Once Xingyi Semiconductor becomes bigger, major first-tier cities will definitely try their best to introduce Xingyi Semiconductor.
Not only will factories and land be given away like the imperial capital, but various preferential policies will also be given.
There is no way, it costs too much to build a wafer fab, currently it costs 20 billion.
40 billion or even 50 billion in a few years!
If major cities are rushing to give away land, factories, and preferential policies, and Wang Yi is only responsible for providing equipment and technology, then the pressure will be much less.
But the premise is that Xingyi Semiconductor can become bigger and stronger and mass-produce advanced processes.
At least surpass SMIC!
The resources of first-tier cities are also limited, and they will be given priority to leading mainland companies to make the leading companies stronger and compete with TSMC, Intel, and Samsung Semiconductor.
Rather than investing in the thousand-year-old second-tier brother from the mainland, he will let the thousand-year-old second-tier brother chase the mainland leader.
After all, it doesn’t make much sense for the second-largest company to catch up with the mainland leader, as it is still far behind the international giants.
Therefore, only if Xingyi Semiconductor surpasses SMIC and becomes the leading semiconductor company in the mainland, will it receive the most resource support, develop better, and catch up with the Big Three!
As for SMIC, which has been surpassed, there is a high probability that it can only be reduced to a 40-nanometer low-end foundry.
It will be many years before 28nm can be mass-produced, and that's it.
A group of people who only know how to fight for power have no ability to change their destiny!
Especially with the more outstanding Xingyi Semiconductor, the strategic significance and status of SMIC in the previous life will be replaced by Xingyi Semiconductor, thus declining significantly!
Director Qin didn't talk about these truths, but Wang Yi saw them all.
Since SMIC's mud can't hold up the wall, Wang Yi will take its place and go all out to build Xingyi Semiconductor and be high-end.
However, low-end orders for 40 nanometers can be given to SMIC in the future, which can be regarded as supporting SMIC.
After all, Xingyi Semiconductor's own wafer fab has limited production capacity. Once the 28nm process is successfully mass-produced, it will be prioritized for the production of advanced 28nm and higher processes in the future!
There is no need for the low-end 40nm to occupy the 12-inch advanced production line. It is better to hand it over to SMIC for foundry.
As for the current mass production of 40 nanometers, it is only because it will take another year or two to break through 28 nanometers.
Wang Yi has planned all this.
When we returned to Xingyi Science and Technology Park, it was already seven o'clock in the afternoon.
"Chairman, are you back?" Mr. Hu waited eagerly.
Wang Yi was a little surprised: "You haven't gotten off work yet?"
"Haha, it's okay. It's normal for the semiconductor department to work overtime." Hu Lao said with a smile.
Without knowing the outcome of the negotiation, he had no intention of going back.
Wang Yi smiled slightly: "Fortunately, I have lived up to my duty and worked overtime. The first building of the wafer fab will be delivered next month. Although it is not big, the monthly production capacity is only 5,000 wafers, but it is enough!"
"5,000 wafers? That's already very good. It's most suitable for use as a R&D factory!"
Mr. Hu was overjoyed.
Wang Yi showed the fab information brought back from Director Qin to Mr. Hu:
"The entire wafer factory is divided into multiple parts. There are three main factories. The first small factory has a monthly production capacity of 5,000 wafers. We are working hard and can deliver it in April."
"The second large factory has a monthly production capacity of 10,000 pieces and will be delivered in August."
"The third large factory has a monthly production capacity of 10,000 pieces. It will be launched in November!"
"Okay, no problem!" Mr. Hu's eyes shone: "The first small factory building will be delivered in April. We will introduce the equipment and debug it for three to four months, so that we can have trial production in July and August. If everything goes well, once the trial
If the production is successful, we will be able to produce 40 nanometers by the end of the year. If the trial production fails, we will make adjustments and we will be able to produce 40 nanometers in the first half of next year!"
"Very good!" Wang Yi was in a good mood. Self-research and development of 40nm nanometers has been achieved, and the future of self-production is promising.
"Mr. Hu, I leave these information to you, as well as the contact information of the chief engineer of the wafer fab construction and the relevant persons in charge. You arrange to contact them to negotiate the handover and equipment settlement next month."
Mr. Hu was overjoyed and took the information solemnly: "Don't worry, Director Wang, I will personally take people there tomorrow!"
Although it is only Xingyi Semiconductor's first wafer fab, it started with the most advanced 12-inch fab, which Mr. Hu feels is already very rare.
"Okay!" Wang Yi nodded.
If nothing else, this wafer fab will fully mass-produce 40 nanometers next year, with a monthly production capacity of 50,000 wafers.
Low-end chips such as fast-charging chip C1 are relatively simple, and more than a thousand C1 chips can be cut out of one wafer.
The monthly production capacity is 50,000 wafers, which is 25 million C1 chips.
That’s 300 million coins a year.
By then, there will be 100 million P1 power management chips, C1 fast charging chips, and H1 smart home chips.
If the production capacity is not enough, TSMC can still continue to manufacture it.
As for the second wafer fab, it will be delivered around the end of 2013 or early 2014.
When the 28-nanometer process is successfully developed, it will be used to mass-produce 28-nanometer mobile phone chips.
28nm mobile phone chips are more high-end and complex, with many times more transistors, and the number of chips cut out is even smaller, estimated to be only 600-800 pieces.
Wang Yi remembers that in the previous life of Kirin 990, 7nm, only about 640 pieces could be cut out of one wafer.
Including the yield rate and excluding inferior chips, there are only more than 500 pieces!
However, once 40nm mass production is successful, Xingyi Semiconductor will catch up with SMIC and be completely established.
By then, Wang Yi will have more say, and the second wafer fab provided by the Imperial Capital can be larger in scale and have more production capacity.
For example, we can achieve a monthly production capacity of 30,000 wafers, or even 40,000 wafers!
In this way, more than 300 million 28-nanometer high-end chips can be produced annually.
Xingyi mobile phones, Xingyi tablets, and Xingyi TVs, all added together, are enough, or even unusable, and can evenly provide some production capacity for other products.
By then, a 12-inch 40-nanometer wafer fab will produce low-end chips, and a 12-inch 28-nanometer wafer fab will produce high-end chips, which will be enough for the time being.
When 22nm mass production is successful the year after next, the 40nm wafer fabs can fully upgrade the 22nm process. As for the lagging 40nm chip orders, they will be left to SMIC.
Wang Yi has planned all this.
The next step is to wait!
Wait until April for the delivery of the first factory!
Waiting for August, 40nm trial production!
By the end of the year, the entire 12-inch wafer fab will be fully delivered!
Wait until next year, with the 40nm process, the yield rate will soar and full mass production will begin!
The future is promising!
Wang Yi was in a good mood, but then he thought of an important question: "Mr. Hu, the 40nm process is not difficult for us, right?"
Mr. Hu waved his hand: "There are not many difficulties. By the end of this year, we will ensure the successful mass production of 40 nanometers! At that time, we will start the research and development of 28 nanometers and catch up with the three semiconductor giants!"
"Is it difficult to develop 28 nanometers?" Wang Yi said meaningfully.
Mr. Hu nodded: "With 40 nanometers, there is no pressure to complete it and mass produce it within one year. But 28 nanometers is one of the most advanced processes at the moment. It will take one year to develop and mass produce, and it will take at least one and a half years."
Wang Yi made a calculation: "In that case, can we recruit more people and divide them into two groups? One group will continue to develop the 40-nanometer process, and the other group will start developing the 28-nanometer process now. In this way, there is hope for the end of next year.
Mass production of 28nm!”
Wang Yi knows that TSMC has two R&D teams and two generations of processes that are advancing simultaneously.
For example, right now, a team is working on 22 nanometers.
And another team is already working on 20 nanometers!
Xingyi Semiconductor started late, even more so.
"This..." Mr. Hu thought for a while: "This is feasible, but it requires more people and a lot of investment!"
Wang Yi waved his hand: "Money is not a problem. Now that we are lagging behind, we need to exchange funds for time! Just go ahead and do it. I will take care of the funds. If you need anything, just contact Jian Ziyan. The entire Xingyi Technology is comprehensive
Cooperate with Xingyi Semiconductor!"
"Okay, okay!" Mr. Hu was in a good mood: "Since Director Wang said so, I will divide it into two groups, 40 nanometers and 28 nanometers. We will strive to mass produce 40 nanometers by the end of this year and 28 nanometers by the end of next year!"
"Director Wang, I'm going to prepare now!"
"Good work!"
Looking at Mr. Hu's slightly rickety back, Wang Yi looked a little complicated.
Mr. Hu was born in 1947 and is 65 years old this year!
But there is no way, Xingyi Semiconductor needs to develop and need big names, so we can only let Hu Laochun silkworm die before he runs out...
In fact, Mr. Hu and Mr. Liang are very similar. They both have technical backgrounds and scientific research backgrounds. They are not good at bullying subordinates and flattering superiors, and they do not say uncertain things.
But Mr. Jiang is different. He is better at mediating power and is deeply liked by Zhang Zhongmou...
But Wang Yi is not very optimistic about this kind of people, and still appreciates the hard-working people like Mr. Hu and Mr. Liang!
Mr. Hu said that 40nm will be mass-produced by the end of 2012, and 28nm will be mass-produced by the end of 2013. That’s almost the same!
By then, Xingyi mobile phones in 2014 will be able to use self-developed and self-produced 28nm processors.
However, in 2014, Qualcomm's processors were all 20nm, still two generations ahead of Xingyi Semiconductor.
But thinking that Qualcomm's first 20nm processor is the Snapdragon 810, Wang Yi feels no pressure.
The famous Snapdragon 810 is so awesome that it almost sent away several half-dead international brands!
"With Mr. Hu, Xingyi Semiconductor has a bright future!" Wang Yi was in a good mood.
Next year, Xingyi mobile phones, Xingyi tablets, and Xingyi TVs will all use self-developed and self-produced processors.
The next day, Mr. Hu personally took people to the wafer factory.
Wang Yi was sitting in the office and began to plan the Thousand Yuan Machine in detail!
The price of a thousand yuan machine is there, and the cost has to be reduced. It is impossible to use a Qualcomm processor that costs 300 yuan.
In the previous life, in 2013, the Redmi 1 developed by Rebus failed.
Until February 2014, Xiaomi successfully released the Redmi 1S, which was also the first successful Redmi phone.
It is equipped with MediaTek's low-end quad-core processor and Qualcomm's low-end quad-core processor Snapdragon 400. Both are 28nm processes and both are low-end SOCs with integrated baseband.
Wang Yi's thousand-yuan phone will most likely be released in mid-2013, which is more than half a year earlier than the previous Redmi.
However, in order to control costs and support the development of the domestic industrial chain, most thousand-yuan machines use domestic components.
But at present, domestic component suppliers have just started and started to develop, and many aspects are immature.
In the previous Redmi generation, it was because some components were not strong enough that the Redmi generation failed and 50 million R&D expenses were lost.
Similarly, Wang Yi’s Thousand Yuan Machine will face similar problems.
Starting from scratch, an industrial chain needs a development process. If it is done too hastily, it will only fail completely.
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Therefore, the development cycle of the first thousand-yuan phone is almost catching up with the flagship phone.
Various problems in the domestic component industry chain must be solved one by one.
Otherwise, we will have to follow the footsteps of the Redmi generation.
Moreover, Wang Yi will not hand over the research and development of the thousand-yuan machine to Zhu Changlin’s department.
They develop Xingyi mobile phones and only make high-end phones.
Qianyuanji is a brand new brand, placed in Jeju, and rebuilt as a new department.
Two product lines, two positionings, completely different.
Xingyi mobile phones can be high-cost, high-quality, and highly innovative, aiming to give consumers the best mobile phones, even regardless of cost.
As for the thousand-yuan machine, the first thing is to control costs!
To put it simply, for Xingyi phones, you can use whatever is good, while for thousand-yuan phones, you can use whatever is cheap and does not affect normal use!
There is nothing we can do about this.
It seems that when I return to Jeju in two days, I will have to talk to Song Sining about the thousand-yuan machine.
The thousand-yuan machine will be released in the middle of next year, and we need to start recruiting people, research and development, and promote industry chain negotiations now.
As for the choice of processor, it is also a big issue.
Next year's Qualcomm mobile phone processors will all be SOCs with integrated baseband, and the price will be the total price of the processor + baseband.
For example, Qualcomm's high-end chip Snapdragon 800 next year will cost around 300.
After many years, this price is considered cheap compared to Qualcomm's flagship processor which costs more than 1,000 yuan.
Of course, most of the current domestically produced machines only cost 2,000 yuan, and they will not easily cost 4,000 yuan in a few years.
As for next year’s mid-range processor Snapdragon 600, it will cost around 200!
As for the low-end processor Snapdragon 400, it costs about 150 for a thousand-yuan machine.
Nvidia's processors are cheap, but they don't have a baseband, and the price of the baseband is not even as cheap as Qualcomm 400.
As for MediaTek's processors, they will be cheaper than Qualcomm's, and you can get them for about 100 yuan.
At present, the material cost + marketing and diluted R&D cost of flagship mobile phones must be controlled below 1,500.
As for the material cost of the thousand-yuan machine, it must be controlled at around 500 yuan!
For example, the Redmi 1S in the previous life had a material cost of 520 yuan, plus diluted R&D costs, taxes, marketing costs, and after-sales costs. It sold for 799, and one unit could earn about 200 yuan.
As for saying that the net profit is only 5%, that is all a lie to fools.
Even the Xiaomi generation in 1999 had a profit of around 500, about 25% profit margin!
Thousand-yuan machine, the same is true.
For Xingyi Technology’s thousand-yuan machine, the material cost must also be controlled at around 500.
Including taxes, diluted R&D costs, marketing, after-sales, etc., the total cost is nearly 600, the selling price is 999, and the profit per unit is 400 yuan.
Although the profit is not comparable to that of Xingyi flagship mobile phone, the sales volume will definitely explode.
In 2013, when smartphones cost RMB 2,000 each, Wang Yi’s RMB 1,000 smartphone had no rival. It was cheaper than many feature phones and copycat phones. As long as the production capacity was sufficient, it could sell 100 million units a year!
Earn 400 yuan per unit, 40 billion yuan a year!
Small profits but quick turnover is so scary.
Of course, the most important thing is the scale of users behind it and seizing the market!
The cost of a thousand-yuan machine should be controlled at around 500 yuan, and the screen costs 130-150 yuan.
After all, even though it is a thousand-yuan phone, it will have a 720P high-resolution screen next year. Even if it is an AUO or Tianma screen, it will be at least around 130.
Processor module, MediaTek 105, Qualcomm 150!
For memory + storage chip, the cheapest 1g RAM + 8g rom will cost around 80.
The shell + metal buttons cost 50 yuan. The shell + plastic buttons cost 40 yuan.
The remaining lens modules, touch modules, batteries, etc. 270.
Calculated in this way, if we all use the lowest plan, the total cost will be at least 625.
Totally exceeded the standard!
There is no way. In 2013, the domestic mobile phone industry chain was not developed enough, and the cost was 10%-20% more expensive than in 2014.
Therefore, the material cost of Redmi 1S in 2014 was 520 yuan, but in 2013, Wang Yi had to spend 625 yuan!
If you want to further reduce costs, you will have to switch to self-developed low-end chips.
The material cost of the chip is very low.
The key is that R&D costs are high and foundry production line costs are high!
And as long as sales volume increases, the diluted R&D costs and production line costs will also be very low.
If the scale reaches hundreds of millions, all diluted costs can be extremely low. Including OEM fees and material costs, they will only cost a few dozen yuan.
The current cost pricing strategies in the semiconductor industry are mostly 8:20.
That is, when the cost is 8, the price is 20 yuan.
For example, MediaTek is like this.
And for powerful semiconductor giants like Qualcomm and Intel, it’s not 8:20, but 8:32!
For example, Qualcomm's next year's quad-core flagship SOC Snapdragon 800 will cost around 300 yuan, and the cost per unit is only 75 yuan.
The low-end processor Snapdragon 400 is priced at 150 yuan, and the cost per unit is up to 38 yuan.
Similarly, if Wang Yi develops a low-end chip by himself, as long as the sales volume reaches 50 million, the cost can be reduced to about 40.
If the sales volume reaches hundreds of millions, the cost can be reduced to around 30!
In 2013, if the production capacity of a thousand-yuan smartphone was sufficient, annual sales of over 100 million yuan would not be a problem.
Qualcomm chips cost 150 yuan, MediaTek chips cost 105 yuan, and self-developed chips cost 30 yuan!
In this way, the total cost of the thousand-yuan machine can be reduced further, to 550 yuan!
If you sell it for 999, the profit of one unit will be 450 yuan, which is quite considerable.
As for the research and development of chips for thousand-yuan phones, that’s easy too. Just do it directly from this year’s Kunpeng 700.
By trimming the main frequency and downgrading the specifications, it will become the Kunpeng 500, which will be taped out together with the Kunpeng 700.
Or tap out the low-end Kunpeng 500 first. With the successful experience of the 500, we will be more confident about the Kunpeng 700.
However, there are two types of research and development plans for low-end chips for thousand-yuan phones.
A 28nm one, manufactured by TSMC, costs 30 yuan.
The other 40nm will be produced by Xingyi Wafer Factory by the end of the year, so the cost will be even lower.
40nm is much cheaper than 28nm, and it is produced in-house, which saves OEM fees. The total cost is estimated to be only 20 yuan!
Moreover, Snapdragon 400 will not be released until the fourth quarter of next year, and mobile phones equipped with Snapdragon 400 will not be released until the year after that.
Kunpeng 500 will be launched early next year, one year ahead of schedule. Even the 40nm process is enough!
At worst, if the main frequency is lower, the performance may not be worse than Snapdragon 400!
After all, this year’s NVIDIA quad-core Tegra 3 processor is 40 nanometers, and Wang Yi’s thousand-yuan machine Kunpeng 500 next year will also be a 40-nanometer quad-core processor, which is enough!
After all, if you want a thousand-yuan bike, cost comes first!
This is totally doable.
Forty nanometers will be in mass production by the end of the year, and by then the Kunpeng 500 will be taped out by itself.
As for saying that there are too many chips, making it difficult to develop?
This doesn't exist.
After all, Kunpeng 700, Kunpeng 500, and next year's Kunpeng 900 are actually the same set of chips and the same set of architecture. They just have different main frequencies, and the difference between plug-in baseband and integrated baseband.
To put it bluntly, Kunpeng 700 is the standard version of the external baseband, Kunpeng 500 is the castrated version of the external baseband, and Kunpeng 900 is the upgraded version of the integrated baseband!
They are all modified from a set of chips!
Moreover, the 40nm trial production was successful in the second half of the year. Kunpeng 500 tape-out does not need to go to TSMC at all, it can be done directly at Xingyi Wafer Factory!
That's even easier!
Wang Yi has made up his mind that if sales of thousand-yuan phones are large next year, the chips will have to be developed and produced by himself.
Thinking of this, Wang Yi came to the chip department again and approached Williams.
"William, I have good news for you."
"What's the good news?" Williams became interested.
Wang Yi smiled slightly: "Our first wafer fab will deliver the first factory building next month. At that time, Mr. Hu and the others will immediately introduce equipment and use it as a R&D factory, striving to trial production of the 40nm process in August, which will go smoothly
If so, we will be able to mass-produce 40 nanometers by the end of the year!”
Williams was overjoyed: "Are we going to be able to produce 40 nanometers by the end of the year? With Mr. Hu's strength, there is absolutely no problem! This is really good news, great!"
Wang Yi changed the subject: "There is another good news."
"What?" Williams became interested.
Wang Yixiao said: "Next year we will launch a thousand-yuan smart phone, with the cost controlled at around 500, selling price 999, and annual sales reaching 100 million!"
"Oh my god!" Williams said in disbelief: "What kind of idea is this from God? It's incredible."
"Five hundred cost, thousand yuan smart phone, hundreds of millions of sales!"
Williams couldn't help but stand up: "Dr. Wang, wait, let me think about it!"
"Once successful, it will be a profit of 40 billion!"
"Crazy, so crazy!"
“And it works!”
"With this mobile phone, Xingyi mobile phone sales will exceed 500 million next year! Sweeping the world!"
"By then, the number of users of Xingyi Mobile will reach an extremely terrifying scale."
"The meaning behind this is so great!"
Williams thought of a lot in one moment.
The profit of a thousand-yuan machine is only 400 yuan, but he knows that Wang Yi is definitely not trying to earn these 400 yuan.
On the contrary, it is for hundreds of millions of smartphone users!
Wang Yi smiled knowingly: "If the cost is to be controlled at 500 yuan, then a 40nm low-end quad-core processor is needed!"
Williams' eyes lit up, and he instantly understood what Wang Yi meant: "Chairman, this is easy to handle. It's just a low-end processor, it doesn't need too powerful performance, it's very easy."
With that said, Williams came up with a plan: "Chairman, this is the Kunpeng 700 we are currently designing, but it is not perfect yet and needs to continue to be adjusted."
"But if it is partially castrated, the main frequency is lowered, and it is changed to a 40-nanometer process and used as a low-end processor, it will not be a big problem."
Wang Yi nodded: "That's what I mean. There are two versions of mobile phone chips, a 28-nanometer version of the flagship chip Kunpeng 700, and then a 40-nanometer low-end chip Kunpeng 500. We will wait for the trial production of the 40-nanometer process in the second half of the year.
If successful, Kunpeng 500 can be taped out!"
"No problem!" Williams responded decisively: "With the experience of Kunpeng 500, we can also better develop Kunpeng 700 and even Kunpeng 900!"
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Chapter completed!