Reinventing the Millennium.

Chapter 1410 Secondary Listing (5k)

As we entered mid-March, more news about Yi Ke appeared.

With Intel in front and GlobalFoundries behind, either the CEO posted a selfie on Twitter or the shareholders publicly welcomed Yike's investment. In addition, Yike's previously announced dividend has been executed, and Yike is about to execute a stock split. Its stock price has generally rebounded amid fluctuations.

Bingxin International is indeed an important supplier of Yike, but from the current situation, Yike does have many options, and it seems that Yike’s management just wants to make one that is not that bad.

On March 3, YiKe’s stock was officially split 20:1. The stock price rose by more than 5% on that day, closing at US$2, and its market value once again stabilized at US$115.23 billion.

On the same day, Taiji's 16nm finally arrived, making it the world's third wafer manufacturer to provide commercial 14/16nm process.

But while Yike's stock price has stabilized, Bingxin's stock price has suffered a bit. In the two weeks since it was restricted, it has fallen to the price at the beginning of its listing, and its current market value is US$180 billion.

Especially as Yike has been frequently reported to have an ambiguous relationship with Intel and GlobalFoundries, Bingxin suffered a heavy blow this weekend and is expected to break even when it opens on Monday.

however……

Fang Zhuo did not receive any dissatisfaction from Bingxin. He probably knew that Yi Ke was in a difficult situation. Besides, Yi Ke's size was indeed much larger than Bingxin, so it was normal for him to choose either one.

But Bingxin handled various problems silently. After seeing various news about Yike in recent days, the head of AMD could no longer sit still and called Fang Zhuo again.

She asked directly: "Mr. Fang, is Yike going to cooperate with Intel?"

"We're still discussing it." Fang Zhuo gave an accurate answer.

"Then...will the cooperation between Intel and Yike involve Bingxin's foundry for AMD?" This is what Su Zifeng is most concerned about.

Fang Zhuo laughed: "How is it possible..."

Su Zifeng breathed a sigh of relief.

Fang Zhuo laughed continuously: "How could it not involve..."

Su Zifeng almost couldn't catch her breath.

She was stunned for a few seconds before asking again: "Then, then, how did you talk about it?"

"Brian asked Bingxin and AMD to terminate their cooperation." Fang Zhuo said.

Su Zifeng waited for two seconds, but didn't hear anything else. She felt a little helpless. Mr. Fang really answered every question he asked. She continued, "Mr. Fang, Intel is so shameless. We are just doing normal business cooperation."

He said the second half of this with gnashing teeth.

It’s not just a normal business cooperation, it’s a cooperation in which AMD pays for itself!
"Who said it wasn't? I flatly rejected Brian on the spot. AMD is Bingxin's client, and Intel came to discuss cooperation with Yike. How could they involve other companies' legitimate business in Yike's conference room?" Fang Zhuo was very righteous.

Su Zifeng heard such straightforward words, and suddenly she became suspicious. After a moment of silence, she asked, "Really?"

"If you don't believe me, I'll send you the recording." Fang Zhuo said with a smile.

Su Zifeng hesitated for two seconds, not knowing whether this was appropriate.

Fang Zhuo continued, "Just kidding, Mr. Su, since you called me, I will seriously reiterate that the cooperation between Bingxin and AMD will be very solid. I am optimistic about AMD using Bingxin's manufacturing technology to upgrade its products."

Su Zifeng hesitated even more.

She was silent for a while before she said, "Mr. Fang, please send me the recording..."

"Okay, then you wait." Fang Zhuo hung up the phone.

Su Zifeng didn't know what kind of mood she was in while waiting. She felt a little nervous and a little ridiculous.

Five minutes later, she actually received an audio clip on her phone. When she opened it and listened to it, it was indeed a genuine recording, but it was not a negotiation with Intel, but an excerpt from the YiKe meeting.

——The cooperation between Bingxin and AMD has just begun. The temporary license is valid for only 90 days, which may not last long.

- As long as the communication with Intel can reduce the condition to just this one condition, oh, you can also add new models equipped with its chips, then it will be a more appropriate cooperation. Intel acquired Broadcom and adjusted its mobile strategy, and it itself also needs to continue to develop the mobile market.

——AMD is Bingcore’s partner, and I can’t abandon it.

There are three voices in the recording. The first two are relatively unfamiliar, but the third one is Mr. Fang’s reply.

Su Zifeng was feeling quite nervous before contacting Mr. Fang.

There have been many news reports about Yike this week, and what she is most concerned about is Intel, and the stock market obviously has a positive attitude towards the cooperation between Yike and Intel.

Although Taiwan has developed very well in recent years, Intel's wafer manufacturing has always been superior, but it does not outsource its business. Once Intel makes an exception for Yi Ke, it will be a powerful combination.

If Mr. Fang's reply was that Bingxin wanted to cancel its cooperation with AMD, Su Zifeng even felt that she did not have enough confidence to scold Mr. Fang. At most, she could just loudly mock him for being greedy for profit, but that was mostly venting.

Now... this can only praise him loudly.

"Mr. Fang, you are worthy of being the best president in the world, the founder of a company like Yike, and the leader of China's semiconductor industry!"

Fang Zhuo called Su Zifeng again and heard her slightly inappropriate praise. He just smiled and said, "I don't agree with Intel's way of doing things. I made this decision not because of AMD, but for myself."

Su Zifeng is not sure what specific plans Mr. Fang has, but she knows that it is closely related to making money. Since AMD reached a cooperation with Yike and IceCore, its stock price has been rising, from US$1.5 to US$2.9.

This nearly doubling performance obviously has nothing to do with AMD's performance.

Moreover, AMD obtained the temporary license from BIS almost in seconds, which was most likely helped by the stock gods on Capitol Hill.

If Yi Ke and Bing Xin weren't so outstanding, perhaps Mr. Fang's friends would be able to help him, but now...

Su Zifeng took a breath and couldn't help asking, "Mr. Fang, will Yike reach a cooperation agreement with Intel? If you don't agree to its interference in AMD, what are the other conditions?"

"We are still discussing it." Fang Zhuo said with a smile, "Boss Su, according to what you said, should I agree?"

"Of course not, I just..." Su Zifeng thought about Yi Ke's situation and said, "I am just a little worried about Yi Ke's rare challenge. Mr. Fang, you know, I was a fan of Yi Ke's products eight years ago."

Eight-year old fan of Lisa Su.

Fang Zhuo really didn't know this. He just replied: "We are still in talks. Intel is not the only option for Yike. GlobalFoundries' CEO Sanjay is already in Shanghai."

Su Zifeng said in a strange tone: "It's hard for me to imagine Sanjie's attitude when facing Mr. Fang."

"I haven't met him yet, but I heard that he has a very good attitude. GlobalFoundries' shareholders welcome me very much, and my friends in Saudi Arabia are all very friendly," Fang Zhuo said with a smile.

Su Zifeng frowned. It was really hard to imagine the meeting scene between Sangjie and Mr. Fang.

GlobalFoundries CEO Sanjay Jha is an "old friend" of Mr. Fang. He used to work at Qualcomm and later went to Motorola. He was then selected by Mr. Fang as "one of the top ten failed CEOs in the world."

Sanjay was very angry about this and even went on a show to interact with Mr. Fang face to face. He was so angry that he left the show. At the beginning of this year, GlobalFoundries hired him as CEO.

Lisa Su used to be the CEO of GlobalFoundries and had a very low opinion of it. Now her opinion of the company's decision to hire Sanjay as CEO is even lower.

She hesitated for a moment, and continued to advise: "GlobalFoundries has many management problems, and its technology and process are also flawed. Mr. Fang, I don't really recommend you to cooperate with GlobalFoundries."

"Mr. Su, you told me this last time. Okay, now I can only fly to Shanghai immediately and promise Brian to kick out AMD and fully embrace Intel." Fang Zhuo joked.

Su Zifeng said helplessly: "Then you should cooperate with GlobalFoundries."

"Mr. Su, if we cooperate with GlobalFoundries, we may be able to export our technology and processes, allowing GlobalFoundries to catch up. At that time, we can also welcome AMD and GlobalFoundries to renew their relationship. Wouldn't that be great?" Fang Zhuo said with a smile.

Su Zifeng was speechless for a while.

She asked a question: "If GlobalFoundries raises additional capital, will the SEC intervene?"

The cooperation between Yike and GlobalFoundries seems to be quite good from a logical point of view. Although GlobalFoundries cannot compare with Intel, TSMC and Samsung, it also has mid- and upper-stream technologies.

In addition, Yike itself will have a transition period in its cooperation with Bingxin. If it can help GlobalFoundries upgrade its technology, it will almost be like Bingxin's reincarnation.

"Generally speaking, GlobalFoundries does not need SEC approval for a private placement, as long as it complies with its registration exemption regulations. Instead, it is California's 'Blue Sky Law' that needs attention. However, it is hard to say in this situation now." Fang Zhuo replied, "I will take it one step at a time."

"Blue Sky Law" is a local regulation, which is used as a common name because of the claim of securities sales in the past that "even the blue sky can be considered real estate". It aims to protect investors and supervise securities business.

Yike's investment in GlobalFoundries is a normal business behavior. Logically, there should be no problem, but I don't know if it is unreasonable.

"Mr. Fang, as long as there is a license, AMD will be a solid ally of IceCore." Su Zifeng turned her inner feelings into a personal statement.

"Mr. Su, thank you for your comfort." Fang Zhuo said.

After Su Zifeng hung up the phone, she suddenly realized that it was "comfort"... Mr. Fang took it as comfort.

However, when she thought about it carefully, she felt that it would be better to listen to this as a consolation.

It is really a headache that geopolitical factors in business competition are magnified.

Su Zifeng is still closely following the developments of Yike and Bingxin. Although she has put half of her heart at ease, she still has half of her heart in Shanghai, fearing that she will receive a sudden call and directly lay off AMD.

But perhaps Intel and Yike were unable to reach a consensus, and there was no news from the two companies. She soon saw news from GlobalFoundries on Twitter.

Like Brian, Sanjay also posted a photo in Shanghai, which was a handshake photo of him and Mr. Fang, and he also wrote a caption.

——The handshake between the best and worst CEOs in the world. Keep improving.

Sanjay revealed the latest developments to the outside world in a self-deprecating tone.

Because of this tweet, many media outlets were able to get the latest photos of Mr. Fang.

From the BSI action to now, Mr. Fang has never responded personally or verbally. Everything has been done in the name of Yike Company. His attitude can easily be interpreted as an emotion.

However, Mr. Fang in the photo does not look as haggard as imagined. Instead, he has a smile on his face and remains as charming as ever.

The Wall Street Journal called Sanjay directly to ask about the cooperation between GlobalFoundries and Yike, and got the answer that they were "in close contact."

Just with this answer, GlobalFoundries' stock price rose immediately.

Ice core suffered a setback and Yi Ke was in danger, but this is indeed an opportunity for some companies.

On March 3, Fang Zhuo, who had personally held talks with GlobalFoundries, met with Brian of Intel again. Compared with the last time, Brian's attitude seemed much gentler.

"Mr. Fang, you don't have to use GlobalFoundries to force me like this." Brian came up and revealed Mr. Fang's intention.

"I'm not forcing you. I'm just trying to stabilize the interests of investors. Besides, we can't just prepare a plan to cooperate with Intel." Fang Zhuo explained, "Because of the sudden situation of Bingxin this time, we realized that there are indeed problems with Yike's supply chain."

Brian used to be in charge of supply chain work at Intel. Hearing this, he immediately agreed: "Indeed, Mr. Fang, Yike relies too much on ice core for core components."

This is actually the norm in the industry.

However, after BIS took action against Bingxin, Yike was still reluctant to give up and did not quickly promote cooperation with other manufacturers, which was very inappropriate.

"After all, Bingxin was created by me." Fang Zhuo said.

The more Brian heard Mr. Fang say this, the more certain he was that Yike was going to cut ties with Bingxin and speed up the stabilization of the supply chain. He nodded and said, "I understand, but we have to weigh the pros and cons. Mr. Fang, after all the talk, since Yike is unwilling to sell WLS and Yike Optoelectronics, I don't want to force it."

"But there is one thing we must agree on. Bingxin cannot provide AMD with 16nm manufacturing technology. Mr. Fang, you must stop the cooperation between Bingxin and AMD."

"If we can reach an agreement on this, I will immediately go back and do my best to convince the board of directors to promote Intel's business in the foundry field."

Brian gave the bottom line.

Fang Zhuo frowned.

Brian stressed: "We can't cooperate with Yike while watching Yike cultivate our competitors."

Fang Zhuo said helplessly: "AMD is just a small company, Brian. It is not worthy of being included in our cooperation discussion."

"No, I don't think so. Intel should maintain a strong defense against AMD." Brian said firmly, "Mr. Fang, the initiative of the cooperation is now in your hands. If you are willing to be responsible for Yike, then you can make the decision. If you are not willing, then..."

He shrugged.

Fang Zhuo asked: "Can you convince Intel's board of directors to break the rules?"

Intel has always been a vertically integrated IDM model, and it is not easy to break the routine.

Brian said confidently: "I have worked for Intel for 33 years. I have the ability."

"Then I need to think about it carefully." Fang Zhuo didn't expect Brian to be so determined. If he looked at it this way, maybe...

He ended his meeting with Brian and put Intel's latest attitude on the conference table for discussion.

Almost everyone agrees to abandon AMD and believes that cooperation with Intel will strongly support the competitiveness of Yike's products.

Fang Zhuo was almost about to abandon his partner.

However, an extremely bizarre piece of news came, which left him speechless and the general manager helpless.

Intel's board representative, Ells, made a direct call without Brian's knowledge, informing the CEO to stop all negotiations with Yi Ke.

Fang Zhuo thought that BIS was interfering and asked them for the reason.

"The board is investigating Brian. His current negotiations and subsequent commitments are not within the board's authorization framework," Els said solemnly.

Fang Zhuo was shocked: "Why?"

Els responded, "Brian may have violated the company's non-fraternizing policy by engaging in an unauthorized relationship with an employee, and he must be investigated."

"What about Yike's foundry cooperation with Intel?" Fang Zhuo almost suspected that Intel was looking for an excuse.

"We need to wait for the results of the investigation." Els only revealed this much. "Good things are worth waiting for, Mr. Fang, we should all be patient."

After receiving this incredible phone call, Fang Zhuo immediately called Brian to inquire about the relevant situation.

Brian was silent for a long time, then replied, "I need to fly back to California immediately. Mr. Fang, in principle, I am still willing to vigorously promote the cooperation between Intel and Yike."

"You...is what Els said true?" Fang Zhuo was surprised.

Brian sighed, "People will always encounter different situations in their lives, just like Yi Ke's current situation. Mr. Fang, I'm sorry, I hope this 'Yi Ke moment' of Intel will have a good ending."

If the cooperation with Yike cannot be promoted, it seems to mean that Bingxin's cooperation with AMD will continue to move forward.

Perhaps, this may also be a kind of "easy science moment".

Fang Zhuo never thought that the negotiations with Intel would end like this, but he still gave Brian his blessing.

Given how serious Intel's board of directors was, Brian was afraid he would never come back.

Isn't this really an excuse?
He still had doubts in his mind.

But not long after, Intel's CFO Robert flew in instead of Brian and restarted the negotiations with Yi Ke. Unlike Brian's concession, Robert believed that Yi Ke must show enough sincerity to obtain Intel's foundry business.

"Bingxin has lost its competitiveness, Mr. Fang. Only we at Intel can help you. You must be aware of this clearly." Robert was much more arrogant.

Fang Zhuo put AMD back in the position of a strategic partner, and asked Yu Hong to negotiate with Robert on his behalf.

On March 3, the last day of this month, Yike’s wafer foundry manufacturer has not been determined, but the company announced an action that makes people think about it.

——Yi Ke plans to issue overseas listed foreign shares (H shares) in April and apply for listing on the main board of the Hong Kong Stock Exchange Limited.

In other words, Yike will be listed in Hong Kong for the second time.

What do you mean?
In Yike’s announcement, it explained that it was “the best business choice to conform to the current situation and market expectations and ensure the interests of investors.”

The mainstream media's interpretation of this is that Yi Ke is pessimistic about the future and intends to avoid some policy risks.

Some analysts on Wall Street carefully discussed the actions of Yike, Bingxin and Mr. Fang, and finally made some joking speculations.

"Yi Ke's secondary listing sends an extremely disturbing signal, as if it is preparing for the worst."

"Does Mr. Fang really want to take the risk and insist on the cooperation between Yike and Bingxin?"

"No, he can't be crazy. I'd rather it's me who's crazy."

"On my own behalf, I would like to appeal that business should be left to business and politics should be left to politics!"

(End of this chapter)