Chapter 604 Six Suggestions
Hynix President Office.
"Mr. Xu, Professor Yu is here."
Lu Hui opened the door and came in.
Xu Liang quickly stood up and greeted him. Looking at the old man walking in from behind, he quickly extended his right hand.
"Professor Yu, welcome, welcome."
Seeing how enthusiastic he was, Yu Yiji was also a little flattered.
Now Xu Liangke is extraordinary, the world's top financial tycoon, the most famous entrepreneurial elite of the younger generation, and a world-class business genius.
Its reputation is so loud that it has truly reached the world level.
"Mr. Xu, you're welcome."
After the two sat down, Lu Hui served tea.
“Yesterday I read the lecture written by Professor Yu, and I felt quite enlightened. The future development strategy of Hynix that has been bothering me has been completely solved.
I drink tea instead of wine. , Professor Jing Yu.”
Yu Yiji quickly picked up the tea cup, the two clinked it and each took a sip.
"Mr. Xu is overly praised. I just used my own experience and combined with the current situation of Hynix to write a little opinion. You can find it useful."
"Professor Yu is humbled. Including all the senior management of Hynix and the creditors committee, there are a total of fifty reports. Professor Yu's report is the most valuable.
I personally appreciate it very much.
So, I sincerely invite Professor Yu to serve as the CEO of Hynix.”
Yu Yiji looked surprised and waved his hand quickly after realizing it.
"No, no. I am almost sixty years old and have limited physical strength and energy. I am afraid it will be difficult to lead Hynix out of trouble."
Although he boasted of his talent and knowledge, Hynix's debt was too great.
20.6 billion US dollars, he really doesn’t know how to pay it back.
"Professor Yu, don't refuse in a hurry. Since I have taken over Hynix, I will naturally invest a lot of resources."
Xu Liang said with a smile.
Yu Yiji's heart moved. He had forgotten that the tycoon in front of him was a turmoil in global finance. He had taken away more than 50 billion US dollars from the global capital market in one year.
As long as one-tenth of this amount of money is invested in Hynix, this well-established IT company can be brought back to life.
“According to the agreement I reached with the South Korean government and the Exchange Bank, Hynix’s main creditor, all of Hynix’s debts will be postponed for one year, which means that Hynix will have no pressure to repay debts within one year.
Second, the South Korean government promised to provide Hynix with a low-interest loan of US$1 billion.
Third, it allowed Hynix to sell its non-memory chip business to raise funds. "< br>
After a pause.
"I did a simple calculation. The US$1 billion loan plus the money from selling non-memory chips can probably collect about US$2 billion.
Then I can get another US$2 billion from Hanhua. .
We can use these four billion dollars to build a new 8-inch production line in China with a monthly output of 50,000 wafers; a 12-inch production line with a monthly output of 45,000 wafers.
In this way, Hynix’s latest 12-inch production capacity will be doubled, completely surpassing Samsung in terms of new processes.”
The size of the wafer is 1 inch (25 mm) in diameter. )
2 inches (51mm)
3 inches (76mm)
4 inches (100mm)
4.9 inches (125mm)
150mm (5.9 inches, often called "6 inches")
200 mm (7.9 inches, often called "8 inches")
300 mm (11.8 inches, often called "12 inches")
450 mm (17.7 inches)
< br>675 mm (26.6 inches).
The larger the size or diameter, the larger the wafer and the greater the number of chips produced.
The larger the size of the wafer, the higher the utilization rate of the wafer, the lower the production cost of the chip, and the higher the efficiency. Almost all IT companies are working hard to improve their processes.
Since the launch of 1-inch wafers in the 1860s, 8-inch wafers were launched in 1992, and then 12-inch wafers were launched in 2002. Currently, the mainstream wafers in the world The size is still 8 inches.
The construction cost of this new process for 12 inches is 4 times that of 8 inches.
Three-quarters of the US$4 billion invested by Xu Liang will be spent on the 12-inch wafer production line.
Yu Yiji, who was surprised by his generosity, pondered for a moment.
"Mr. Xu, the current global memory chip market is not very good. With such a large investment, aren't you afraid that you won't be able to sell it?"
"Does Mr. Yu's information contain any suggestions for developing the Chinese market? , why are you trying to persuade me now?”
In the information, he provided six suggestions to Xu Liang.
1. Established the Semiconductor Alliance;
reached strategic cooperation relationships with STMicroelectronics, Texas Instruments, etc., and established the Semiconductor Alliance. Hynix provides technology and the other party provides funds to jointly develop the flash memory market that is gradually booming.
2. Sold the non-memory chip business;
obtained a certain amount of liquidity for Hynix’s depleted finances.
3. Establish a factory in China.
China is not only a huge market, but also pursuing higher chip manufacturing processes. The government has provided very attractive preferential conditions to attract foreign technology investment, and the production costs are also low compared with other countries.
It is worth mentioning that after Hynix rejected Micron's acquisition offer, Micron sued Hynix to the EU and the United States in 2003.
The European Union and the United States decided to impose 34% and 45% import tariffs on Hynix respectively because Hynix received subsidies from banks controlled by the South Korean government. Building a factory in China can avoid paying these high taxes.
And Wuxi was specially chosen.
Because Wuxi has previously introduced Toshiba DRAM production lines and has experience in semiconductor production, it can save a lot of money in worker training.
4. CRPA refinancing;
5. Monetization of creditors’ rights;
6. Introducing new financing.
The next three steps, in summary, are to repay debts, put shares into the market for refinancing, and attract new investments.
Before Hynix’s situation gets better, these three points will be difficult to achieve.
And even if it can be done, the price will not be too high, and Xu Liang is not willing.
"I hope Mr. Xu invests in the Chinese market, but your investment is too radical. I'm afraid the market may not be able to absorb so much production capacity." Yu Yiji said.
"Professor Yu, please take a look."
Xu Liang handed over a piece of information.
“This is the growth of global consumer electronics in the past three years that I have collected. It can be seen that the sales of computers have increased five times in three years, and the sales of mobile phones and MP3 have increased nine times. , sales of smart cameras and home appliances have increased fourfold.
This is just the beginning.
As the global economy gradually emerges from the quagmire of the Asian financial crisis and the Nasdaq crisis, the next rapid development can be expected.
So, we should take advantage of the current global economic situation to invest heavily.
Only in this way can we eat the fattest piece of meat in the market after the global economy improves. "
Yu Yiji nodded slightly and looked through the thick investigation information in his hand.
Put it down after a long time and think for a moment.
"It seems that Mr. Xu has made a lot of preparations."
"Of course, Hynix's current situation is indeed a bit bad. It will definitely not be easy to convince a great talent like Professor Yu to take over this responsibility. Of course I have to Make preparations early.”
In fact, these global consumer electronics development data are the results of the investment research department of Red Rock Fund.
There are many similar materials.
This is also what major investment banks and leading financial institutions will do.
"Professor Yu, the situation of Hynix is indeed very bad. But if you can revive it in your hands, this will become the best case study in global business classes, and you can truly be famous in business history."
Yu Yiji’s eyes lit up.
Influenced by the Confucian cultural circle, for those who have achieved success, being famous in history is more tempting than money.
Seeing that he was a little moved, Xu Liang said quickly.
"If Professor Yu is willing to give in, I will give you a basic salary of 100 million won per year, and then bonuses based on performance."
After Yu Yiji hesitated for a moment, "Mr. Xu, if I am willing to take over Hynix, I hope to get your 100% support and have full authority to manage all affairs of Hynix, including personnel rights and financial rights."
" Of course. But major matters such as corporate financing and loans must be approved by me.”
Xu Liang delegates power, but he does not want to completely delegate it.
Yu Yiji nodded after thinking for a moment.
"One more thing, I hope to organize manpower to rush to China as soon as possible after taking office to plan the construction of a new factory. The earlier we build the factory, the earlier we will make money." Xu Liang continued.
"No problem. If Hynix wants to get out of the predicament, it must increase revenue and reduce expenditure. Increase revenue is fundamental, and reducing expenditure is auxiliary. Both are indispensable."
Xu Liang stood up and stretched out his right hand towards the other party.
"Professor Yu welcomes you to join Hynix!"
"I will do my best not to let Mr. Xu down."
——
Returning to Longshan Villa in the evening, after a hearty exercise, Sun Mingzhenxiang lay in his arms dripping with sweat.
Xu Liang, who was leaning on his arms, could clearly see the beauty's smooth and white jade back, slender waist, rapidly enlarged buttocks that looked like silver basins, and straight and slender jade legs.
Coupled with the beautiful and beautiful Son Ye-jin next to her, she is so beautiful and lovable.
"Oppa, do you really think Professor Yu can manage Hynix well?"
Sun Mingzhen asked after taking a break to regain her energy.
"I don't know. But after a comprehensive review of all the senior executives of Hynix, he is the most suitable one. Time is tight, and it is impossible for me to slowly review other people."
Hynix New Factory, Construction will take at least a year and a half.
In other words, construction will not be completed until mid-2005.
Coupled with the equipment debugging time and trial production, the actual production is estimated to be by the end of 2005.
In other words, new factories can only make money in 2006 and 2007, the subprime mortgage crisis in 2008, the European debt crisis in 2009, and the global economy has not improved in 10 years.
It will take at least 11 years for Hynix's situation to get better again.
So, Xu Liang should try his best to put Hynix into production as soon as possible, make money one day earlier, and lay the foundation for getting through the trough period of the subprime mortgage crisis and the European debt crisis in the future.
As long as Yu Yiji is in step with himself in this regard, he will not interfere with the other party's reform in Hynix.
“Mingzhen, the next two years are very critical for Hynix. In controlling the financial department, you must not only cooperate with Yu Yiji’s management, but also play a supervisory role. At the same time, you must become familiar with Hynix’s management and management as soon as possible. According to the rules of the IT industry, when Professor Yu retires, you will take over."
"Don't worry, Oppa, I will work hard."
"Yeah."
(End of this chapter)