There is one more update~

………………

December 12, Sunday.

temporary……

It's not a shopping festival.

At ten o'clock in the morning, Fang Nian, Lu Weiyu and Guyu went to Luzhou City Hall.

This time, we no longer went to Sun Ganlong's office, but were led to a conference room by Sun Ganlong's secretary.

The attendees were basically the same people I met at the lunch table yesterday.

But the number of people is smaller.

They are probably the main leaders related to local investment promotion, including Sun Ganlong and Wu Qianrong.

The meeting was chaired by Wu Qianrong.

Unlike the clouds and fog in offices and wine tables, discussions on the conference table are more direct.

There were a few pleasantries at the beginning.

For example, introduce the two parties to each other again.

After all, there are still people here whom I have not known for years.

Then Wu Tongrong got to the point directly: "Mr. Fang, Mr. Lu, according to the budget plan submitted by Frontier Innovations under Frontier Innovation, the initial investment plan of Baize Laboratory is 12 billion yuan..."

"..."

"According to market research and analysis, chip design semiconductor companies have the least investment in the entire chip production process. Generally speaking, they do not need such a large scale of capital."

"..."

"I don't know about these issues. Can Mr. Fang give a brief explanation?"

The atmosphere was different this time, and it was obvious that we were getting down to business.

The first question goes straight to the core. It is sharp, but it is completely reasonable, because it is a necessary question.

For a company as big as BOE and with such clear needs, back and forth negotiations cannot be avoided.

This is not tens of millions or hundreds of millions, but tens of billions.

Luzhou's fiscal revenue in 2009 was less than 34.2 billion.

It is already December this year, and the situation is very good, but the fiscal revenue is not expected to reach 50 billion.

Even if it is enough for 50 billion this year, this investment in the frontier will be made? This is no joke.

Facing the gaze of the vast majority of people in the entire conference room, Fang Nian said unhurriedly: "Broadly speaking, chip design is indeed the lowest investment link in the entire chip production;

However, the difficulty of producing high-end core processing chips for smartphones is obvious to all around the world. For example, the research and development cost of the A4 chip used by Apple in the iPhone 4 exceeds US$1 billion."

"The plan of Baize Laboratory is not radical, and is even a bit conservative."

"Currently there are not many types of chips that can truly be called high-end, and the initial R&D investment cannot be low."

"..."

Wu Tongrong was noncommittal and asked questions from multiple angles about the budget submitted by Frontier.

The budget investment has come to an end, but the entire Luzhou area is a little confused about future development.

"..."

"I heard that Baize Laboratory has invested hundreds of millions of yuan in the early stage?"

"Yes, it is mainly about the purchase of chip drawings. Baize Laboratory itself does not have chip design capabilities. This is a necessary early investment."

"..."

"Can Mr. Fang talk about the market prospects of high-end chips?"

“With the upgrading of global industry, high-end chips will be an essential part;

To give a simple example, the same computer has different processors, and the processing efficiency is obviously different. What is fed back to the user's perspective? It is a different experience of opening file efficiency.

The same goes for the smartphone industry. Some media call this year the first year of smartphones in China. From this perspective? The era when mobile phones have truly become handheld computers has arrived;

Compared with computers, there is no doubt about the portability of mobile phones. The difference in experience will trigger mobile phone brands to launch flagship models, which is a market prospect that cannot be ignored. "

"..."

"..."

Over the past year, Lu Weiyu has been on the battlefield one after another, explaining many problems and also raising some "worries" on the frontier.

"Actually? For Frontier, the planning of Baize Laboratory including the R&D center is only part of it..."

"Frontier is also considering spreading the financial pressure..."

"Luzhou's geographical location does not have the advantage of being in line with international standards..."

"Of course, Luzhou also has the advantage of geographical location? It is located inland? The corresponding business operating costs will be lower..."

“Although Luzhou has been carrying out major construction, according to public information, the actual investment completion rate of the investment plan proposed for the whole year is less than 20%.”

“The cost loss caused by transportation efficiency is always a factor that cannot be ignored.”

"..."

Unfortunately, these ‘worries’ are actual problems in Luzhou.

It is also the main factor that has always restricted the development of Luzhou.

This is also an important reason why Luzhou’s GDP is not ranked highly nationwide.

Judging from the current known situation, the Luzhou local government also understands the concerns of the frontier.

We can also see some conservatism in Frontier’s investment in Luzhou.

Even if the 300 acres of land purchased are fully developed? The cost will be about 2.5 billion, which is completely worthless compared to the current R&D budget.

This is also the reason why Sun Ganlong took the initiative to invite Fang to come to Luzhou.

High-end chip design has high added value factors for any city in China.

Especially a company like Frontier that has some unimaginable academic resources.

Therefore, the Luzhou area is really worried that Fang Nian will only "test the waters" in Luzhou.

They didn't know how much Fang Nian valued Luzhou.

Not to mention that Fang Nian plans to invest hundreds of billions in Luzhou, the "Gambling City", to create a cutting-edge core chip base.

"We understand your company's concerns. However, Luzhou also has great advantages. The new airport has basically completed the main construction and is determined to be an international airport..."

"Although the proportion of completed investment is not high, there are real changes..."

"..."

certainly……

In the end, Fang Nian and Lu Weiyu did not forget to express Frontier's sincerity in investing in Luzhou.

"Actually, Frontier is well prepared for launching a large chip design project in Luzhou? The direct capital expenditure from personnel to acquisition of core technology exceeds 200 million yuan...

These are just the beginning."

"..."

"In order to have better talent attraction, including better scientific research support, Frontier has assisted the University of Science and Technology of China in building a Frontier Institute and improving the talent ecology."

"In addition, Baize Laboratory is not only focused on the design of core processing chips for smartphones, but also includes other types of chip design possibilities."

"..."

During the one-and-a-half-hour meeting, the exchange of opinions between the two sides never stopped.

Although in terms of status, Luzhou District is the investor and should have more say.

But just like what Lei Jun said, capital all over the world is looking for good investment opportunities.

The frontier also does not exist without the right to speak.

He also has his own confidence.

The confidence comes from Frontier’s continuous heavy investment throughout 2010.

This also includes Nuwa Laboratory.

The main reason is that Frontier actually has quite a lot of capital.

The core reason is that at least Sun Ganlong and Wu Qianrong are aware of Fang Nian's influence in the capital circle.

This is very embarrassing!

All in all, as the meeting ended, both Sun Ganlong and Wu Qianrong felt a little uncomfortable.

After the meeting, Sun Ganlong took the initiative to let Wu Qianrong go to his office.

This rarely happens under normal circumstances.

Whether it's for balance, containment or anything else.

The higher authorities rarely allow the municipal committee and the city government to urinate into the same pot.

It is not known what the two talked about.

It’s just that the pain is not reduced by half…

…………

After returning to the hotel, Fang Nian had a meal first, and then called everyone over to start making arrangements.

"Part of the details of the plan have been modified to reflect the necessity of investment and the early research and development cycle."

"..."
To be continued...