Reinventing the Millennium - Chapter 1416

c1413 Integration

When Fang Zhuo came to Luzhou this time, half of his goal was to meet with his colleagues on behalf of Yike and Bingxin, and the other half of his goal was to completely finalize the integration of Changdian.

The integration of Changdian is ongoing, but in view of the current impact of Bingxin and the risks faced by Yike, he feels that it is necessary to drive the nail in completely to avoid subsequent setbacks.

People with different positions always have different ideas. He does not expect that all forces can be combined, but only tries to save all the resources that can be combined.

It was a sunny day the next day. After the Bingxin trio met for a meeting, Fang Zhuo and Qiu Ciyun met Wang Xinchao of Changdian again. Moreover, he was accompanying them, and Qiu Ciyun mainly communicated with Wang Xinchao.

According to the announced plan, Changdian is expected to complete the acquisition of STATS ChipPAC in September.

This acquisition actually set up a three-tier structure. Changdian, Yike, and Da Fund first jointly funded the establishment of “Changke Company”, each holding 49%, 29%, and 22% of the shares. Then “Changke Company” ” and large funds invested in the establishment of “Changpeng Company”, each holding 98% and 2% of the equity.

Finally, “Changpeng Company” established a private limited liability company in Singapore to launch an offer and execute the acquisition of STATS ChipPAC.

The total acquisition value of STATS ChipPAC this time is US$778 million. When 100% of its common shares are acquired in September, the company will be forced to delist from the Singapore Exchange.

At that time, Changdian’s equity will change and the actual controller will be replaced.

The chat between Qiu Ciyun and Wang Xinchao was quite candid, so candid that Wang Xinchao felt uncomfortable with it.

“Mr. Wang, Mr. Fang means to replace someone to take charge of Changdian’s work. One is because our previous exchanges are not as much as ours, and the other is that Bingxin does not want other unstable factors now.”

“However, I think Mr. Wang has led Changdian to the present development and is very capable, so he is the most appropriate candidate.”

When Wang Xinchao heard what Mr. Qiu said, he glanced unkindly at Fang Zhuo, who was drinking tea next to him.

Fang Zhuo’s expression was natural, there was nothing to be embarrassed about, just look at it, it’s me, it’s me, it’s me.

Wang Xinchao asked: “Then what do you mean now?”

“The most appropriate candidate, this is what Bingxin means.” Qiu Ciyun said seriously, “Bingxin needs to integrate upstream and downstream. I hope that Changdian can go further and jointly build strong competitiveness. If Mr. Wang can accept it, then Bing Xin still thinks Wang is the most suitable candidate.”

Wang Xinchao lowered his head and remained silent for a while, then raised his head and asked an irrelevant question: “Are you ready for a hostile takeover?”

Qiu Ciyun replied solemnly: “Yes, Mr. Fang has also listed hostile acquisition as an option.”

Wang Xinchao turned his head and glared at Fang Zhuo this time.

Fang Zhuo sighed, Mr. Wang, Mr. Wang, the good old man opposite you is very interested in launching a hostile takeover of Changdian.

But naturally he would not defend himself at this time, and he understood the role he played today.

“The development of the industry has changed, and the situation abroad is also different. Mr. Wang, this is the main factor that we think needs to be integrated.” Qiu Ciyun continued, “However, I have seriously considered Mr. Wang’s idea, and it is not unreasonable.”

Wang Xinchao turned his attention back.

“BIS will definitely keep a close eye on the ice core this year. We can’t predict what else it will do. Therefore, in order to avoid Changdian being affected, we can not rush to change the controller.” Qiu Ciyun looked at Changdian’s palm. The doorman said sincerely, “Do we just want Changdian’s market to shrink? But everyone is preparing for the worst.”

“Last night, I heard Mr. Fang talk about his communication with you. I chatted with him for a long time. Mr. Fang basically agreed with me. As long as Changdian and Bingxin are on the same page, the acquisition does not need to be so urgent.”

Qiu Ciyun said this and asked solemnly: “Mr. Wang, what do you think?”

When Wang Xinchao heard the heartwarming words from a true industry insider like Mr. Qiu, he sighed: “Mr. Qiu, you know best the difficulties we face in developing semiconductors. I still say that we are all human.”

Qiu Ciyun spread his hands but said nothing.

He didn’t speak, Wang Xinchao didn’t speak, and Fang Zhuo next to him didn’t speak either.

It was obvious in the scene that some people were not always people.

Wang Xinchao thought about it, thinking about Mr. Qiu and that man’s style, and finally said: “Mr. Qiu, I don’t care about personal interests, I also plan for the future of the factory. I am not an unreasonable person. Since Bingxin is willing to take care of Our market, what else can I say?”

Qiu Ciyun stood up and stretched out his hands.

Wang Xinchao shook hands with Mr. Qiu and reached a consensus again when the ice core encountered a crisis.

However, when he left the office, he suddenly felt that something was not right. Are these two red-faced…

But the situation is stronger than the people. No matter Mr. Fang is a white-faced person or Mr. Qiu is a red-faced person, Bing Xin and Yike really won’t hold back at this point.

Fang Zhuo in the office refilled two cups of tea, and then said a little helplessly: “Mr. Wang is afraid that he will misunderstand me.”

Bingxin wants to integrate Changdian, which is a strong suggestion from Qiu Ciyun.

Qiu Ciyun said: “I don’t care about that much, Mr. Fang. There are too many lice and it doesn’t itch.”

Fang Zhuo took a sip of tea, and his words were a bit rough…

“I have to go to France next month, and our two European factories are also very important.” Qiu Ciyun said, thinking about Bingxin, “Bingxin, Yike, and Changdian, we have completed the design. Vertical integration of manufacturing and packaging and testing, but this IDM has pros and cons, and we still face many difficulties.”

In the past, Yike + Ice Core was essentially a close combination of design and manufacturing, which could be regarded as a swing between the traditional IDM and foundry models. However, with the deepening of development and the different situations, there is now an increasing need for closer integration. Upstream and downstream integration.

Not only that, because of restrictions, Bingxin and Yike must also spread to more basic fields.

“If you have a problem, solve it. If you can’t solve it, find more people. If you can’t solve it with more people, just wait. If you can’t solve it after waiting, then there really is no other way. You can only do whatever you want.” Fang Zhuohun said nonchalantly.

Qiu Ciyun listened to the boss’ bachelor-like tone and reminded: “Mr. Fang, you also need to pay attention to your mental state.”

Fang Zhuo took a few steps and patted Mr. Qiu on the shoulder: “I couldn’t be better now, I’m just waiting for the moment to speak out.”

He has not spoken out publicly since last month, and his participation in the meeting in Luzhou was considered a small-scale statement.

According to expectations, Yike should be able to obtain the BIS license within this year. When he fails to get it, he, the head of Yike, must give everyone an explanation.

Qiu Ciyun is very busy with work, and Fang Zhuo’s schedule is also very full. In other words, the nerves of Bing Xin and Yike are very tense, and regardless of internal and external situations, established things always continue to move forward.

On April 13, Yike submitted a formal application for listing in Xiangjiang, without any public opinion or suggestion from Meilijian.

Regarding Yike’s application, the Xiangjiang media is relatively free and has different voices and analyses. However, the official attitude is very positive and expresses its strong welcome to Yike Company.

Although Yike’s stock price is fluctuating, its size will definitely lead the market capitalization once it reaches Hong Kong.

However, Yike’s secondary listing this time has a different meaning.

This also arouses everyone’s interest in discussion. If we consider the worst case scenario and Yike really loses the US market, what should its reasonable market value be?

Due to the impact of the official application for secondary listing, Yike’s stock price continued to fall, reaching a recent historical low of “only” US$365 billion.

Although there are factors such as market liquidity, investor preferences, exchange rate changes, etc. in listing in the two places, generally speaking, the overall market value of large companies should be relatively close.

Therefore, to put it simply, the market value of Yike, which is about to land in Hong Kong, will be 2.8 trillion Hong Kong dollars.

A rough calculation shows that the revenue of the US market is almost one-third of the global market of Yike…

“Without the U.S. market, how could Yike have a market value of 2 trillion? It is so powerful!”

“Losing the US market will have a chain reaction on Yike. It will definitely not be 20,000. I think 15,000 is about the same.”

“Alibaba’s e-commerce business is basically domestic. After its listing in the United States, its market value has reached US$200 billion. You have to look at the growth of Yike’s business. It does not only sell mobile phones. It now sells laptops, tablets, watches and smart phones. There is a lot of room for growth in home furnishings. Most importantly, Yike has a mobile ecosystem in China. It can really make blood at any time. At most, users will only watch ads to support it.”

“The mobile ecosystem is a treasure trove, and the huge growth potential in this area has been ignored. However, it is really hard to imagine that Yike will withdraw from the US market. It is not necessary. Intel and GlobalFoundries are both talking to Yike.”

“The latest news is that Mr. Fang will not show up when Yike is listed. Vice President Yu Hong will preside over it. Mr. Fang is really hiding behind the scenes.”

The guests on the Xiangjiang TV media were very interested in Yike’s situation, but they were very sorry that they could not see Mr. Fang. It had been more than a month since BIS issued the list, and the head of Yike was completely silent.

Mr. Fang really doesn’t want to say anything?

But this question is not limited to the Hong Kong media. Everyone who pays attention to Yike has this question.

Even if the leader doesn’t say anything, life will still go on.

Yike’s secondary listing in Xiangjiang is a foregone conclusion, but the storm surrounding it seems to still be brewing.

Wall Street media following the Yike incident soon broke the news that the negotiations between Yike and Intel were close to breaking down, and the two high-quality assets demanded by the latter, WLS and Yike Optoelectronics, were already being integrated.

In addition, there are rumors that Morningstar Semiconductor, a listed company in Hong Kong, may also join the new company as a whole.

The news has not yet been determined, but the return of the Intel team to the United States has verified the results of the negotiations between the two parties. What is even more strange is that the Intel board of directors announced the resignation of CEO Brian.

CFO Robert, who had just returned from China, temporarily became Brian’s successor.

This sudden situation surprised the media.

You were so good, why did you suddenly resign?

Brian is a reformer who vigorously promotes Intel’s transformation. If he continues, will Robert make a strategic change?

Some sources claimed that office romance was the direct factor that led to Brian’s dismissal. Others claimed that Brian and the board of directors had serious differences over Yi Ke’s cooperation.

On April 17, Yike released its full-year financial report for 2014. At the same time, it also confirmed the adjustment results of its subsidiaries. It will absorb the business of WLS and Morningstar Semiconductor under the name of “Yike Optoelectronics” and maintain relatively independent operations.

Independent baseband chips, mid- and low-end mobile phone SoC chips, image sensors, RF transceivers and corresponding system software.

The new Yike Optoelectronics is obviously full of potential.