When it comes to Wang Sicong, people’s first reactions are usually labels like “rich second generation,” “ex-girlfriend collector,” and “the entertainment industry’s disciplinary officer.” However, recently, this “Principal Wang” has made a significant move that has left many puzzled.
On January 28, a company named Jiuhuan Carbon Technology was quietly established with a registered capital of 80 million RMB, focusing on the manufacturing of specialized equipment for semiconductor devices. A look at the equity structure reveals that it is backed by Wang Sicong’s Pusi Investment.
Netizens’ reactions have been quite interesting, with some mocking: “What can you do with 80 million to make chips?” and others more bluntly stating: “Multiply by three zeros to have some fun.” It seems that many are skeptical about the scale of this investment.
However, to be honest, as someone who has been tracking Wang Sicong’s investment activities for several years, I believe this time it might not just be a simple “plaything.”
01
First, let’s discuss why netizens have this reaction. Indeed, in everyone’s impression, chip manufacturing involves projects worth hundreds of billions. Companies like TSMC and SMIC often invest tens of billions of dollars just to build a factory. In this industry, 80 million RMB is truly a drop in the bucket.
One netizen bluntly stated: “Even 80 billion RMB might not be enough to buy a decent company.” While this may be an exaggeration, it does reflect the high financial barriers in the chip industry.
However, some knowledgeable individuals in the comments pointed out: “The registered capital of 80 million is not the same as investing 80 million; making chips doesn’t necessarily mean producing CPUs and GPUs for phones and computers.” This statement hits the nail on the head.
I checked the business scope of Jiuhuan Carbon Technology, and besides manufacturing specialized equipment for semiconductor devices, it also includes the production of electronic materials and jewelry. It seems more like they are positioning themselves in a specific segment of the semiconductor industry rather than aiming to create high-end chips like CPUs or GPUs.
02
Looking at Wang Sicong’s recent investment landscape, you will notice an interesting shift.
Starting from the entertainment industry, he has clearly been moving towards the tech sector in recent years. Not long ago, he invested in Li Xiaofeng’s Taidu Education for eSports talent training, and now he is venturing into semiconductors. I find it hard to believe that he is just playing around.
Wang Sicong may appear quite carefree, but he is quite methodical when it comes to investments. Early on, when he invested in eSports, many said he was just burning money, yet now the eSports industry is valued at nearly 180 billion. He seems to have hit the right trend.
Moreover, if you look closely, his investment path is quite clear: from entertainment to gaming, from gaming to eSports, and from eSports to technology. Each step is not isolated; there is an inherent logical connection.
03
Regarding this semiconductor investment, I have a somewhat different perspective.
First, while 80 million is not a lot, it is not insignificant as startup capital. Many tech companies start with a few million or tens of millions; the key is to find the right direction.
Secondly, the concept of semiconductors is broad; it is not limited to high-end chips like CPUs and GPUs. There is also significant market demand for sensors, power devices, and RF chips, which have relatively lower technical barriers. It is still possible to create a small but beautiful project with 80 million.
The most critical point is that Wang Sicong chose to enter the semiconductor field at this time, which is actually quite opportune. The trend of domestic substitution is evident, and there is substantial policy support. As long as he does not blindly burn money and identifies the right niche, there are still opportunities.
04
Ultimately, evaluating whether an investment project is good or not cannot solely depend on the scale of funding.
Some netizens feel that “thinking too much, this little money is just small play; chips are not that simple.” I can understand this perspective, but it is somewhat absolute. Making chips is indeed not simple, but it does not mean that one must invest hundreds of billions to succeed.
Often, smaller companies are more agile and can seize market opportunities better. While large companies have abundant funds, their decision-making processes are complex, and they often miss the best timing.
Wang Sicong, despite appearing unreliable at times, has a keen business sense. His willingness to invest heavily in eSports when it was still niche shows he has foresight.
This time, his move into semiconductors may not be a whim but rather a well-considered strategy.
05
Of course, investment carries risks, and the semiconductor industry is indeed quite complex.
However, Wang Sicong is not new to investing; he has likely encountered most pitfalls. The failure of Panda Live caused him significant losses but also made him more mature.
Now, he should not invest impulsively as he did before. His choice to enter the semiconductor field may indeed be based on recognizing a genuine opportunity.
As for whether he will succeed, that will depend on execution. After all, having money is a necessary condition for success, but not a sufficient one.
Regardless, Wang Sicong’s willingness to invest in this critical field of semiconductors is ultimately a good thing for the development of domestic chips. Even if he does not succeed in the end, he is at least contributing to the industry.
Who knows, maybe in a few years, we will be saying: Wang Sicong, you were right!.