Chapter 502: Two Swords Combined, Invincible!

In the midst of the wailing Asian financial crisis in the second half of 1997, Li Xiaofan accomplished two major things.

The first big thing was to increase capital and take control of Cyrix.

Cyrix is ​​a pure fabless chip design company. Like the Lianhai Microelectronics Design Center led by Academician Ni, it does not have its own semiconductor factory.

Its CPU manufacturing foundry is completed by three companies, namely IBM, SGS Thomson (later STMicroelectronics) and National Semiconductor.

The manufacturing processes of these three companies are different, and these three semiconductor giants all give priority to the production of their own semiconductor products, so the frequency and power consumption of the final shipments are also different. This not only makes coordination troublesome for Cyrix, but also affects shipments. The quality of CPPU processor products.

With the advancement of manufacturing processes, Cyrix launched the M2-CPU processor product to compete with rival Intel's Pentium II.

However, due to the delay in foundry and power consumption issues, it was late to enter the market. At this time, Intel's P6 and AMD's K6 and other CPU processors have caught up with Cyrix in terms of integer performance, and Cyrix's CPU has surpassed Cyrix in floating point performance. Originally inferior to the first two, Cyrix's M2 product has lost its first-line competitiveness.

Starting in 1997, Cyrix founders Jerry Rogers and Tom Brightman tried their best to establish partnerships with companies such as Compaq and HP, hoping to integrate their CPU processor products into the system to generate a stable revenue stream, but the results Very little.

At the same time, they also sued Intel for infringement of its patents in power management and registration renaming technology, but the matter quickly passed through court mediation and was finally resolved with a mutual cross-licensing agreement so that the two companies could continue to focus on production Better CPU.

The bleak market prospects and lawsuits caused a shortage of funds for Cyrix. Faced with the prospect of imminent bankruptcy, founders Jerry Rogers and Tom Brightman finally accepted Li Xiaofan's suggestion. The American Yifan Investment Company controlled by Li Xiaofan cooperated with Singapore Yifan. The holding company increased its investment in Cyrix by US$250 million through acquisition and capital increase, and acquired 45% of Cyrix's equity.

In addition to the 20% shares previously held by Yifan No. 2 Venture Capital Fund, after the capital increase, Li Xiaofan holds 60% of Cyrix's shares, becoming the majority shareholder of Cyrix.

At the end of October 1997, after Li Xiaofan completed the acquisition and capital increase of Cyrix, another important person called Li Xiaofan to deliver important good news.

"Director Li, our boss signed today to approve my retirement. We can finally implement our fab plan!"

The caller was Dr. Zhang from TI Instruments.

"Great, Dr. Zhang, your news is so timely. If you leave TI now, I would like to recommend you to be the chairman of the board of directors of Cyrix!"

"What, let me serve as the chairman of the board of directors of Cyrix? Have the two original founders of the company, Jerry Rogers and Tom Brightman, retired? Director Li, can you represent Jerry Rogers and Tom Brightman..." After hearing this, Dr. Zhang He was surprised. He had the impression that Li Xiaofan's venture capital fund only held 20% of Cyrix's shares and did not have a very high say.

Li Xiaofan smiled on the phone and said: "Dr. Zhang, the situation is like this. I have just led the completion of a new round of capital increase and equity acquisition of Cyrix. Currently, I control 60% of the equity of Cyrix. Originally, Jerry Rogers and Tom Brightman suggested that I serve as chairman. But I am not familiar with the semiconductor design industry. Now that you have retired from TI, you can serve as the chairman of the board of directors of Cyrix. Moreover, Cyrix is ​​a pure Fabless chip design company and needs your wafers very much. The seniors of the factory provide guidance. Moreover, the two founders, Jerry Rogers and Tom Brightman, were also engineers at TI. Dr. Zhang, you are highly respected in TI. I think you are very suitable to serve as the chairman of Cyrix. Location!"

After listening to Li Xiaofan's explanation, Dr. Zhang was overjoyed: "Director Li, great! We now control Cyrix, a very large CPU processor manufacturer, plus the world-class wafer foundry we will build in the future. . This is important for Cyrix and us The Huaxia Chip plan is a very big benefit! Especially in the future, if you follow your plan and put Cyrix's CPU R&D and design focus together with the wafer foundry, it will connect the entire industry chain together. Just like the two swords in a martial arts novel, they are invincible!"

In early November, Li Xiaofan went to Beijing with Dr. Zhang, who had completed the retirement procedures, and met with Academician Ni first. Academician Ni was extremely excited to hear two great pieces of good news in succession. The next day, accompanied by Academician Ni, Li Xiaofan and Dr. Zhang visited the head of the Electronics Department together...

In mid-November, Li Xiaofan, Dr. Zhang and Academician Ni went to Hong Kong Island together. Under the introduction of the Liaison Office in Hong Kong, they first visited Mr. Ye Shukun, the first Secretary for Economic Affairs of Hong Kong Island.

The Hong Kong Island Economic Bureau, established on July 1 this year, was formerly the Economic Division of the Colonial Secretariat of the British Hong Kong Government, and its head was the Secretary for Economic Affairs.

The current Hong Kong Island Economic Bureau is responsible for external trade relations, promoting foreign investment, protecting intellectual property rights, providing support for industry and commerce, tourism, protecting consumer rights and promoting competition.

Among them, Hong Kong Island's Invest Hong Kong, Intellectual Property Department, Industry and Trade Department, Innovation and Technology Commission, Film and Television and Entertainment Affairs Administration, and Hong Kong Economic and Trade Offices stationed overseas are all under the jurisdiction of the Economic Bureau.

Director Ye Shukun graduated from the Department of Social Sciences of the University of Hong Kong. He went to Oxford University, Harvard Business School and other famous overseas universities for further studies. He has served in many government departments in Hong Kong Island. Before he took up the position of the old Secretary for Economic Affairs, Director Ye Shukun had served as the Deputy Secretary for Financial Affairs. He is a senior civil servant who understands the economy very well.

After listening to Li Xiaofan and his friends' intentions, Director Ye Shukun was also very excited.

In late October, Soros and other international speculators moved to the international financial center of Hong Kong, pointing their spearheads at the Hong Kong linked exchange rate system, which caused the Hong Kong Hang Seng Index to fall by 1,211 points in one day.

The current Asian financial crisis has caused the currencies of Thailand, South Korea and other countries to depreciate sharply, and at the same time caused a sharp decline in most major stock markets in Asia; it has impacted foreign trade companies in Asian countries, causing the closure of many large companies in Asia, unemployment of workers, and social and economic depression. It has broken the scene of rapid economic development in Asia.

The economies of some major economies in Asia have begun to decline, and the political situation in some countries has also begun to become chaotic.

Hong Kong Island, like other Asian countries and regions, is now under the shadow of the Asian financial crisis.

If the world's first-class CPU R&D and design center and wafer foundry project with an investment of more than one billion US dollars can be settled in Hong Kong Island, it will undoubtedly be a shot in the arm for the economic development of Hong Kong Island!

Director Ye Shukun said excitedly: "Mr. Li, Academician Ni, Dr. Zhang, your two projects are too important to the future economic development of our Hong Kong. I will report to our Chief Executive immediately!"