Open business day-to-day

Chapter 441 Hundreds of billions of industrial clusters
This morning, Lin Rui got the news that SMIC's private placement, capital increase and share expansion of US$40 billion had been officially approved by the New York Stock Exchange.

From the board of directors' resolution in February, it took a month or two to pass the review.I have to say that compared with big A shares, the efficiency is not generally high.

Of course, sufficient preparation is also the main reason. Not only the major shareholders have reached an agreement, but the 40 billion US dollars needed for capital increase and share expansion has also been raised long ago.

This is one of the reasons why the approval process is so quick.

This time, of the 40 billion US dollars in capital increase and share expansion, Xingkong Technology Group alone monopolized 30 billion.

Of course, although there are so many funds in the foreign exchange account of Star Control Technology Group, it is naturally impossible to fully contribute, and the old rules are still followed.

Xingkong Technology Group took out one billion U.S. dollars, and the remaining 20 billion U.S. dollars went to bank loans.

After such an operation, and the establishment of an artificial intelligence research institute with a billion dollars allocated a few days ago, the balance of Xingkong Technology Group's foreign exchange account is only 25 billion U.S. dollars.

However, RMB account funds are still sufficient.

The announcement of the news caused another wave of enthusiasm.

However, this matter has long been known in China, and after the heat passed, it fell silent again.

But it was quiet on the surface, but it was different in private.

With the arrival of 40 billion US dollars in funds, Zhang Rujing and Liang Mengsong, who have completely straightened out SMIC, looked at the 60 billion US dollars in cash in the company's account, and their ambitions were completely stimulated.

Especially Zhang Rujing, who is a man of temperament, is more radical in doing things, and Liang Mengsong is also a person with great ambitions.The two world-class giants in the chip manufacturing industry summed up each other, and immediately cherished each other and reached an agreement.

Proposed to Lin Rui a 28nm fab construction plan of up to tens of billions of dollars.

As for the factory construction plan of more than 20 billion US dollars a year ago, they terminated it.

According to the two, the world's most advanced chip manufacturing technology has advanced to 14nm, and then a 56nm process fab will be built to engage in the foundry business of low-end chips. Status is also a great waste of funds.

However, in order to directly enter the 14nm process, SMIC not only lacks talent and technical reserves, but also faces the technological blockade of the West, and it is difficult to buy the most advanced lithography machines.

It would be an excellent choice to settle for the next best thing and directly launch the current mainstream 28nm chip manufacturing technology in the world.

At present, in the world, the manufacturing technology of 14nm chips is the most cutting-edge and core. Due to the high cost of foundry, the market size is not large.

The 28nm process can still be called the advanced manufacturing process in the chip field, and it will still be the mainstream in the next few years.

SMIC abandons the 56nm process and directly advances to the 28nm process, which is the best choice under the current circumstances.

However, Lin Rui couldn't help being a little surprised when faced with a one-time investment of over tens of billions of dollars.It’s just a fab, even if it’s a 28-nanometer process, the investment of more than [-] billion US dollars is a bit exaggerated!
Since SMIC was established more than ten years ago, all the investment amount added together is less than [-] billion US dollars.

However, Zhang Rujing and Liang Mengsong have their reasons.

In the past, SMIC's factories were relatively scattered. There were less than ten fabs in total, and they were actually distributed in four or five cities, including Shanghai, Beijing, Tianjin, Rongcheng.

Originally, their respective scales were not large, and they were dispersed in different places, so they could not form a scale effect. The industrial chain was also split up in sevens and eighties, and it was impossible to form a joint force.

This is also one of the biggest shortcomings of SMIC over the years since its establishment.

After Zhang Rujing takes the helm of SMIC again, he will naturally not make the same mistakes as before. He intends to concentrate investment in one place, gather various resources and funds, and build a complete and large-scale chip manufacturing industry chain.

This tens of billions of dollars may seem like a lot, but it is not an exaggeration to build a super-large-scale 28nm fab and form an industrial chain.

After the two talked about it, Lin Rui also gradually approved of their plan, gradually turning from surprise to support.

Since SMIC entrusted them with the helm, it is natural to give them full trust and room for free play.

Zhang Rujing and Zhang Rujing were quite happy after being affirmed by Lin Rui. Although one of them is the chairman and the other is the CEO, they only have the right to make suggestions in the face of such an investment of over ten billion US dollars, which gathers the strength of the entire company. , no final decision.

Now with the affirmation of Lin Rui, the controlling shareholder, the matter is likely to be settled, how could he be unhappy!
……

Just a few days after talking with Zhang Rujing, the news that SMIC spent tens of billions of dollars to build a chip production industry chain spread.

It immediately caused quite a stir in the country, especially some big cities that are qualified to compete, and they are gearing up one after another, wanting the project to land in the city.

Faced with a large investment of tens of billions of dollars, it is still the most advanced high-tech industry in the world, such as a fab, and there is no city that is not greedy.

Even imperial capitals and magic capitals are eager to try and pull the project over in the face of huge investments in such high-tech industries.

All the cities that are qualified to fight for the project's landing are ready to move, and have sent invitation letters to SMIC, inviting SMIC to come to the city for investigation and research.Or go directly to the SMIC headquarters in Shanghai to visit, promise various preferential policies, and woo the project to land in this city.

Many cities even sent people directly to visit Lin Rui. As the controlling shareholder of SMIC, Lin Rui's right to speak in SMIC can be imagined.

Compared with the management, Lin Rui has a relatively high say in which city the investment lands in.

Now, Luo Cheng couldn't sit still.

Hearing the investment of tens of billions of dollars, the city of Los Angeles was also eager to make a move, but it was discouraged when it heard that the cities participating in the competition were cities like Shanghai and the Imperial City.

Not even the provincial capital. Although the economic scale is known as the largest non-provincial capital city in the Midwest, if it is placed in the coastal provinces, it is not outstanding at all.

However, I saw that many cities came to Los Angeles one after another to visit Xingkong Technology Group and lobby for SMIC's project to land in this city.

Los Angeles finally couldn't sit still. Even if the qualifications were still low, and it was inconspicuous in a large area of ​​municipalities directly under the Central Government, cities with separate state planning, and provincial capitals, they still had to work hard.

After all, Star Technology Group is headquartered in Los Angeles. As the controlling shareholder of SMIC, Los Angeles has a convenient location, and it would be a pity not to take advantage of it.

So, just as Lin Rui had dealt with other cities, the first and second leaders in the city jointly visited him, and the preferential policies and conditions were extended to the extreme.

The land is provided free of charge, and the tax incentives are the largest within the scope of tax incentives.

Lin Rui was also a little shocked by the huge discount.

There is only one purpose, to let SMIC's project land in Los Angeles.

Surprised, Lin Rui gradually realized the influence of SMIC's tens of billions of dollars in investment.

This is not simply an investment of tens of billions of dollars, but to build a complete chip industry chain locally.

The tens of billions of dollars is only the direct investment of SMIC. At the same time, hundreds of upstream and downstream enterprises in the chip industry chain have been mobilized to jointly invest and build factories in the local area to create a complete chip manufacturing industry chain.

By then, the chip industry led by SMIC will form an ecological cluster with an annual output value of hundreds of billions.This will increase how much employment, how much tax revenue, how much high-tech talents will be added, and how much GDP will be increased in the city.

If this industrial cluster is located in a small city, it will directly lead the economic take-off of this small city.

Even in a medium-to-large city like Los Angeles, the results of attracting investment in the city for a year are not comparable to this project.

After thinking about this, and looking at the preferential conditions offered by Los Angeles, it is not surprising.

It can only be said that as long as the investment lands, it will be absolutely worthwhile for Los Angeles.

Faced with the joint visit of the top and second leaders in the city, I am full of sincerity.Lin Rui can only guarantee that, under the condition that the conditions are not much different, he will give priority to promoting the project to land in Los Angeles.

In terms of his own wishes, he would like to see the project land in Los Angeles and increase the city's technological attributes and economic strength.

After all, a single tree cannot make a forest. It is difficult to fly a city by relying on Weiyang Technology and Xingkong Technology Group alone, and more high-quality enterprises are needed to participate.

Chatted with two city leaders for a while, just finished the topic of SMIC, the city leaders brought the topic to BOE again, it was a pity to speak.

Last year, BOE announced that it would spend tens of billions to build a brand-new LCD panel production line. Many cities began to fight for it, including Los Angeles.

It's just that the result was not very good. This production line finally settled in Luzhou.

As for the reason, compared to Los Angeles, Luzhou has a complete LCD panel production chain, and Los Angeles is completely poor in this regard, and the conditions are too different.

Regarding this incident, the city was filled with emotion and helplessness.Who told you that you don't have the industrial foundation in this area, not to mention competing with others, even the basic conditions are not qualified.

Regarding this matter, as the largest shareholder of BOE, Lin Rui did not intervene to change the decision of BOE's management after learning about the gap in basic industries between Los Angeles and Luzhou.

One is that BOE has already done a good job in management; the other is that Luzhou is indeed much stronger than Los Angeles in terms of the LCD panel industry chain; It was a great help.

He also didn't want to intervene in the operation of BOE for no reason and affect the development of the company, and he didn't want to randomly intervene in the implementation of the project because of his personal preference.

However, it is not impossible for Los Angeles City to introduce panel and display projects.

Different from Luzhou's LCD display and panel production lines, most of them are used in various smart devices and LCD TVs.

BOE recently plans to enter the mobile phone panel and display industry. Since the emergence of smart phones in 10 years, BOE has established a related research group to conduct research and development and technical reserves for mobile phone panels and displays.

After two or three years, the technology has gradually matured, and smartphones have also ushered in an explosive stage.

BOE is naturally unwilling to miss this opportunity.

However, to enter the mobile phone panel and display industry, BOE needs to spend huge sums of money to rebuild a brand new industrial chain.

In order to meet the needs of the future, this industrial chain must be advanced enough and large enough.

However, this requires a huge amount of financial support.

According to preliminary estimates, the investment scale of the first phase of the project is around 400 billion, even if it is not as good as SMIC's fab project, it is almost the same.

Faced with such a large demand for funds, BOE's management is a bit blind. Even if they can get alms from a few state-owned enterprise shareholders, such a large amount of funds is not so easy to find.

So, thinking of the rich and powerful largest shareholder Xingkong Technology Group, he threw this proposal to Lin Rui.

However, BOE's management is also very knowledgeable. While throwing a big problem, it also throws a big cake.

The right to land the investment in the BOE project was also handed over to Lin Rui. The city where the project landed was entirely up to Lin Rui.

As a complete mobile phone panel display industry cluster, BOE, together with hundreds of upstream and downstream enterprises that need to be rebuilt, has an annual output value of tens of billions, which is definitely a big cake that makes people greedy.

It can provide a lot of employment, taxation and talents.

Its attractiveness to major domestic cities is almost the same as that of SMIC's tens of billions of dollars of investment in the chip industry chain.

BOE's management can readily hand over the right to land the project to Lin Rui, which not only shows the wisdom of the management, but also saves the trouble of finding funds everywhere.

It can also be seen that their desire and attention to this project.

Even, giving up the right to land the project is to raise funds as quickly as possible and promote the implementation of the project as soon as possible.

Lin Rui did not refuse their kindness.

Strengthening BOE's strength, promoting BOE's technological innovation, and entering the field of mobile phone panels are also in the interests of Xingkong Technology Group.

Moreover, it is complementary to the mobile phone project of Xingchen Technology, and can be combined to avoid being stuck by foreign competitors using technology in the future.

Since BOE needs a huge amount of capital to invest in building factories and build a mobile phone panel production chain, it is difficult to raise funds for a while.

Starry Sky Technology Group has a lot of idle funds in its account, and it's nothing to take out a large sum of money to invest.

However, although Lin Rui acquiesced in BOE's plan to build a mobile phone panel production chain, this matter cannot be simply advanced.

Capital increase and share expansion, all kinds of preparatory work will take a long time.

In addition, even if Lin Rui wanted to build a mobile phone panel industry group in Los Angeles, he would not express it directly.

We also need to look at the conditions offered by Los Angeles, and compare them with other cities. If the gap is too large, we can only choose another place to build the factory.

However, such a chance is not great. Looking at the attitude of No. [-] and No. [-] in Los Angeles, as long as there is a slight chance of the project being implemented, I am afraid that all the preferential conditions and policies will be thrown away.

Lin Rui was not worried about this.

However, this matter still needs to be pushed forward slowly, and it cannot be rushed, after all, it is not a trivial matter.It can even change the industrial structure of related domestic fields.

(End of this chapter)