Chapter 1682 Who will integrate
Just when the entire network was still immersed in the news that both "Running" and "The Legend of Concubine Zhen" dominated the top ratings, Li Rui had lunch and rushed to Zhendan University to participate in a report about the electronics industry of Xiaguo.
A seminar on development trends.
Of course, Li Rui was not speaking. He thought he was not very good enough, so he was a listener among the students for several hours and listened to the big talks on the spot.
After the seminar ended, Li Rui stood behind the crowd and waved at a boss who had just finished his speech and said, "Brother Wu!"
Zhan Xun’s founder Wu Jinping was answering a student’s question. He caught Li Rui’s wave and smiled at him, “Wait for me!”
Soon, Wu Jinping came over with a middle-aged man with a gentle appearance and introduced him cordially to Li Rui: "Li Rui, let me introduce you to you, this is Cong Liyou, the current president of Zhan Xun."
"Mr. Cong, I have long admired him!" Li Rui said enthusiastically.
Cong Liyou looked up and down at Li Rui, and said with emotion: "We were a family five hundred years ago. I am honored to see the Li family produce a young talent like you!"
"You are really over-reward." Li Rui laughed, "I just listened to your speech and my analysis of the chip industry is very good, and I have benefited a lot!"
Cong Liyou smiled faintly and said, "I heard from Mr. Wu that you have many insights in the development of the chip industry. Let's talk about it carefully today."
Soon, the three of them came to a teahouse outside Zhendan University and started chatting in the fragrance of tea.
"Mr. Li is interested in Zhan Xun?" After arriving at the teahouse and greetings, Cong Liyou was straightforward.
Li Rui was not surprised. Although Xingrui had never made an offer to Zhan Xun, many people knew about Zhan Xun's salivating attitude.
Especially after having a long talk with Tan Song last time and having a spurred Shuimu Guanghua’s acquisition of Zhan Xun, others may not know his ambitions, and Shuimu Guanghua and Zhan Xun must have known it.
Li Rui didn't know what Cong Liyou's attitude towards this matter, but judging from the other party's kindness, he should be neutral, right?
Li Rui thought for a while and said, "I am indeed interested in Zhan Xun. I heard that Zhan Xun has the intention to sell it. If possible, I hope to acquire it."
Cong Liyou said: "I know Xingrui has a mobile phone business. Is this planning to build the upstream and downstream industries of mobile phones together?"
Li Rui said: "It can be said that, but what I want to do more is to change the current status of the domestic chip industry and integrate the dispersed forces."
Cong Liyou said with emotion: "Our chip industry is indeed too scattered. There are hundreds of chip design companies alone. It looks spectacular, but in fact it is a mess. Even companies like our Zhanxun can rank among them.
First, it means there is not even a big crocodile in the pond, all of which are small fish and shrimp. If a storm really hits, all the big waves will turn white!”
Cong Li lobbying this is based on the fact that the sales of the top ten chip companies in the country are all combined, and less than one-third of Qualcomm's sales. With such strength, how can we compete with foreign companies?
"So it is necessary to improve competitiveness, integrate the power of small fish and shrimps, and transform into a giant crocodile that can resist storms!" Li Rui said.
Cong Liyou asked back: "If you want to integrate, then I'll ask you, the strength of domestic leading companies is similar. Who will integrate whom? Should Zhanxun integrate HiSilicon, or HiSilicon integrate Zhanxun?
”
Currently, among domestic chip companies, Zhanxun and HiSilicon rank equally well, with annual sales of around 1 billion magnesium. They are relatively capable in the research and development of mobile chips and baseband chips, and can be regarded as the number one among domestic chip companies.
echelon.
If these two companies can be united, although they are not enough to compete with top international companies like Qualcomm, they can still have very good competitiveness.
The only question is as Cong Liyou asked, who will integrate whom?
HiSilicon is backed by flowers and has strong financial resources, so of course it is not something Zhan Xun can swallow.
Zhan Xun could not be willing to send himself to HiSi's mouth.
As for the second echelon companies including BGI, Lanqi Technology, Shilanwei, Gekewei, Lianxin Technology, Zhongxing Microelectronics, etc., they have very good technology and talent reserves and occupy some market segments.
The rate is not inferior to the first echelon. For example, the terminal core technologies of Lianxin Technology's td-scdma and td-lte, the image sensor chip of Geke Microelectronics, the analog and mixed signal chip of Lanqi Technology and Zhongxing Microelectronics, and the multimedia chip
All are quite competitive.
Although they are not strong enough, they are also very prosperous in their respective fields. Why should they accept integration?
There are also companies such as Broadcom Integration, Juli, and Meixin Semiconductor, which are in the third echelon. They may be willing to accept integration, but their strength is indeed not enough.
In addition, some of the companies that are located in the low-end market are not to mention them.
Therefore, the situation facing domestic chip companies is that the big ones do not accept integration, the middle ones are unwilling to integrate, the small ones do not need to integrate, and the low-end ones are not favored at all, and they fall into a very embarrassing situation.
In this case, perhaps introducing external funds is the only opportunity to break the predicament and usher in a change!
Cong Liyou slowly expressed his thoughts: "Internationally, it is generally believed that in the field of chips, annual revenue of 100 million magnesium can only be considered a new entry into the industry, and revenue of 1 billion magnesium can only achieve sustainable development.
If you cannot meet this standard line, you may be killed by changes in technology and market at any time! If you analyze this way, the only ones in China that really have independent survival ability are actually ours, Zhan Xun and Huawei's HiSilicon."
Li Rui nodded in agreement.
Cong Liyou continued: "Due to the particularity of the chip industry, when a company's revenue reaches 500 million magnesium, it is difficult to continue to grow by relying solely on itself. It needs to be merged, merger, cooperation, alliance and other means.
Get greater development opportunities. For example, Intel acquires Infineon's wireless business, Marvell acquires Intel's communication processor business, and STMicroel acquires NXP's wireless business, all of which want to achieve rapid development through mergers and acquisitions. Even Qualcomm,
It is also because of the acquisition of wifi chip supplier Atheros, power management solution supplier Summitmicroelectronics, fable mems display company Pixtronix, etc., which is why today's growth is getting bigger and bigger!"
"So Mr. Cong also believes that only by integrating mergers and acquisitions can the enterprise become bigger and stronger, and only by revitalizing my country's chip industry." Li Rui asked.
Cong Liyou said: "That's right. So in the past few months, I met with Mr. Zhao Guowei and Mr. Zhao of Shuimu Guanghua several times, discussed and negotiated the acquisition of Zhan Xun by Shuimu Guanghua, and finally discussed a plan.
It was presented to the Information Industry Association. But... it was rejected."
As he said, he looked at Li Rui meaningfully, obviously knowing the fundamental reason for the rejection of this matter.
Chapter completed!