YM778.TV Chapter 954 - Crystalline silicon industry
Chapter 954 – Crystalline silicon industry
“I said before that I am preparing to invest in a few Crystalline silicon factories, and the production of each factory will be over 5,000 tons.” Feng Yu showed five fingers.
“Brother Feng, you are going to set up more than one factory?” Fu Guangwei’s eyes opened wide. Can crystalline silicon earn money? This industry is worth investing so much money?
“I am planning to set up five or six factories, and each factory will have two production lines that can produce 3,000 tons each annually. It will be expanded later.” Feng Yu replied.
“Brother Feng, do you know how much it will cost for a production line that can produce 3,000 tons of Crystalline silicon? The land, wages, management, production, etc. will cost a lot. How much can you earn from it?” Li Zekai doesn’t understand. Feng Yu is going to set up 30,000 tons of Crystalline silicon production, and the investment will be over 5 billion USD. Also, Feng Yu mentioned that he would expand the factories in the future.
“Yes. Oh, each factory will also have a production line for Monocrystalline silicon, and the production lines will increase as demand rises.” Feng Yu said.
Li Zekai and Fu Guangzheng exchanged looks. Did you even hear what we said? Who are you going to sell your products? The demand for Crystalline silicon is currently not high.
“Feng, I can invest around 1 billion USD. Can I join?” Kirilenko suddenly asked.
“Sure. I estimate the total investment will be over 10 billion USD. Once I got the figures, I will calculate your percentage of shares. This 10 billion USD will be split into three phases.” Feng Yu does not plan to be the world’s biggest Crystalline silicon producer at once. Five thousand tons is considered one of the top producers in the world now.
Before Feng Yu comes into this life, the demand for Crystalline silicon is over 300,000 tons, and currently, the demand is about 10% of that.
According to Feng Yu’s plan, his factories will be producing one-sixth of the global demand and can meet China’s demand.
As China’s demand increases, Feng Yu will increase his production and will export in the future. Japan’s production of Crystalline silicon might be high, but the demand there is very high. The electronic sector is one of the core industries in Japan, and South Korean, Taiwan, etc. also have high demands.”
“Brother Feng, what did Kirilenko say?” Fu Guangzheng curiously asked.
“He says he wants to invest 1 billion USD.” Feng Yu looked at Fu Guangzheng. Look, Brother Ki has good foresight and doesn’t even hesitate to invest 1 billion USD.
Fu Guangzheng and the rest were shocked. Kirilenko also thinks highly of the Crystalline silicon industry? An investment of 1 billion USD is not a joke!
“Brother Feng, what if you the Crystalline silicon produced is not sold?”
“Who says I must sell Crystalline silicon? Can’t I use them for myself? A portion of the Crystalline silicon will be used to produce Monocrystalline silicon, and then use the Monocrystalline silicon to manufacture semiconductor components. A portion will be used to manufacture Polycrystalline semiconductor components, and a portion can be used to produce solar panels, and the rest will be sold.”
Feng Yu is not entering this industry just to sell Crystalline silicon as materials. If not, he will not invest so much money. He can invest in other industries and can make more money from selling Crystalline silicon.
The profit for this industry is very low and requires high investments. That’s why it is hard for this industry to develop in China. But the Semiconductor component is different, and the profit is much higher.
Also, Feng Yu is not worried that the Crystalline silicon produced will not be sold. The companies in China that has the highest demand for Crystalline silicon are Wind and Rain, Aiwa, and Lenovo, and Feng Yu has shares in them. Many other electronic product factories are also working with Feng Yu’s companies, and he is not worried that his Crystalline silicon will be left on the shelves.
Also, Feng Yu still has a trump card. DVD forum. All the participants of this forum are the world’s top electronics manufacturers. If any of them places an order, it will be in large volumes. Feng Yu believes that if he gives up a bit of profit on DVD players, he will get lots of orders in return. This is enough for his Crystalline silicon company to develop.
If Feng Yu received lots of orders, he would speed up his expansion plans. In his previous life, China is one of the world’s biggest producers of Crystalline silicon in the later years. The production is over 180,000 tons and what Feng Yu is going to produce only a small fraction of it. He is not worried that no one will buy his Crystalline silicon.
Fu Guangzheng starts to think of the pros and cons. The investment amount for this venture is very high, and he cannot see how he can get returns anytime soon. But from the way Feng Yu is investing, there is no way this venture will fail.
The Fu Family and Superman Li had discussed and will be entering China’s property market. They felt that the property market would become China’s core industry, and property prices will shoot up soon.
Of course, the electronic industry will also be doing well. But the electronic industry’s downstream, no one can guarantee that the semiconductor industry will be doing well. At least compared to the property market, the profits should be much lower.
“Brother Feng, how much is required for the first phase of investment, and how long is the duration? What will be the total investment?” Li Zekai asked.
“The investment duration is set as ten years, and the total investment will be over 10 billion USD. The first phase should be around 1.5 billion USD. I will be investing 1 billion USD first and might increase depending on the situation.”
Fu Guangzheng thought that he had made a lot of money from the crisis and is enough to invest in many areas. But all of Feng Yu’s ventures require high investment, and his few hundred million USD is not enough.
Fu Guangwei doesn’t even dare to say a word. Feng Yu’s plans had scared the wits out of him. Didn’t Brother Guangzheng say that most of Brother Feng’s money is from bank loans? After repaying his loans and interests, he still has so much money?
“Brother Feng, I need to discuss with my family before deciding. Is this alright?”
“Sure. Oh, I will also be acquiring more bottling factories in Europe and the US, for our Chinese beverages brands.”
Feng Yu looked at the rest, and none of them say anything. Seems like they don’t have enough money. Kirilenko had said that other than alcoholic beverages, he is not interested in other beverages.
To be honest, beverage sales in Russia are not doing well, as there are not many hot summer days each year.
“That means you all are also not interested in setting up automobile production lines and pharmaceutical factories in Europe and the US? Never mind. I will think about these myself.”
Fu Guangwei could hold back any longer. “Brother Feng, how much did you make from the crisis? How come you seem like you can’t finish spending your money?”
Fu Guangzheng scolded Fu Guangwei. How can you ask such questions? But after scolding, he also looked at Feng Yu. He is also curious about how much Feng Yu had made from the crisis.
“Not a lot. It’s only around 20 billion USD.”
When they heard Feng Yu said it’s not a lot, Fu Guangzheng and the rest felt better. But when they heard the second sentence, all their brains stop working.
20 billion USD?! Does that mean Feng Yu is going to be the world’s wealthiest man?!
Crystalline silicon