dognovel Chapter 485: The Road Ahead is Long and Arduous
Chapter 485: The Road Ahead is Long and Arduous
Zhang Gaolei had already considered this issue.
He told Huang Xiaochuan and Ding Yi, "My initial plan is to focus on semiconductor processing. The United States is currently relocating its industries overseas, and domestically, both human resources and various policies are favorable for the development of cutting-edge manufacturing. These are all positive developments. Once I have accumulated experience in manufacturing, I will invest in the research and development of semiconductor equipment. Everything must be done step by step."
Huang Xiaochuan nodded, indicating his support for Zhang Gaolei's approach.
Currently, the development of semiconductor equipment can only be led by state-owned enterprises, and it is difficult for ordinary companies to make any progress. The main reason is that this thing is too expensive. To put it bluntly, it is a bottomless pit that requires massive capital investment.
Even if Zhang Gaolei becomes a billionaire by investing in the Internet, his current wealth would only make a small splash if he threw it back into the market. It would be better for him to take a more practical approach and gradually master the semiconductor processing, and then accumulate funds to develop certain components of the equipment little by little. The components involved in a lithography machine are simply too numerous to count, and mastering even a few of them would be a remarkable achievement.
However, Huang Xiaochuan was worried about one thing: "Even in semiconductor manufacturing, you need experts in that field. You don't understand the manufacturing process, aren't you afraid of losing all your money just by throwing it at it?"
"Hehe! Don't worry! There are definitely people available. I met a few Taiwanese people in the US, and we agreed that I would provide the capital, and they would provide the technology. We would jointly invest in building a factory in China, and the products we produce could be exported back to Europe and the US. I even paid a business research company to do some research on this. The demand for low- and mid-range chips in Europe and the US is growing rapidly. It's a huge market."
Upon hearing this, Ding Yi couldn't help but glance at Huang Xiaochuan, because some of Zhang Gaolei's ideas aligned with some of their previous thoughts.
"Have you chosen a location for the factory?"
Zhang Gaolei took out a bottle of red wine and was about to pour some for Huang Xiaochuan and Ding Yi when he said, "My preferred places are Suzhou, Wuxi, Changzhou and Shanghai, but we need to do some more research before we can make a decision."
Huang Xiaochuan blocked the wine bottle, preventing Zhang Gaolei from pouring him a drink: "My Dr. Yu is abroad for further studies and has to come home to take care of the kids tonight, so please excuse the wine!"
Zhang Gaolei didn't force him. He turned around, poured Ding Yi a glass, and asked, "Your sister Huan isn't away on a business trip, is she?"
Ding Yi accepted all comers without hesitation: "Why are you being so fussy? Just pour it out."
After the wine was poured, Huang Xiaochuan substituted tea for wine, and the three of them clinked glasses.
After taking a sip of wine (or tea), the conversation continued.
Ding Yi said to Zhang Gaolei, "Last year, in 98, I was received by senior Hong Kong officials. The Hong Kong government had a plan to develop the semiconductor industry, but I didn't follow up because the timing wasn't right. However, Dahu and I are optimistic about this project, and we plan to make some investments in this area when the opportunity arises in the future. If you have any funding needs, Dahu and I can fully meet them for you."
"Absolutely! Many hands make light work. With you two joining us, I have nothing to fear." Zhang Gaolei was overjoyed. He knew Huang Xiaochuan and Ding Yi's abilities well. With their addition, the success rate of this project was almost 100%.
Zhang Gaolei knew that the investment cost of building a new 8-inch wafer line would be 1.5 billion US dollars, and even he could not come up with that much money all at once. He originally had the idea of taking out a loan and attracting investment, and now that Ding Yi had taken the initiative to express his intention to invest, it was exactly what Zhang Gaolei wanted.
During his years in the United States, Zhang Gaolei was fortunate to catch the wave of internet development, which allowed him to amass considerable wealth. His business acumen and abilities were also cultivated, and given that he is Chinese, he has a good understanding of Chinese policies. (You have received a new chapter update: Chapter 485: The Road Ahead is Long and Arduous, Reading Link)
A combination of factors led him to consider investing in China, fulfilling his promise before leaving the country: to return and serve his country after completing his studies. Although he and Wu Duo served their country in different ways, their ultimate goal was the same.
However, Huang Xiaochuan still reminded Zhang Gaolei: "You can't rely on those few Taiwanese people for all the technical matters. You still need to build your own technical team in the future."
Zhang Gaolei nodded: "You're right, I thought of that too. I plan to replicate the industry-academia-research model in Europe and America, cooperate with relevant universities in China to cultivate the semiconductor talents we need, and then combine this with high-salary recruitment to break the Taiwanese people's monopoly on technology."
The industry-academia-research model originated in Germany and the United States in the mid-19th century and has been developing in Europe and America for many years. Now, China is also trying to follow this path, and Zhang Gaolei's move is just in time.
However, this is not Huang Xiaochuan's main investment direction in the future. His focus is still on providing as many jobs as possible for grassroots workers. Logistics, commercial complexes, and manufacturing are the directions that Huang Xiaochuan will eventually develop.
Huang Xiaochuan believes that high technology can be used to benefit mankind, but it cannot replace mankind (except for special or dangerous jobs). It is necessary to provide a good working environment and as many job opportunities as possible for the vast majority of workers.
After receiving the promises from Huang Xiaochuan and Ding Yi, Zhang Gaolei immediately began to investigate suitable cities in and around Shanghai to build factories. He was treated as an honored guest wherever he went. If it were someone else, people might not believe it. A young man talking so arrogantly about investing billions of dollars would be either bragging or crazy. But if it was Zhang Gaolei, it was a different story.
Zhang Gaolei's success in the United States is well-known. Now that this internet upstart has suddenly appeared in the Yangtze River Delta region intending to invest in a semiconductor production line, people will do everything they can to win him over!
"Mr. Zhang, as long as you are willing to place your project in Wuxi, you can choose any location outside the main urban area. 200 hectares of land will be available with zero land transfer fees, and the corporate income tax exemption of 'three years and three years of half-reduction' will be extended to 'five years of exemption and five years of half-reduction'. We will also provide special funds and subsidies, and if you need a loan, we will also provide interest subsidies."
Zhao Lichun from the Wuxi Investment Promotion Bureau continued, "The city has promised to build a dedicated expressway branch line for our project." Zhao then pulled out a Ministry of Railways approval document, adding, "We've also completed the track design for the railway freight station to the site."
Zhang Gaolei couldn't help but sigh inwardly, "The efforts to attract investment in China these days are really strong, making it feel like a huge loss if a project doesn't come to fruition."
In addition to these, these cities also offer preferential policies in areas such as talent policies, encouragement of technology introduction, protection of intellectual property rights, and export tax rebates.
This made it difficult for Zhang Gaolei to make a decision. These cities all have convenient port logistics facilities, as well as the most important talent pool, making them very suitable for establishing a wafer fab.
Wuxi, in particular, has a dense concentration of electronics industry workers with a large number of skilled industrial workers who can be put into production immediately after simple training.
However, Suzhou offered the most attractive discounts, and Shanghai was no less generous, showing great sincerity.
After seeing off the official representatives from Suzhou, Zhang Gaolei rubbed his temples, feeling a real headache coming on. After much thought, he decided to consult with Huang Xiaochuan and Ding Yi to get their opinions, since these two would be major shareholders of the company in the future.