Reinventing the Millennium.

Chapter 1413 Integration
Fang Zhuo's trip to Luzhou this time was half about meeting with peers on behalf of Yike and Bingxin, and the other half was about finalizing the integration of Changdian.

The integration of Changdian is ongoing, but in view of the current impact of Bingxin and the risks faced by Yike, he feels it is necessary to hammer the nail in to avoid further twists and turns in the future.

People with different positions always have different ideas. He does not expect all forces to be combined, but just tries to gather all the resources that can be combined.

The next day was indeed a sunny day. After the Bingxin trio met for a meeting, Fang Zhuo and Qiu Ciyu met with Wang Xinchao of Changdian together. He was the only one who accompanied Wang, and the communication was mainly between Qiu Ciyu and Wang Xinchao.

According to the announced plan, Changdian expects to complete the acquisition of STATS ChipPAC in September.

This acquisition actually set up a three-tier structure. Changdian, Yike and the Big Fund first jointly invested to establish the "Changke Company", holding 49%, 29% and 22% of the shares respectively. Then "Changke Company" and the Big Fund invested to establish the "Changpeng Company", holding 98% and 2% of the shares respectively.

Finally, Changpeng established a private limited liability company in Singapore to initiate the offer and execute the acquisition of STATS ChipPAC.

The total amount of the acquisition of STATS ChipPAC is US$7.78 million. Once 100% of its common shares are acquired in September, the company will be forced to delist from the Singapore Stock Exchange.

At that time, the equity of Changdian will change and the actual controller will be replaced.

Qiu Ciyun and Wang Xinchao had a frank conversation, so frank that Wang Xinchao felt uncomfortable.

"Boss Wang, Boss Fang wants to change someone to take charge of Changdian's work. One reason is that our previous communication was not as much as our internal communication, and the other is that Bingxin doesn't want other unstable factors right now."

"But I think Mr. Wang has been leading Changdian's development to this point and he is very capable, so he is the most appropriate candidate."

When Wang Xinchao heard what Mr. Qiu said, he glanced unkindly at Fang Zhuo who was drinking tea next to him.

Fang Zhuo looked natural and had nothing to be embarrassed about. Look, look, it’s me, it’s me, it’s all me.

Wang Xinchao asked: "What do you mean now?"

"The most appropriate candidate, that's what Bingxin means." Qiu Ciyun said seriously, "Bingxin needs to integrate upstream and downstream, and hopes that Changdian can go further and jointly build strong competitiveness. If Mr. Wang can accept it, then Bingxin still believes that Mr. Wang is the most appropriate candidate."

Wang Xinchao lowered his head and remained silent for a while, then raised his head and asked an irrelevant question: "Have you made plans for a hostile takeover?"

Qiu Ciyun replied solemnly: "Yes, Mr. Fang has also listed a hostile takeover as an alternative option."

This time, Wang Xinchao turned his head and glared at Fang Zhuo.

Fang Zhuo sighed and said, "Mr. Wang, Mr. Wang, the nice guy sitting opposite you is very interested in launching a hostile takeover of Changdian."

But he naturally wouldn't make any excuses at this time, as he was very clear about the role he played today.

"The industry has changed, and the situation abroad is also different. Mr. Wang, this is the main factor we think needs to be integrated." Qiu Ciyun continued, "However, I have seriously considered Mr. Wang's idea, and it is not unreasonable."

Wang Xinchao turned his gaze back.

"BIS will definitely keep a close eye on Bingxin this year. We cannot predict what it will do next. Therefore, in order to prevent Changdian from being affected, we don't have to rush to change the controller." Qiu Ciyun looked at the head of Changdian and said earnestly, "Do we really want Changdian's market to shrink? But everyone is preparing for the worst."

"Last night, I heard Mr. Fang talk about his communication with you. We talked for a long time, and Mr. Fang basically agreed with my opinion. As long as Changdian and Bingxin move in the same direction, the acquisition does not need to be so urgent."

At this point, Qiu Ciyun asked solemnly: "Boss Wang, what do you think?"

Wang Xinchao heaved a long sigh when he heard the warm words from Mr. Qiu, a true industry insider. He said, "Mr. Qiu, you know best how difficult it is for us to work in the semiconductor industry. I still say that we are all human beings."

Qiu Ciyu spread his hands but said nothing.

He didn't speak, Wang Xinchao didn't speak, and Fang Zhuo next to him didn't speak either.

The scene is obvious, and some people are not always human.

Wang Xinchao thought about it, thinking about the style of Mr. Qiu and that man, and finally said: "Mr. Qiu, I don't care about personal interests, I am also planning for the future of the factory. I am not unreasonable. Since Bingxin is willing to take care of our market, what else can I say."

Qiu Ciyu stood up and stretched out his hands.

Wang Xinchao shook hands with Mr. Qiu and they reached a consensus again when the ice core was in crisis.

However, when he left the office, he suddenly felt that something was not right. Were these two a good-for-nothing?

But the situation is stronger than people. No matter whether it is Mr. Fang, the white-faced man, or Mr. Qiu, the red-faced man, Bing Xin and Yi Ke will not hold back at this point.

Fang Zhuo in the office refilled two cups of tea, and then said helplessly: "I'm afraid that Mr. Wang will misunderstand me and leave."

Bingxin wants to integrate Changdian, which is a strong suggestion from Qiu Ciyun.

Qiu Ciyun said, "I can't care about that anymore, Mr. Fang. Too many lice won't itch."

Fang Zhuo took a sip of tea and his words were a bit harsh...

"I have to go to France next month. Our two European factories are also very important." Qiu Ciyun thought about Bingxin and said, "Bingxin, Yike, and Changdian have completed the vertical integration of design, manufacturing, and packaging and testing. However, this kind of IDM has its pros and cons, and we are still facing many difficulties."

In the past, Yike + Bingxin was essentially a close combination of design and manufacturing, which was a swing between the traditional IDM and foundry models. However, with the deepening of development and the changing situation, there is now an increasing need for closer upstream and downstream integration.

Not only that, due to restrictions, ice core and Yi Ke must also spread to more basic fields.

"If there are difficulties, solve them. If they cannot be solved, ask more people for help. If even asking more people still cannot solve the problem, wait. If waiting still cannot solve the problem, then there is really nothing we can do. We can only do whatever we want." Fang Zhuo said nonchalantly.

Qiu Ciyun listened to the boss' bachelor-like tone and reminded him, "Boss Fang, you also need to pay attention to your mental state."

Fang Zhuo took a few steps and patted Mr. Qiu on the shoulder: "I am in great shape now. I am just waiting for the moment to speak."

He has not spoken publicly since last month, and his participation in the meeting in Luzhou can be regarded as a small-scale statement.

According to expectations, YiKe should be able to obtain the BIS license within this year. If it fails to get it, he, as the head of YiKe, will have to give everyone an explanation.

Qiu Ciyun is very busy at work and Fang Zhuo's schedule is also full. In other words, the nerves of Bingxin and Yike are very tense. No matter what the internal and external situations are, the established things always move forward.

On April 4, Yike submitted a formal application for listing in Hong Kong, without being affected by any public opinion or suggestion from Meilijian.

Regarding Yi Ke's application, the Hong Kong media is relatively free, with different voices and analyses, but the official attitude is very positive and expresses a strong welcome to Yi Ke.

Although YiKe’s stock price is fluctuating, once its size reaches Hong Kong, it will inevitably become the leader in market value.

However, Yike’s secondary listing this time has a different meaning.

This also aroused everyone's interest in discussion. If we assume the worst case scenario and YiKe really loses the US market, what should be its reasonable market value?
Due to the impact of the formal application for secondary listing, YiKe’s stock price continued to fall, and has already created a recent historical low of "only" 3650 billion US dollars.

Although there are factors such as market liquidity, investor preferences, and exchange rate fluctuations in dual listings, generally speaking, the overall market capitalization of large companies should be relatively close.

So, to put it simply, the market value of YiKe, which is about to land in Hong Kong, will be 2.8 trillion Hong Kong dollars.

According to a rough calculation, the revenue from the US market is about one-third of Yike's global market...

"Without the US market, Yike would have a market value of 2 trillion. It is really strong!"

"Losing the US market will have a chain reaction on Yike. It will definitely not be 2. I think 1.5 is about right."

"Alibaba's e-commerce business is basically in China. Its market value after listing in the United States is 2000 billion US dollars. You have to look at the growth potential of Yike's business. It does not only sell mobile phones. Now there is a lot of room for growth in notebooks, tablets, watches and smart homes. Most importantly, Yike has a mobile ecosystem in China. It can really generate revenue at any time. At most, users can support it by watching advertisements."

"The mobile ecosystem is a treasure trove, and the huge growth potential in this area has been overlooked. However, it is really hard to imagine that Yike will withdraw from the US market. It has no need to. Intel and GlobalFoundries are both in talks with Yike."

"The latest news is that President Fang will not show up when Yike goes public. Vice President Yu Hong will be in charge. President Fang is really hiding behind the scenes."

The guests on Hong Kong TV media were very interested in Yi Ke's situation, but they felt very sorry that they could not meet Mr. Fang. It has been more than a month since BIS issued the list, and the head of Yi Ke has not made any statement at all.

Mr. Fang, are you really not going to say anything?
But such doubts are not only raised by the Hong Kong media, but also by everyone who pays attention to Yi Ke.

The leader remained silent, but life went on as usual.

Yike’s secondary listing in Hong Kong is a foregone conclusion, but the storm surrounding it seems to still be brewing.

The Wall Street media that followed the Yike incident soon broke a new piece of news that the negotiations between Yike and Intel were close to breaking down, and the two high-quality assets WLS and Yike Optoelectronics that the latter demanded were already being integrated.

In addition, there are rumors that Morningstar Semiconductor, a listed company once in Hong Kong, may also join the new company as a whole.

This news has not been confirmed yet, but the movement of the Intel team returning to the United States indirectly verifies the negotiation results of both parties. What is even more bizarre is that the Intel board of directors announced the resignation of CEO Brian.

CFO Robert, who had just returned from China, temporarily became Brian's successor.

This sudden situation took the media by surprise.

Why did you suddenly resign for no reason?

Brian is a reformer who has vigorously promoted Intel's transformation. Now that he is gone, will Robert make any strategic changes?
Some sources claim that office romance was the direct factor leading to Brian's dismissal, while others claim that Brian and the board of directors had serious disagreements over cooperation with Yike.

On April 4, Yike released its full-year financial report for 17 and also confirmed the adjustment results of its subsidiaries. It will absorb the business of WLS and Morningstar Semiconductor under the name of "Yike Optoelectronics" and maintain relatively independent operations.

Independent baseband chips, mid- and low-end mobile phone SoC chips, image sensors, RF transceivers and corresponding system software.

The new Yike Optoelectronics obviously has great potential.

(End of this chapter)