Cang Yaozu's straight-forward attitude shocked Ailly Harari. He was a little moved, but he couldn't bear to leave the Shengdian he created. He organized some language and said, "Cang, we have no intention of selling Shengdian. We started this company because we need this career, not to sell it." Dr. Ailly Harari has always believed that the prospects for flash memory are broad, but the widespread application of flash memory is indeed later than he expected. For a long time, the mass market for flash memory has not really formed. What Ailly Harari didn't know is that the widespread application of flash memory is on the way.

"Doctor, I didn't say that the acquisition is investment. Shengdian is too small, so it is difficult to develop like this. Like you, I am very optimistic about the future development of flash memory. I think flash memory is the future development trend, but we can't wait passively. This year, the semiconductor industry has fallen into a cyclical downturn, and I estimate that this time will be 2-3 years. This is a huge crisis, but there are opportunities in the crisis. This period is the best time for us to buy lithography machines and start building wafer factories. We are now starting to develop large-capacity flash memory, and then increase the market demand for flash memory. In a year, the fab will start to start production and explosive production capacity."

“How do you increase the market demand for flash memory?”

"Doctor, I am ready to enter the hardware industry with all my strength. We have planned two recent hardware projects, one long-term hardware project, both consumer electronics products. If our cooperation is achieved, you can participate in the research and development of our company. I believe you will not disappoint you. I will emphasize again that I invest in the capital, not the acquisition. If all of you leave because of my acquisition, I will not acquire it. You are the soul of Shengdian and Shengdian's most core competitiveness. I hope that you will still retain the position of chairman, but the focus of your work is more on R&D. The CEO of the company can be handed over to Sanjay Tra. As for Jack, I hope he will devote more energy to the construction of wafer fabs. What I want to tell you is that the last two to three years are very important, and we must establish Shengdian's absolute dominance in the global flash memory market."

“How much production do you expect to need?”

"The first year is 30 million to 50 million pieces, which doubles every year. This is just my expectation, but I estimate that there is a high probability that the product we produce will be a hit, and our goal is to change the world."

"Our Shengdian can definitely complete your order, and our R&D team and OEM factory have sufficient production capacity."

"Of course, the industry is in a downturn now, and production capacity is not a problem. But we have a lot of demand, so I want to acquire a company that has a certain say in the memory industry. This is the core component of my product. If I don't control it in my own hands, I will be worried. If I just find a partner, I might go to Micron, or maybe I will go to Kingston."

This huge order and Cang Yaozu's proposal to build a self-built wafer factory deeply touched the people of Shengdian. Although Shengdian was listed, it caught up with the industry downturn. The stocks began to fall for a short time after they went public. Investors almost had no chance to cash out and leave the market. If news of big investors entering the market spread, those investors would be very happy.

"Doctor, you know, the first company I invested in is an Israeli company, the one that develops and operates IQ. I have been advertising wildly these days. I have a reputation in Tel Aviv, Israel. Today I acquired the hotmail founded by Shabier Batia, and I will integrate him into IQ and take this wave of large-scale promotion express. Shabier Batia is also a practitioner in the chip industry. In the future, he will be the executive vice president of our Shanlan Technology. Jack Yuan and I are both Chinese. Our origins are so deep. I believe this is a solid foundation for our cooperation."

"Cang, do you really have plans to build a wafer factory?" asked Ailly Harari. He valued this very much. Shengdian has no wafer factory now, so it is just a wafer-free semiconductor company, which is Fabless' chip design factory. Only by owning its own wafer factory can it be called the original factory and can it gain the respect of the entire industry.

"I'm very sure that I hope Shengdian can acquire an eight-inch wafer factory to form production capacity immediately. At the same time, I hope that my Shanyao Technology and Shengdian can join forces with Toshiba from Sakura Country to build two 12-inch wafer factories. I hope these two wafer factories are built in Wanwan and Yandu. The semiconductor industry of Sakura Country is also struggling at present, and I believe that cooperation is easy to achieve."

"You convinced me that in recent years, we have paid too much for the survival of the company. Since you have sufficient funds, more mature projects, and stable production capacity needs, I think the cooperation has already started well. How do you hope to operate?"

"I will acquire 60%-70% of the shares, mainly from investors, and try to retain the shares of the three of you."

"We agree in principle, so let's start discussing the details. I hope we will have a happy future cooperation."

"Dr., let's work together to change the world."

After more than three days of negotiations, Cang Yaozu's Panda Capital acquired 55% of Shengdian shares for US$145 million, and early venture investors basically left the market with money. Shengdian Semiconductor is the first Nasdaq listed company in Cang Yaozu's hands.

Then Panda Capital invested another $200 million, and its holdings became 72%, Dr. Ailly Harari held 15%, Sanjay Tra held 5%, Jack Yuan held 3%, and the rest were market circulating shares. The current number of outstanding shares may be a bit insufficient, mainly because Melissa acquired a lot of stocks in the market, but fortunately it purchased them through multiple accounts.
Chapter completed!