20 years of restarting life

Chapter 3766 Jiangcheng's Sincerity

Seeing Zhao Chang'an deep in thought, De Weiner wasn't in a hurry to urge him. After all, Ericsson's attitude towards this wafer foundry was indifferent, as long as they could secure big orders such as the baseband chip, RF chip, and 3G standard license for the Pro phone.

Furthermore, if Ericsson invests in a 12-inch wafer fab, the level of importance attached to the company will certainly vary depending on the percentage of investment. If the investment is substantial, then at least the chips for Ericsson and Sony joint venture brand mobile phones in Asia will be manufactured by Jiangcheng chip factory.

This means that Ericsson, after terminating its cooperation with Siemens and Infineon last year, has chosen to continue its cooperation with them.

Of course, it's nothing, it just feels a little strange.

Zhao Chang'an couldn't simply tremble and force Devina to submit unconditionally, since although he had mastered the ancient martial art of "The Gentleman Does Not Use Weapons," it seemed to only work on women.

If it comes to converting the 12-inch fab, DeWeiner certainly doesn't have the authority to make the decision. However, the information he reports back, especially the high level of attention and enthusiasm shown by Jiangcheng, as well as the local economic development, the concentration of universities, and other factors, will have a significant emotional impact on Ericsson's final decision.

So Zhao Chang'an still had to persuade him, even though this guy in front of him looked shrewd and wasn't so easy to convince.

Seeing Zhao Chang'an's furrowed brows, Dwina knew that he couldn't find a suitable reason to convince himself to follow his pace. He glanced at the time; he had been running around all morning, and there was still that discussion meeting in the afternoon, which he didn't care about much, but still cared about. He also needed to rest for a while.

He then said to Zhao Chang'an, "Mr. Zhao, you don't need to come up with any reasons to convince me. As for Ericsson, in my reports to the company, I will definitely give high praise to China's vibrant economy. Actually, I don't even need to include this in the report. Last year, Ericsson mobile phone sales in China exceeded three million units in Beijing and over two million units in Nanjing. The company is extremely familiar with this market. As for Jiangcheng's cooperation and enthusiasm, we have deeply felt this in every city in China. Therefore, the final outcome of this matter depends first on whether Siemens is willing to invest, and secondly on the company headquarters' specific evaluation. I really like Jiangcheng, so my report will only contain praise for the city."

Zhao Chang'an laughed. Talking to smart people is so time-saving and effortless; you don't even need to say anything, the other person already understands.

-

In the afternoon, a discussion meeting was held in the small conference room of the Optics Valley Hotel.

After a midday of emergency consultations, Jiangcheng has initially come up with preferential policies and support for 12-inch wafer fabs.

First, there was the equipment acquisition subsidy, which was given in one lump sum at the highest level of 25%.

As Ji Chengyong stated this number, everyone in the Siemens team—including Ericsson and others—was slightly moved.

Although they had anticipated this beforehand, prediction and actual implementation are two completely different concepts.

A 25% subsidy means that if the investment in this wafer fab is $25 billion and the equipment procurement cost is about $20 billion, it can receive a subsidy of $5 million. Such a generous incentive is something that only China would dare to do in the world right now.

Sitting down, Zhao Chang'an knew even better what the $500 million subsidy meant. Converted to RMB, it was about 43 billion. Shancheng City had three districts, four counties, one industrial town, and one development zone, with a population of six to seven million. Last year, its GDP was only over 20 billion.

Jiangcheng City has a population of 813 million. Last year, its GDP was 1348 billion yuan, its fiscal revenue was 150.18 billion yuan, and its fiscal expenditure was 112.55 billion yuan.

For Jiangcheng, a near-first-tier city, this 43 billion yuan is definitely a huge burden.

It can easily turn its fiscal surplus into a deficit. "Jiangcheng's finances are not tight, and this amount is not small. Therefore, it will be partially converted into land, factories, power infrastructure, etc. As for the remaining funds, they can be deducted through future tax and fee offsets. Please understand that this money cannot generate late payment interest. Even if the interest rate is three percent, it will cause Jiangcheng a lot of trouble over a year. However, these deductions can be used for water, electricity, gas, taxes, etc., and they are deducted first."

When Ji Chengyong said this, everyone understood that even world-class companies like OneNano, Ericsson, and Siemens would have to think twice before spending this amount of money, let alone a company that relies on a local department.

Just like when ASML wanted to make a 193nm immersion lithography prototype, it proposed $500 million, but Intel, AMD and other companies were stingy and only willing to put up $200 million, and not just one company.

However, even with these two hundred million dollars, Intel and AMD were at odds, neither willing to take the money, and both wanting the other to invest and contribute.

If Intel and AMD, two world-class CPU monopolies, are so difficult to deal with, it's clearly unreasonable to expect Jiangcheng to come up with $500 million in equipment procurement subsidies all at once.

Seeing Ji Chengyong looking at him, Zhao Chang'an nodded and said, "That's understandable. Moreover, the strong support from Jiangcheng makes us more confident in achieving this cooperation."

"Secondly, there's the issue of land selection and size. My suggestion is to locate it in Optics Valley, and it can be integrated with the R&D center. There's a lake near the R&D center, isn't there? As long as you have the resources, we're willing to give it to you. There shouldn't be any major problems in turning this lake into your company's internal lake."

Inside the conference room, Zhao Chang'an's group couldn't help but whisper among themselves again. The lake was right behind the R&D center. The R&D center was surrounded by walls on both sides of the road in front, and behind it was a large lake without any walls.

The R&D center built a boardwalk that extends into the lake, and many employees go swimming there in the summer.

Although this lake is small, it covers an area of ​​nearly 0.7 square kilometers. Even if we only build businesses around the lake, the area of ​​this factory area will definitely exceed one square kilometer.

How are lake prices calculated?

Zhao Chang'an asked a substantive question: the most expensive industrial land in Optics Valley is 1932 yuan per square meter, which is 129 million yuan per mu.

The cheapest V-grade property is 557 yuan per square meter, or 37 yuan per mu.

If we consider the most expensive option, this lake alone would cost 1.3 to 1.4 billion, and Zhao Chang'an wouldn't want it even if he were crazy.

When the R&D center acquired the land two years ago, the land was already very good. The price of this 100-acre plot was 727 yuan per square meter, or 480,000 yuan per acre, costing nearly 50 million yuan.

Two years have passed, and the land price in this area has been adjusted to 59 yuan per mu, or 892 yuan per square meter.

It has increased in value considerably.

Moreover, this land has always been in a state of closure, with a market value but no market. It's not that there are no people or companies willing to buy it, but rather that it is simply not for sale.

In other words, if the land is actually put up for auction, the price will definitely be higher than this guidance price.