novelones Chapter 124 Trip to Suzhou
Chapter 124 Trip to Suzhou
August 6, 2020, Suzhou Industrial Park.
At 2 p.m., Su Chen and Fang Xu arrived at the office of Microchip Sensing Technology on time.
The office is located in an ordinary office building in the park, on the fifth floor, covering an area of about 300 square meters. For a company valued at 180 million yuan, this office environment is unbelievably simple.
But Su Chen wasn't surprised at all.
Because he was all too familiar with this kind of scene—Hongyuan four years ago was even worse off than this.
Companies that truly invest in technology rather than appearances are often like this.
"Mr. Su, Attorney Fang, welcome, welcome."
A middle-aged man of medium build, wearing frameless glasses, walked over and extended his hand.
Li Wei.
Su Chen noticed Li Wei's hands at first glance—the fingertips had obvious calluses, the nails were trimmed very short, and there was a thin layer of hard calluses on the sides of the middle and index fingers of his right hand—these were traces left by long-term operation of precision instruments and fine-tuning equipment.
These are hands that get things done.
"Dr. Li, I've heard so much about you." Su Chen shook his hand.
Li Wei was slightly taken aback—clearly, he hadn't expected Su Chen to be so young.
Fang Xu had previously said that Hongyuan's CEO was only 26 years old, but when Li Wei actually met him, he still found it hard to believe.
However, he quickly suppressed his surprise and led Su Chen and Fang Xu into a small conference room.
The meeting room contained only a long table, six chairs, a whiteboard, and a projector. On the wall hung several electron micrographs of MEMS devices, as well as a framed world map with more than a dozen cities marked on it with red thumbtacks.
Su Chen glanced at the pictures—Tokyo, Munich, San Francisco, Beijing, Shanghai, Shenzhen… all core cities of the global MEMS industry.
This is an ambitious person.
……
The first half hour was filled with routine small talk—Li Wei introduced Microchip Sensing's technical roadmap, team composition, and product planning.
Su Chen listened attentively, occasionally interjecting with questions about technical details.
Li Wei's initial answer was rather conservative, after all, it was their first meeting and the other party was a 26-year-old young man.
But when Su Chen asked, "Do you use a tuning fork type or a vibrating ring type for your vibration structure?" Li Wei's eyes changed.
"Mr. Su is very knowledgeable about MEMS?"
"I know a little bit," Su Chen said modestly.
But his subsequent questioning completely disarmed Li Wei.
"Dr. Li, I noticed that in the trial production data of your high-precision gyroscope, the zero-bias stability is around 5°/h. This data is already among the best in China, but it's still five times lower than Murata's SCR1100's 1°/h. Where do you think the bottleneck lies—is it that the Q value of the vibration structure is not high enough, or that the scattering factor introduced by the packaging process is too large?"
Li Wei's eyes lit up instantly.
This question touches on the most critical technical challenge that Microchip Sensing is currently facing.
A 26-year-old drone CEO was able to pinpoint the two major bottlenecks of high-precision MEMS gyroscopes—this is far beyond a superficial understanding.
Li Wei's tone became serious:
"Mr. Su has hit the nail on the head. Both factors are involved, but the main problem lies in the packaging process."
Li Wei stood up, walked to the whiteboard, and began to draw a diagram:
"Our vibration structure design has actually reached the same level as Murata's, with a Q value exceeding 6. However, the problem is that we don't have our own MEMS manufacturing line."
He drew a simplified supply chain diagram on the whiteboard:
"From the design of MEMS chips to the final product, there are four key stages—design, manufacturing, packaging, and testing. We at Microchip Sensing only control the first stage—design. We outsource the manufacturing stage to a foundry in Shanghai, and the packaging and testing are outsourced to two other companies."
"The manufacturing capabilities of contract manufacturers are limited. No matter how good our design is, it will be compromised in the manufacturing process. A design with a Q value of 6 can only achieve 3 to 5 in actual manufacturing—this is the fundamental reason why the zero-bias stability can only reach 5°/h."
Su Chen nodded slightly.
This is entirely consistent with his judgment.
The problem with Microchip Sensing is not in design, but in manufacturing.
Just like Su Chen's own situation—he has the blueprints, but he can't build it.
"Dr. Li, if one day you were to have your own manufacturing line, to what extent could this gap be narrowed?"
Li Wei did not answer immediately, but thought about it seriously for a while.
"If we had a dedicated MEMS manufacturing line, and our engineers could directly participate in process optimization—" Levi's eyes lit up with eagerness, "I'm confident we could achieve zero-bias stability below 2°/h within two years, approaching Murata's level."
"What about within a year?" Su Chen pressed.
Li Wei hesitated for a moment: "One year is a bit tight... but if we have sufficient funds, a qualified team, and good production line coordination, 3°C/h is possible."
Su Chen smiled slightly.
Li Wei was referring to 3°/h. But Su Chen knew that if the system's industry-wide benefits could extend to all employees of Microchip Sensing—
A 15% learning efficiency boost for all engineers, coupled with the MEMS inertial navigation chip design blueprints that far surpass current standards as a guide for research and development—
3°/h?
No, it might be much better than Levi predicted.
"Dr. Li, I have a direct question," Su Chen looked into Li Wei's eyes, "What were your goals when you resigned from Murata to start your own business?"
Li Wei was slightly taken aback.
The question was abrupt, but he quickly understood what Su Chen meant—it wasn't just polite talk, but a question about his original intentions.
Li Wei was silent for a few seconds, then slowly said:
"I worked at Murata for eight years. I rose from a junior engineer to the chief engineer at their Shanghai R&D center. Murata has strong technical capabilities, a great working environment, and a good salary."
"But in my sixth year at the company, one of Murata's technical directors said something during an internal meeting."
Li Wei's gaze deepened:
He said, "It will take China at least twenty more years to reach Murata's position in the MEMS field."
"At the time, my other colleagues thought it was normal—after all, it was an objective fact. But when I heard it, I felt really uncomfortable."
Li Wei raised his head and looked directly at Su Chen:
"The reason I quit my job to start my own business is simple—I don't accept the 'twenty years' answer. I feel that if the direction is right, five years is enough."
A hint of admiration flashed in Su Chen's eyes.
He liked the answer.
"Dr. Li, I also think five years is enough," Su Chen's voice was calm but firm, "or even three years would be sufficient."
Li Wei frowned slightly—three years? Where does this young man's confidence come from?
"I know what you're thinking," Su Chen smiled. "But I'm not just making empty promises. We'll discuss the specific technical details after our cooperation officially begins. But there's one thing I can tell you now—Hongyuan has some technological reserves that might surprise you."
Li Wei's eyes became serious.
He could tell that Su Chen wasn't bragging.
The technical questions Su Chen had asked were so precise that they startled him. Someone capable of asking such questions was definitely not an ordinary business manager.
"President Su—" Li Wei hesitated for a moment, "Would you mind if I asked a very direct question?"
"Please speak."
"Is Hongyuan's interest in Microchip Sensing a financial investment or a strategic investment? Because these two are completely different to me."
"A strategic investment," Su Chen said without hesitation, "and not just a strategic investment—I hope to become the controlling shareholder of Microchip Sensing."
Li Wei's expression froze for a moment.
Holding controlling stake.
For a founder, this word means losing absolute control of the company.
Su Chen noticed Li Wei's hesitation and, instead of pressuring him, said softly:
"Dr. Li, let me make one thing clear first. I want a controlling stake, but I won't interfere with your technological direction. My sole purpose in acquiring the controlling stake is to integrate all of Hongyuan's resources, customers, and orders into Microchip Sensing. You will still have complete control over Microchip Sensing's technology, team, and daily management."
A hint of hesitation flickered in Li Wei's eyes, but he still didn't agree immediately.
"I need to think about this," Li Wei said honestly. "And we have existing investors, so I also need to hear their opinions."
Su Chen knew that the "existing investors" Li Wei mentioned referred to Qiming Venture Partners, a Shenzhen-based technology venture capital firm that led Microchip Sensing's Series A+ round of funding.
This VC currently holds approximately 22% of Microchip Sensing's shares. If Hongyuan were to increase its control to 67%, it would mean a significant dilution of the VC's stake—something they are unlikely to agree to easily.
"No rush," Su Chen said. "We can start with strategic investment—the first step is for Hongyuan to invest some capital to acquire about 30% of the shares, and at the same time launch a joint R&D project. We can discuss the controlling stake later."
Li Wei visibly breathed a sigh of relief.
He could accept a 30% strategic investment.
"I can discuss this with our existing investors," Li Wei said. "However, Mr. Su, I still want to know one thing—why is Hongyuan suddenly so eager to get involved in MEMS? As far as I know, Hongyuan has been using Murata's gyroscopes before—"
Su Chen and Fang Xu exchanged a glance.
Su Chen decided to be honest.
"Because Murata stopped supplying us."
Li Wei's expression instantly turned serious.
When did this happen?
Three days ago.
A complex look flashed in Li Wei's eyes—as someone who had resigned from Murata, he knew all too well what Murata's actions meant.
"Is someone putting pressure on us?"
"Yes. A three-way alliance involving Hangxindatong, DJI, and Haotai Capital."
Su Chen did not hide anything.
Li Wei remained silent for a long time.
His expression changed from shock to contemplation, and then from contemplation to a familiar look to Su Chen—a look of ignited determination.
"President Su," Li Wei's voice became unusually firm, "if what you're saying is true, then the nature of this matter is completely different."
"I resigned from Murata to start my own business because I didn't want to see Chinese companies forever dependent on others in the MEMS field. If even companies like Hongyuan are being held back by Murata—"
He took a deep breath:
"That shows that the localization of domestically produced MEMS is even more urgent than I thought."
Su Chen nodded slightly.
He knew that Li Wei had been persuaded.
It wasn't money that swayed them, nor the conditions for controlling stakes—it was the belief in "domestic MEMS self-sufficiency" that moved them.
This is exactly what Su Chen wanted to see.
Because a partner driven by money will run away when difficulties arise.
But a partner driven by conviction will fight alongside you to the very end.
……
After the meeting, Su Chen and Fang Xu walked out of Microchip Sensing's office building.
In Suzhou, the air is humid and muggy in the August evenings.
"How are you feeling?" Fang Xu asked.
"Li Wei is a good person," Su Chen said. "He has solid technical skills, ideals, and is pragmatic."
"But there's a problem," Fang Xu said. "It's not easy dealing with Qiming Venture Partners. I've heard that Wang Minghui, the investment director at Qiming Venture Partners, is a very assertive person. He's unlikely to agree to let Hongyuan Holdings hold 67%—that would mean Qiming Venture Partners' stake would be diluted to below 10%."
"So let's take 30% first," Su Chen said. "There's no rush to get a controlling stake."
"However—" Su Chen stopped and looked at the skyline of Suzhou Industrial Park in the distance, "there is an even more important problem."
"What?"
"Li Wei made it very clear—Microchip Sensing's bottleneck isn't in design, it's in manufacturing. They don't have their own MEMS manufacturing line, so even the best design will be compromised by the foundry's processes."
Su Chen turned to look at Fang Xu:
"So even though I acquired Microchip Sensing, the problem isn't fundamentally solved without having my own MEMS manufacturing line."
Fang Xu seemed thoughtful: "You mean—we still need to acquire a company with a MEMS manufacturing production line?"
"Yes." Su Chen nodded. "Microchip Sensing is responsible for design, and the manufacturing line is responsible for production—the two together constitute a complete self-sufficient MEMS supply chain."
Are there any companies like this in the country?
"Yes." Su Chen's eyes held a light that Fang Xu recognized—the look of someone who already had a goal.
"Please help me find information about a company—Kunshan Qixin Microsystems."
Fang Xu was slightly taken aback: "How do you know about this company?"
"Zhao Jiancheng mentioned this in his previous research report," Su Chen said. "The company's predecessor was an industrialization project of a national key laboratory for MEMS, with a complete 4-inch MEMS wafer production line. However, it was poorly managed and consistently lost money."
When did you first notice this company?
"The day Murata stopped supplying the company."
Fang Xu looked at Su Chen and secretly admired him.
On the day Murata cut off supplies, while everyone was scrambling to cope, Su Chen was already laying out a much longer-term strategy.
"Understood. I'll start investigating tonight."