Rebirth 08: Rise from copycat phones

Chapter 486 Zhiyun's dual listing and EUV lithography machine mass production

When Zhiyun Group's new sub-brand 'Xinyun' released two new mobile phones, it further promoted the battle of the autumn smartphone market.

For Zhiyun Group, the most intense period of this market competition has actually passed!

The newly released S18 series of mobile phones by Zhiyun Group continue the strength of the S series of mobile phones as always, sweeping markets around the world.

Even in the US market where sales are banned, there are large numbers of S18 series phones being carried by individuals or smuggled in.

In the Chinese market, the S18 series of mobile phones almost monopolizes the entire high-end market... In fact, there is no other real high-end flagship phone in the Chinese market.

After all, fruits couldn’t enter the market, and the Galaxy series of Samsung had a very low market share, and had previously been negatively affected by battery explosions. Then major domestic mobile phone manufacturers took the opportunity to desperately grab market share.

Under such circumstances, let alone the Galaxy series, all types of mobile phones under the four major brands have almost completely disappeared from the Chinese market.

In this case, although there are so-called high-end flagship products from other domestic manufacturers in the domestic market, such as Huawei's flagship series and Weiku Electronics' Little Blue MAX series, their market positioning is still lower than the Zhiyun S series, which can be seen from their pricing... They are mainly positioned in the price range of three to four thousand yuan.

The Zhiyun S series is positioned in the market priced above 5,000 yuan. At the same time, the Max version and Max Pro version of the S series currently account for more than half of the sales of the entire S series.

The market with a price range above 8,000 yuan is a market that other mobile phone manufacturers cannot even look up to... That is the exclusive market for Zhiyun S series mobile phones!
In this case, Zhiyun actually dominates the domestic high-end market, and other manufacturers can only grab part of the market in the 10 yuan price range at best...but the sales volume is not very high. Weiku Electronics' Little Blue MAX Pro is a typical example, but its annual global sales volume is estimated to be only a few million units.

In developed countries such as Japan, South Korea, Europe, Canada, and Australia, Zhiyun S series mobile phones relied on the advantages of new models to sweep the market in August and the first half of September, monopolizing the high-end market share for nearly a month.

After Apple released its new models in mid-September, the Zhiyun S18 phone and Apple's new phones, including XR/XS/XS Max, started an all-round competition.

However, Zhiyun's S series still has a relatively large advantage relying on its long-established brand advantages and technological advantages!

In fact, both parties have a very solid base: a huge replacement market for existing users!
Whether it is the Zhiyun S series or the Fruit mobile phone, they all have extremely sticky hardware and content ecological advantages. Once used for a long time, it is actually very difficult to break away from them and switch to other brands of mobile phones.

The hardware ecosystem, software content ecosystem, and massive personal data transfer of the entire family bucket... are not so easy to throw away.

Therefore, when these old users change their mobile phones, they often only change the original mobile phone brand: Zhiyun or Fruit!
In addition to constantly trying to win over and compete for each other's existing users, the two sides are actually competing more for users of other mobile phone brands and new generation users.

It is not easy to compete for users of other mobile phone brands... Each brand also has its own loyal fans, and it is not easy to snatch their mid-to-high-end phone users.

For example, users of the four-star Galaxy series love the open source Android system, love to use Google Mall, and love the curved screen and other technical features of the four-star Galaxy. It is not easy to convince them to change their mobile phone brand.

Weiku Electronics's Little Blue MAX series of mobile phones are big users. They are used to using Little Blue phones, and it is quite difficult to get them to switch to the Zhiyun S series.

As for low-end and mid-end users of other mobile phone brands, this is not of much value!
Why do low-end mobile phone users use phones that cost one or two thousand yuan? Is it because they don’t want to buy the Zhiyun S18 Max that costs eight thousand yuan?
No, they just can’t afford it or are reluctant to buy it!

In addition to this group of people who are short of money, there are also some people who pay more attention to cost-effectiveness.

The cost-effective group is more difficult to serve than users without money!
They have been using a small blue cell phone that costs one or two thousand yuan, and they are proud of it, thinking they are very smart and that those who use cell phones that cost thousands of yuan are fools!
If you recommend him the S18 standard version which costs more than yuan, he will roll his eyes at you;

If you recommend the 18 yuan S Max to him, he will think that you have a grudge against him and are deliberately harming him!

Regardless of whether they are poor or cost-effective users, these two groups are actually very difficult for Zhiyun Group to win over...

Of course, people will not always be poor. For example, many young people have a hard time when they are studying and just starting to work, but after working for a period of time and saving money, many people will want to buy a Zhiyun S series mobile phone to experience the feeling of a "high-end phone"... These talents are the group that Zhiyun Group is striving for!

This group is also the largest source of new users for Zhiyun S series mobile phones!

Therefore, Zhiyun Group’s advertising and marketing strategy has never given up on this group of people!
In addition, there is a relatively special new user group, that is, young users who have just started using smartphones, or to be more precise, the student group!
A large number of people are born every year around the world, and every year a large number of people grow up to the age to use smartphones.

This means that there will be a large number of new mobile phone users every year!
And these new users are the key users that Zhiyun Group is competing for!

At the same time, in order to compete for these pure new users, Zhiyun Group has launched a special education version in many countries around the world, including computers and tablets.

Students can enjoy certain discounts when purchasing educational computers and tablets from Zhiyun Group!
As long as students use any of these devices, they will most likely buy and use a Zhiyun phone!

Because the hardware ecosystem of Zhiyun's entire family is very complete, the effect of using mobile phones, computers and tablets together is very good, especially file editing and transmission are very convenient. At the same time, Zhiyun's software ecosystem also has a large number of professional software for learning and office use.

Very convenient for work and study!
In order to stabilize the existing users who want to change their phones as much as possible and attract new users, Zhiyun Group has taken various measures. As a result, the sales of S series mobile phones of Zhiyun Group have been relatively stable every year.

This year's S18 series of mobile phones continues the performance of previous years!

Just as the S18 series of mobile phones were becoming popular all over the world, a new round of storm was also set off in the domestic securities market.

Weiku Industrial, an electronic product OEM manufacturing company under Xu Shenxue, officially announced its entry into the domestic stock market!
Taking advantage of the hot sales of the S18 series of mobile phones, the company has received a lot of OEM orders; at the same time, Zhiyun Group's intelligent robot business is also maintaining rapid growth, and its OEM orders are also very large.

The stability and growth of these two core businesses have earned Weiku Industrial recognition from a large number of investors.

Of course, what is more important is that Weiku Industrial is a company under Xu Shenxue. This alone is enough to make many investors buy the company's stocks with their eyes closed.

On September 25, Weiku Industrial was officially listed, and its issue price exceeded the previous estimates of many industry insiders.

Many people previously estimated that the issue price would be around 80 yuan, but in fact the issue price rose to 85 yuan.

This is because the huge amount of subscription pushed up the issue price of Weiku Industrial, and the final issue price of the stock reached 87 yuan.

Within ten minutes of the listing day, the stock price of Weiku Industrial rose by ten percent. After fluctuating at the price of ten percent for a period of time, it continued to rise in the afternoon driven by a large amount of funds, and finally began to fluctuate after rising by about eighteen percent.

After the market closed that day, the stock price reached one hundred and three yuan!

The market value of Weiku Industrial after the market closed has reached a staggering 630 billion yuan, which has exceeded the estimates of many securities analysts.

Previously, the financial market estimated the market value of Weiku Industrial after its first day of listing to be about 500 billion yuan. This price included the increase on the first day after issuance... In order to attract people to subscribe to stocks, the issue price is generally slightly lower than the market value, leaving a certain amount of room for the stock to rise after issuance.

But in fact, the issue price has exceeded the previous estimates of analysts, and the increase on the first day of issuance has surprised analysts, as the increase has exceeded their expectations.

In the end, the market value of Weiku Industrial remained at 630 billion, and the entire stock issuance raised a total of 80 billion yuan.

These funds will subsequently be used for a series of technological research and development and capacity expansion plans of Weiku Industrial.

The market value of Weiku Industrial exceeded expectations, which is closely related to the huge amount of domestic funds but the lack of investment channels.

The amount of funds in the country is actually very huge, and a considerable portion of this huge amount of funds has flowed into the real estate sector. However, this year many people have noticed that something is wrong with the real estate market, and funds are gradually being withdrawn from the real estate market.

The withdrawn funds need a new investment direction!
The stock market has become one of the options!

As we all know, the domestic stock market is actually quite sluggish, and investors do not trust domestically listed companies very much.

But there is an exception, that is, Zhiyun concept stocks. These supply chain companies or related companies have grown up relying on Zhiyun Group and are closely related to Zhiyun Group. They are the few companies in China that can achieve rapid growth, have good prospects, and can bring huge returns to investors.

This is the case for all related companies, not to mention the core companies under Xu Shenxue.

When Weiku Electronics went public last year, it attracted a feast of capital, and its stock price has continued to rise this year.

This year's listing of Weiku Industrial once again set off the market, with a large amount of funds participating in the subscription before the official issuance.

Not only did a large amount of funds in the original stock market participate in it, but in fact many people who did not originally buy stocks also participated in it.

They don't trust other domestic listed companies, but they trust Xu Shenxue!

So to some extent, in fact, Wecoo Industrial and Wecoo Electronics, as well as other Zhiyun-related companies, or many companies that have developed through the domestic semiconductor and smart terminal supply chains, have been listed one after another and, to a certain extent, have served as a domestic capital reservoir.

Of course, after these funds were invested in the stocks of these companies, they also brought rich returns to the investors. At the same time, the funds of the core investors also brought sufficient development funds to the companies.

This is a win-win capital flow!
Xu Shenxue was very happy about the successful listing of Weiku Industrial, because it made him see the huge potential of the domestic financial market.

It's not that there is no money in the domestic financial market. In fact, there is plenty of money, but a large amount of money has poured into the real estate market or simply been put up as deposits.

Once companies with great potential are listed in the domestic market, these funds will flow into the stock market to a certain extent.

This is the scene that Xu Shenxue hopes to see!
Many of the companies under his control require huge amounts of funds for development!

As long as there is sufficient domestic capital and potential, he will gradually launch plans to list his companies in the country.

Before Weiku Electronics, Weiku Industrial had already taken a step ahead.

Next up is Yihai Technology and HaiLan Automobile!
In addition, Xu Shenxue is also preparing to split up some subsidiaries of Zhiyun Group, especially Zhiyun Microelectronics, the money-eating beast!

In addition, the newly established Xinyu Technology Co., Ltd., this subsidiary, can also be used to go public and raise funds.

Finally, he has a major plan: Zhiyun Group is preparing to adopt a dual-listing plan, listing on the Hong Kong stock market and on the domestic stock market at the same time!
However, if a behemoth like Zhiyun Group wants to go public in China, the proportion of shares issued cannot be too many... If there are too many, the domestic financial market will not be able to handle it!
Today, Zhiyun Group is a giant enterprise with a market value of more than 2.3 trillion US dollars. If it issues 10% of its shares in China, it will be a huge figure of 230 billion US dollars... converted into Chinese yuan, it will be more than 1.5 trillion yuan. If Zhiyun Group really does this!

When Zhiyun Group announces its IPO, the domestic stock market liquidity will be drained away in an instant, and a very strange scene will occur: Zhiyun Group’s stocks will rise, while other stocks will generally hit the limit down!
Because investors will abandon stocks of other companies and pool funds to subscribe to Zhiyun’s stocks!

After all, the total amount of funds flowing into the domestic stock market this year is only a few hundred billion yuan. The market value of all companies in the entire domestic stock market added together is only 60 to 70 trillion yuan, of which the market value of circulating stocks is only more than 20 trillion yuan, and the average daily trading volume is only a few hundred billion yuan.

If Zhiyun Group issues 1.5 trillion shares in one go, it will not be a grand listing event, but a stock market crash that will spread across the country's financial markets!

Very scary!

After all, the domestic stock market and the Hong Kong stock market are different. The Hong Kong stock market is a free market with funding sources all over the world. When Zhiyun Group was listed on the Hong Kong stock market, most of the funds did not come from the original Hong Kong stock funds, but from funds from all over the world that smelled the scent of money.

Even so, the total amount of funds absorbed that year was only a few hundred billion US dollars...a far cry from the more than 200 billion US dollars today.

Especially in the domestic stock market, the source of funds is mainly domestic funds, and overseas funds are relatively small.

Now that Zhiyun Group's market value is even higher, if it still strictly follows the rule of issuing 10% of the shares, and directly collects 1.5 trillion yuan in funds in one go, the consequences are unpredictable.

However, Zhiyun Group is pursuing a dual-listing plan, and will return to the domestic market after listing on the Hong Kong stock market. This is a plan that Xu Shenxue has been planning for a long time, and it is also the vision of many domestic financial institutions!
My family has finally built a top giant enterprise, but if I want to invest in the secondary market, I have to go to Hong Kong stocks to invest. This is embarrassing and troublesome.

In fact, a number of heavyweight financial institutions have long wanted Zhiyun to return to the market, and various heavyweight funds have been eagerly waiting for a long time.

At the same time, many ordinary investment institutions and small and medium-sized investment institutions such as funds also have high hopes for Zhiyun.

Even ordinary investors, and even those who do not play stocks, hope that Zhiyun Group will return to China for listing, and then buy some Zhiyun stocks and save them like pension.

This is the blind trust and even admiration of countless ordinary people in Zhiyun Group and Xu Shenxue!
I always feel that if I work with the richest man Xu, even if I can’t eat meat, I can at least have a sip of soup!
What's more, even ordinary people can see that now, in addition to the smart terminal business, Zhiyun Group's vigorously developed smart robot business and artificial intelligence computing power card business are developing rapidly, with the same momentum as Zhiyun Group's development of the smart terminal business in the past.

At times like this, if you can take advantage of the opportunity to buy some stocks, you can make money in the future without doing anything!
However, Zhiyun Group’s return to domestic listing will have a huge impact, and Xu Shenxue cannot act recklessly!
Therefore, in late September, he contacted a number of domestic financial institutions to discuss the feasibility of Zhiyun Group's return to China for listing.

Zhiyun Group's return to China for listing and dual listing plan is not intended to attract funds for development. In fact, Zhiyun Group is not short of money... cash flow exceeds 300 billion US dollars!
Well, in order to avoid taxes in various countries, Zhiyun Group has never distributed dividends directly. At most, it occasionally carries out stock repurchase plans... This is also one of the reasons why Zhiyun Group's stock continues to rise.

This also led to Zhiyun Group's cash flow being extremely exaggerated.

The reason why they still want to go back to the domestic market for listing even though they are not short of money is mainly based on the overall situation: to further bind domestic capital and form a broader and more solid combination of interests!
Zhiyun Group is no longer a simple private enterprise. It needs more extensive and in-depth domestic support to ensure a smooth development path in the future!

And there is no better way than bundling interests!

Previously, Zhiyun Group had tied up with major domestic financial institutions through targeted share issuance.

Now, it is going a step further and preparing to bundle the funds in the secondary market as well, and to bundle up a large amount of private funds.

This kind of thing is not something that Xu Shenxue can decide alone, so he needs to negotiate with multiple financial institutions and then find a more stable and feasible plan.

It is not feasible to directly issue at least 10% of the shares and raise more than 150 million yuan in funds... It's too ridiculous.

This matter still needs long-term consideration!
In this regard, Xu Shenxue could only wait and wait for the other party to come up with a feasible plan.

Before that, we can plan the listing of Yihai Technology and Hailan Automobile!
In short, Xu Shenxue's plan is very simple, which is to launch a subsidiary company to be listed in the country every once in a while. While absorbing funds for its own development, it also acts as a reservoir to absorb excess funds in the country.

This is to prevent these funds from having nowhere to go and all flowing into the real estate market, thereby messing up the domestic consumer market.

The domestic consumer market is the basic market for a series of Xu's enterprises under Xu Shenxue, such as Zhiyun Group. Xu Shenxue needs it to be stable and continue to grow in stability.

If the domestic consumer market stabilizes and can grow, then Zhiyun Group will be able to stabilize, and other companies such as Wecoo Electronics, Wecoo Industrial, Hailan Automobile, and Yihai Technology will also be able to stabilize.

No matter how fierce the storm is outside, Xu Shenxue has the confidence to compete with those conglomerates outside!
But if you can't even stabilize your own home and yet you go out and fight, do you really think that companies like Apple, Samsung, Google, Microsoft, Facebook, Qualcomm, Intel, AMD, Tesla and major car companies are dead?
One of Xu Shenxue’s established plans is to stimulate the domestic stock market by listing his companies and promote the inflow of domestic funds into the securities market!

It doesn't need to be much, just a few hundred billion yuan in additional funds every year can play a huge role.

After all, finance is leveraged!

Hundreds of billions of funds, through leverage, can influence the direction of trillions of funds!
After all, the incremental funds in the domestic real estate market are only a few trillion yuan a year. Simply withdrawing a few hundred billion yuan from it can immediately stop the crazy momentum of the real estate market.

Investing 5 trillion yuan in the market and 4.5 trillion yuan in a market have two different concepts of stimulating effect on the market... The impact is huge.

Driven by Zhiyun Group and HaiLian Automobile, the domestic high-tech industry can also replace the economic driving role of the real estate industry to a certain extent.

The smart terminal industry has surpassed the real estate industry to become the economic leader, and has gradually become a display!
With the strong pull of smart robots, smart electric vehicles, and artificial intelligence functional industries, the economic stimulus effect of the real estate industry can be gradually replaced, thereby achieving healthier economic development.

This healthy economic development will be of great benefit to companies such as Zhiyun Group, HaiLan Automobile, Yihai Technology, and Weiku Electronics!

Of course, all of this is built on the foundation of the semiconductor industry... The development of all the above-mentioned Xu companies is based on chips.

Mobile phones, computers, robots, and smart electric vehicles all require high-performance chips!
Mobile phones require SOC, flash memory and memory chips, and they must all be chips made with advanced technology.

All kinds of computers require CPU, graphics card, memory and flash memory!
Smart electric vehicles and robots require top-level terminal computing chips, and EYQ and ZY series computing chips are the core hardware.

Not to mention the core technology supporting these businesses, namely artificial intelligence technology, which requires high-performance server GPUs. The AI ​​series and APO series graphics cards are the core hardware supporting artificial intelligence technology.

Without top-performance AI series and APO series graphics cards, you cannot play with artificial intelligence.

Finally, it all comes back to the semiconductor industry!

All of this requires Zhiyun Microelectronics, the world's largest and most technologically advanced semiconductor manufacturer, to provide advanced process chips.

Zhiyun Microelectronics' advanced technology requires the support of semiconductor equipment and consumables produced by the companies under Xiannvshan Holdings!
Therefore, when Haiwan Technology, a subsidiary of Fairy Mountain Holdings, officially delivered the first mass-produced EUV lithography machine to Zhiyun Microelectronics.

Xu Shenxue attended the delivery ceremony in person!

At the newly built Factory 29 of Vico Electronics’ Shenzhen base, Xu Shenxue saw this mass-production EUV lithography machine.

Wang Daolin, CEO of Gulf Technology, excitedly introduced the EUV lithography machine to Xu Shenxue: "The current mass-produced EUV lithography machine is model HEUV-300B, which is a perfect version of the previous prototype HEUV-300A. After a year of various tests and technical upgrades, we have discovered and solved more than technical problems, covering various fields such as machines and exposure systems, and improved work efficiency!"

"Our current HEUV-300B lithography machine has a resolution of nanometers, a numerical aperture of , an overlay accuracy of nanometers, and can process silicon wafers per hour."

"According to our intelligence sources, the performance is probably comparable to the EUV lithography machine that ASML is developing!"

"In fact, we are also making major technical upgrades to the machine, which is expected to increase the processing speed to 200 pieces per hour. However, this technological breakthrough is still in the experimental stage. For the sake of safety, we did not use it on this generation of mass production models, but are preparing to use it on the subsequent second generation of mass production models!"

At this time, Ding Chengjun, CEO of Zhiyun Microelectronics, also said: "We plan to use this HEUV-300B lithography machine for the production of equivalent seven-nanometer process in the early stage. After using this optical technology, our equivalent seven-nanometer process manufacturing cost will be greatly reduced!"

"We previously used DUV immersion lithography machines to forcibly produce chips equivalent to the 7-nanometer process, but the manufacturing cost is still very high. Currently, only some top-level chips can afford this cost!"

"The high cost is the reason why we only planned 70,000 pieces of DUV immersion lithography equipment to produce equivalent 7-nanometer process."

"The total capacity of the 7-nanometer process that we are currently planning is to reach 150,000 pieces in the early stage, and the additional capacity will be produced using EUV lithography machines. In addition, the 7-nanometer process capacity of EUV lithography machines will be further expanded in the future, eventually reaching a scale of 150,000 pieces!"

"The 7-nanometer process capacity of the 25th plant will be used to convert the production of chips with equivalent 10-nanometer and 12-nanometer processes. After all, it is too expensive to use a DUV immersion lithography machine and a quadruple exposure process to produce 7-nanometer process chips."

"When we didn't have EUV lithography machines, we had to grit our teeth and use them. Now that we have EUV lithography machines, there is no need for us to forcefully use DUV immersion lithography machines to produce 7-nanometer chips. This will greatly reduce costs!"

"At the same time, we will also increase our mature production capacity of 10-nanometer and 12-nanometer processes to meet the market demand for various mature chips!"

"We are currently also promoting the 10-nanometer process and the 12-nanometer process technology, especially the 12-nanometer process technology. This technology is mature, the market is large, and there is great potential in the future!"

"More importantly, if we use the HEUV-300B lithography machine to produce chips equivalent to the seven-nanometer process, the cost will be greatly reduced, allowing ordinary chips to use this process, such as chips for various mid- and low-end smart devices. This will greatly expand our revenue share in the seven-nanometer process!
"Considering the strong demand for 7-nanometer technology from S-series SOC, W-series SOC, computer CPU chips, consumer GPU chips, as well as AI series graphics cards, APO series graphics cards, EYQ chips, EYEQ chips, PX chips, and ZY computing chips required in the field of artificial intelligence," he said.

"We estimate that in the logic chip business, the revenue from 7-nanometer advanced process foundry will increase from 15% this year to 25% next year, and to more than 40% the year after!"

“The 7-nanometer and more advanced 5-nanometer processes in the future will become the main source of revenue for our Zhiyun Microelectronics!”

"At the same time, we can also use this lithography machine in our memory chip manufacturing field. Our 10C process in the memory field has completed the preliminary theoretical preparation stage, and now we are waiting for the EUV lithography machine!"

"The application of 10C technology can also help our memory chips gain more market share!"

Xu Shenxue looked at the HEUV-300B lithography machine in front of him and listened to the introduction of the executives around him. He couldn't help but smile: "The future is promising!"

"Keep going, I hope next year's S19 phone will be able to use the -nanometer process chip produced by this EUV lithography machine!"

(End of this chapter)