-in hybrid vehicles, and I am naturally very interested."

"Now the development of electric vehicles in Huaxia has entered the fast lane."

"According to my estimates, the production of electric vehicles is likely to reach 50,000 units this year and 200,000 units next year."

"By 2015, it would be no problem to reach more than 1 million vehicles, and by 2020, I think the proportion of new energy vehicles can reach more than 30% of the entire automobile market, which is the scale of the seven or eight million market."

"The demand for chips behind such a huge electric vehicle is very huge, and even the chip demand for these electric vehicles alone will be more than the chip demand of the entire automotive industry."

"Both of us attach great importance to the development of electric vehicles, and if we don't have an advance layout in the key core components, we will fall into passivity."

This time, Cao Yang did not talk about the topic of sanctions.

After all, the situation faced by BYD and Huawei is different.

No matter how vigorously the automobile industry develops, it is difficult to make people sanction.

After all, no matter how good you are at doing things in this field, that's what it is.

In the United States, General Motors, Ford Motor and Chrysler have countless ways to make foreign car brands sink into the sand.

"Mr. Cao, your analysis is quite reasonable, and I am also quite looking forward to BYD Nanshan Semiconductor Research Institute."

"Nanshan Semiconductor has recruited a lot of international talents in the past two years, and we at BYD have also conducted research on IGBT and other related technologies."

"It is indeed very feasible for the two parties to jointly build a wafer factory under the system of BYD Nanshan Semiconductor Research Institute."

Wang Fu quickly thought about the feasibility of this matter, and at the same time thought about the pros and cons of this matter.

Thinking that with the current scale of Nanshan Group, there is no reason to treat BYD as a competitor, and there is no need to hack him, so he quickly decided to cooperate with Nanshan Group to jointly build a wafer factory.

Of course, the scale of this wafer fab will definitely not be very large at the beginning.

Only after success will further expansion be considered.

So just after speaking, he added: "We have an automaker in Chang'an City, and we have also considered further expanding investment there." ”

"If we work together to build a fab, how about putting this fab in Chang'an?"

Although Shencheng is BYD's home base, Wang Fu obviously does not intend to put all the industries in one place.

This is the same as Cao Yang's placement of different factories of Nanshan Group in Yangcheng, Modu, Chang'an and other places, which can be regarded as a way to diversify investment risks.

Chang'an was originally the base camp of Nanshan Carbon Fiber, and Cao Yang was also very familiar with the people there.

So for Wang Fu's proposal, there is naturally no problem.

"That's no problem, and it's okay to even hand over this fab to a joint venture company to manage."

"Nanshan Semiconductor and Nanshan Equipment can share their experience in building wafer factories, and recommend localized equipment with more advanced performance and lower cost for wafer factories."

One of Cao Yang's important purposes is to promote the chip equipment of Nanshan Equipment, so naturally he also has to greet Wang Fu in advance.

Otherwise, when the two sides have determined the cooperation, they are ready to start purchasing equipment from ASML and other manufacturers, and then jump out and say that they want to use Nanshan equipment products, which will definitely lead to twists and turns in the cooperation between the two sides.

"It was rumored that Nanshan Equipment had set up a special semiconductor division to specialize in research and development of related equipment."

"Are there already concrete results?"

Wang Fu couldn't help but ask rhetorically.

After all, he had heard some relevant reports before and knew some movements of Nanshan's equipment.

It's just that I didn't expect the results to come out so soon.

"There are many types of chip production equipment, and some of the thresholds are not as high as everyone thinks, just because chip manufacturers are used to finding so many fixed manufacturers to buy, so other manufacturers dare not participate in research and development even if they have the strength."

"But Nanshan equipment is different, we have a huge market in China to support, as long as we can develop qualified equipment, we will have the opportunity to put it into use."

"Nanshan Semiconductor's second 8-inch wafer factory will be the first to start using the chip production equipment developed by Nanshan Equipment."

"Except for a small number of those that have not yet been developed, they will continue to be imported, and most of them will be localized."

"In a few years, when we build a new wafer factory, all the equipment can be localized."

Since the joint venture fab project uses the products of Nanshan equipment, Cao Yang naturally wants to introduce the situation of Nanshan equipment to Wang Fu.

Otherwise, how can people easily agree to your request?

Chip production equipment!

If it weren't for Cao Yang, the person who was selling to Wang Fu might not have been willing to listen.

This thing, just looking at a certain equipment, except for a few lithography machines and so on, the threshold is not necessarily so high.

But if you look at the complete set of equipment, the situation is not the same.

You don't choose other people's more mature solutions, you give what you can make in China, and continue to find others for the rest.

Then you need to know a lot about the equipment, otherwise you don't know how to choose what equipment to buy.

"Since Mr. Cao is so confident, I must fully support it!"

"Before, we were already struggling with whether to go to Chang'an City to build a wafer factory, but now we don't need to be entangled, we will do it with you!"

Wang Fu waved his hand and agreed to Cao Yang's proposal!

In the next few days, the Huaxia semiconductor industry will be lively.

(End of chapter)