The Millennium Semiconductor Survival Guide

Chapter 1
"Dr. Zhou, you are welcome to join us. You will be the plenipotentiary representative of ZTE in the American region in the future for this commercial monopoly incident.

If you have any needs, you can directly communicate with Mr. Cheng. "

Zhou Xin was born in the junior class of Huaguo University of Science and Technology. After graduation, he went to Caltech, Berkeley to study for a Ph.D. in the direction of semiconductors, under the tutelage of Professor Hu Zhengming.

After graduating with a Ph.D., he joined ZTE after American promulgated the ban on ZTE and became the representative of ZTE in the American area.

"Congratulations, ZTE is a very good company. Although we are currently experiencing a small setback, it will not affect the development trend of ZTE.

ZTE provides direct support to more than 10 high-tech jobs in American. We are a giant in more than 150 countries and regions around the world. This is just a small incident. "

Cheng Lixin is the president of ZTE in the American region, and he maintains a superficial respectability for the airborne faction like Zhou Xin.

"Newman, I already told you that my grandfather will meet with Lieberman later, but you don't have to be too optimistic about the result.

Seriously, you shouldn't be in this vortex.

You may not get what you want. "

Lieberman was Zhou's new intermediary, a former senior senator from the American with extensive connections in Washington.

In just half a year, Zhou Xin approached Lieberman and became a public lobbyist for ZTE registered in the Senate.

The reason why Zhou Xin was able to get this position is that ZTE is the second in command in the American area, and more importantly, he has a good relationship with the grandson of American trade representative Lighthizer.

"Sorry, Dr. Zhou, due to the delay in progress, your personnel transfer has been approved by the board of directors after deliberation. You will return to China to work in ZTE's research institute in Yanjing. The specific position and rank will be notified to you later."

Dr. Zhou Xin chose to go to ZTE after graduation, which was also a gamble for him. The bet was that American’s sanctions against ZTE were only part of the maximum pressure.

In the end, as long as ZTE is willing to make a certain amount of compensation, American will lift the sanctions against ZTE. The result is completely different from what he expected.

Willing to gamble and admit defeat, Zhou Xin voluntarily left ZTE.

In the process of constant dynamic development of things, one year has passed since Dr. Zhou Xin's graduation. Naturally, the battle between the two giants, Huaguo and American, has attracted the most attention of the world in this year.

In the competition between giants, the core field of competition is high technology, and semiconductors have become the most concerned point of the whole country.

From ZTE being sanctioned, to TSMC’s inability to provide OEMs for HiSilicon, and to SMIC’s inability to purchase advanced process lithography machines.

American's sanctions against Huaguo's semiconductor field are constantly increasing.

When Zhou Xin graduated, there were only a handful of Ph. Ds who could get a million-dollar annual salary, and it is no exaggeration to see a million-dollar salary for a Ph.D. in the semiconductor field everywhere.

Not to mention that he is a Ph.D. from Berkeley, California, under the tutelage of Professor Hu Zhengming.

Therefore, Zhou Xin, who left ZTE, was not worried that he would have nowhere to go.

On the eve of leaving American, Zhou Xin went to say goodbye to his mentor, and Hu Zhengming comforted him.

"Hua Guo has always attached great importance to the development of the semiconductor industry, but this emphasis is at the government level.

But there is no consensus among the government, financial industry, industry and the people.

However, after the trade war in the past year, all levels of China have reached a consensus.

The semiconductor industry in Huaguo will usher in a period of rapid development in the true sense. It is very correct for you to choose to go back at this point in time.

I greeted Liang Mengsong for you, you can go to Shen Hai to talk to him first when you go back.

He can give you some advice from the front line of the industry.

Although I have also worked in TSMC for a long time, my understanding of Huaguo's semiconductor industry is still limited. "

Zhou Xin was very grateful to Hu Zhengming for taking care of him, "Professor, thank you very much for taking care of me in Berkeley these years.

After I return to China, I will keep in touch with my brother.

Huaguo has reached a consensus that no matter what, American cannot be stuck in the semiconductor field.

It is even a consensus that American cannot be stuck in the high-tech field.

This is both an opportunity and a challenge.

Again, my experience working in Washington for the past year has taught me that.

American also reached a consensus that Huaguo's high-tech development must be curbed.

Therefore, for a long time to come, Huaguo's semiconductor industry will face pressure from American and even the entire Western world.

Huaguo is in a state of starting from scratch in many semiconductor subdivisions.

This is no small challenge. "

"It is a challenge for the entire country of China, but it is an opportunity for you.

It's not that you face the suppression of the entire Western world.

Have you decided which company to go to? " Hu Zhengming asked.

"I plan to start my own business. In the past two years, Huaguo has poured a lot of hot money into the semiconductor field.

When I was still working at ZTE, people kept finding me through various channels, hoping to start a joint venture with me.

During this process, I also screened out a few suitable investors and planned to start a business when I returned home.

As you know, I still have a couple of valuable patents on hand, which in certain niches helps to bypass the American blockade. "

Hu Zhengming nodded and said: "I have been in academia and the industry, but I have no experience in starting a business.

However, there are many people around me who start businesses, including former colleagues, friends in academia, students, and subordinates at TSMC.

Entrepreneurship tests compound ability. You are very talented academically, and technology alone may not be enough.

A series of factors such as technology, capital, market, management, etc., will affect the ultimate success of entrepreneurship.

Of course, the most important thing here is the right time. Now the Huaguo semiconductor industry has the right time, and the best environment has been built. I believe you can get good results when you go back.

As for the extent to which it takes to meet your expectations of success, then I don't know. "

Among the IPOs in the Huaguo capital market in 2019, semiconductors are undoubtedly one of the hottest keywords.

A large number of semiconductor companies have concentrated on the capital market in 2019, and a total of 20 semiconductor companies have passed IPO meetings within one year.

The semiconductor industry raised twice as much money in public in 2019 as it did in 2018.

After returning to China, Zhou Xin's entrepreneurial journey was quite smooth. The overall environment, his own ability, and the personal connections provided by Hu Zhengming were all enough to make his business go smoothly in the early stages.

In one year, the B-round financing of Xinxin Technology founded by Zhou Xin has raised more than 1 million RMB, led by Yunqi Capital and Yida Capital.

In these two rounds of investment, Xinxin Technology's own technical strength and operating conditions are critical, and the personal connections that Liang Mengsong helped Zhou Xin build are equally important.

Liang Mengsong is the CEO of SMIC and a Ph.D. taught by Hu Zhengming. He has worked in AMD, TSMC, and Samsung.

After completing the B round of financing, when Liang Mengsong and Zhou Xin had dinner alone in private,
"Samsung Electronics' annual free technology transfer will start again.

According to my internal information, they are expected to transfer about [-] items of semiconductor technology to small and medium-sized enterprises free of charge this year.

How is our semiconductor company in Korea preparing for this?
It is difficult to become a long-term strategic partner of Samsung Electronics.

Although we pretended to be a Korean company through layers of proxy holdings, our establishment was too short and it was difficult to gain the trust of Samsung.

But as long as the core technology marked in this technology transfer is obtained, the valuation of Xinxin Technology in the next round will be multiplied by ten. "

Since 2013, under the leadership of the Ministry of Industry, Trade and Energy of Korea, the giants in the consumer electronics field in Korea have transferred their unused technologies to small and medium-sized enterprises for free every year.

In the nine years from 2013 to 2021, Samsung has transferred a total of 2402 technologies.

For Samsung, technologies that are useless are different for Huaguo's semiconductor industry, which is facing a blockade.

This means that SMIC is far inferior to TSMC in terms of technology, but SMIC can enjoy a higher valuation than TSMC (from the perspective of price-earnings ratio).

The reason why Liang Mengsong will spare no effort to help Zhou Xin is not only because of their personal relationship.

Zhou Xin's own abilities, and being able to do things that he can't do in some areas.

As the CEO of SMIC, if Liang Mengsong pretends to be a Korean company to obtain the technology transferred by Samsung Electronics for free, then SMIC will be sanctioned.

Zhou Xin is different, even if it is discovered, the scope of influence can be controlled to a small range.

The actual controller behind it is Zhou Xin's Morning Star Semiconductor, which pretends to be a Korean company and applies to Samsung for free technology transfer to small and medium-sized enterprises.

"I hope everything goes well." After Zhou Xin and Liang Mengsong had a brief chat on WeChat, the last sentence was sent by the other party.

(End of this chapter)