Qilu Evening News Qilu one-point reporter Cai Yudan
Recently, BYD took 2,946 mu of land in the starting area of Jinan for 1.031 billion yuan. In the past six months, BYD has successively laid out battery and chip production bases and automobile industrial parks in Jinan Lightning. Behind Jinan's victory over BYD, there are two clear main lines running through it-
One is urban competition. In cultivating emerging industries that will affect the development of the city in the next two or three decades, the new energy automobile industry has become the hottest track. Major cities are fighting openly and secretly around this "ticket", and the investment war is one after another.
The other is industrial racing. In 2022, under the convergence of various factors, there will be more variables in the new energy automobile industry, which makes BYD must quickly layout. At this time, big is the fundamentals, big is the cost performance, big is competitiveness.
China's new energy vehicle "one brother" is in a race. Every time the butterfly's wings flap, the entire industrial chain will be surging darkly. The two main lines play each other, and what is finally presented to the public is that a city is deeply bound to a new energy vehicle giant and takes the road of "common prosperity".
So, who can win BYD? And why did you win BYD?
1. Under the tide of lack of core, BYD holds hands in Jinan
BYD laid out Jinan this time, playing fast chess in its entirety.
Since August last year, BYD has successively invested in factories and industrial parks in Jinan, including chips, batteries, and automobile sales.
On the 22nd of last month, Shandong's first 8-inch high-power chip production project was successfully connected to Jinan BYD Semiconductor. Wang Chuanfu, chairman of BYD, appeared in Jinan and accompanied Sun Licheng, member of the Standing Committee of the Shandong Provincial Party Committee and secretary of the Jinan Municipal Party Committee, to inspect the production line that had just been completed.
In the afternoon, Jinan Yaoqiang Airport, witnessed by Sun Licheng and Wang Chuanfu, finalized the second phase of by-one battery project in Jinan.
Five days later, BYD took the land in the starting area of Jinan, and the blood-boiling BYD vehicle production base seemed to be in sight.
Tracking this wave of operations, on August 24 last year, BYD spent 5 billion yuan to buy Funeng Semiconductor, which is the key point to achieve Jinan City and BYD and this "marriage", and what is fueled is the global outbreak of "lack of core" at the end of 2020.
Funeng Semiconductor is an important layout of Jinan city in strategic emerging industries, the project plan covers an area of 630 acres, including two 8-inch and two 12-inch wafer fabs, built in three phases.
This key support project in Shandong Province was publicly reported in the media in September 2018, and the two industry giants Foxconn and BYD that have appeared on this project are the most active investors in the semiconductor field in the past two years.
Foxconn, which holds the "first stick", said after signing a contract with Jinan City that it will serve the development of integrated circuits in Jinan in the form of industrial funds, mainly investing in the existing semiconductor industry projects of Foxconn Group, and Foxconn has first promoted a high-power chip company and 5 integrated circuit design companies to land in Jinan.
Chip manufacturing is a capital-intensive industry. Jinan did not hesitate to see the opportunity, and started construction in March 2019, Jinan Production and Development Group was responsible for plant construction, and Jinan High-tech Holdings was responsible for equipment procurement. At the end of December 2020, the construction of the first production line was completed.
In the external dissemination of this major project, Jinan City is extremely low-key. The reason is that the chip industry has a huge investment, a very low success rate, and a great risk. Many cities have encountered blood on chip projects, and people who fold sand and sink sand abound, such as Wuhan.
On January 27, 2021, after the 8-inch product of Funeng Semiconductor rolled off the production line, there was no news from the "first stick" player Foxconn, but because of the lack of core tide, Funeng Semiconductor attracted many bidders.
Funeng Semiconductor has a ready-made semiconductor production line, which is one of the few 8-inch power semiconductor production lines that has been independently built and realized since 2006 in addition to the expansion of production by large stock factories. At most, 5 companies negotiated with Jinan High-tech Zone at the same time, including Beijing Howey Technology, a world-class chip R&D design and sales company.
Jinan City ultimately chose BYD. For Jinan City, BYD has a stronger industrial chain advantage, and landing in Jinan will have a strong industrial agglomeration effect.
In August last year, Jinan Signed a cooperation agreement with BYD, announcing all-round cooperation in the fields of new energy power batteries and semiconductors, which is the first time that Jinan has signed a comprehensive cooperation agreement with BYD.
On August 24, BYD spent 5 billion yuan to buy Funeng Semiconductor. It is reported that Funeng Semiconductor has invested 6 billion yuan in the first phase of construction, including two 8-inch factories and two 12-inch factories, and the 5 billion acquisition agreement includes the semiconductor equipment purchased in advance.
On the same day, BYD battery plate Fordy Battery settled in Jinan, and four months later, the second phase of the project was finalized.
Regardless of the color of the "dowry" or the "dowry", both sides showed sufficient sincerity.
For BYD, the layout in Jinan is the most preferred in the current industrial environment. Affected by the epidemic, after the collaborative production advantages of different regions under globalization were broken, the industrial division of labor was gathered into a vertically integrated industrial chain cluster in one place, which is the most reasonable cluster production mode at present, and effectively reduces logistics costs, especially competitive during the epidemic.
2. BYD's "Big Year of Investment"
But Jinan is not the only one for BYD.
In August last year, while holding hands in Jinan, BYD made great strides into Hefei, the capital of Anhui Province. At the beginning of August, BYD first settled in Anhui Wuwei, that is, Wang Chuanfu's hometown with a registered capital of 50 million yuan and an annual production capacity of 10GWh; then in Hefei enclosure of 3918 acres, invested 6 billion yuan to build a vehicle production base, helping Hefei embrace the dream of "China's new energy vehicle capital".
2021 is a big year for BYD's investment.
On the blade battery, Tianyancha data shows that since August last year, BYD has added four new battery companies in Anhui Wuwei, Jiangsu Yancheng, Shandong Jinan, and Zhejiang Shaoxing, and has previously invested tens of billions of yuan in Changchun to build a battery factory.
BYD's battery project phase i and phase II in Jinan have a total land area of 1,150 mu, a total investment of 10 billion yuan, and an annual production capacity of 30GWh, which means that the Jinan plant will become the main production base of BYD blade batteries.
At present, BYD has laid out battery factories in Shenzhen, Huizhou, Changsha, Chongqing, Xi'an, Xining and other places. The annual production capacity of the battery production base in Chongqing has been increased to 35GWh; after the second phase of the Xi'an Battery Factory, which invested 12 billion yuan and started construction in 2021, the total production capacity of the first phase has reached 30GWh.
At present, BYD's power battery shipments are the second in the country, but the surge of new energy vehicles has triggered a "battery shortage". According to incomplete statistics, since 2021, CATL has invested nearly 80 billion yuan to expand battery production capacity.
In the vehicle project, bydir's vehicle bases have been identified, including Shenzhen, Xi'an, Changsha, Changzhou and Hefei.
On December 5, 2021, Liu Guozhong, secretary of the Shaanxi Provincial Party Committee, met with Wang Chuanfu, chairman of BYD. In bydy's investment year, Wang Chuanfu also met with the secretaries of the provincial party committees of Anhui Province and Jilin Province.
Among the five places, the Xi'an base has the largest production capacity, producing plug-in hybrid models Qin and the new F3, all of which will reach 600,000 units after full production, which will also make Xi'an the largest new energy vehicle manufacturing base in the country. On December 5 last year, BYD invested an additional 15 billion yuan in Xi'an to build a new energy auto parts factory covering an area of 2,980 mu, which was "signed on the same day and started on the same day". BYD Xi'an officially said that from 2022 to 2023, BYD Xi'an strives to exceed the target output value of 100 billion yuan, which is equivalent to the output value of Shanghai Tesla in 2021.
Satellite view of BYD factory in Xi'an Caotang.
In December 2021, in the "Implementation Opinions" of the "2025 Plan" released by Xi'an City to promote the development of new energy vehicles, BYD was "named" 7 times, and high frequency appeared after a series of verbs such as "encourage, support, promote and accelerate". From this, it can be seen that Xi'an is centered on BYD to build a 'new energy automobile city'. As of October last year, the penetration rate of new energy vehicles in Xi'an has reached 17.86%, ranking the forefront of large and medium-sized cities in China. According to the "2025 Plan", the number of new energy vehicles in Xi'an will exceed 500,000 in 2025, and the scale of the new energy vehicle industry will account for more than 40% of the city's automobile manufacturing industry. It can be said that Xi'an has sounded the clarion call for full electrification.
In contrast, other new first-tier cities have their own car brands or production bases. There is no doubt that the "Xi'an model" is more focused and efficient. For Xi'an, BYD is the "trump card" for Xi'an to build a first-class new energy automobile industry base in the country. As of November 2021, BYD has invested a total of 22.8 billion yuan in Xi'an, achieved a total industrial output value of more than 286 billion yuan, produced 4.2 million passenger cars, paid 12.6 billion yuan in taxes, and solved the employment of 40,000 people.
BYD has deep ties with Xi'an. In 2003, BYD entered the automotive manufacturing field through the acquisition of Shaanxi Qinchuan Automobile in Xi'an. Xi'an can be described as the place where BYD Automobile started its own business. In 2019, Wang Chuanfu was hired as an international senior economic consultant in Shaanxi Province. The Shaanxi Provincial Government International Senior Economic Advisers Conference is an important think tank to promote Shaanxi's economic and social development and an important platform to improve Shaanxi's level of opening up to the outside world. According to incomplete statistics, the international senior economic advisory unit of the Shaanxi Provincial Government has set up 51 wholly-owned or joint ventures in Shaanxi, and 14 regional R&D centers, with a total cumulative investment of more than 330 billion yuan.
In Jinan, information from public reports and public channels shows that BYD's new energy passenger car and parts automobile industrial park invested in the starting area of Jinan covers an area of 4,000 mu with a total investment of 15 billion yuan, and if the annual production capacity is 300,000 vehicles, it will exceed the 200,000 production capacity of the Shenzhen base (which has been put into production); it is the same as the Changsha base (100,000 units have been put into production); it is lower than the 400,000 units production capacity of Changzhou (investment of 10 billion yuan, not put into production) and Hefei base (not put into production).
Excluding Jinan, these identified vehicle bases will reach a production capacity of 1.9 million units when they are fully operational.
BYD has been running wildly, the purpose is to expand production capacity during the window period, defeat opponents with super cost performance brought by scale advantages, and stabilize the market position. Because BYD is the only enterprise in the industry that controls the core technologies of the whole industry chain such as batteries, motors, electronic controls and chips, it has surpassed its peers in terms of cost performance.
3. Government planning under the tension of industrial land
But obviously, there are no four or five thousand acres of industrial land, and it is impossible to catch a big project like BYD.
Under the boom of "strong industrial city" and capital entering the industry in a big way, do a good job in land use security, leave sufficient space for industrial development, and also test the city's strategic planning ability and "land transfer", otherwise it will face the current land supply problem in Shenzhen.
The "red light" of Shenzhen's land supply has long been lit, and in Shenzhen, due to the increasing shortage of space resources, a 16-storey factory has appeared. In the past two years, 61 high-tech enterprises have moved out of Shenzhen, and a large number of electronic information manufacturing industries have also begun to move out, and the slowdown in Shenzhen's economic growth is not unrelated to this.
Shenzhen is a place for BYD to start a business. In order to leave the emerging industry of new energy, Shenzhen has given the two giants OF BYD and Huawei "epic land prices" under the extremely tight industrial land situation.
In October last year, in Shenzhen, BYD won 390,000 square meters of industrial land in the Shenzhen-Shantou Cooperation Zone for 242 million yuan, equivalent to 620 yuan per square meter; in the same month, Huawei won 510,000 square meters of industrial land in Longhua for 298 million yuan, equivalent to 578 yuan per square meter.
This wave of operations is much like in 2018, when Shanghai sold Shanghai Lingang industrial land to Tesla at a low price of 970 million. Shanghai thus entered the first phalanx of new energy vehicle manufacturing.
The 585 acres of land "cut" from Shenzhen, BYD invested 5 billion yuan to build a new energy auto parts industry project.
At the same time, in the "Zhengzhou Project" that was rumored to be rumored by BYD but denied by the "male protagonist", the well-documented information is that on October 9 last year, BYD bid for four industrial land plots in Zhengzhou for 727 million yuan, which was converted into a contract of 4104 mu, equivalent to 177,000 yuan per mu of land.
Zhengzhou, which has tasted the sweetness of the Foxconn project, is also willing to pay blood in recruiting "big businessmen".
Compared with two months later, BYD took 2,946 mu of land in the starting area of Jinan for 1.031 billion yuan, equivalent to 350,000 yuan per mu of land, which is twice the cost of land acquisition in Zhengzhou and 85% of the cost of land in Shenzhen.
Is the cost of land in Jinan high?
Perhaps the gold content of funeng semiconductor's "dowry" is high enough, and Jinan City, which has mastered the scarce elements, has a chip in the negotiation.
4. In the semiconductor industry, there are many "common languages" between the two companies
Just a few days before BYD started Funeng Semiconductor, news broke that BYD also signed up to participate in the bidding of the overall assets of Dehuai Semiconductor on the JD bankruptcy auction platform.
It is a 12-inch annual 240,000-chip CMOS (image sensor for mobile phones, security and automotive) semiconductor manufacturing plant, but has not yet been mass-produced. Rongxin Semiconductor, which successfully bid for 1.6 billion yuan, is a private enterprise established in April 2021, with participation from Sequoia and Meituan. This case fully reflects the enthusiasm of capital to enter the semiconductor industry in a big way.
More pressure comes from BYD's capacity anxiety.
On November 19 last year, Wang Chuanfu said at a public event that BYD's undelivered orders had exceeded 200,000 vehicles. BYD officially responded that the delivery of new orders for DM-i models waited an average of 3.5 months.
In the just-released BYD sales data for 2021, the annual sales volume exceeded 730,000 units, of which 593745 new energy vehicles were sold, an increase of 231.6% year-on-year.
In this case, to expand production capacity, the chip is the most urgent element configuration.
BYD has been in the chip field for 17 years. Founded in 2004, BYD Semiconductor has introduced strategic investors in the "luxury lineup" of CICC, Sequoia, Xiaomi, SAIC, Lenovo, SMIC, SK, country garden and so on.
In 2008, BYD acquired Ningbo Zhongwei, which lost a huge amount of money, for 200 million yuan; in 2020, it invested in chip manufacturer Huada Beidou and spent 400 million yuan to bid for Changsha Chuangxin Integrated Circuit Co., Ltd.
At present, BYD's IGBT chip wafer production capacity has reached 50,000 pieces/month, and it is expected to reach 100,000 pieces/month by the end of 2021. If the production capacity of 100,000 pieces per month is used for one year, it is equivalent to the amount of IGBT used by 1.2 million new energy vehicles. After the acquisition of Funeng Semiconductor, the related production capacity will be expanded.
In the equity composition of Jinan BYD Semiconductor, BYD Semiconductor is the major shareholder, holding 77.75% of the shares, and the remaining shares are held by jinan high-tech caijin and Jinan production and development two state-owned shareholders. In the development of the semiconductor industry, the two companies have many common languages.
In 2021, the scale of Jinan's integrated circuit industry is expected to reach 8.8 billion yuan, an increase of 76% year-on-year, of which the design link is the strongest, the industrial scale reaches 5.03 billion yuan, and the growth rate ranks first among major cities in the country. This, BYD Semiconductor is attractive.
At present, Jinan has formed a semiconductor industry with the high-tech zone as the gathering place, bringing together the "first share of domestic EDA" Ande electronics and fangzhi microelectronics that has just completed nearly 100 million yuan of A round of strategic financing. The addition of BYD Semiconductor has enabled the Jinan semiconductor industry to finally usher in a strong chain repairer in the key link of manufacturing.
5. Qingdao PK Jinan, from capital investment to resource elements investment
In 2021, BYD will frequently invest in the layout or additional investment across the country. However, Qingdao, which received investment from BYD as early as 2015, has received no harvest in BYD's latest round of large-scale expansion of production capacity.
In 2015, BYD will invest in the new energy Shandong headquarters, pure electric bus export base and electric vehicle and energy storage technology R&D center project in Qingdao Chengyang District. This was the largest new energy bus project in Shandong Province at that time, covering an area of 1,000 acres, and began construction in May 2015 with a total investment of 3 billion yuan, with a first phase of production of pure electric buses and an annual production capacity of 1,000 vehicles. In July 2016, the first batch of BYD K9 pure electric buses rolled off the production line and were delivered to Qingdao Jiaoyun Group for use.
The new energy bus market is a huge cake. Qilu Evening News Qilu One Point reporter noted that in addition to Qingdao, BYD has built bus factories in Hangzhou, Nanjing and other places, the main purpose is to exchange investment for market and sales.
Qingdao, a big city in the new energy industry, has attracted many contenders in the bus market. From 2020 to 2021, Qingdao City Transport Holdings Bus Group purchased pure electric buses from many brands including BYD, CRRC, Liaocheng Zhongtong, Beiqi Foton, FAW, Xiamen Golden Travel and so on. In November last year, Qingdao Bus Group also purchased 40 hydrogen energy buses from Qingdao Meijin for 2.2 million yuan each. Shanxi Meijin Energy, the controlling party of Qingdao Meijin, is a key investment attraction unit in Qingdao West Coast New Area.
After the first phase of the project, BYD has no news of additional investment in Qingdao. However, Qingdao State-owned Assets acquired Chery's equity for 14.4 billion yuan in December 2019, becoming Chery's largest shareholder, causing shocks from all parties.
At this time, it is the time when Hefei, the "most bullish venture capital in China", took 7 billion yuan to save Weilai.
Fourteen months later, in February 2021, Chery invested 23 billion yuan in Jimo to build an oem, producing passenger cars, new energy commercial vehicles, etc., with an annual output value of more than 50 billion yuan after production.
Qingdao state-owned assets borrowed Chery's "mixed reform" to introduce industries with capital, while Jinan used the "plane tree" of Funeng Semiconductor to attract BYD's almost whole industrial chain layout.
Under different market opportunities, there are two different investment models. Which model is more efficient, the input-output ratio is higher, and time can give the best answer.
Before Chery settled in Jimo, Qingdao already had 4 vehicle companies, more than 170 parts supporting enterprises, and nearly 900 other related supporting enterprises, which made Qingdao always have no shortage of giants.
On the last day of 2021, Weichai Holdings signed a strategic cooperation with Qingdao City with a total investment of more than 5 billion yuan. In the field of new energy, the two sides focus on exploring the promotion and application of fuel cell port tractors, buses, sanitation vehicles, etc.
Weichai, as the most important force in Shandong's layout of the hydrogen energy industry, has been cooperating with Zhongtong Bus to develop and promote hydrogen fuel cell buses, this time reaching a strategic cooperation with Qingdao, and there will be one more competitor in the Qingdao new energy bus market.
According to the qingdao new energy automobile industry development plan, in 2020, it is necessary to build a new energy automobile industry cluster, with a vehicle production capacity of 120,000 vehicles, plus a total output value of 85 billion yuan for batteries and motors, and cultivate 3-4 large-scale vehicle enterprises and 3-4 large-scale key parts and components enterprises.
Compared with Qingdao, where many new energy industry forces compete, Jinan currently has three new energy vehicle manufacturers of China National Heavy Duty Truck, Haochi Intelligent and Geely. In this case, BYD, a self-sufficient "all-round player", settled in Jinan, and it is easier to obtain government resources.
From the perspective of urban industrial development, in second- and third-tier cities where the allocation of factor resources is not sufficiently rich, focused development is easier to concentrate resources and make the industry bigger and stronger.
On the last day of 2021, Huawei's first flagship experience store in Shandong opened in Qingdao MixC, and the AIOT Q&I M5 buried in a pile of electronic products was officially unveiled, sending a signal to the outside world that "I am really building a car".
Starting in 2022, foreign car companies can build factories in China, which means that there will be more Teslas in the Chinese market.
The rush of powerful factions of various technical routes will only speed up the speed of "veteran" BYD's horse racing.
This time it's Jinan, who's the next city?