33: Chapter 33: A Secret Maneuver, Sparks Forging the Core

The air at Spark Technology headquarters felt as if it had frozen.

The continuous, volume-less limit-down of the stock price was like heavy hammers striking the hearts of every employee.

The footsteps in the corridor, usually hurried and confident, became hesitant, and conversations were kept extremely low, permeating a stifling atmosphere of an impending storm.

The production lines had completely stopped, and the massive factory floor was left with only the faint humming of maintenance equipment, adding to the desolation.

In the top-floor office, Su Chen was unusually calm.

He stood before the massive floor-to-ceiling window, overlooking this ever-changing city, his gaze as sharp as an eagle's.

What the outside world saw was a catastrophic disaster, but what he saw was a golden opportunity for a strategic layout.

It is time, he whispered to himself, turning to walk to his desk and pressing the internal intercom button.

Lin Wan, Shen Nanpeng, Liang Zhen, please come to my office.

Moments later, the three gathered.

Shen Nanpeng's face was weary, carrying the haggardness of dealing with the crisis for days; Liang Zhen still maintained the calmness peculiar to a legal professional, though his brows were tightly furrowed; while Lin Wan's eyes held worry, they contained even more of an unconditional trust in Su Chen.

Everyone knows the situation outside, Su Chen said without wasting words, cutting straight to the point.

Panic is spreading, our opponents are celebrating, and some people... are also about to give up.

Shen Nanpeng sighed: Su Chen, the stock price has already fallen to 120 rmb, and the market value has evaporated by over 50 billion.

Many small shareholders and institutions are selling regardless of the cost, and the pressure is immense.

Should we... release some positive news, or perhaps reveal a hint about the chip plan to stabilize the market?

No, Su Chen rejected firmly.

Not only should we not stabilize it, I want it to continue to fall.

What? Shen Nanpeng and Liang Zhen were stunned, and even Lin Wan showed a look of confusion.

A curve of strategic mastery hooked at the corner of Su Chen's mouth: Only when it falls deep enough will those who hold shares but lack confidence in us be willing to hand over their chips.

And only when it falls with enough room will the cost of our next move be at its lowest.

He looked at Shen Nanpeng: Shen Nanpeng, how much cash can we use?

Excluding the reserves for maintaining basic company operations and dealing with emergencies, we can use no more than 13 billion.

Among this, 12 billion was the starting capital originally planned for the spark core.

13 billion... Su Chen pondered for a moment, a flash of brilliance in his eyes.

Not enough, far from enough.

Building a chip industry chain is a money-burning beast.

We need more money, and it must be long-term, low-cost capital.

He turned his gaze to Liang Zhen: Liang Zhen, using my personal 40% equity in Spark Technology as collateral, apply for a loan from China Merchants Bank, with a limit of... 50 billion rmb.

Is there room for operation?

50 billion?! Shen Nanpeng gasped.

This was simply an astronomical figure!

Liang Zhen's pupils also shrank, quickly calculating the feasibility in his mind: Su Chen, based on your current 71.25% equity, even at the current... no, even if calculated at the market value of around 160 billion before the crash, the value of 40% of the equity is over 60 billion.

A mortgage loan of 50 billion, theoretically, the mortgage rate is around 80%, which, although extremely high, is not impossible.

Especially... He paused, if we can have strong support from the local government to facilitate a low-interest loan.

I will communicate with the Shenzhen municipal government, Su Chen said without hesitation.

The chip industry is a national strategy and one of the core engines for Shenzhen's future development.

I believe they will support it.

Over the next few days, Su Chen displayed astonishing energy and capability.

He personally visited the main leaders of Shenzhen, not to complain or plead, but bringing a detailed Spark chip Industry Plan and a heavy promise.

In the mayor's spacious office, Su Chen spoke eloquently: Mayor, the West is choking us, not just one company like Spark Technology, but the throat of our country's industrial upgrading!

The chip is the grain of Hyundai industry; we cannot let the grain bag be pinched in someone else's hands!

Spark Technology is willing to be this breaker, investing all our capital to conquer the 16nm process, creating an autonomous and controllable Chinese core for domestic consumer electronics, industrial control, and even future artificial intelligence!

He pointed to the planning map on the proposal: We plan to build a world-class chip R&D and design center in Shenzhen, gathering top talent; and build an advanced chip manufacturing base in Guancheng, with the first phase constructing four 16nm production lines.

The total investment is expected to exceed 80 billion, directly and indirectly creating tens of thousands of jobs, forming an industrial cluster at the 100-billion level!

What we need is the entry ticket for the national team, and the full support of the government at this critical moment!

Su Chen's ambition and clear planning moved the leaders present.

After an urgent and efficient demonstration, the Shenzhen municipal government and China Merchants Bank jointly launched the Major Technology Project Special Support Loan for Spark Technology, with an amount of 50 billion rmb, a ten-year term, and an annual interest rate as low as an astonishing 3%!

This was not just financial support, but also a clear political signal and a national-level endorsement!

On the night the loan agreement was signed, Su Chen convened the core team again.

50 billion in capital is in place, Su Chen's voice was steady and powerful.

Now, execute the second step: Equity recovery.

He looked at Shen Nanpeng and Liang Zhen: Shen Nanpeng, Liang Zhen, you are each responsible for connecting with Zhao Feng of Dingfeng Investment and Zhou Tianyu of Tianqiong Capital.

Operate through our third-party investment company registered overseas, Pacific Vision Capital, and simultaneously invite China Merchants Bank to assist in issuing an acquisition offer to them.

Acquisition price? Shen Nanpeng asked.

At the current stock price of 100 rmb per share, acquire their respective 4.75% shares at a premium, Su Chen said lightly.

Total cost, about 10 billion.

Liang Zhen frowned: Su Chen, about Zhou Tianyu... he hates us to the bone, will he be willing to sell at this price?

Will he prefer to let it rot in his hands?

Su Chen sneered: He will.

He is a pure financial broker, pursuing interests, not emotions.

Now that Spark Technology's stock price has plummeted and the prospects are unclear, rumors outside say we cannot hold on.

The price of 100 rmb is much higher than his initial purchase cost.

For him, it is the best time to cash out and leave to avoid greater losses.

Moreover... A deep glint flashed in his eyes, the master behind him probably hopes to get real money right now, rather than a pile of stock fragments that might continue to depreciate.

As for Zhao Feng...

Su Chen's tone softened a bit: He is our earliest investor, and we have long since over-fulfilled the gambling agreement.

In this crisis, he is also under great pressure.

Publicly and privately, giving him a chance to exit decently is also fulfilling this bond of friendship.

Buying at 100 rmb, he makes a huge profit, and everyone is happy.

Things developed exactly as Su Chen had expected.

When Zhao Feng received the call from Shen Nanpeng and heard the 100 rmb acquisition price, he was silent for a long time.

He had witnessed the miracle of Spark Technology from the edge of bankruptcy to a 100-billion giant, and was also experiencing this darkest moment.

Finally, he sighed: Shen Nanpeng, tell Su Chen for me, I, Old Zhao, admire his courage!

This time, my Dingfeng Investment admits defeat and exits.

I wish him... can lead Spark Technology through this pass!

There was a trace of regret in his words, but more of relief.

As for Zhou Tianyu, it was a more complex game.

Liang Zhen personally stepped forward and conducted multiple rounds of arduous negotiations with the representative of Tianqiong Capital.

The other party initially tried to raise the price and even implied threats.

But Liang Zhen firmly held the bottom line of 100 rmb and hinted that Spark Technology had obtained national-level support, and the possibility of a private placement to dilute small shareholders' equity in the future could not be ruled out.

Finally, after weighing the pros and cons, the forces behind Tianqiong Capital made a decision—accept the offer, cash out, and focus on besieging Spark Technology from other aspects.

August 1, 2016, this was a key time node.

China Merchants Bank successfully completed the transfer of this 10 billion equity transfer fund.

Pacific Vision Capital successfully acquired a total of 9.5% of Spark Technology shares from Zhou Tianyu and Zhao Feng.

Subsequently, these shares were quickly transferred to the Spark Employee Equity Incentive Trust (Spark Trust) completely controlled by Su Chen, completing the final property isolation.

At the same time, the remaining 40 billion in loan funds were injected into the newly established wholly-owned subsidiary—Spark chip Co., Ltd. in the form of shareholder loans.

Coupled with the 12 billion that Su Chen originally planned to invest, spark core had a huge registered capital of 52 billion rmb at its birth, like a well-equipped aircraft carrier, officially sounding the whistle and setting sail!

Su Chen personally served as the chairman of Spark chip and quickly built the core team.

Luo Qinghe served as the chief scientist, responsible for chip architecture and design; Jiang Jing served as the vice president of manufacturing, leading process R&D and production line construction; Anderson Li led the equipment breakthrough department, aiming directly at the localization and adaptation optimization of core equipment such as lithography machines.

The Shenzhen chip R&D and design center was the first to be listed, located in the core area of Nanshan Science and Technology Park, and began to recruit top talent globally.

The manufacturing base in Guancheng also held a grand groundbreaking ceremony.

The main leaders of Shenzhen and Guancheng attended in person, expressing the full support of the local government for the project.

On the huge construction site, the pile driver roared, marking that a new force in the Chinese chip industry that cannot be ignored has officially started construction.

On this very day, Spark Technology released the latest equity structure change announcement:

Su Chen: 71.25% (Absolute control)

Spark Trust: 9.5%

Huawei investment: 2%

Shencheng Metro Group: 3%

Market circulating shares: 14.25%

This announcement was like a deep-water bomb, stirring up huge waves in the still depressed market.

People were shocked to find that in the midst of the stock price plunge and the chorus of disapproval from the outside world, Su Chen not only did not reduce his holdings by a single share, but instead, through exquisite capital operations, greatly strengthened his control and introduced a powerful state-owned background!

What makes people even more imaginative is, what exactly is the newly established spark core subsidiary with a registered capital of as high as 52 billion going to do?

The panic began to turn quietly, and a seed named expectation took root and sprouted in the hearts of countless investors and observers.

Although the stock price was still hovering around 100 rmb, the selling pressure was significantly reduced, and even bold capital began to quietly absorb chips.

Night fell, and Su Chen stood alone in front of the office's floor-to-ceiling window again.

Outside the window, the city lights were still brilliant, and in his eyes, that was a future digital world that needed to be lit and driven by spark core.

The chip war has just begun, he whispered to himself, his gaze cast toward the land that had just started construction in Guancheng in the south.

June 2017... we want the world to hear the thunder of chips from the East.