[Epoch Times November 13, 2021]Hello everyone, and welcome everyone to pay attention to “News Highlights”. I am Li Muyang. Today is November 12th (Friday) Eastern Time, and November 13th (Saturday) Asia Time.
Today’s focus: SMIC personnel earthquake, generals from TSMC resign; infighting and disagreement, Taiwan is a rare trust; the United States is stuck in the neck, SMIC is a dead end; the qualifications of staying in China will be reduced, and the tide of Taiwanese resignation will appear? Zhuanghe University Town has been closed, with more than 30 confirmed diagnoses; Dalian has been closed? No medical treatment is allowed for fractures.
60 seconds news
The 21 leaders of the Asia-Pacific Economic Cooperation Organization APEC issued a joint statement on the 12th, vowing to continue to respond to the epidemic and promote economic recovery in the Asia-Pacific region by supporting the supply chain and solving labor problems.
“WikiLeaks” announced on the 12th that the British government has given the green light to allow WikiLeaks founder Assange to marry his fiancee Morris in Belmarsh prison. Assange met Morris while living in the Ecuadorian Embassy in the UK. They had two children.
WHO Secretary-General Tedros Adhanom Ghebreyesus said on the 12th that Europe notified nearly 2 million confirmed cases last week, which is a single-week high since the pandemic. The epidemic has surged not only in Eastern European countries with low vaccination rates, but also in Western European countries with the highest vaccination rates.
Radio Hong Kong reported on the 12th that Danish sculptor Gao Zhihuo, creator of “Pillar of National Sorrow”, issued an open letter stating that he would go to Hong Kong to retrieve “Pillar of National Sorrow”. He asked the Hong Kong government to ensure that he and his team would not be charged with violating the Hong Kong National Security Law. There are 6 “Pillars of National Sorrow” in the world. One of them was to commemorate the “June 4th” incident at the University of Hong Kong. The pedestal was engraved with the words “June 4th Massacre” and “How can old people kill all young people” in red letters.
As of 2 p.m. Eastern time on November 12, the number of newly diagnosed CCP viruses (Wuhan virus, COVID-19) globally was 513,926, and the total number of confirmed cases reached 252,633,396; 7,109 people died in a single day. The cumulative total number of deaths is 5.095,312.
Let’s enter today’s topic. A major event happened today. A major personnel change occurred on the SMIC Board of Directors. All three front-end generals resigned as directors, and even Vice Chairman Jiang Shangyi resigned and left. The impact of this incident, to use an analogy, is equivalent to removing the pillars of a house.
Regarding the epidemic in Dalian, although the authorities did not say “close the city”, it has actually been closed. Another netizen broke the news that the bone was broken and the authorities were not allowed to go out for medical treatment.
Today is the last day of the “Muguang 4th Anniversary Thanksgiving Ceremony” special program. In the section of “Muyang Kitchen Food Posts”, you can see what the Muyang Kitchen looks like. Appreciate my craftsmanship, and some little secrets that most people don’t know. At the same time, everyone is welcome to leave us a message in the video message area to tell us which unit of the special program you like the most. We look forward to your feedback.
Three generals of TSMC from the SMIC earthquake resign
Yesterday (11th) night, China’s largest chip manufacturer SMIC experienced a major board personnel earthquake. All three TSMC generals withdrew from the board of directors, and they all took effect yesterday.
The three directors who resigned are Jiang Shangyi, the company’s vice chairman, executive director and member of the board’s strategy committee; executive director Liang Mengsong and independent director Yang Guanglei. Among them, Jiang Shangyi resigned and left, Liang Mengsong resigned as an executive director and only performed the duties of co-CEO; independent director Yang Guanglei resigned as an independent executive director and member of the remuneration committee at the same time.
The SMIC announcement stated that all the director vacancies left by the resignation of the three were replaced by Chinese. According to SMIC’s latest personnel arrangements, non-executive directors Fan Renda and Liu Ming were appointed as members of the remuneration committee, and independent non-executive director Liu Zunyi was appointed as members of the audit committee.
SMIC’s personnel earthquake not only shocked the industry, but also shocked the regulators. Yesterday, the Shanghai Stock Exchange immediately issued an emergency supervision letter to SMIC overnight, but so far, the content of the supervision letter is still unknown to the outside world.
SMIC claims that personnel changes have “no significant impact” on the company’s operations and management. However, the personnel changes of the three generals of TSMC and the supervision letter from the Shanghai Stock Exchange quickly caused a flash crash in SMIC’s stock price in China and Hong Kong.
SMIC’s Hong Kong stock market crashed by 6%, and its Shanghai-listed stock price collapsed by 5%. As of about 2:16 pm local time this afternoon, SMIC’s Hong Kong stock price was 22.4 Hong Kong dollars, a drop of 4.68%. The stock price in Shanghai is 56.53 yuan, a drop of 3.28%.
The stock market is known as the “electrocardiogram”. SMIC’s stock prices in China and Hong Kong reflect the psychology of investors very honestly. In other words, the vast majority of investors believe that the impact of the massive earthquake in SMIC’s board of directors is great.
Jiang Shangyi retires without a break and resigns, there are 3 big inside stories
SMIC’s announcement stated that it respects the opinions of the resigned directors and thanks them for their contributions to the development of SMIC. He also pointed out that Jiang Shangyi “has no disagreement with the board of directors”, and the reason for resignation is to have more time to spend with his family.
It’s human nature to be with your family and enjoy the happiness of family relationships. However, Jiang Shangyi was only hired as vice chairman and executive director by SMIC on December 15 last year, and it has been less than a year. Didn’t Jiang Shangyi expect to spend more time with his family a year ago?
“Free Finance” stated that Jiang Shangyi, who is about 75 years old, is called “Dad Jiang” by the industry. He used to be the head of R&D of Taiwan’s TSMC. He was heavily relied on by TSMC founder Zhang Zhongmou. He served as deputy general manager of R&D and co-operator. He worked until 2013 before retiring from TSMC.
However, Jiang Shangyi was “retiring without rest”. In 2016, he was invited to serve as an independent director of SMIC, which caused extreme shock in the industry at that time. In 2019, Jiang Shangyi was transferred to take over Wuhan Hongxin. But shortly afterwards, Wuhan Hongxin broke out a “century scam” due to financial problems. Jiang Shangyi admitted that it was a “nightmare” for him.
However, this “Dad Jiang” seemed to have ideals and could not give up his feelings for the semiconductor industry, so he accepted the invitation of SMIC again at the end of last year and became the vice chairman of the board.
I do not deny Jiang Shangyi’s feelings for his family. But judging from the above facts, while he has feelings for his family, he seems to have a deeper feeling for the semiconductor industry. Whether for money or other reasons, he has always stayed in the semiconductor industry. In other words, SMIC said that his reason for wanting to be with his family more is too far-fetched.
So what caused Jiang Shangyi to retreat and leave SMIC? After sorting out, it was found that Jiang Shangyi left SMIC for three major reasons: SMIC’s internal fighting and the United States‘ “stuck neck”.
SMIC’s internal fighting is ambiguous and Taiwanese are rare to trust
Let me talk about the first reason, which is SMIC’s infighting. In December last year, Jiang Shangyi returned to SMIC. His position was vice chairman and executive director, which was much higher than the independent non-executive director when he joined for the first time.
Jiang Shangyi’s “return to the pot” immediately aroused dissatisfaction with Liang Mengsong, an old subordinate and co-CEO of SMIC. Because Jiang Shangyi’s arrival may mean that SMIC does not fully trust Liang Mengsong. This made Liang Mengsong feel angry and aggrieved, so he resigned in anger. In the Chinese words, “a mountain cannot tolerate two tigers”.
There is another reason. Related sources revealed that there has long been a gap between Liang Mengsong and Jiang Shangyi. Although the industry regards them as a mentor-apprentice relationship, Liang Mengsong was suppressed by Jiang Shangyi during TSMC. Jiang Shangyi has once again become his immediate boss, Liang Mengsong may be worried that the old drama will repeat itself.
Later, in order to retain Liang Mengsong, SMIC adopted the strategy of raising wages and sending houses. SMIC sent a set of real estate worth 20 million yuan, and at the same time raised Liang Mengsong’s annual salary from 340,000 US dollars to 1.35 million US dollars. This salary figure is more than two times higher than Jiang Shangyi’s $670,000. This stabilized Liang Mengsong and still served as the co-CEO of SMIC.
However, the problem between Jiang Shangyi and Liang Mengsong is only one of the manifestations of SMIC’s internal fighting, which belongs to the contradiction between Taiwanese. Liberty Finance pointed out that for more than two decades, SMIC has been involved in personnel struggles for a long time. The number of heads has changed. The Taiwanese, Turtles, and Natives are incompatible with fire and water, and interests are intertwined.
On September 4, Zhou Zixue resigned as chairman, claiming it was “personal physical reasons.” As a member of the Communist Party of China, Zhou Zixue is a native of Zhejiang. He has a PhD in Economics at Central China Normal University, a senior accountant, and is also a major representative of SMIC.
Many people were concerned about Zhou Zixue’s resignation at the time, whether Jiang Shangyi, the vice chairman of the board, went up to the next level and assumed the position of Dong Zuo. But Jiang Shangyi stayed in place, and Gao Yonggang, the former chief financial officer of SMIC, served as the acting chairman.
This arrangement might very well hurt Jiang Shangyi’s heart. Liang Mengsong has made a great contribution to SMIC, but he still can’t get full trust, so is it the same for himself, not being trusted?
Jiang Shangyi is likely to have such a guess. I did notice that some mainland netizens once said that Taiwan is “an undercover spy” with SMIC. I think this is a wake-up call for friends in Taiwan.
Although you may come to a Chinese company for a simple purpose, which is to make money, the CCP will not think that way. It will definitely be wary. The CCP will doubt you. Since it can use money to dig you out, then it is possible that someone else uses money to dig you out.
Especially when the cross-strait situation is becoming more and more tense, the CCP itself, which is very suspicious, will have a more skeptical vision of the Taiwan system. In other words, although you work diligently and down-to-earth in a Chinese company, you will not win the CCP’s trust.
Line disputes look down on talented father Jiang
Before and after Wu Jingang resigned as vice president of technology research and development in July this year, SMIC lost more than 600 research and development personnel. SMIC loses many R&D talents, which will naturally impact the R&D process.
You know, SMIC is not just a chip foundry. In addition to its semiconductor technology and business operations, SMIC is also responsible for driving the local semiconductor materials and equipment industry.
On SMIC’s board of directors, Liu Ming, an academician of the Chinese Academy of Sciences, is an independent non-executive director. He is a key figure in the CCP’s promotion of advanced semiconductor packaging. Despite this, SMIC still often diverges in its investment strategy. (News highlights)
Yang Ruilin, research director of the Industrial Technology International Strategic Development Institute of Taiwan Industrial Technology Research Institute, told the Central News Agency that it is very difficult for SMIC board members to reach a consensus when making decisions, and there is a “line battle”.
Yang Ruilin pointed out that the decision-making process is doped with more complicated factors besides semiconductor expertise and business operations, and even political ideology and other issues.
At the beginning of this year, Jiang Shangyi officially came to SMIC. Some media quoted news as saying that Jiang Shangyi returned to SMIC because he hoped to “show his skills” in the development of advanced packaging and chiplet technology.
The outside world has also noticed that, regardless of his interviews or external speeches, Jiang Shangyi has stated that SMIC will develop in parallel with advanced manufacturing processes and advanced packaging. Therefore, the industry believes that Jiang Shangyi is mainly responsible for the development of advanced packaging of small chips at SMIC.
However, Liberty Finance quoted the industry as revealing that since Jiang Shangyi joined SMIC, until now, he has never received actual support. Although SMIC promised to invest resources in the development of related technologies, in fact SMIC has not fulfilled its promise.
In July of this year, Wu Jingang, the vice president of SMIC in charge of technology research and development, resigned. SMIC announced that Wu Jingang was allowed to resign due to personal reasons. Wu Jingang joined SMIC in 2001. Among the five core technical personnel, Wu Jingang is the first to join SMIC and is also the highest-level technical personnel in China.
In the 20 years of SMIC, he has served as assistant director, director, and senior director, and has been the vice president of technology research and development before he resigned. But in the end, he left SMIC. This has to arouse people’s thinking. SMIC actually does not pay much attention to real talents. The industry believes that it is precisely this situation that made Jiang Shangyi feel unwilling, so he started to hesitate.
Do you still remember that Reuters disclosed last month that from November last year to April this year, Huawei and SMIC were included in the entity list by the United States. They still got the data from November last year to April this year. A license worth over 100 billion. Among them, SMIC has obtained 188 export licenses with a total value of 42 billion U.S. dollars.
That is to say, SMIC may not really carry out research and development, and it is more likely that it is still “eat and wait for food” and engage in “usage doctrine”. If anyone has advanced technology, steal it back and steal it for himself.
U.S. Card Neck Dad Jiang can hardly cook without rice
In addition to the above two reasons, there is another reason that cannot be ignored, which is the sanctions imposed by the United States on SMIC and even the entire Chinese semiconductor industry.
After Jiang Shangyi took office at SMIC, he tried his best to negotiate with the Dutch Esmore company he was familiar with, and negotiated the purchase of extreme ultraviolet EUV lithography equipment that can produce advanced processes, which is commonly referred to as a lithography machine.
The lithography machine is a key device for manufacturing large-scale integrated circuits of micro-electro-mechanics, optoelectronics and diodes. At the nanometer scale, the only technology that mankind currently masters is lithography.
Whether it is new car films, mobile phone chips or other fields, even chips used in military and aviation, they are inseparable from lithography machines. There is no substitute for this kind of equipment. Simply put, if there is no lithography machine, then the chip cannot be manufactured normally.
The lowest price of a lithography machine is also hundreds of millions of dollars, which is higher than the price of a Boeing airliner. The high price is not the main problem. The key is that after decades of development, the lithography machine in the world is only dominated by the Dutch Esmore Company, including the United States, which first developed the lithography machine.
However, the relationship between SMIC and the Chinese military was sanctioned by the United States and was included on the blacklist of the US Department of Defense. Former US President Trump (Trump) prohibited Esmore from exporting lithography machines to China. In the Biden government, a new control ban has been issued, and even 28-nanometer equipment produced by a mature process is also controlled for export.
Although Jiang Shangyi is trying his best to promote negotiations with Esmol, the senior executive of Esmol recently made it clear to the outside world that lithography machines cannot be shipped to Chinese customers. This cut off Jiang Shangyi’s thoughts and sentenced SMIC to the death penalty. In other words, SMIC wants to produce advanced manufacturing processes, but it does not have equipment.
On October 31, Hong Kong’s “South China Morning Post” stated in a report that although SMIC continues to recruit talents from TSMC, if it cannot obtain lithography machines from Esmol, then it will “necessarily talk” if it wants to catch up with TSMC.
The article pointed out that although the CCP has invested hundreds of billions of dollars to support chip companies, it cannot produce more advanced chips without a lithography machine. It is even more difficult to catch up with TSMC.
Liu Peizhen, an industry researcher at the Taiwan Economic Research Institute, told the Central News Agency today (12th) that SMIC’s current advanced manufacturing process below 14 nanometers is still facing serious barriers. If the lithography machine cannot be delivered, the development of SMIC’s below 14-nanometer process will also stagnate.
That is to say, although SMIC has hired several generals from TSMC, Jiang Shangyi is still “a clever woman who can’t cook without rice.”
These three reasons were superimposed, and finally Jiang Shangyi had to leave. Moreover, in the next period of time, Taiwanese cadres serving on the mainland will likely experience a wave of resignation.
Taiwan’s chip factory wins over Taigan or is now a wave of resignations
Within a day, the personnel changes of the three major TSMC generals of SMIC attracted the attention of many people. In fact, it is not just these three people. Yesterday (11th) a Chinese senior executive resigned as a non-executive director, a member of the remuneration committee of the board of directors, and a member of the audit committee of the board of directors. In other words, yesterday, a total of 4 directors of SMIC’s board of directors experienced personnel changes.
Qiu Junrong, a professor at the Department of Economics of Central University in Taiwan, told The Epoch Times that behind this wave of resignations, many possibilities have been highlighted. The first is the struggle of cross-strait semiconductor culture. TSMC is known for its strict management and adopts high standards for technology research and development. Assuming that supervisors dug from Taiwan have high demands on Chinese engineers, they can easily be defined as foreign invaders.
Secondly, the opportunity cost of high-level executives from Taiwan is very small, and their worth is very high. Most of them are not for making money at SMIC. Suppose they see that the company is difficult to develop, they will naturally consider the issue of staying.
In addition, the entire Chinese semiconductor environment is going downhill, and a large number of unfinished incidents have occurred. In addition, the United States continues to strengthen its sanctions against the Chinese Communist Party and excludes the specifications of Chinese semiconductors. This is because the image of Chinese semiconductors is getting worse and worse.
Based on these reasons, Qiu Junrong believes that Taiwanese talents will find that China’s environment is far from previously imagined. If you continue to stay, you may have an impact on your reputation. The qualifications to stay in China are not a bonus for yourself, but a reduction. So maybe in the future, more Taiwanese will leave China.
In fact, Qiu Junrong just didn’t make it clear that if he could not get the lithography machine, the generals of TSMC resigned one after another, which means that SMIC is likely to die. Because he didn’t die, he could only burn money in vain.
After Jiang Shangyi’s resignation, Caixin Media Chairman Xie Jinhe issued a document stating that from the perspective of revenue and profit, all four chip foundries in Taiwan have achieved “complete victories.”
Xie Jinhe said that there is no comparison, and he does not know the advantages of Taiwan’s chip foundry industry. He believes that this is “the best year in the world, and Taiwan’s advantages are still expanding. Especially recently, SMIC personnel affairs have blown up again, and Jiang Shangyi has asked for it again, which makes it even more sad!”
Zhuanghe University Town has been blocked and diagnosed with more than 30 people
Next, we still need to pay attention to the situation of the mainland epidemic. Today (12th) the Communist Party of China officially notified that as of 0:00 today, 79 new local cases have been added across the country. Among them, 52 cases were confirmed in Dalian, and there were more than 30 student cases in Dalian Zhuanghe University Town.
The South China Morning Post of Hong Kong stated that the epidemic in China has reached its peak, and Dalian is the center of the epidemic. As of 7 o’clock this evening, there are 24 medium-risk zones in Dalian. Among them, there are 19 in Zhuanghe City, 4 in Ganjingzi District, and 1 in Zhongshan District.
The outside world has always been skeptical about the figures reported by the authorities. Because the CCP is extremely opaque, the reported figures are too far apart from the external estimates. In particular, the information often disclosed by insiders often differs greatly from the official figures of the Chinese Communist Party.
Have you heard the telephone recording of the director Wang of a certain Dalian hospital yesterday (11th)? I think the situation disclosed by Director Wang is much more serious than the situation reported by the Chinese Communist Party. The director Wang even reminded his friend to “be prepared to fall.”
Interested friends can go and listen, the recording is really important. He not only talked about the speed of virus mutation and the severity of its spread, but also how to protect it well. I think it’s very important, I suggest you listen to it. Here goes on to talk about the epidemic situation in the university town.
A student studying in the University Town of Zhuanghe City under the pseudonym Wang Hai said in an interview with Epoch Times that more than 30 people diagnosed were students from Haihua College of Liaoning Normal University. Wang Hai revealed that “more than 30 cases were actually diagnosed in the university city, many of which were not reported by the school, and many students were quarantined, and some faculty and staff were also diagnosed.”
A teacher from the School of Art and Information Engineering, Dalian University of Technology, who uses the pseudonym Chen Qiming, said, “The entire university town is now closed… I don’t know when it will open. You have to wait for the government to notify. The entire Zhuanghe city is closed for management, not just a problem for the school.”
Chen Qiming said that he himself is in closed isolation, with teachers and students closed in schools and dormitories. At present, all residents in Zhuanghe City are isolated from their homes, and logistics cannot be brought in, and things cannot be mailed. They are returned to their original places.
Dalian ordered the closure of the city?Fractures are not allowed to seek medical attention
The Dalian authorities issued a notice today (12th) asking citizens to insist on “not going out unless necessary.” I don’t know how everyone understands it. In my opinion, this sentence is actually a “closure order.”
Let me tell you one thing. I quoted the revelations of two netizens in the show yesterday. Netizens said that seals were affixed to the iron doors of every household in Zhuanghe City, and the video showed that the conditions of the isolation room were very poor.
After the show was aired yesterday, there were a few netizens who might be Dalian. Some left a message under the video, and the content of the message basically confirmed what the netizens broke yesterday.
One netizen wrote in a message, “Now Zhuanghe City is not divided into urban and rural areas, and every household has a seal.” The netizen’s nephew lived in the school dormitory and fell from the upper bunk of the two-story bed in the middle of the night. I broke my wrist after a fall. “The child was crying with pain, his wrist was blue and swollen, but he was not allowed to go to the hospital for medical treatment.” The child’s mother was anxious to call the police, hoping that the police would ease, but it didn’t work, and only asked the volunteers to bring some painkillers to send them. To the gate of the school.
Netizens also said, “There are many people with lifestyle-related illnesses. Even if their condition worsens, they are not allowed to leave their homes and can only wait to die at home. This is the real China.”
As I said earlier, the authorities’ “no need to go out” is actually a lockdown order. Because it says “non-essential”, but it doesn’t give you a clear standard. So people don’t know what is “necessary” and what is “unnecessary”.
Think about it, everyone, the child broke his wrist after a fall. This is an emergency. In the society of normal people, this fracture must first be bone rectified, then cast or fixed with a splint, then tied with a bandage and hung on the neck. This is the most basic medical care measure.
However, the Dalian authorities did not allow patients with fractures to go out to seek medical treatment. They only gave some painkillers and did nothing to deal with the broken bones. I don’t understand medicine, but I suspect that if bones are broken and left untreated, will they be dislocated or give birth to bone spurs? If this happens, it will be the pain of the child’s life.
Not to mention that the CCP has not clearly “closed the city.” Even if it has issued a clear order to close the city, you should seek medical attention immediately in such a situation. The authorities are not allowed to go out even under such circumstances. Isn’t this called “necessary”? It’s not that I scold the CCP and CCP officials, I really can’t see that they still have a bit of humanity.
Netizens also lamented in their messages that the CCP “does not care about the lives of ordinary people, but only cares about their own political achievements. This kind of China is so ugly, and what is more sad is that the ordinary people have been brainwashed, the sad Chinese, the poor Chinese.”
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Chinese people often say “a long-term illness becomes a doctor”, but I am “a long-term meal and become a cook”. This is a joke. However, in the past, I used to go out for interviews in the mainland, and many times people invited to dinner. I have eaten a lot, and occasionally learn to cook, as the saying goes, “Go to the hall and go to the kitchen.”
Not long ago, I made a dish in front of the camera. Although I am not very satisfied, my colleagues gave me praise after trying it. In today’s news special program, please come and enjoy Mu Yang’s craftsmanship. There are also tips that most people don’t know.
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