Becoming a Billionaire after Divorce-Chapter 697 - 255: The God of Wealth Has Arrived! (Part 2)
"President Sun, don’t be so polite. I’m getting older, and taking more walks is just exercise for me," the old academician joked, easing the atmosphere considerably.
"Haha... You are still in excellent spirits. I’m sure you can contribute to the country for decades more."
"That’s not scientific. Who can live that long? By then, I’d be an old immortal."
"No! No!" Sun Dasheng hurriedly waved his hand. "Who among us Chinese doesn’t wish for you all to live to be a hundred?"
"Alright, we’ll save the pleasantries for later. Let me take you inside for a tour."
"Okay, after you!"
...
The lithography machine factory is enormous.
Upon entering the workshop, even those not in the know could feel the high-tech ambiance.
The entry procedures are extremely complicated and tedious.
After all, these are strictly regulated dust-free factories.
After the tour.
The group proceeded to the meeting room.
This meeting primarily focused on investment issues.
Typically, the shares of such companies are mostly held, overtly or covertly, by major state-owned enterprises, and most are in downstream chip-related companies, so outsiders generally have no opportunity to interfere.
However, coincidentally, SMIC, a major customer and shareholder of Shanghai Microelectronics, recently received a large sum of money from Sun Dasheng’s Keno Capital in its latest financing.
Recently, the microelectronics company’s 193nm dry lithography machine was finally launched, with a resolution of 65nm and a pattern overlay accuracy of 8nm.
This is a huge piece of good news.
However, the usual tactics of foreign high-tech companies quickly followed.
They began to lower prices on similar products you developed, primarily to suppress the market, forcing domestic companies to sell their new technology and products developed with significant investment at low prices, failing to recoup the R&D capital.
Then... naturally, the company faces a financial shortfall and needs continued financing.
Generally, companies that require continuous investment without seeing much return, but are crucial to the country’s industrial upgrading, are mostly continuously funded by the state, even while operating at a loss.
There’s no choice.
However, recently, land auctions have tightened across the regions, making the land-based fiscal revenue unsustainable.
The result is that local government finances are very tight.
The generous investments made without expecting returns previously have now become somewhat challenging.
The call Sun Dasheng received earlier came from a top leader in Shanghai City.
Naturally, it concerned the financing issue of Shanghai Microelectronics.
Sun Dasheng didn’t think much and agreed immediately.
This prompted the current inspection.
"President Sun, you know the situation. I’m curious about your final opinion?" the old academician asked somewhat nervously.
The nervousness, of course, stemmed from the clear explanation of difficulties by the superiors above, with the government temporarily unable to provide substantial funds for ongoing R&D.
The subsequent R&D needs to be relatively frugal.
How could that work?
The lithography machine industry is already twenty years behind the West; further delays would only worsen the gap.
Naturally, the government wouldn’t say they won’t provide funding; the Shanghai Municipal Government does have some foresight. If there are no funds, they’ll turn to local benefactors.
Shanghai City has no shortage of benefactors, but not many would willingly spend money without expecting a return.
Unfortunately, Sun Dasheng is precisely such a person.
Wealthy, patriotic, and generous.
This is the positive impression he left on the superiors.
Hence, he was given this opportunity.
Otherwise, ordinary people wouldn’t have the chance to invest in such vital national equipment.
"No problem, how much do you need?" Sun Dasheng responded decisively.
This left the people on the other side somewhat surprised, was it that simple?
"Have you considered this carefully? This investment might not see returns for a long time," the old academician, still a sincere gentleman, didn’t want to deceive others.
"I have considered it carefully. Lithography machines have always been our country’s sore point, the Achilles’ heel targeted by our adversaries."
Sun Dasheng passionately stated, "I know you might be surprised. Why would a fool willingly spend a large sum of money recklessly? Isn’t that foolish?"
The crowd gave an awkward smile. 𝒻𝘳𝘦𝘦𝘸ℯ𝒷𝘯𝘰𝑣ℯ𝑙.𝘤𝑜𝘮
"That’s not what we mean," someone defended.
Sun Dasheng waved his hand, "It’s alright. If I encountered such a person, I’d think the same way. However, as a shareholder of SMIC, I deeply understand that without you, the national pillars tirelessly conquering this high-tech field, our country would always be at the mercy of others, in what foreigners mockingly call ’stuck at the neck’."
"Without advanced lithography machines, there are no advanced chips. Without advanced chips, our country will always pay a high-tech tax to Western nations."
"And we’d have to kneel and serve them like dogs just to get a few bones."
At this, everyone burst into laughter.
"President Sun, just keep these words among us; don’t say them outside. Otherwise... those dogs might bite," someone joked.
"Of course, I trust you all; that’s why I feel free to speak here,"
Sun Dasheng’s expression turned serious, "Now let’s start the formal talks. Tell me, how much exactly do you need? Give me a clear figure."
The company’s executives exchanged glances, and then the old academician stepped forward, "Of course, the more the merrier, but we can’t disrupt the company’s equity structure. Our current company valuation is about 150 billion, and we can offer you no more than 20% of the shares. How does that sound?"
Upon saying this, everyone fixed their gaze intently on him.
Like hungry wolves spotting a meal.
Apparently, their leaders assured them that the introduced person was very capable. They were just told to ask for as much as they could.
They naturally followed their leaders’ words, but they couldn’t grasp the full extent of his capability, so they couldn’t ask too much and scare him off, right?
So, after private discussion, they decided to start with 20% to test the waters.
If it worked on the first try, it’d be a win for everyone involved.
If it seemed too much, they could reduce it a bit, at least not scaring him away.
In reality, there is no such disruption of the equity structure; it’s just an excuse.
Currently, the major shareholders of Shanghai Microelectronics are essentially all state-owned enterprises. As long as the superiors give the order, each could reduce their share a bit, and it wouldn’t be a problem.
There are no shareholder obstructions.
"A valuation of 150 billion, 20% would be..." Sun Dasheng was still doing the mental math.
The opposite old academician quickly provided the answer, "30 billion."
"30 billion?" Sun Dasheng slightly furrowed his eyebrows.
This gave the other side an uneasy feeling. Was it too much?
"Isn’t it a bit too much? We can also lower it."
The old academician hadn’t finished his sentence before being cut off by Sun Dasheng, "Old academician, that’s not what I meant. I’m just wondering if 30 billion is enough."
"Huh?" The group was stunned.
"Yes, 30 billion is a significant amount in other industries, but in this top-tier high-tech field, isn’t it a bit too little?"
Sun Dasheng asked with a frown.
"It’s not little." "30 billion is sufficient for now." "It can start the development of the next generation of new lithography machines." The crowd chimed in.
Interrupted by the old academician in the center.
"How much do you think is not too little?" The old academician gazed at him intently.
As the company’s Chief Technical Officer, he naturally hoped for more R&D funding.
Indeed, the lithography machine is an industry highly valued by the state, and they are willing to invest heavily in it, but the country also has its strategy.
They can’t put all their eggs in one basket.
The country has selected three to five key enterprises in China for investment, and whoever makes the breakthrough first, whoever achieves the most advanced results fastest, the state will naturally channel the funds towards them first.
The competition is intense.
That’s why the old academician is so eager for this funding.
With more money, things get done more smoothly.
Perhaps, with a swoosh, they could lead the domestic peers.
"It needs to be at least 100 billion," Sun Dasheng said casually.
"100 billion?" the group exclaimed.
Looking at him now, their gaze was no longer that of hungry wolves at food but rather ordinary mortals seeing the God of Wealth.
