Chapter 1105 Pressure From TSMC

Pengbo "Almost, there are many reasons. Wang Rongchang seemed a little embarrassed to mention so many questions, and answered evasively.

In fact, Wang Rongchang was afraid of Morris Chang for a reason.

Although Morris Chang is Taiwanese, he left Taiwan very early to study in the United States. He graduated from Harvard University and then transferred to the Massachusetts Institute of Technology. He then received a doctorate from Stanford University. Since the age of 24, Morris Chang has begun to accept the operating philosophy of American companies and has served as vice president of Texas Instruments.

What Wang Rongchang praised was Morris Chang's wonderful handling of political and business relations.

"Industry insiders said that the foundry industry needs strong support from the government, otherwise it will surely die, but if it is tied too tightly, administrative intervention may lead to another kind of death." Although Wang Rongchang was afraid of Morris Chang, he was also admiring when he mentioned him, "And Morris Chang's performance in this regard is obviously much more elegant than most professional managers in the semiconductor industry. ”

In the early days of TSMC, the government held a large proportion of shares, but with the continuous expansion of TSMC, the current government shareholding is less than 9%. TSMC is not tied to any political party. Instead of asking which party TSMC has a good relationship with, it is better to say directly that as long as it is the ruling party, their relationship is good.

One comparison is that during the Kuomintang’s rule, the then "Prime Minister" Sean Xiao visited Taiwan, and among the entrepreneurs accompanying him was Morris Chang. Now, although the ruling party has changed, TSMC is still the government’s weathervane when it comes to boosting the stock market.

The benefits of the Taiwan market can be seen by many Taiwanese businessmen, especially some chip industry peers on the island. Just when everyone was eager to find various ways to invest in Taiwan, Morris Chang seemed indifferent. However, at the annual VIA Semiconductor Forum last September, he changed his previous style of speaking in English and spent half an hour explaining in Chinese. He also explained the necessity of the authorities to relax restrictions on investment in the big six.

At the beginning of this year, taking advantage of the opportunity of the big six and Taipei joining the…still, TSMC formally proposed to the Taiwan authorities to invest in the mainland. According to the insider information obtained by Wang Rongchang now, this investment bill is very likely to be approved. It is said that the Chen government said that TSMC can set up an eight-inch wafer factory in the mainland without interference, provided that it does not use technology below 10,000 microns.

In fact, TSMC has long been interested in investing in the big six market. After considering multiple factors including politics, it has been defined as a closely watched area.

Apart from politics, Morris Chang’s understanding of the big six market is that although the big six market has a promising future, there are no outstanding local design companies. From the perspective of serving customers, there is no great need to invest in setting up factories. It was not until the year 2000 that TSMC decided to set up factories in the big six to occupy a position.

“This is where Morris Chang’s great talent lies.

In fact, it will take a long time for the mainland’s northern design companies to rise, and most of the existing design companies still use 10,000-micron technology. TSMC has not been constrained by any investment legal issues. Zhang Zhongmou is doomed to fail in the big 6 market. The only uncertain market now may be ours. "Wang Rongchang said to Fan Wubing.

Fan Wubing nodded and was thinking about it seriously.

In fact, Wang Rongchang did not explain one thing, because of face.

When he and Fan Wubing just founded the mainland Xinfu factory, there was a joke among his peers in the industry on the island of Taiwan, saying why Wang Rongchang wanted to work in the chip industry in Big 6? It was because Zhang Zhongmou was the father of Taiwan's semiconductors, and Wang Rongchang no longer had the opportunity to sit in this position, so he had to run to Big 6, because he hoped to develop Big 6's chip industry in the future, so that he could surpass Zhang Zhongmou.

In fact, Wang Rongchang himself had this intention in his heart.

Just this year, Taiwan, which had expressed dissatisfaction with Wang Rongchang's large investment in Big 6, The ticket issued by the Taiwan authorities pointed out that he violated the Taiwan authorities' policy of investment quotas for the Big 6.

Obviously, Wang Rongchang was increasingly inclined to the Big 6, which had angered the Chen government and violated the Taiwan authorities' policy of patience. At this time, the Chen government hated him, but could not touch him, so it could only impose economic penalties.

It was for this reason that Wang Rongchang ran to the Big 6 with a ruthless heart and did not plan to go back. At the same time, he was very dissatisfied with Morris Chang, who still had a good relationship with the Chen government. This was an undeserved disaster for Morris Chang. After all, apart from jealousy among peers, there was actually no big feud between the two old men.

"Putting aside personal grudges, I still admire Morris Chang very much. This man is indeed a great talent of his generation." Wang Rongchang expressed his evaluation of Morris Chang to Fan Wubing very objectively.

According to Wang Rongchang, Morris Chang is a person who can define an industry.

"Before him, no one in the four industries was talking about OEM. How can you do OEM in Bei? There is production. All industries are only setting up factories and doing their own business. Xi Yuhuang told him to set up factories and do it himself. Bei, makes chips. But Zhang Zhongmou said that in the future, this design will be separated from Si's manufacturing, and Si's brand will be separated from Si's design and Bei's manufacturing." Wang Rongchang said to Fan Wubing, "We will compare today. The brand, design and manufacturing have begun to be separated. The manufacturing is through o fierce, and the design is o. For example, the Sigang brand is sold by himself. But more than ten years ago, he said that the same is true for Bei. Yes. Why can Si'oji survive? Because after its production, equipment, and investment, its production yield, flexibility, and quality surpass those of northern designers."

"He once said that designing a steel bar is indeed very powerful, but the production of steel bars is not very good. My cost is half of his, and my quality is twice as good as his. I can help him with OEM work. Zhang Zhongmou originally said this In a word, basically no one in Taiwan believes it, even those without vision,” Wang Rongchang said.

"A very interesting person, a person with great vision, a person with great ideas," Fan Wubing used a total of four attributive words when he evaluated this person.

Fan Wubing strongly agreed with Zhang Zhongmou's statement.

Why can we compete with Si Rang? You must know that Qu is much less than money, but Si can fight for peace. The important thing is that there are people like Zhang Zhongmou.

Because as long as a good product is designed, it will be comparable to design, and Zhang Zhongmou's TSMC can compete with manufacturing.

You have to design and manufacture yourself, you have to support the people who design and manufacture, and then you have to invest in production yourself. The total of all kinds of funds is a very scary figure. Now it specializes in design, and TSMC manufactures it, using low-cost, high-quality manufacturing and materials.

In the end, because Qu's manufacturing was twice as expensive as TSMC's and its manufacturing quality was worse than others, Q's manufacturing became Xi's burden.

TSMC's brand is an asset, design is an asset, but manufacturing is its burden, and TSMC's design is also very good. TSMC's manufacturing is very cheap, so it can bite on it and build its own brand. This is how the entire strategy was formed.

It’s no wonder that Zhang Zhongmou’s TSMC products are so much cheaper and the company’s gross profit can reach 50%. From this, he has defined an industry and saved the entire island of Taiwan. Taiwan is now the most concerned about the world. It’s not about comparing ourselves to this industry, it’s about comparing ourselves to this industry.

After listening to Wang Rongchang's introduction to the glorious history of Zhang Zhongmou, Fan Wubing hesitated for a moment. It seemed that this time a fierce dragon crossed the river, but he didn't know that the strong dragon overwhelmed the local snake and even walked across the river and the dragon drowned. In the river, anyway. When two strong forces fight, one of them will be injured.

Although I have established my position as the leader in the domestic chip industry, in some aspects there is still a big gap compared with TSMC, an established chip foundry industry giant with more than ten years of technology and experience accumulation. When there is a conflict, it is indeed a bit of a headache.

When Wang Rongchang saw Fan Wubing touching his temples and thinking deeply, he said to him, "I estimate that it will be difficult for TSMC's continental investment proposal to be passed in a while. It will only be half a year later. If you want to be able to If mainland China works harder, it won't be a problem to delay it for another year and a half. This is more than a year, which is enough for us to make the necessary adjustments. By then, TSMC will also need to build the factory and put it into production. After a certain amount of time, I don’t believe that with this time buffer, we won’t be able to defeat them?”

After Fan Wubing rubbed his temples, he thought about it seriously and felt that Wang Rongchang's analysis could only be said to be a relatively ideal result. In other words, it was too wishful thinking.

Not to mention whether the Taiwan authorities will drag on this issue for half a year, it is said that the mainland will definitely not take Taiwanese investment lightly, even if they can exert certain influence from the top. But if this is really done, it will inevitably create some excuses for the Taiwan authorities to attack the mainland, which Fan Wubing does not want to see.

Therefore, Fan Wubing can be sure that as long as TSMC has the intention to build a factory and the Taiwan authorities successfully approve it, TSMC's wafer fab in mainland China will be completed and put into operation in one year.

As a result, the chip factories under Fanshi Investment Group are facing considerable pressure!