Hefei's midfield battle

On September 3rd, a An Kai self-driving car slowly pulled out of Fangxing Avenue in Baohe District, Hefei. Accompanied by it is an entire self-driving fleet, including more than a dozen car companies and technology companies such as Volkswagen, Jianghuai, Chery, Weilai, NavInfo and Baidu Apollo.

The collective road test of new energy vehicles marks the official opening of Anhui's first 5G self-driving open road demonstration line.

On September 4th, Baohe District publicized the specific contents of Hefei (Baohe) Intelligent Networked Automobile Industry Development Project signed in July, covering seven projects, including new energy charging piles, intelligent networked automobile big data cloud computing service platform and 5G intelligent networked automobile industry development center, with a total investment of 4.584 billion yuan.

On September 5th, Hefei announced that it intends to cooperate with Weilai Automobile to promote the construction of power exchange facilities, and plans to add 40 power exchange facilities in 2020 and 20021year. At present, 20 power stations to be built in 2020 have been preliminarily selected, all of which are state-owned public parking lots, and Hefei Charging Company is responsible for the construction.

Hefei, on the road of building a city in the name of the future, runs faster and faster.

The new Hefei has been "characterized" by the new media and is a "city of venture capital".

In 2005, with the melting of the Internet market, China local brand venture capital institutions began to sprout.

Gaochun Capital was formally established this year and made its first investment in Tencent. Later, many Internet giants and unicorns, such as Baidu, Didi, JD.COM, Meituan, Qunar and mobike, were all high-level capitals.

In the same year, the listing of Baidu completely dispelled the doubts of western investors, and venture capitalists from the United States also turned their attention to this once neglected eastern market.

Sequoia Capital formally established China Fund in 2005. Later, on the investment list of Sequoia China, a series of more dazzling names appeared than Sequoia itself, such as Ali, JD.COM, Ant Financial, Today's Headline and Sina. Com, Hungry, Iqiyi, Pinduoduo, Aauto, DJI, Weilai Automobile. ...

Gao Yan Capital and Sequoia China were only representatives of Chinese and foreign venture capital institutions. In addition to them, a large number of emerging and established venture capital institutions from home and abroad choose to camp in China to find more investment opportunities.

Therefore, in the history of venture capital development in China, 2005 is definitely a moment that should go down in history.

The venture capital in Hefei started almost at the same time as the high-profile Sequoia.

The difference is that Gaoling Sequoia aims at the rising Internet and new business model in China. For example, Tencent has come from behind with QQ.

The potential stocks excavated by Hefei are actually the real economy, which is somewhat outrageous for the "potential" of the status quo.

In 2005, Hefei determined the urban strategy of "establishing the city through industry". The most direct way to "establish" is to attract investment.

As a result, in that year, Hefei began to build and demolish illegal buildings, attracting more than a dozen home appliance brands such as Midea, Gree, Haier and TCL to settle in Hefei. Now, the scale of household appliances in Hefei has dominated one party and become the first of the three major household appliance industrial bases in China, and that is another story.

At that time, home appliances needed display screens. Even if Midea, Gree and Haier settle in Hefei, the display screen will still be imported from abroad, which means that Hefei has not retained more profits. Hefei decided to rebuild the display screen in Hefei.

They chose BOE.

At that time, BOE was unremarkable. In the industry, it has been finalized by foreign LG, Samsung and Sharp, and it has to compete with domestic SVA, Longteng Optoelectronics and Tianma Micro. Before landing in Hefei, the operating and sales performance of the fifth generation line and the fourth and fifth generation lines of BOE were not satisfactory, and they once lost money and could not turn over.

How good was Hefei at that time? No, either.

In 2005, Hefei's GDP ranked only 75th in China, and many unknown towns were far ahead.

According to "Light Change: A History of an Enterprise and Its Industry", the main targets of the sixth generation line project of BOE at that time were the Yangtze River Delta, Pearl River Delta and Bohai Bay. As a result, after receiving the invitation from Hefei, they found that the Hefei government had prepared a whole set of land for factory construction, planning scheme and talent supply. For them, and the party secretary is willing to take the lead personally, the mayor personally operates the project. Finally, in 2008, in the midst of criticism, the BOE Sixth Generation Line project settled in Hefei.

Hefei's commitment to JD.COM is that in addition to policy support such as land matching and energy supply, the 654.38+75 billion yuan needed for the 6th generation line project will be fully funded by the government. Hefei municipal government invested 6 billion yuan in advance and strategic investors invested 3 billion yuan. If the remaining 8.5 billion investment is unsuccessful, the Hefei municipal government will help it solve it.

Is Hefei rich? Of course not. In 2008, Hefei's fiscal revenue was only 30 1.2 1 billion yuan, and 1.75 billion yuan directly accounted for 60% of its fiscal revenue. In order to support BOE, Hefei even suspended the subway project. In the history of Hefei municipal government, no enterprise has ever given so much money.

Even in that year, an official revealed that "in order to launch the project, Hefei is prepared to invest 80% of its fiscal revenue for one year."

In 20 10, BOE 6th generation line was officially put into production, and then it succeeded in one fell swoop, ending the history that China's large-size LCD panels were all imported. Since then, the Sixth Generation Line has become a turning point in the development of BOE.

Later, BOE's 8.5-generation LCD panel production line and the world's highest production line 10.5-generation line were also completed and put into operation in Hefei, which made people feel that Hefei was going to rebuild BOE.

Later, the story became a combination of BOE's "feedback".

In 20 17 years, BOE invested more than10 billion yuan in the joint venture. According to conservative estimates, BOE-driven GDP has exceeded Hefei's annual GDP. In addition, a large number of enterprises in the display field followed BOE and came to Hefei one after another.

At this time, people began to say, "BOE has propped up the whole Hefei economy."

BOE and Hefei's "Care for each other" is the story of "China Screen". Similarly, there is the story of "China Core".

That is Hefei Changxin.

Similar to the development background of BOE, most integrated components such as memories and chips in China are imported, and US and South Korean companies occupy 95% of the market. So after supporting more than 100 integrated circuit enterprises, 20 16 and Zhao Yi Innovation established a joint venture company, Hefei Changxin, specializing in the research and development and production of DRAM chips, of which Hefei Municipal Government contributed 75% and Zhao Yi Innovation contributed 25%.

Hefei hands-on "venture capital" Chang Xin. At the beginning, I wanted money. The government * * * jointly invested to build a production line worth tens of billions, and also purchased key patents. The investment scale of the first phase is about 654.38+08 billion. Important places, no problem, the factory and equipment were installed in 10 month, which set the fastest start-up speed in the industry at that time; Distinguished guests, China University of Science and Technology has been ready for a long time. That year, one-third of the students in some graduating classes devoted themselves to the chip industry.

This is a post-investment management service that many venture capital institutions are difficult to provide.

In 20 19, Hefei changxin finally announced the mass production of 8Gb domestic DDR4 memory; On May 14, 2020, the first domestic memory chip manufactured by Changxin was successfully rolled off the assembly line in JD.COM, achieving a breakthrough in memory chips of enterprises in China.

These Guangwei products directly broke the monopoly of American and Korean manufacturers in DRAM industry, and once sold out of stock, which made Kingston and other enterprises hear the voice of price reduction.

At that time, a technology blogger commented: "Since Hefei Changxin released Guangwei's domestic memory, Kingston and Samsung's factories suddenly stopped burning, there was no flood, employees stopped striking, the production capacity was enough, and the price suddenly dropped. Guangwei Pro was officially listed, and the first pure domestic DDR4 memory chip boiled the whole technology circle ... "

Under the "gravity" of Hefei Changxin, a large number of semiconductor companies such as Lijing Technology, Lianfa Technology and Qunlian Electronics also chose to settle in Hefei.

The vision, courage, determination and patience of Hefei Municipal Government can never be underestimated.

Besides, in the past two years, we are most familiar with Wei Lai.

When the Hefei Municipal Government signed the final agreement with Weilai, it actually coincided with Weilai's huge losses in successive years (the loss in 2065438+2009 was as high as11300 million yuan), the capital chain was in crisis and the industry prospect was unknown.

After careful investigation, Hefei generously gave Weilai a strategic investment of 7 billion yuan and won the capital for survival and victory again, so Weilai headquarters settled in Hefei.

Judging from the current situation, Weilai's delivery volume and share price rise are both very ideal, and it has also turned gross profit into profit, becoming the vanguard of the new force of making cars in China.

In addition to these three famous venture capital cases, there are various high-tech industrial projects such as Iflytek, Guo Xuan Hi-Tech, China Electronics, GCL Integration, Guo Dun Quantum, etc., all of which have completed the qualitative change from 0 to 1 in Hefei. At this point, there are only a handful of cities that can be done inland.

Twenty years ago, Hefei was ridiculed by the group as "the largest county in China"; Twenty years later, in 20 19, Hefei's GDP has reached 940.94 billion yuan, and its total economic output has successively surpassed 10 provincial capital cities, just one step away from the trillion-dollar club.

In 2020, Hefei and Foshan replaced Kunming and Ningbo in the list of commercial charm of China cities, and became "new first-tier cities" for the first time.

Not long ago, a program in Taiwan Province province even noticed Hefei. The program said: "It took Taiwan Province Province 30 years to cultivate semiconductor settlements, and Hefei only took 5 years ... It may be the technology capital of China. The first generation of information technology is here, high-tech equipment is here, semiconductors are here, biomedicine is here, and new energy smart cars are here ... they are all cutting-edge technologies now! " That tone is exactly the same as saying that "mainlanders can't afford tea eggs."

It can be seen that once the government chooses the right industrial venture capital, the kinetic energy created is no small matter.

But in fact, the story is not over here.

These achievements are only the midfield battle of "becoming Hefei".

On the one hand, it is the midfield battle of Hefei to Hefei.

In fact, Hefei has always been a city worth studying.

Not only in recent years, for example, in the field of construction machinery, decades ago, when Sany Heavy Industry didn't even have a shadow, the old state-owned mining machinery factory in Hefei won the national excavator gold medal.

For example, in the field of household appliances, the first VCD Wanyan brand in China was born in Hefei, and the unit price of 1993 was 4,500 yuan, which was higher than the average annual salary of China at that time, and the market share was100%. There are other local home appliance brands, such as Meiling and Rongshida, which are equally sharp.

Another example is our bank, which says that Jianghuai Automobile is one of the starting points of independent brand automobile manufacturing.

The courage and tradition of eating crabs have always existed in Hefei, not fade away.

It's just that enterprises here are prone to "prosperity and decline", and mining machines have "disappeared" in the industry; Wan Yan and Meiling, young people probably don't know these names; Jianghuai gradually declined and became the OEM base of Volkswagen and Weilai ... This is like being good at starting a business, but it is difficult to maintain.

Of course, the current "Hefei model" is different from the past and the traditional government investment promotion. From the perspective of capital operation, Hefei's current capitalization investment promotion model can ensure a virtuous circle of funds more than before. At the same time, from the perspective of several successful industries of venture capital, the industrial clusters of these industries in Hefei have been formed and have begun to enter a virtuous circle.

However, according to past experience, Hefei still needs to tighten the string of "post-investment management services" for a long time.

On the other hand, this is also a battle for the midfield of other cities to "become Hefei".

The success of Hefei has made many second-and third-tier cities eager to try. For example, Chongqing has also promoted the successful listing of six enterprises through the government industrial guidance fund, and 20 enterprises are in the listing counseling period, including many high-tech enterprises such as Yuhai Precision and Zhongke Rongchao; For example, Suzhou also invested in Borui Medicine and Jiangsu Beiren Robot with the help of government industrial guidance funds.

These are the successful pioneers and post-promoters of "managing the market with venture capital".

But there are also many cases of governance failure and even the loss of state-owned assets.

Let's say that the automobile industry we are familiar with, such as Baiteng and Bojun in Nanjing, Lindsay in Nanjing and the youth in Nantong, are all chicken feathers left by the government's "venture capital".

As a government, only by having sufficient professional judgment on industrial development prospects, key enterprises and the project itself can we ensure success. Just like Hefu's investment in BOE, the result will take several years to come to a conclusion. Therefore, in-depth investigation and analysis is the most important. It is necessary to find out whether the other party really has the strength and potential, instead of blindly following the trend, and finally leaving a mess of multi-participation.

How professional can Hefei government be in those years? There is a saying that many merchants in Hefei can accurately estimate the investment in plant equipment when they visit the enterprise.

You see, the cooperation between Hefu, BOE and Weilai began when the enterprise was in trouble and was suspected. This is much higher than those who just want to be "pigs on the wind" and win the government.

Therefore, how hard it was to study in Shenzhen, how hard it is to follow in Hefei now.

The story of Hefei is the story of how a city broke through the fierce competition in the enterprise battlefield and kept winning.

But what we care about is not only the victory itself, but also the choice made at every critical moment. Choose to go upstream, choose to retreat from difficulties, take the hardest road, and sometimes there will be unexpected peaks.

The times need more and more high technology, and "becoming Hefei" is a protracted war. To paraphrase Churchill-

"This is not the end, not even the beginning of the end, this is just the end of the beginning."

This article comes from car home, the author of the car manufacturer, and does not represent car home's position.