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Chapter 402 Industrial closed loop, Xiaomi’s despair

"Mr. Hu, I believe in your strength, but don't put too much pressure on you, just do your best."
Wang Yi smiled faintly: "If the yield rate exceeds 85% before December and 40nm mass production is achieved, we will have a second large 12-inch wafer fab with a monthly output of 100,000 wafers."
"Is this settled?" Mr. Hu said with joy.
Wang Yi took out the contract signed by Director Qin: "Look, I have negotiated it with the Imperial Capital Management Committee."
Although this contract is not a formal contract in the legal sense, it is just a private agreement between Wang Yi and Director Qin, and it does not have much legal binding force.
But with this contract, Director Qin will naturally keep his promise and do his best to push forward.
As for this kind of thing, as long as Xingyi Semiconductor has output and someone is working around to promote it, it will be a certainty.
If there is no one to promote it, it will be difficult.
The aroma of wine is also afraid of deep alleys.
As Wang Yi expected, as soon as he left, Director Qin went to the leader above with the "agreement":
"Leader, I made a mistake!"
The leader was confused: "You always follow the rules and don't break them. What mistake did you make?"
"I was fooled by Wang Yi!"
"Wang Yi's fault? He also faked chips?" The leader frowned slightly.
"No, it was Wang Yi who tricked me..." Director Qin told the whole process.
The leader smiled: "Hey, what a big deal. As you said, if Xingyi Wafer Factory can really achieve mass production of 40nm process before the end of this year, and the yield rate exceeds 85%, it will be worth it. This is my opinion
, but also other people’s opinions.”
"It means that we are eager to let him mass-produce 40 nanometers, even if it is a large-scale wafer factory?"
"Yes!" The leader nodded.
"Boss, this is what you said. The land and hardware facilities of a large-scale wafer factory alone cost seven to eight billion. I can't carry this burden. Come on, let's write it down in black and white."
Director Qin breathed a sigh of relief, took out a pen and paper, and said with a smile.
"???" The leader had a dark look on his face, this kid has learned badly from Wang Yi!
Then he pointed to the door: "Get out!"
Director Qin: "..."
"Come on, old leader, I'll treat you to a drink when Xingyi Wafer Factory mass-produces 40 nanometers. No, let Director Wang do it! Forget it, his invitation will definitely exceed the standard, so I'll do it."
Director Qin walked out of the door with a smile, then put on his usual serious expression.
Only with his old leader, he was still as free and unrestrained as the newly graduated college student back then.
"This kid is not serious."
The old leader shook his head and immediately made a call.
This is a big deal, but it is in line with the policy, and incentives are given after the output is produced, so there is not much risk.
Coupled with his and Director Qin’s endorsement, this matter is settled!
On the other side, Mr. Hu was in a good mood when he saw the "contract", and his morale instantly became high:
"Director Wang, don't worry, it won't take until December. I will issue a military order to increase the yield rate of 40 nanometers to over 90% before the end of October!"
"Okay, Mr. Hu, I'm waiting to celebrate your success!" Wang Yi began to look forward to it.
"The 40-nanometer process is not a problem, but what I'm worried about is the upstream and downstream industry chains." Mr. Hu, like Wang Yi, has long-term considerations:
"One is the problem of photolithography machines. We can order them in advance. The new wafer fab is larger and requires more photolithography machines."
Wang Yi nodded: "The new wafer fab will be divided into at least two phases. The first phase will be delivered the year after next, and the second phase will be in 2015. We will prepare in advance and purchase photolithography machines and other equipment in advance. In addition, there is also the issue of photoresist
, once it gets stuck, it’s also a big problem.”
Mr. Hu agreed very much and couldn't help but said: "Dr. Wang, do you mean to develop your own photoresist?"
"Yes, relying on imports will only be controlled by others. If we want to retain the greatest say and absolute strategic security, we must achieve comprehensive self-research and production. I am prepared to invest one billion in the research and development of photoresist."
"Okay, I really saw the right person, Director Wang, you are definitely a semiconductor doer!" Mr. Hu was completely excited.
As a semiconductor guru, many people have approached him over the years, asking him to come out and be the technical director to develop semiconductors.
Even playing the emotional card, for the rise of Xia Guo Semiconductor...
But Mr. Hu didn’t believe it at all. How could he not know that 99% of these people were scammers, all trying to defraud scientific research funds, making money with semiconductors, and using his name to raise funds...
In the end, these people made money and ran away. He was not a human being inside and outside...
Such examples abound.
Even when Wang Yi came to him, he didn't believe it and was even full of doubts.
It wasn’t until later that I saw Wang Yi’s sincerity, the excellence of Xingyi’s mobile phones, and that Wang Yi was preparing to invest huge sums of money to build a wafer factory. I also saw that Wang Yi had no intention of raising money to make money. All the money he spent was on Xingyi.
Yi Technology’s own money!
Only then did Mr. Hu believe in Wang Yi and was willing to join Xingyi Semiconductor.
Whenever Wang Yi used the name of Xingyi Semiconductor to borrow money and raise funds, Mr. Hu would have run away long ago.
After all, that's what those scammers do.
For example, that bastard in the previous life first spent a huge amount of money to buy a high-end photolithography machine, introduced Mr. Jiang to join the platform, and then invested like crazy, making a lot of money, and finally ran away, leaving a lot of chicken feathers behind.
Jiang Laodu almost lost his life insurance and was so angry that he vomited blood.
This is also the reason why Wang Yi did not raise large amounts of money. First, the clothing, mobile phone and other businesses are very profitable. Xingyi Technology is not short of money and does not need financing.
Secondly, I am afraid of being suspected of raising money.
It is a normal behavior for entrepreneurs to raise capital, but it has been ruined by those assholes, especially in the field of chips and semiconductors, so that the public does not believe it, capital questions, and even the officials question it.
After all, I had been deceived too many times before. It was Wang Yi who also questioned and did not dare to invest.
But now Mr. Hu is surprised that Wang Yi has not only built a wafer fab, but also built a second large-scale wafer fab.
We are even more prepared to invest in upstream and downstream photoresist!
I can only say that he is a 100% practical person!
For a moment, Mr. Hu was completely excited.
He has long wanted to see the complete rise of semiconductors in the mainland, but unfortunately he has no money and no practical entrepreneurs willing to invest endlessly.
But now, there is!
It's just that Wang Yi is so decisive, so he has to go all out!
"Don't worry, Director Wang, I will do my best to build a wafer fab. I will also fully support you in developing your own photoresist!"
Hu Lao said categorically: "I have been working in semiconductors all my life, and I am familiar with all the experts in the upstream and downstream industry chains. If you want to develop photoresist, I have to contribute. In this way, I will contact a few old friends to see
Are they willing to come to Xia Kingdom to develop?"
"Thank you." Wang Yi smiled. It would be much easier if Mr. Hu came forward to recruit people personally.
Every circle has its own sign, and Mr. Hu is the gold-lettered sign of the semiconductor circle.
Even his students are great names!
"It's all what I should do." Mr. Hu said, changing the subject: "If Director Wang wants to completely get rid of external dependence, he must also invest in silicon wafers. Especially 12-inch large silicon wafers, which currently have to rely on imports.
"
"Yes, this is also a big problem!" Wang Yi nodded.
The production of chips is divided into multiple links.
The first step is to prepare silicon wafers. The silicon wafers are processed into mature wafers through a series of processes. The mature wafers are then tested, divided, and packaged into chips.
Generally, wafer factories purchase silicon wafers directly.
At present, 8-inch silicon wafers can still be produced in China, but 12-inch silicon wafers cannot be produced in China.
In the previous life, in the fourth quarter of 2017, Modu Xinsheng mass-produced 12-inch silicon wafers, achieving a domestic breakthrough.
Therefore, the 12-inch silicon wafers from Xingyi Wafer Factory can only be imported.
In recent years, many countries have been selling them, and the competition is fierce, so that’s okay.
But once it gets stuck, it's also very troublesome.
And Modu Xinsheng was founded by Mr. Zhang, the founder of SMIC!
After Mr. Zhang was forced to quit SMIC by TSMC Mr. Zhang, his blood has not yet cooled down.
We know that SMIC's chip production is only one part of the process, and it still requires upstream and downstream industries.
For example, upstream silicon wafer production and downstream packaging and testing.
Therefore, in 2014, Zhang Lao teamed up with two A-share listed companies, Modu Xinyang and Xingsen Technology, and Xinan Technology, a subsidiary of the Modu Microsystems Institute of the Chinese Academy of Sciences, to jointly establish Shanghai Xinsheng and officially enter the field of large semiconductor wafers.
.
Later, through a series of investments, Modu Silicon Industry Group acquired companies such as Modu Xinsheng, Xinniao Technology, and Okmetic, and became Modu Silicon Industry Group.
Now Xingyi Semiconductor is facing the same problem, and it is also facing a silicon wafer crisis that may exist in the future, and it should be prepared for a rainy day.
At present, Modu Xinsheng has not yet been established. Wang Yida can bring Mr. Zhang over to establish a subsidiary to develop semiconductor silicon wafers.
Coupled with Wang Yi's investment, it is possible to achieve mass production of 12-inch silicon wafers a few years ahead of schedule.
If the second wafer fab is built by the end of the year, the first phase of production will not be put into operation until the next year. There will not be much demand for silicon wafers in the short term, and it can completely purchase silicon wafers from international giants.
After all, the international silicon wafer giants are also fiercely competitive, frantically grabbing customers, and will not get stuck unless they have to.
Silicon wafers are different from high-end photolithography machines.
ASML only has high-end lithography machines, and customers all over the world have to beg to buy them. Naturally, they have a strong reputation, but even so, they don't want to ban sales and delay making money.
Silicon wafers are different. Even 12-inch silicon wafers can be produced by countries such as Neon, Bangzi, America, and Sid.
Even if one company bans sales, other companies will frantically grab customers and sell like crazy.
As long as it affects your own money, your allies will also turn against you.
After all, the whole world is a grass-roots team.
As a result, Xingyi Semiconductor has a few years to transition until it can produce 12-inch silicon wafers in-house.
Wang Yi has a plan, and he has to invest in silicon wafer research and development.
Regardless of whether Mr. Zhang joins or not, Xingyi Technology has to do it.
It is only a matter of time before we can directly recruit people from a few foreign countries and integrate them, plus domestic talents, to achieve breakthroughs.
There is also a layout for wafer packaging and testing.
Domestic production in these fields has started too slowly, so Wang Yi can only do it himself.
Another two large investments!
But sharpening the knife never stops chopping wood.
The money you invest now will be earned back tenfold or a hundredfold in the future.
The simplest thing is that as long as you achieve a technological breakthrough, you can expand wildly and grab orders from international giants.
When it comes to papers, no one can do it better in China.
The premise is to achieve technological breakthroughs and develop our own technology.
If not, just keep a low profile.
In short, Wang Yida must be fully prepared before the environment deteriorates rapidly.
In the field of photolithography machines, we should stock up on food for the winter and invest appropriately to support high-quality enterprises.
Photoresist, silicon wafer, packaging and testing, advance layout, independent research and development, and preparation for the back road.
"Mr. Hu, in terms of silicon wafers, we have at least a few years. I am ready to invest money, recruit talents, and achieve self-production of 12-inch silicon wafers! If necessary, we will involve the government." Wang Yi said firmly.
Silicon wafer production is a basic industry, and it is also an area that cannot make ends meet. Especially in the research and development stage, the investment is high and the return is low.
Coupled with the fierce international competition, only a few giants are making money, while other companies are following the northwest trend.
In this kind of industry, it is necessary to involve the government and invest together.
If it were not for strategic security, not many companies would be willing to engage in silicon wafer production.
But Wang Yi had no choice.
Mr. Hu was overjoyed: "Dr. Wang, I also know some experts in this field. I'll bring them over!"
"Okay, thank you!" Wang Yi said with a smile.
Mr. Hu waved his hand: "It's a small matter."
Wang Yi continued: "There is also packaging and testing, and layout. We need to achieve mass production of silicon wafers, self-research and production of photoresist, wafer foundry, and the entire industry chain of chip packaging. In addition to chip design, Star
If you can make profits by purchasing chips for mobile phones, tablets and other products, then it will be a perfect closed loop.”
This is Wang Yi's strategic layout.
Only with such a closed loop in the industry can we not get stuck casually.
Of course, this is a long-term process and must be done step by step.
"Dr. Wang, you are the most ambitious entrepreneur! If nothing else, I will definitely try my best to do anything that Mr. Hu can do!" Mr. Hu was extremely excited.
Wang Yi has laid out all the industries he wants to work in.
Even if he didn’t want to do it, Wang Yi also arranged it.
What can you say when you meet an old director like this?
Just try your best.
Mr. Hu assured: "With the 40-nanometer process, the yield rate will definitely exceed 90% in October and over 95% in November! I guarantee it!"
"Okay!" Wang Yi nodded, very pleased.
Silicon wafers and photoresist are both long-term strategies. It would be great if we can make breakthroughs in the next two to three years.
But mass production of the 40nm process is something we can look forward to now.
Although it is only a 40nm process, which is far less advanced than 28nm, it is still very powerful.
Currently, mobile phones equipped with Qualcomm’s 28nm APQ 8064 have not yet been officially launched.
40nm chips are still top-notch!
There is no way, the first launch of 8064 was given to Xphone 2 by Xingyi Technology.
Wang Yi is preparing to release it in September, and other friends will have to wait.
In the previous life, Xiaomi launched APQ 8064 on Mi 2, but this time, Xiaomi is still selling Mi 1T at Asan and has not developed Mi 2 at all!
In the previous life, Xiaomi 1 sold more than 7 million units and made a lot of money. Naturally, it has the strength to make Xiaomi 2.
But this time it was hit hard by the Xingyi mobile phone. The total sales of Xiaomi 1 and Xiaomi 1T in a year was only about 1 million. Rebus was numb and naturally had no money to make Xiaomi 2.
No way, the high-end one is crushed by the 2999 Xphone 1, and the same grade is beaten by the 1799 Meizu MX.
Xiaomi's situation is really miserable.
Xiaomi headquarters.
Rebus was a little melancholy: "The consumption power of Asan Kingdom is much worse than we imagined! Even 1,799 Mud is too expensive, that's enough!"
Lao Li on the opposite side nodded: "Yes, Xiaomi 1T has only sold 500,000 units in Asan. Including domestic Xiaomi 1 and Xiaomi 1T, a total of only 1 million units have been shipped."
Rebus didn't know what to say to this.
The ideal is very full, but the reality is very skinny.
"However, the sales of Huawei P1 are also very poor, and the price has also been reduced, from 2999 to 1999!"
Another supervisor laughed and said that everyone felt a lot more balanced now.
Don’t be afraid that everyone will be miserable, just be afraid that you will be miserable!
Rebus sighed: "The only good thing is that the price of Xphone 1 has not been significantly reduced, otherwise there will be no room for our survival. But this day is not far away."
"Yes, Xphone 2 is coming, and it's normal for Xphone 1 to drop in price."
Everyone agreed very much. The total cost of Xphone 1 has dropped from the original 1,500 yuan to the current 600 yuan.
The cost has been reduced by 900, and the selling price has been reduced by 500 to 1,000, which are all routine operations.
After all, the price of iPhone 4S has been reduced from 4999 to 3999. When iPhone 5 is released in September, the price of iPhone 4s is expected to be reduced again, going straight to 3499!
This is much worse than the previous life.
After the previous iPhone 5 was released, the iPhone 4s cost around 4,000.
The reason is that after being continuously beaten by Xphone 1 and Xphone 1pro, the sales of iPhone 4s were dismal, especially in Xiaguo, where sales collapsed and the price had to be reduced one after another.
Rebus sighed: "Xphone 2 is coming, and Xphone 1 will definitely drop in price. The key is how much?"
“If it’s only reduced by 500 yuan, that’s fine. If it’s directly reduced by 1,000 yuan, it will be a disaster for Xiaomi and a disaster for all mobile phone manufacturers.”
After hearing this, all the senior officials were frightened.
Although Xphone 1 is not as good as Xphone 1pro, it still beats all competitors including iPhone 4s and Sony flagship.
The launch price of Xphone 1 is 3299, which comes with a two-year membership. Now, there is no membership, and the price starts at 2999. It can be said that there is no price reduction at all.
The Xphone 2 will be released next month, and the price of the Xphone 1 will inevitably drop, and there will definitely be a price stampede, which will make it difficult for all friends.
Rebus knows this, and so do Xiaomi executives. The more they think about it, the more desperate they become.
"I hope the price of Xphone 1 will be reduced by only 500!" Rebus looked complicated:
"In this way, we can still sell Xiaomi 1T for 1399, and we can continue to sell it, and the profit will be considerable. If the Xphone 1 is reduced to 1999, then Xiaomi 1T, Meizu MX, and Huawei P1 will not be sold. Unless they are all reduced to 1099, they will be worth thousands."
Sell ​​Yuanji! But the profit will be disastrous!"
"Yeah, it's too difficult." All the senior executives collectively expressed shame, saying they were lying if they said they weren't worried.
"Chairman, when will we develop Xiaomi Mi 2?" a senior executive couldn't help but ask.
Hearing this, everyone looked over.
The reason why Xiaomi 1 and Xiaomi 1T failed so much is that their configurations and functions were too poor, and they were completely outclassed by the Xphone 1.
This makes users would rather spend more than a thousand dollars to buy Xphone 1, rather than save a thousand dollars to buy Xiaomi!
The only way out now is for Xiaomi 2 to explode, counterattack strongly, and get back a win!
At least it can no longer have a terrible generation gap with Xingyi mobile phone.
Rebus waved his hand: "Xiaomi 2 must be developed, but not now. There is no rush."
Lao Li's eyes lit up: "Chairman, what do you mean, after Xingyi Technology's Xphone 2 is released, we will develop Xiaomi 2?"
Rebus nodded: "The one who knows me is Lao Li!"
"That's right, no one will dare to take action rashly if Xphone 2 doesn't make a big move. Have you forgotten the lessons learned before?"
Rebus sighed: "After the release of Xphone 1, it immediately became a hit and blinded all us mobile phone manufacturers. So, we Xiaomi, Huawei, Meizu, even Samsung, HTC, etc. quickly followed up and started taking photos.
We were developing Xphone 1 and trying to catch up with Xphone 1. What was the result? Have you forgotten?"
"As a result, our new generation has not yet been developed and has not caught up with Xphone 1. Xingyi Technology has released a new upgraded Xphone 1pro! It directly killed the new generation and all the R&D investment was lost. Let's follow this
Xiaomi 2, which was half way through the development of Xphone 1, was also strangled in the cradle!”
"Yeah, it's too bad! Xingyi Technology doesn't respect martial ethics!"
"The attack was too dark, the action was too ruthless, and there was no room left!"
Rebus sighed: "So, we can't rush to make a move this time. After Xphone 2 is released and Xingyi Mobile shows all its trump cards, we will develop Xiaomi 2 based on Xphone 2! This way, we won't have to wait for it just after it is developed.
The tragedy of being killed instantly.”
"The chairman is wise and still so safe!"
"Yes, that's what we should do. We don't have much money in our account. Xiaomi 1T didn't sell well and we didn't make much money. We can't tolerate failure again!"
Rebus nodded: "What a pity. We went to Xingyi Technology to study before, but they didn't let us in. They even took us to Meiyou and got us drunk! Otherwise, why would we be so passive? Alas!"
A sigh of helplessness.
But soon, Rebus regained his fighting spirit: "Xphone 2 was only released in September, and we have to make persistent efforts this month. Asan, we should start it as soon as possible and use more hunger marketing. If hunger marketing fails, then let go of sales.
Hire people to queue up at the store to create the illusion of hot sales!”
"Okay." Lao Li nodded, and then asked: "Do you want to lower the price?"
Rebus thought a little: "Let's lower it to 1,599 for a promotion first, and then wait and see the price of the follow-up Xphone 1 before deciding whether to continue to lower it!"
"good!"
The next day, Wang Yi came to the chip research and development department.
There has been good progress on the wafer fab side, and there should be progress on the chip design side as well.
"William, how is the development of Kunpeng 510 going?" Wang Yi asked directly.
"Chairman, the CPU and GPU are all done, and the baseband is also done. It's no problem to test them separately. Now only the final integration is left!" Williams said.
If it is an external baseband, Kunpeng 510 has been successful.
But the 510 is a system chip with integrated baseband, so it still needs the last and most critical step to integrate the baseband.
Wang Yi nodded: "Very good, it can be considered a great progress, similar to the situation at the wafer fab."
Williams was a little surprised: "Is there a breakthrough at the wafer fab?"
Wang Yi did not answer, but took out a chip.
"This is the Xingyi router chip R1!" Williams was startled: "Is the 40nm process already available? So fast?"
Wang Yi smiled: "Not yet, the yield rate is not up to standard, and we have to continue to optimize."
"That's it!" Williams nodded, his expression became serious, and he felt the pressure was greatly increased.
Xingyi Semiconductor began its formation in October last year, and it has been ten months since then, and the 40nm SOC has not yet been developed.
As for Xingyi Wafer Fab, it started a little later, but it has already produced output. Although the yield rate is not up to standard, at least it has produced chips.
Comparing the two, Williams only felt that he was losing face.
She even sighed in her heart: "Made, the people in the East work hard, they work too hard! If it were the West, they wouldn't be able to do it next year!"
Then he said: "Chairman, within two months at most, I will make Kunpeng 510 successfully taped out!"
"Okay!" Wang Yi nodded with satisfaction, and then changed the subject: "There are a lot more people in the chip R&D department now, right?"
Chapter completed!
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