20 years of restarting life

Chapter 3767 Jiangcheng's Sincerity

If the wafer fab is not located in Optics Valley, or in a more remote and outlying area, the land price would be much cheaper.

According to Zhao Chang'an, a piece of land that was not far from the planned subway line was recently transferred for only 16 yuan per mu, or 267 yuan per square meter.

However, the R&D center will be located at a future subway station, surrounded by universities and a nationally renowned tourist attraction. It is highly likely that the station will be named in a way that connects the elements of nanometers and the R&D center, serving as a landmark.

Although this lake is not small in area, it is very shallow and has a low water storage capacity. It is not very profitable as a reservoir for urban flood control or for aquaculture. However, it is suitable for planting aquatic crops such as lotus, water chestnut, water caltrop, and water bamboo, as well as raising some fish, chickens, ducks, and geese.

When Zhao Chang'an visited East Lake in Optics Valley in his previous life, he only saw a small lake of tens of thousands of square meters, which was more than ten times smaller than its current size.

It is clear that the value of the land in this area makes the land value of this nearly 700,000-square-meter lake, which has virtually no flood control or water storage function (the water is too shallow), far exceed its scenic value, and it has been mostly filled in for construction.

The area is surrounded by high-tech enterprises and upscale residential communities. At its peak, the price of commercial housing was over 20,000 yuan per square meter, and demand still exceeded supply.

So some things need to be clarified. Zhao Chang'an is definitely reluctant to fill in a 700,000-square-meter scenic lake as internal scenery for the company. However, in the future, if necessary, some necessary parts can be filled in, such as filling in the silty small lake inside the gourd-shaped lake.

If a more beautiful landscape can be achieved, could the wafer fab also fill in 200,000 to 300,000 square meters of the lake, retaining only 400,000 square meters to better maintain the lake's curvature, and carry out infrastructure construction along the lakeside?

Employee recreation areas, factory buildings, and employee housing are all ideally located by the lake.

"According to current practice, the lake will be priced at 75 yuan per square meter. Provided that the water quality is maintained, the fish and aquaculture within it will belong to your company. Additionally, subject to approval, you may construct a yacht marina and other landscaping within the lake."

Acquiring a lake for 50 million is indeed not cheap. However, in the long run, a scenic lake that belongs to the company is definitely worth the investment.

"If we reduce the size of the lake and fill it in, is that possible? And can we build factories and employee housing in the filled-in area?"

Jiangcheng had already anticipated Zhao Chang'an's suggestion during their emergency discussion at noon, as the lake's rules were somewhat chaotic, and some leveling and corrections were inevitable.

"Yes, provided that approval is obtained. However, if factories and employee housing are built on the land, land use fees will need to be paid in accordance with regulations."

Ji Chengyong said, "Considering that filling in the lake will also require a lot of funds, we will also provide certain reductions and exemptions. These can be discussed in the subsequent negotiations. As for the price of the industrial land on the shore, it is currently listed at 59 yuan per mu. If company employees want to change their housing to commercial housing and obtain property certificates in the future, they can simply pay the difference. The demolition cost of this land in Jiangcheng is not low. The current listed price is 59 yuan, but it is only sold to outstanding high-tech companies."

Zhao Chang'an nodded. When the R&D center was being located, the area had many suburban villages and towns, as well as numerous small and micro-enterprises. The demolition work in the Optics Valley area is still ongoing, and demolition is inherently difficult, especially given its proximity to the three towns and the large number of universities relocating there. In the future, while land will be incredibly valuable, its price will certainly be high. Therefore, now that the demolition is nearing its end, it's become even more challenging.

The site where the R&D center was previously located was a village with a large number of two-story or even three- or four-story houses. In order to resettle these villagers, a new rural community was built in another location. The total demolition cost is estimated to be no less than 25 yuan per mu.

This only covers the visible costs; it doesn't even include the enormous human resources costs that Jiangcheng invested in demolishing this land.

It's clear that Jiangcheng has really put in a lot of effort, showing the utmost sincerity in terms of equipment subsidies and the location of business sites.

"There are also tax and fee reductions. After the wafer fabs and chip factories are built and put into operation, wafer foundry and chip sales will be given the most preferential treatment for investments by foreign advanced high-tech companies. They can be exempted from taxes for two years and then taxed for three and a half years."

Ji Chengyong's statement essentially means that the preferential policies for foreign investment formulated by the State Administration of Taxation last year (01) included provisions that "foreign-invested advanced technology enterprises that remain advanced technology enterprises after the expiration of the period for exemption or reduction of corporate income tax according to tax law may have their corporate income tax reduced by half for another three years at the tax rate stipulated by tax law." This was essentially a way of giving wafer fabs and chip manufacturers an advance notice.

"Moreover, if the finished chips manufactured by chip factories are eventually circulated abroad, they will also be considered as exported products. For chip exports of more than 70%, this clause can be applied during the three-year period of halved taxation, with only a 10% tax burden."

Ji Chengyong said to Zhao Chang'an, "As far as I know, your Pro phone in Zhengzhou Airport Economic Zone seems to have made it clear that you will only do export business for the time being. If you use the chips from the companies here, given the design scale of your Pro phone factory in Zhengzhou, this is not impossible."

There was another commotion in the small conference room. Siemens currently only has one cooperative wafer fab in Asia, which is the 8-inch fab in the joint venture with Mosel. However, Siemens holds shares mainly through technology licensing, so losing this company would not be a loss for them.

This means that the Jiangcheng plant could fill the gap in Siemens and Infineon's Asian demand for silicon wafers, plus the demand for 1nm Pro phones and Ericsson's chips in Asia outside of China, making it possible to achieve 70% of the export volume.

This means that the corporate income tax for the Jiangcheng plant is so low that it is almost non-existent. Such a significant benefit demonstrates Jiangcheng's determination to retain the wafer fab.

At first glance, Jiangcheng's actions may seem like a loss-making publicity stunt, but in reality, the company's exports can generate substantial foreign exchange. Furthermore, the issuance of RMB differs from that of USD, as it is backed by the government's credit.

No matter how much money is printed, it's all just internal circulation; only by selling products and earning foreign exchange can a country's financial strength be enhanced.

"These three points represent the most sincere invitation from Jiangcheng. In addition to these, there are many other preferential policies and reductions, which Director Tang will introduce."

After Ji Chengyong stated these three most important and significant points, he handed over the reins to Tang Juqin, the director of the Optics Valley New Development Zone.