Chapter 360: Acquisition of Factory 13 and New Chip Manufacturing Plan Provide Momentum
Academician Ni introduced his "Lianhai Microelectronics Design Center" plan. The first step is to build a dedicated chip ASIC development and design center. The development focus is on high-performance interface chips, multimedia chips, and fully customized VLIC special chips, so that new projects can be implemented in chips. The design field has reached the world's advanced level and promoted the development of the domestic IC industry. The ultimate goal is to PK the world's strongest Wintel alliance...
"Academician Ni, I very much support your grand idea. If it can be realized, it will be a huge contribution to our national IT industry!"
Li Xiaofan changed the subject and said:
"Academician Ni, with all due respect, our mainland's IT basic industry is currently very weak. Not only may we not be able to make a CPU, we may not even have the ability to design core circuit boards based on CPUs! Even if we have our own chips, To be practical, a new assembly language is necessary Languages, compilers, scientific computing libraries, operating system interfaces, etc. To further develop domestic operating systems and office systems, they still need to be accepted by the domestic market and users... At present, our reform and opening up cannot close the door to the country. Don’t let those foreign giants enter our domestic market!”
Beginning in 1991, mainland China has been aggressively dismantling trade barriers in the computer industry. After the door was opened, Chinese and foreign computer manufacturers began to compete head-to-head. Foreign IT giants such as INTEL, IBM, and Microsoft quickly occupied the domestic market after entering.
"Academician Ni, I think the chip industry you want to build is a large ecosystem. From upstream to downstream, there are a lot of very long industrial chains. From wafer production to lithography machines, to chip design and tape-out, and then From compilers and programming languages, to operating systems, and finally to the application software ecosystem, the industry chain is too long. I think that if we want to compete with the Wintel alliance, which is the strongest cooperation in the world between Microsoft and Intel, we can only rely on administrative investment. Maybe it can’t be done…”
Academician Ni said: "Xiao Li, I agree with most of your ideas. They are very objective. It seems that you really understand this industry very well. I think what we need to break the monopoly of the Wintel Alliance is not money, but determination and Original intention!”
He continued: "However, strategically we can despise the enemy, but tactically we must pay attention to the enemy. At present, we are still short of money to implement the "Lianhai Microelectronics Design Center" plan. Xiao Li, if you can come in and invest, it will really Great. But the idea of acquiring Yangtze River Group may be a big problem. If you invest in the "Lianhai Microelectronics Design Center" project, is this merger of Yangtze River Group a necessary prerequisite?" asked Academician Ni.
"Yes, Academician Ni. This merger and acquisition plan will not only ensure your absolute say in the "Lianhai Microelectronics Design Center" project, but I also have a series of layouts and ideas behind it. Let me briefly report to you..."
After Li Xiaofan asked Pan Zhanlong and Wang Shuqiang to go back to the hotel first, he met Academician Ni alone and spent about an hour explaining his preliminary layout plan.
"Xiao Li, I understand, it's great! I personally support your plan. In this way, I will find time to report to the leaders of the Ministry of Science and Technology and Shanghai as soon as possible!"
…
Soon, Li Xiaofan’s suggestion received great attention and support from the National Science and Technology Commission and Shanghai leaders through Academician Ni.
Academician Xu Guanhua, the old leader of the Science and Technology Commission, once summed up sadly: "China's information industry lacks core and soul"! "The core is the chip and the soul is the operating system.
Later, Academician Ni personally made an international long-distance call to Li Xiaofan who was returning to Singapore.
"Xiao Li, Shanghai is very supportive of you investing in the "Lianhai Microelectronics Design Center" plan. I have a question that I need to communicate with you, because the Yangtze River Group involves a wide range of industries and the following assets are also very complex. Maybe you The proposed merger is difficult!”
"However, Shanghai has proposed that if you support the "Lianhai Microelectronics Design Center" plan, if you are really interested in participating in the reform and reorganization of local state-owned enterprises in Shanghai, they are willing to separate the assets of the original Shanghai Radio No. 13 Factory. Spin it off and establish a joint venture with you, which can be controlled by your Singapore side. What do you think of this change? I have sent you the relevant information on the assets of Radio No. 13..."
"Thank you, Academician Ni. Can I check the information in your email first and then reply to you?"
"Okay, I'll wait for your news!"
Li Xiaofan opened his mailbox and checked the relevant materials of Shanghai Radio No. 13 sent by Academician Ni.
According to this material, the original Shanghai Radio No. 13 Factory located at the intersection of Yuyuan East Road and Changde Road in Shanghai covers an area of 17,881 square meters, a construction area of 22,990 square meters, and 861 sets (sets) of various types of equipment. The original value of fixed assets is 65.015 million yuan.
In 1990, the original Shanghai Radio No. 13 Factory had an annual output of 25 small computers, 4,205 microcomputers, and 1,315 peripheral equipment, with a total industrial output value of 151.579 million yuan, sales revenue of 120.262 million yuan, and a profit of 5.102 million yuan...
In the materials, data for subsequent years are not provided.
Li Xiaofan estimated that the Thirteenth Factory would definitely suffer heavy losses after the door was opened.
…
A week later, Li Xiaofan flew to Shanghai with Pan Zhanlong and a group of subordinates. With the help of Academician Ni, he signed a joint venture agreement with Shanghai Yangtze Computer (Group) Company on behalf of Singapore Yifan Holdings Pte. Ltd.
According to this joint venture agreement, Li Xiaofan's Singapore Yifan Holdings Pte Ltd will jointly establish a Sino-foreign joint venture called "Shanghai Changjiang Technology Investment Co., Ltd." with Shanghai Changjiang Computer (Group) Co., Ltd.
The shareholding ratio of Shanghai Changjiang Technology Investment Co., Ltd. is as follows: Singapore Yifan Holdings Pte Ltd holds 80% and the remaining 20% is held by Shanghai Changjiang Computer (Group) Co., Ltd.
The registered capital of the new Shanghai Changjiang Technology Investment Co., Ltd. is US$10 million. Singapore Yifan Holdings Pte Ltd invested US$8 million in cash to acquire the land, factory buildings and equipment and other assets of the original Shanghai Radio Factory No. 13, which covers an area of 17,881 square meters and a building area of 22,990 square meters.
All the original employees and technical personnel were arranged by Shanghai Changjiang Computer (Group) Co., Ltd....
At the same time, Li Xiaofan found his cousin Tang Qianqian and registered Shanghai Yifan Investment Management Co., Ltd. in Shanghai, which was funded by Li Xiaofan and Tang Qianqian. Among them, Li Xiaofan holds 90% and Tang Qianqian holds 10%. Because the "Company Law" was officially promulgated in China in 1993, a limited liability company needs at least 2 shareholders.
After the US$8 million registered capital of Singapore Yifan Holdings Pte. Ltd. was in place and the new Shanghai Changjiang Technology Investment Co., Ltd. was registered, Li Xiaofan, on behalf of Shanghai Yifan Investment Management Co., Ltd. and Shanghai Changjiang Technology Investment Co., Ltd., re-signed the "Lianhai Microelectronics Design Center" cooperation letter of intent with Shanghai Fudan University and Changjiang Computer (Group) Co., Ltd.
According to this cooperation letter of intent, the four parties will establish a new project called "Shanghai Lianhai Microelectronics Design Center Co., Ltd."
In this new Lianhai Microelectronics project, Fudan Fuhua Technology Co., Ltd. under Shanghai Fudan holds 20% of the shares, Changjiang Computer (Group) Co., Ltd. holds 20% of the shares, Shanghai Yifan Investment Management Co., Ltd. holds 20% of the shares, and Shanghai Changjiang Technology Investment Co., Ltd. holds 40% of the shares as the single largest shareholder.
In the cooperation letter of intent, Li Xiaofan promised that Shanghai Yifan Investment Management Co., Ltd. and Shanghai Changjiang Technology Investment Co., Ltd., which he controlled, would invest at least US$10 million in the "Lianhai Microelectronics Design Center" project by 1996 through different means.
Subsequently, in accordance with the company's articles of association, the first board of directors of Shanghai Lianhai Microelectronics Design Center Co., Ltd. elected five directors, including Academician Ni, Li Xiaofan, Pan Zhanlong, and one director each appointed by Fudan Fuhua and Changjiang Group.
After voting, the board of directors of Shanghai Lianhai Microelectronics Design Center Co., Ltd. elected Academician Ni as the company's chairman and chief engineer.
…
The new Shanghai Yifan Investment Management Co., Ltd. is registered at the former Shanghai Radio Factory No. 13, No. 1486, Nanjing West Road.
After the company was registered, Li Xiaofan asked Wu Xiumei to come to Shanghai from Mingzhou to temporarily take charge of the Shanghai company's preparations for a period of time.
In mid-May, Wu Xiumei sent Li Xiaofan the resumes of the first batch of screened applicants.
After opening the email, Li Xiaofan was surprised to see the photo of one of the girls. Looking at the familiar name again, he couldn't help but recall his hazy youth...