After listing, it even pulled 18 daily limit, August 2017 has even more than 120% increase. Behind the soaring share price, is a series of operations - the acquisition of Beijing Sicheng (for the end of Beijing Sicheng suppliers), combined Hefei production investment In the field of DRAM, the National Fund has been transferred as the company's second largest shareholder and shares in SMIC, intending to acquire Shanghai Sili Microelectronics.
In the context of the rise of domestic chips and the gradual debut of the national integrated circuit industry strategy, Kyi Yi innovation is very eye-catching.
However, when interviewed by the "Excellence" reporter, Chairman Zhu Yiming stated that Kyiyi Innovation must not simply engage in capital. 'Zhaoyi's innovation in any investment will not be a financial investment, and Zhaoyi's investment is a strategic investment.'
2017 may be the first year of China's semiconductor investment, and chip investment booms have started all over the country. More than a dozen industrial chain related companies have entered the capital market.
The capital is hot, the industry is boiling, how does a listed company take advantage of the rapid rise of the capital market? How do you get out of your own development path in the semiconductor boom?
The world's top three
Benefiting from the significant growth in demand, major storage chip companies have achieved impressive results in 2017. According to the Siu Yi Innovation Third Quarterly Report, the company achieved revenue of 1.517 billion yuan in the first three quarters, an increase of 44.69% year-on-year; The mother’s net profit was 339 million yuan, a year-on-year increase of 134.74%.
In accordance with the previous NOR Flash competition, U.S. companies have a 25% share of Cypress, ranking first; Taiwan’s two giants, Wanghong and Micron, accounted for 24% and 18% respectively. Winbond Electronics and Mega Innovation.
In February 2017, Micron Technology announced that it will spin off its NOR chip business and instead rush into DRAM and NAND Flash. In April, Cypress said it will withdraw from the low-capacity NOR Flash market and focus on high-capacity automotive and industrial applications. Regulation area.
"The exit of these two companies is both unexpected and unexpected." Zhu Yiming analyzed the "Eng." reporters, 'American companies pay more attention to strategic focus and gross margin. Micron should focus on the larger market, and Cypress It is even more focused on the Internet of Things.'
Micron, the exit of Cypress's two giants, made Mega Innovation a third place in the world. However, competition did not weaken.
Due to the early start, large scale, Taiwan Wang Wang, Winbond Electronics seized the opportunity. 'Overall, it is more beneficial to Taiwanese companies. They operate longer and have higher international reputation.'
"But the problem is how do you do the world first. This is the key." Zhu Yiming pointed out to the "talented" reporter that the first thing to do is to have a certain status. The memory chip industry itself is a global industry, how to become the world's No. One is always the issue we need to consider.
Due to the tightening market environment, Kyi Yi Innovation once ran aground trying to acquire the ISSI and become bigger and stronger, but the strategy of stepping into the mainstream market area has not wavered.
'Big Fund' blessing
Due to the tight global supply of flash memory chips and the increase in demand, NOR Flash's capacity supply has also tested various participants.
On November 29, 2017, Zhaoyi Innovation announced that it had subscribed for shares issued by SMIC (00981.HK) at a price of HK$10.65 per share. After the subscription was successful, the company held approximately 1.02% of SMIC.
SMIC is China's largest wafer foundry company, and it is also the most important foundry of Siu Yi Innovation. Strategically investing in SMIC will obviously help guarantee the supply of production capacity.
'This is a starting point, not an end point.' Zhu Yiming told reporters at the "Excellence", 'The strategic relationship with the wafer fabs will become more and more close. Moreover, not only the capacity cooperation, the future of various technical cooperation strategic cooperation will Further deepening. '
As the world's leading supplier of flash memory chips and MCUs, the National Integrated Circuit Industry Investment Fund has also given substantial substantive recognition to Zhaoyi Innovation in the capital market.
Through the transfer of shares, the National Fund has acquired the shares of the company that are incited by Zhonghai and Infrtek. At present, the major fund holds 11% of the shares of Zhaoyi Innovation and is the second largest shareholder of the company.
The strategic investment of the National Fund has enabled Kyi Yi Innovation to become the industrial platform where the national integrated circuit strategy has landed. Zhu Yiming stated that 'the National Fund has invested in us not only to acquire equity, but also to make money. From the perspective of industry layout, hope Zhaoyi can play a greater role in the national strategy. '
From non-mainstream to mainstream
Globally, the market size of NOR Flash is only 3 billion US dollars, which is far from the order of DRAM and NAND Flash ranging from US$30 billion to US$40 billion. To dig deeper, it is necessary to focus on a broader market.
On October 26, 2017, Zhaoyi Innovation and Hefei Investment signed a cooperation agreement. The two parties cooperated in the development of 19nm 12-inch wafer memory (including DRAM, etc.) R&D. The project budget is approximately 18 billion yuan.
However, this industry has long been in a highly monopolistic state. Samsung, Hynix and Micron have almost monopolized 98% of the global DRAM market.
Into the DRAM field, it means to take food and eat with the world's giants. The market can not help but worry, the layout of such a high threshold of the field, Zhao Yi innovation emboldened.
According to the plan, the funds for this project will be raised by Siu Yi Innovation and Hefei Production and Investment according to the ratio of 1:4. That is, Siu Yi Innovation will invest RMB 3.6 billion and the remaining RMB 14.4 billion will be invested by Hefei.
Compared with the 517 million yuan fund raised during the IPO, the funding gap is still relatively large. However, Zhu Yiming told the “Excellence” reporter: “The company has a wealth of financing channels. It is not difficult. The Hefei project, we say less, do more, the current progress is still very Fast. '
Compared with other cities, Zhu Yiming is more optimistic about Hefei's development prospects. Especially Hefei's 10.5-generation line constructed by BOE with an investment of 45.8 billion yuan was put into operation in advance. This made him deeply touched.
Zhu Yiming believes that the success of BOE can be replicated. And compared with the cities that once failed to lay out the integrated circuit industry, 'Hefei has no historical burden and local governments have no shadow of investment failure. Therefore, the success rate is higher.'
He believes that the target of Chinese chip companies is Samsung, SK Hynix and other giants, but the business competition plan must consider its own profitability, and repeatedly stressed the importance of cash flow.
'We must do a good job at the stage, do we have a market, can the market stage support you, have enough cash, can you make blood yourself, if you can't live, you live poorer and worse? It may eventually fail with blood transfusions. Isn't this the next LeTV?'
'After all, you can live and have the motivation to go forward', adds Zhu Yiming.