Global Monopoly of Technology

Luo Sheng continued: "Mr. Xu, I like Hua Wei's high-quality and strong talent pool. Looking at the whole country, the best talents in the industry are basically concentrated in Hua Wei. To be honest, I have tried poaching, but with little success. ."

Hearing this, Xu Zhijun laughed and couldn't help but feel a little proud.

Indeed, it is difficult to recruit people from Hua Wei. This is the consensus of the industry. Although there are many resignations, the talents that Luo Sheng wants are those who have not left.

There is only one kind of talent that other companies want to get from Huawei, and that is to earn almost the same amount of money for the front line. dug up.

Wah is willing to give a lot of money to this company as long as the employees dare to work hard.

There is also one that is eliminated at the bottom. Although it is a little worse, it is still the former employee. This brand is still very popular in the industry, just like the employees of Bluestar Technology are also popular in the Internet world.

Luo Sheng added: "My cooperation vision is that Hua Wei will provide relevant talents, and I will lead the technology development, but only for the development of mobile terminal technology. I really don't have time to do IC design for Hua Wei."

Obviously, Xu Zhijun heard the meaning of the subtext: as long as someone is available, there is a lot to do.

After the two sides met, they chatted for a long time, and also talked about various aspects. Both sides are engaged in technology. Xu Zhijun has never discussed such a selfless discussion with an external person.

During the exchange, Xu Zhijun accidentally said something, and Luo Sheng didn't know whether he said it on purpose or if he really said it, but it didn't matter. Xu Zhijun told Luo Sheng about the secret research and development of a wireless terminal chip codenamed "Meili" within the company.

This project started last year, and the purpose is also to develop WCDMA mobile phone chips.

However, Luo Sheng directly pointed out the inadequacies of the "Meili" project. After the disclaimer, he suggested that Hua Wei's team might as well spend their energy and funds on 3G Modem modems and AP application processors to accumulate strength, and even start 4GLTE new technology research and development and exploration.

AP application processor, which is also being developed by Luo Sheng's "Blue Core" project, but this does not hinder technical discussions and exchanges between the two parties.

The more they talked, the more Xu Zhijun realized that Luo Sheng and Cote d'Azur were definitely worthy of attention.

A person who is not a man of Wah understands Wah's worries, concerns, thoughts, and actions of the times, and he is able to personally engage in technology development, and naturally have a chat.

When the two sides met for the first time, they had a long talk for more than three hours before it ended, and Xu Zhijun also left.

During this time, Qin Weimu watched Hua Wei's people leave, only the two of them were left in the reception room, and immediately said: "If we can reach a substantive strategic cooperation with Hua Wei, it means that we have Hua Wei's endorsement, then I have There is a 90% probability that you can get a loan of 5 billion yuan, or you don鈥檛 need the equity pledge of your Bluestar Technology. But, can the two parties finally reach a cooperation?鈥?,"Both parties in this conversation were very satisfied, but they did not reach any legally binding agreement, and it is impossible to reach a cooperation just after meeting, and it is not uncommon to even talk for a month.

Luo Sheng smiled and said, "Although there is no absolute certainty, I can have great expectations for this cooperation."

After Xu Zhijun left Cote d'Azur, he did not leave Sioux City, but stayed at a local hotel for a whole week.

During this period of time, Xu Zhijun frequently went to and from the headquarters of the Cote d'Azur, naturally negotiating specific cooperation issues with Luo Sheng.

On the sixth day of his arrival in Sioux City, the media caught him frequenting the headquarters of the Cote d'Azur, and relevant reports soon appeared on the news.

For a time, the Cote d'Azur company, which has been immersed in a low profile for seven or eight months, has once again attracted the attention of the industry.

It is not surprising that Wah Wei's high-level personnel appear in the Cote d'Azur company, which is not surprising, or even deserved, because as long as you check the general business items registered by the Cote d'Azur company at the industrial and commercial office, you will know that they are all players in the ICT field.

But the problem is that the founder of Cote d'Azur is not an ordinary person, but Luo Sheng. What kind of person is this? This is an existence that does not play cards according to the routine, and especially fools investors, and has repeatedly succeeded and has never failed.

When the industry heard the news, many people came up with the same idea surprisingly unanimously: Shouldn't Hua Wei also be "flickered" by Luo Sheng by throwing money at him?

this this this...

It is possible.

Soon, the answer to this question appeared on the paper half a month after Xu Zhijun came to Sucheng.

...

On December 23, 2004, Hua finally made an extremely bold and even crazy decision for the internal board of directors, so that after the news was announced, countless people in the industry were shocked.

At about 16 o'clock in the afternoon on this day, Xu Zhijun, on behalf of Hua Wei Company, and Luo Sheng, on behalf of Cote d'Azur Company, held a temporary media conference in a local five-star hotel in Sioux City, officially announcing a strategic cooperation between the two parties. The agreement was attended by the leaders of the city of Sioux City.

For Su Cheng, the landing of Bluestar Technology Company was a joy, but Shen Cheng was very depressed, and he still couldn't figure out why Luo Sheng moved the company out of the country.

The two parties jointly established a new subsidiary, Lens Semiconductor.

This is a semiconductor joint venture company with independent accounting, independent sales, and focus on independent research and development of integrated circuits.

Lens Semiconductor is headquartered in Sioux City instead of Pengcheng. The company's registered capital is 2 billion yuan, which is jointly invested by Hua Wei and Azure Coast.

Huawei invested 1.32 billion yuan, accounting for 66% of the equity, and C么te d'Azur invested 680 million yuan, accounting for 34% of the equity. The first CEO of Lens Semiconductor was Xu Zhijun, who also served as the company's legal representative.

The establishment of Lens Semiconductor is not only a huge advantage to the outside world, but Luo Sheng himself feels the same way, which is why he is shocked by the jaws of outsiders.

The shareholding ratio of the two parent companies is obviously dominated by the basic direction, but major strategic decisions require more than two-thirds of the voting rights to pass, that is, 67% of the vote, while Huawei has only 66%, so the Cote d'Azur If opposed, major resolutions cannot be passed. Although there is no voting right, it is indirectly equivalent to having one-vote veto power for major resolutions.

However, general matters resolutions can be passed if 51% of the votes agree.

At the same time, the two parties have three special agreements written into the company's articles of association and shareholder agreement.

銆怉rticle 1 Special Agreement銆?,"Based on Lens Semiconductor, the two companies have broken through talent barriers and patent barriers in the field of integrated circuits.

However, technical barriers still exist. After all, the core technology of two independently operated technology companies is the core competitiveness. However, because the agreement stipulates that the two parties have broken through the patent barriers, the technology belongs to the other party, but the two parties have the right to use the other party's technology, but Only in the field of integrated circuits.

銆怉rticle 2 Special Agreement銆?,"The wireless terminal technology under Lens Semiconductor shall not be licensed to any third-party enterprise or institution in any form or for any reason when any party objects. At the same time, Hua Wei promised to voluntarily give up its own end-consumer business, and let its strategic partner C么te d鈥橝zur do it, but the mobile terminal business of C么te d鈥橝zur must use Huawei鈥檚 communication business.

This special agreement is very interesting. If Wah Wah wants to use the technology of Lens Semiconductor for end-consumer business, he can only use the technology of Lens after obtaining the consent of the company. If the consumer business wants to cooperate with the communication business of the third-party company, it can only be approved by the company.

Having the second special agreement is a necessary condition for the third special reservation to appear.

銆怉rticle 3 Special Agreement銆?,"From 2005 to 2020, Hua Wei has unilaterally invested R\u0026D expenses for Lens Semiconductor every year. The amount invested is calculated according to 15% of the total sales of Hua Wei last year. At the same time, there is an additional guarantee of investment of 500 million US dollars. For example, Hua Wei For 15% of last year's total sales of only 300 million US dollars, an additional 200 million US dollars is made up, in other words, Lens Semiconductor's annual investment of 500 million US dollars is guaranteed and there is no cap.

This is a unilateral investment by Wah Wei, and Cote d'Azur does not need to follow up, but the proportion of shares held by both parties in Lens Semiconductor remains unchanged.

At the same time, among the R\u0026D funds that Huawei invests for Lens Semiconductor every year, a guaranteed 34% of the funds will be used for the research and development of wireless terminal technology, and as long as the funds are used for Lens Semiconductor, then how to use it is up to Luo Sheng. Forget it.

...

People in the industry and the media are all dumbfounded, 15% of sales, isn't this the proportion of Huawei's R\u0026D investment in the current year? All of them have been invested in Lens Semiconductor. What about Hua's investment in R\u0026D? 15% extra?

This is simply not possible.

After the establishment of Lens Semiconductor, Hua Wei also requested that the core "Blue Core" project of the "C么te d'Azur Lab" under the Cote d'Azur company be stripped out as a whole and moved into Lens Semiconductor.

At the same time, Huawei's core ASIC R\u0026D project was also spun off and moved into Lens Semiconductor.

Huawei injected the R\u0026D funds into the joint venture, of which 66% was used to develop its own core business, such as the research and development of communication baseband, 320G switching network chip and 10G protocol processing chip, etc. These are the core of Huawei high-end routers. Chip technology research and development.

In other words, as much R\u0026D funds have been invested by Lens Semiconductor in the future, Hua Wei has invested as much R\u0026D funds.

The establishment of Lens Semiconductor can be said to have completely bound the two companies together, truly sharing the same breath and common destiny, which is N times more reliable than the community of interests reached by other companies.

This approach is equivalent to Huawei's core business. Cote d'Azur will share 34% of the revenue, so the industry and the media have seen the disclosed news, and they can't figure out if they want to break their heads and lose their hair overnight. What stimulus would agree to such a bizarre agreement.

What kind of tricks did Luo Sheng use to call Hua Wah "flickering" to such a degree.

To give it for nothing, from the outside world, Hua Wei is an absolute giveaway.

This was the first thought when the outside world got the news.

Not to mention, Hua Wei was indeed stimulated to finally sign this agreement.

After the two parties signed an internal non-disclosure agreement, Luo Sheng personally took Xu Zhijun to visit the highly confidential [Azure] plan, and almost fully expressed the ambition of Azure Coast in the mobile Internet era. You must know that in this era, The so-called mobile Internet concept is nothing.

This is the limitation of the times, and Luo Sheng is a person who has transcended the times. He is an exception and does not count.

...