"Global semiconductor packaging and testing first" Zhang Haosheng

In the development of the mainland, it is talented people. The Taiwanese Riyueguang Group, the top spot in the “Global Semiconductor Industry Packaging and Testing” held the opening ceremony of the first phase of the Shanghai headquarters. The Chinese National Party honorary chairman Lien Chan and his wife, Lien Lan, are pleased to attend. On rare occasions, when the “Sun Moon Light Center Plaza” was inaugurated in Shanghai last year, Lien Chan also came to the scene. This time he was the second time that the group had “platform”. For the first time facing the mainland media, Zhang Haosheng, chairman of the Sun Moon Group, does not seem to have much concern. In an exclusive interview, he pointed out bluntly: The mainland semiconductor industry has made primary mistakes. There are very few companies in mainland China that are worthy of acquisition. More than 80%.

Our reporter/Zhou Ke photo student trainee reporter/Tao Chen Character brief introduction Zhang Yusheng, Chinese Taiwanese, native of Zhejiang Wenzhou. Master of Science, University of Illinois, USA. In 1984, Zhang Shengsheng persuaded his parents to change his family's multi-year operations in the construction and real estate business. He began to focus on the high-tech industry and established the Riyueguang Group. Zhang Xiaosheng was the chairman of the group and was called "M&A King" by the industry because of many successful mergers and acquisitions.

How expensive are you to come to Shanghai Qiaobao: Many Taiwanese companies have increasingly favored cities around Shanghai in consideration of cost issues. What is the decisive factor for Sun Moonlight's investment in Shanghai?

Zhang Shengsheng: Market integration will be the biggest opportunity for this industry, and the biggest difficulty in integration is the acquisition and training of talents. The acquisition of talents is the main reason for Sun Moonlight's entry into the mainland. Talent is the biggest challenge for the rapid development of the moon and moonlight and the expansion of market share. Taiwan's operating costs are lower than those of the mainland, but the amount of future talent in Taiwan is unlikely to increase substantially. In the future, Riyueguang’s global staff will increase to 200,000. Only the mainland can provide this environment.

Sun Moonlight’s development in mainland China is for talents. This is why Sun Moonlight chose to invest in Shanghai instead of choosing a place where the cost is cheap. Because Shanghai is like the Silicon Valley in the United States, it is a place where high-tech talent is longing for, and the Shanghai Municipal Government has also given assistance to the construction of talented apartments and living areas. It can retain talents and expand research and development. Moreover, the semiconductor industry chain has been formed in Shanghai and its surrounding areas. Investment and construction in Shanghai will help the company to complete the integration of the industry.

Qiaobao: What is the relationship between the Taiwan base and the Shanghai headquarters? With the establishment of the Shanghai headquarters, will Taiwan's development shrink or continue?

Zhang Haosheng: The establishment of the Shanghai headquarters shows that our future growth center will focus on the mainland, and setting up an R&D center means that we have to cultivate the back-end of the semiconductor industry chain—capable of packaging and testing, and support the Group’s capacity expansion in the mainland. To invest in the mainland to establish a new factory does not mean that the base in Taiwan should be closed. Taiwan’s production projects continue to expand. The capacity of Kaohsiung Plant and Chung Yee Plant will expand by three times. In the future, Taiwan’s employees will also reach 50,000 to 60,000.

Qiaobao: Sun Moonlight adheres to the development of the back end of semiconductors - packaging and testing, does not involve the more widely known front end - chip and design, etc. What is the consideration?

Zhang Shengsheng: In the semiconductor industry, packaging and testing are at the back end of the industry chain. Many inherent beliefs are that wafers (also called silicon crystals, which are semiconductor materials) are semiconductor cores, and that semiconductors are INTEL. In fact, packaging and testing is the basic link in the semiconductor manufacturing industry. Advanced wafer technology is based on strict packaging and testing. The mainland's current semiconductor industry is actually just starting, making a primary mistake in semiconductor awareness. If the foundation is not done well, I want to be a cutting-edge company, which has caused some companies to develop unsatisfactorily.

20 companies are enough for Qiaobao: What is the biggest problem facing the semiconductor industry?

Zhang Shengsheng: Lack of talent is the biggest issue facing the entire semiconductor industry. Without this element, the result will be "high investment, low efficiency." Packaging and testing are very demanding for professionals. This industry needs a total of 600,000 people. If you want to integrate 1/3, you must have 200,000 people. Plus, semiconductor talent needs long training. There are about 6 million university students each year in Taiwan. Only 200,000 people, the gap is obvious. At present, Riyueguang has sent at least 2,000 employees from mainland China to Taiwan for training each year. The first batch is now about to return.

Qiaobao: After entering the mainland market, did you have the idea of ​​acquiring mainland enterprises?

Zhang Shengsheng: Unless the customer has requested, the integration of Sun Moonlight, Philips and NEC is based on customer requirements. M&A sounds easy, but if it is not done well, the effect will be 1+1<2. Over the past few years, the two basic elements of the mainland semiconductor industry have not been available. Talents and equipment are not available. Even if land prices give me cheaper points, it is not at all important. At this stage, we do not plan to start mergers and acquisitions in the Mainland because there are very few mature companies that can be acquired in the Mainland. Their revenue and technical strength are not strong, and the acquisition attaches great importance to talent, the other party's strength is not always strong, the level of talent is also a gap with us, to buy the next business, but also to re-do, it is not as good as their own direct R & D and production. Why do most companies in mainland China mostly do "OEM?" It is because of the lack of talents and the lack of mastery of key technologies.

Qiaobao: You are the leader of this industry, but how can more small and medium-sized peer companies develop?

Zhang Yusheng: There are more than 150 companies in the global market for packaging and testing, most of them are small businesses. Although the monthly revenue of Sun Moonlight exceeds 6 billion U.S. dollars, the market share is only 7%. The market urgently needs to integrate. The industry needs only 20 companies. Will suffice.

There is no relationship between real estate and industrial projects Qiaobao: Riyueguang emphasizes the training of employees. As a listed company, what is the arrangement for employee stock ownership?

Zhang Xiaosheng: Sun Moonlight Group is listed in the Taiwan region and the United States, but due to China’s big news background, the Sun Moonlight Center Plaza built in Shanghai in July last year was one of Zhang’s important commercial real estate layouts. As the world's largest semiconductor packaging and testing service company, the current investment in Shanghai Industrial Co., Ltd. is approximately RMB 13 billion and employees are approximately 11,000, all of which are concentrated in Zhangjiang. In addition, Riyueguang will invest approximately RMB 240 billion in Jinqiao to build a semiconductor packaging and testing park. By then, Riyueguang’s industrial investment in Shanghai will exceed RMB 40 billion, and it will generate revenue of more than RMB 55 billion annually.

Some Lu employees cannot hold shares in listed companies. In order to resolve their shareholding issues, the company’s subsidiary, Huanxu Electronics Co., Ltd., plans to list on the A-share market and is currently undergoing review by the CSRC. Shares, as far as possible to reduce the degree of opposition between labor and capital.

Qiaobao: You said a few years ago: “Putting the tiger on this side (in Taiwan) and becoming a sick cat for a long time... In fact, you should put the most powerful tiger out.” Now come to the mainland What is the deepest experience of "the most powerful tiger"?

Zhang Shengsheng: If you are only in Taiwan, there is limited space for development. If I don't come to the mainland to set up a factory, there will be other people. I am Chinese, not as good as I am. In the past, some people felt that it was incredible that technology should be used to teach companies in the mainland. Now that cross-strait relations are sound, mainland engineers can send trainees to Taiwan to receive training. Taiwanese engineers can lead these apprentices there. For engineers on the mainland, they can further their studies and raise their salaries. Some people should not regard the mainland market as a threat, they should regard it as an opportunity, and they can achieve mutual benefits through cooperation.

Qiaobao: For Shanghai residents, “Sun Moonlight” leaves them with the deepest impression of commercial real estate, not semiconductors. Is there a connection between the two?

Zhang Xiaosheng: To be honest, real estate is our old business, and semiconductors have developed later. The mainland real estate business is a family business and has nothing to do with Sun Moonlight Semiconductor.

Qiaobao: I know you are a member of the “Wenzhou Businessmen”. How do you summarize this group?

Zhang Haosheng: Wenzhou people are smart and capable.