Medium Core Lightning Change handsome: California loses Chang sadly departed

This reporter Huang Shanghai reported that the wolf finally came--after several rumors, "Semiconductor strongman" Chang, or left his single-handedly founded China's largest semiconductor foundry Enterprise Smic (00981.HK).　　November 10 morning, SMIC International Bulletin, the company CEO Chang for "personal reasons" resignation, while appointing Wang as executive director of the Board, the group president and CEO, immediate effect. At the moment, there is no flowers and applause.　　Just a few days ago, SMIC and the "old Enemy" TSMC's patent infringement lawsuit, the United States, California court ruling lost, the market was once rumored that SMIC may face 1 billion of billions of dollars in litigation compensation. "I did my best." I was so exhausted by the lawsuit that I was disappointed with the result.　　"The same day, Chang on the phone to the reporter confirmed that he has resigned from SMIC all duties, currently at home to recuperate, as for the future, may accept friends suggest to teach or to engage in charitable undertakings. However, Chang's departure is not the end of SMIC's patent lawsuit.　　On the afternoon of November 10, a few hours after the release of the Chang resignation announcement, SMIC issued a "heavy" announcement again – a settlement with TSMC over patent litigation at a price of 200 million dollars in cash and issuance of new shares and warrants to TSMC for four years, after which TSMC will hold SMIC's 10% stake.　　California loses: lawyer misjudged?　　November 10, for the specific reasons for resignation and other issues, Chang on the phone to reporters that the inconvenience of making any comments.　　A person close to Chang told reporters that SMIC's lawsuit against TSMC in the US state of California was a direct trigger for Chang's departure. "He resigned voluntarily. "The insider said that because of the lawsuit to the core international has been hurt, Chang feel should assume this responsibility," the verdict has been in contact with TSMC.　　Now it has reached a settlement with TSMC, minimizing the damage, and decided to leave. Since 2003, when TSMC filed a lawsuit over the alleged infringement of its patents on SMIC products, the two giants, the first and third in the global semiconductor foundry industry, have started a confrontation. The two sides reached a settlement in 2005, with SMIC paying 175 million of billions of dollars to TSMC. After a year, TSMC "anti-Water", with SMIC in violation of the 2005 agreement again to the U.S. Court of California to sue. Smic then countered with a counterclaim by TSMC in the US state of California and Beijing, China, in breach of contract and fair trade.　　Until a few days ago, the California court ruled that TSMC had won, and things were finalized.　　According to the people familiar with the matter, Chang has always believed that reconciliation is the most favorable outcome for both sides, and said three months ago there would have been a very good opportunity to reach a settlement, but the core of the lawyers team on the situation too optimistic, SMIC finally lost the lawsuit. Some insiders believe that from the core international in November 10 released the latest settlement agreement, andTSMC has a "feud" of the Chang, is likely to be a necessary condition for reconciliation between the two parties-the loss of a huge amount of money, and SMIC has 10 consecutive quarterly losses, and even had to "sell shares reconciliation." "Capable, good man" Chang for the above, SMIC and TSMC do not make any comments.　　However, there are also insiders believe that Chang due to the California lawsuit is only a symptom, long Chang and SMIC has been a gap between the international Board of Directors, "The losing is only to make the board finally determined". "Chang leave is not unexpected. "I have had many exchanges with SMIC, two years ago, when the board had the idea of replacing Chang," said an industry insider who declined to be named. "On the face of it, the board is dissatisfied with the stock price downturn and corporate losses, but the underlying reason is that Zhang's personality is too strong, and many major decisions, such as in Wuhan and Chengdu, are made by one person, and the Board has no decision-making power," the person said. Even two years ago, the industry was rumoured to be a licensed semiconductor executive who might succeed Chang.　　However, this has not finally become a reality. In response, those close to Chang said it was not entirely accurate, "it is normal for overseas directors to see the share price and the domestic directors to see the strategy." But the majority of SMIC's directors still support Chang, which has been positive despite 10 consecutive quarterly losses.　　If it is not depreciation, SMIC has long been profitable.　　10 Quarterly losses: Smic Next founder Sadly resigned, facing huge compensation, the core international where to go? In the Sino-Smic Settlement Agreement of November 10, TSMC, as a new shareholder, has only the right to hold and buy shares, neither entering the board nor participating in the day-to-day operation of SMIC.　　However, given the competitive relationship between the two sides, TSMC's arrival is still a "blue veil" for SMIC's future. And with the departure of Chang, "Zhang's style" brand marked SMIC will usher in the company's history of the second CEO.　　Unlike Chang, who has a legendary entrepreneurial background, the 63-Year-old successor, Wang, is a star manager in the semiconductor industry with a glorious record. Wang, Ph. D. From the Department of Materials Science and Engineering at the University of California, Berkeley, studied in Bell Labs in the early years, with more than 100 patents.　　He was the global executive vice president and Asia president of the world's largest semiconductor equipment supplier Applied Materials company. Wang by the domestic semiconductor industry is well-known in 2005 joined the state-owned enterprises Huahong Group. At that time, Huahong group tried to set up the first domestic 12-inch chip production line, and the opportunity to learn from Intel to the IdM mode transformation. Wang was appointed CEO of Huahong Group and chairman of Huahong NEC, and was responsible for all the construction operations of the 12-inch chip production line. However, due to the late-Hua Hong Group's internal transition strategy swing led to 12-inch chip production line construction plan stranded, two years later Wang and itsThe team sadly left the Huahong group. "Enterprises need to keep pace with the times, different stages have different styles of leaders." "Ke, director of information exchange of China's semiconductor industry association, said in an interview Chang in the core of the international stock is not much, it should be said to be running the cause and come," he is a capable person, a short span of eight or nine years to make a global third enterprise, to the mainland semiconductor industry contribute significantly; Chang is a good man, too.　　Often heard of his donation to build Hope Primary school. However, SMIC has now passed its entrepreneurial phase and needs to be more pragmatic in its consideration of profitability.　　Unlike the Chang "creator" role, Wang should be said to be a "performer", from which Wang experience may be more helpful to SMIC.　　For successor Wang, the first task after taking office is to get rid of the troubles caused by the thorny patent dispute as soon as possible, and second, to help SMIC achieve profitability as soon as possible. "I think the first thing to do is to activate assets. Ke said that SMIC's future focus should not be to continue to lay out production lines, but to make the production lines scattered around the world, and secondly, to move closer to "domestic enterprises" in terms of management and achieve "localization".