The Millennium Semiconductor Survival Guide.

Chapter 267 Huaguo Internet Enterprises in Silicon Valley
This is also the consensus of most Wall Street investment institutions. The success of Tencent and Alibaba in Silicon Valley, Wall Street investment institutions do not think it is because of the outstanding capabilities of Erma, or Tencent and Alibaba, two companies from China. What is different about Internet companies.

Investment institutions believe that the reason why they can stand out in the highly competitive Silicon Valley is entirely because of Zhou Xin.In fact, Zhou Xin will be more involved in Tencent's strategic direction, and Zhou Xin has hardly interfered with Alibaba.

To enter Silicon Valley and help American's traditional consumer companies to carry out digital transformation, this strategic direction was also determined by Jack Ma. Zhou Xin never thought of this, because Zhou Xin is not interested in e-commerce business, and is purely interested in Alibaba. investment behavior.

Therefore, Huaguo’s Internet companies can survive or even live well in Silicon Valley. Their own capabilities are equally important. American Enterprises updates a version every few months. It only considers the input-output ratio for user needs, and first studies and judges whether it is necessary. It is necessary to study and judge whether the final income can be compared with the output and whether the development efficiency is high enough.

However, Huaguo Internet companies are almost responsive to user needs. Regardless of whether your needs are reasonable or not, Huaguo Internet companies will help you transform them into achievable functions, and even understand the needs deeper than you think.

Huaguo's Internet volume is far greater than that of American, because of the success of Tencent and Alibaba in Silicon Valley, Huaguo's Internet industry has begun to show the style of a king in later generations.

Zhou Xin just smiled slightly after listening, he is still very proud of the timeline that he has completely changed the world.

Although Huaguo Internet began to roll up many years in advance, Huaguo Internet also enjoyed the dividends brought by international capital many years in advance.

In this era when the general salary level in other industries is 3000 yuan, programmers can earn tens of thousands of dollars.

More importantly, Zhou Xin has largely allowed Internet companies in Huaguo to go overseas almost 20 years earlier.

In the original time and space, why did Huaguo Internet not have capital to invest overseas until about 2016? It is because the cost of running a business in Huaguo is different from that in American. Investment institutions invest money for you according to Huaguo The valuation of the company is used to invest.

For example, Alibaba raised US$500 million from Goldman Sachs at the very beginning. The US$500 million can support their normal operations in China for a long time. If it is changed to American, this amount of money may only be enough to operate for half a year.

If you don’t see results after half a year of operation, and you don’t have the capital to continue to invest in you, your internationalization attempt can only end in failure, and you won’t be able to exchange any valuable experience.

The difference now is that Zhou Xin used Tencent to make Huaguo’s Internet companies famous in advance. Both American Capital and Silicon Valley’s Internet companies know that Huaguo’s Internet companies are full of potential, and Huaguo’s Internet practitioners hard working.

In the three years since the turn of the millennium, Zhongguancun and Silicon Valley have cooperated in various ways, such as Alibaba and Tencent, which are directly funded by the parent company to establish a branch in American.There are also joint ventures such as Sohu and Yahoo that established companies in American.

There are also companies like Sina and Joyo. Sina’s Internet business was wholly acquired by AOL and became a branch of AOL in China, while Joyo was acquired by Amazon.

The degree of integration between the two parties is deepening, and the entire Internet industry is filled with a taste of not bad money.Even in the Internet deserts in the first-tier cities, the salary of programmers is unique, and only employees in the chip industry can match it.

Zhou Xin said: "Okay, I agree with your point of view, you can let it go, you should have a deep understanding of the public cloud business in the past three years.

This business needs a lot of money to expand, and it is a better cash flow business than IDC hosting, and Wall Street will definitely be interested in such a business.

Now this model has also worked well. From the perspective of the background, the growth rate of users is getting faster and faster. We are now expanding to catch our competitors by surprise. "

Only Microsoft and Baidu can compete with the new cloud on the public cloud, because they have the ability and willingness to do this kind of business.

Compared with hosting, the public cloud business and earlier server leasing have the biggest advantages in the dynamic allocation of resources and the self-sustainability of servers.

The cost mainly consists of several components, such as venue, server, network resources, electricity, supporting equipment such as precision air conditioners and USP power supplies, and labor costs. The bulk of the cost must be the server.

In the initial expansion, a large amount of funds were required. After the construction was completed, the bulk of the cost on the books was the depreciation of the equipment. After the depreciation of the equipment was completed, the net profit on the books would be pure profit. It's a very good business model.

If there are many competitors, there will be price cuts and dumping. To Zhou Xin, price cuts and dumping don’t matter. He is interested in the technical background brought by Xinyun and the chip business contained in a large number of servers.

The server has very low requirements on the chip manufacturing process.Until 2023, the most advanced chip manufacturing process has reached 3nm, and the latest Xeon processor launched by Intel's data center business still uses the 10nm process.

Therefore, Zhou Xin wants to rely on Wall Street capital to support Xinyun, which is indeed a good business for them, and then rely on Xinyun to support the chip foundry business.

In this case, Xinxin Technology's chip foundry business is supported by Mphone, Bluetooth chips, Xiaomi, and Xinyun. Even if it develops to the scale of TSMC, there is no need to worry about no business.

Xinyun has made up for the last shortcoming of Xinxin Technology's chip foundry business. There is still a big difference between enterprise-level chips and chips for ordinary home computers.

"Pony, how is Tencent's mobile business going?" Zhou Xin usually meets with Pony once a month to talk about Tencent's recent business trends and development direction.

Pony is married, but his wife is still in Pengcheng. He runs around all the year round, returning to Pengcheng for a week every month to handle business there.

Among the founding team of Tencent when it started its business, Zhang Zhidong stayed in Pengcheng all the year round to be in charge of the operation of Tencent's business in Pengcheng.

Pony said: “Mobile business is developing very fast, and WeChat’s advertising business revenue should exceed 5000 million US dollars this year, which is an amazing growth rate, because Mphone2 can start to use 3G network.

WeChat, which has lifted restrictions on image loading and video loading, can have more bargaining power in the process of negotiating with advertisers. "

Both WeChat and Weibo are the businesses of Tencent American Branch. Tencent made new adjustments to the shareholding structure of American Branch when it was established. Zhou Xin held 60.00% of the shares of American North America Branch. The remaining 30.00% is given to the option pool of employees, and some old employees from Pony and Tencent who came to Silicon Valley to open up wasteland must account for the majority.

Pony alone accounts for nearly 12.00% of the shares. You must know that Tencent North America’s valuation exceeds US$50 billion based on Weibo and WeChat businesses alone. When it was actually listed, investment institutions thought it could exceed US$[-] billion.

Pony continued: "After the restrictions were lifted, the user activity of the WeChat Moments function has exploded, and the combination of graphics and texts has given users a stronger desire to express themselves.

Because of the positive feedback of the data, let us decide to increase the advertising price by 30.00%.

Follow-up adjustments will be made as user activity increases. "

Zhou Xin said after hearing 30.00%, "Did you choose this number because of me?"

Pony smiled awkwardly: "Yes and no, the main reason is that we can't grasp the extent of the price increase, so we chose a moderate number of 30%. According to my idea, I even want to double it directly."

Now Tencent has no interest in the game business at all. Their domestic business mainly depends on selling QQ shows and placing advertisements in QQ space.

At the same time, Huaguo is also promoting WeChat and Weibo, but the progress is slow, and the commercial potential has not yet been realized.

Tencent's business in American is mainly based on advertising and enterprise QQ sales, and it has never thought about transforming into the game business.

It's not that I don't like the game business, but because I don't have time, the current business model is rich enough, and I don't have the motivation to enter a new field, and it's not like Tencent in the original space-time can't find a profit growth point. Eat dirt.

Tencent's revenue from the advertising business in the American area alone exceeded 5000 million US dollars. Last year, the most popular game in Huaguo was Legend, and Shanda's annual revenue from Legend was only 4 million yuan.

Tencent does not have the desire to make games, and Taobao does not have the desire to be an electronic shopping website for human beings. With Huaguo's entry into the WTO, doing foreign trade is really profitable. It is as fast as picking up money with a sack. The entire team of Alibaba is fully focused. On how to make a good bridge.

The bridge here refers to the promotion of cooperation between Chinese manufacturers and foreign companies. To put it bluntly, it is to sell Chinese products to the world.

Zhou Xin said: "In fact, it's okay to take a bigger step. The smartphone business is developing rapidly. Maybe you think 30% is more appropriate now. After signing the contract with the advertising provider, you will regret it when you see the data. Why didn't you use it at that time?" Set the number at 50.00%, or even [-]%.

But it doesn't matter, we are doing long-term business, even if they take advantage of it now, it won't matter. "

Zhou Xin doesn't care much about this interest anymore. He doesn't feel at all when he hears the revenue of 5000 million US dollars. What he cares about is the market size.

"Are Motorola and Nokia still unwilling to let WeChat enter?" Zhou Xin continued to ask.

Pony said helplessly: "We have communicated with them many times, and they have always been ambiguous.

When we wanted to push further, they would talk about him again, as if they were hearing about him for the first time. "

(End of this chapter)