The entire semiconductor industry chain is divided into three parts: chip design, chip production, and chip packaging and testing.
The most difficult and important thing is chip production!
Chip production is further subdivided into three parts: large silicon wafer manufacturing, wafer manufacturing, and chip manufacturing!
Wafer manufacturing is to process large silicon wafers into wafers through a series of processes.
The wafer then goes through a series of processes and is finally cut and packaged into hundreds of chips!
It is worth mentioning that wafer manufacturing and chip manufacturing, generally referred to as wafer foundry or FAB, are both completed by one company.
Companies such as TSMC and SMIC are in this category.
Originally, after the wafer factory completed production, it would be handed over to professional third-party packaging and testing factories such as ASE for cutting, packaging and testing.
However, in recent years, wafer foundry has entered the 2.0 era, including packaging and testing.
For example, TSMC is a company that directly implements wafer manufacturing, chip manufacturing, packaging and testing, and all the links. It makes Sun Moonlight so angry that I want to curse!
Xingyi Semiconductor has directly realized the entire industry chain of chip design, wafer manufacturing, chip manufacturing, packaging and testing!
The entire industrial chain from large silicon wafers to chips has been realized.
But unfortunately, large silicon wafers are still purchased from third-party companies.
Especially the 12-inch large silicon wafers are purchased from Omega, Japanese and Korean companies.
There is no way. Mainland companies can currently only produce 8-inch large silicon wafers, not 12-inch large silicon wafers. Wang Yi can only import them.
Similarly, semiconductor giants such as TSMC and SMIC do not produce large silicon wafers. They also purchase large silicon wafers from third-party companies.
Or a silicon wafer factory that you invest in yourself.
Although many parties such as Omni, Japan, and South Korea have large silicon wafer supplies, even if one party cuts off supply, several other parties will take the opportunity to grab orders, and generally they will not cut off supply collectively.
But Wang Yi also had to guard against it.
In the event that the other parties join forces and cut off the supply of 12-inch silicon wafers, Xingyi Semiconductor develops chips. It has a wafer factory and advanced chip production technology. Without the base material of 12-inch silicon wafers, the chip cannot be produced!
As for waiting for other mainland companies to break through, it will take around 2017, which is too slow.
I don't know what will happen in the future.
Therefore, Wang Yi plans to set up his own silicon wafer factory to achieve self-development and production of 12-inch large silicon wafers.
In this way, the strategic security of the entire industry chain can be ensured.
As early as last year, Wang Yi discussed this matter with Mr. Hu.
Mr. Hu also recommended several related talents who have now joined Xingyi Semiconductor.
Wang Yi even provided a series of financial support for the research and development of 12-inch large silicon wafers.
It's just a pity that 12-inch large silicon wafers are not that easy to handle. Over the past six months, there has been no results.
Wang Yi is not in a hurry about this and will continue to spend money, poach people, and continue research and development.
This matter cannot be rushed.
Even if it takes a year and a half, or even two years, to develop a 12-inch large silicon wafer, it is worth it!
But even with large-scale silicon wafer production technology, silicon wafer factories are still needed!
Wang Yi originally planned to invest in building a silicon wafer factory, but now the Magic City and the Imperial City are asking for a big gift. Is this a coincidence?
Wang Yixiao said: "To be honest, I really need support."
"Dr. Wang, it's okay to say it!" Mr. Zhao said with a smile.
"That's right, just say it, we absolutely support it!" Mr. Zhou also said with a smile.
"It's like this. Xingyi Semiconductor has realized the entire industry chain of chip R&D and design, chip production, chip packaging and testing. But we can't make the initial large silicon wafers as the base material."
Wang Yi said earnestly: "Especially the 12-inch large silicon wafers required for 28-nanometer chips cannot be manufactured nationwide. There is still a technological gap and we can only rely on imports."
Hearing this, several people frowned.
Director Qin couldn't help but said: "Director Wang, do you mean that once foreign companies block our exports of large silicon wafers, we will not be able to make high-end chips?"
Wang Yi nodded: "Yes, it's difficult for a clever woman to make a meal without rice. This large silicon wafer is the rice of the semiconductor industry!"
Mr. Zhao's expression changed drastically: "Then this big silicon wafer must be developed as soon as possible to achieve a comprehensive breakthrough!"
"Yes, to be honest, since last year, we have recruited some talents to develop 12-inch large silicon wafers, but it is very difficult. I can only say how difficult the road ahead is. But no matter how difficult it is, we will go all out."
Wang Yiyu said earnestly: "We have no retreat. Before the technological war breaks out, we must make a breakthrough. We must achieve self-production of 12-inch large silicon wafers to ensure the safety of the substrate, otherwise we will be in big trouble!"
"What Director Wang said makes sense, your research and development needs financial and technical support, just ask!" Mr. Zhou said cheerfully.
Wang Yi waved his hand: "I have the money for research and development. But we still lack factories. Even if we make a technological breakthrough and can make 12-inch large silicon wafers, we still need factories to produce them!"
Hearing this, both elders understood what Wang Yi meant.
Mr. Zhao took the lead and said: "I will arrange for people to build you a 500-acre silicon wafer factory in the imperial capital!"
"I'll build you an 800-acre house in Shanghai!" Zhou Lao said with a smile.
"..." Mr. Zhao's mouth twitched: "You surnamed Zhou, you won't suffer at all!"
Mr. Zhou waved his hand: "Your Imperial City is far ahead in fab production capacity, and our Imperial City must be ahead in silicon wafer production capacity!"
"Okay, I'll let you do it once!" Mr. Zhao didn't bother to say more.
After the Didu B2 wafer fab is fully put into operation in the middle of next year, the total monthly production capacity of the Didu Xingyi wafer fab will reach 175,000 wafers.
After the Modu M2 wafer fab is put into full operation in the middle of next year, the total monthly production capacity of the Modu Xingyi wafer fab will reach 125,000 wafers.
Although it’s quite a lot, it’s still far behind compared to the Imperial Capital!
Imperial City is far ahead in chip production capacity, while Magic City can only make a comeback in silicon wafer factories.
In the end, the two parties reached an agreement, and a 500-acre silicon wafer factory was built in the Imperial Capital and an 800-acre silicon wafer factory was built in the Magic City!
Wang Yi welcomed this with both hands.
In this way, the silicon wafer factory in Imperial City supplies the two major wafer fabs in Imperial City without any pressure.
As for the silicon wafer factory in Magic City, there will be more than enough supply for the two major wafer fabs in Magic City, with a lot left over.
However, this does not matter, Shenzhen City can continue to invest in the construction of new wafer fabs in the future!
The excess silicon wafer production capacity in Shanghai will be directly supplied to Shenzhen wafer fabs!
"Director Wang, I'm very interested in the technological warfare point of view you mentioned before. Let's talk about it," Zhou Lao said with a smile.
After hearing the theory of technological warfare from Mr. Zhao, he became interested and wanted to hear Wang Yi explain it again.
"Yes, I'm also very interested." Mr. Zhao also said.
Wang Yi sighed: "I am still preparing for the issue of technology war. I will report it to the leaders in detail when the Ministry of Science and Technology meets. However, the technology war is estimated to be three or four years later. But there is still an imminent problem right now.
."
"Oh? What's the problem?" Both of them became serious.
To be able to make Wang Yi say it is imminent is certainly no small matter.
"The problem of relocating the industrial chain overseas!" Wang Yi explained:
"Now is the era of smartphones, and the proportion of smartphones will become increasingly important in the future. In addition to building a domestic industrial chain, we must also prevent the industrial chain from moving overseas."
"Prevent the industrial chain from moving overseas? Please explain in detail." Mr. Zhou frowned.
Wang Yi explained: "Take the Unbounded mobile phone as an example. 80% of the components are domestic components, integrating a complete industrial chain. It has driven industrial upgrading and GDP development in many regions."
"Especially Jeju has become the top smartphone industry cluster in the country!"
Mr. Zhao nodded: "You have built two super mobile phone factories in Jeju, with an annual output of 150 million smartphones. You also have two super tablet factories, with an annual output of 90 million tablets! It has indeed achieved industrial upgrading!"
Wang Yixiao said: "Not only that, there are also five or six downstream industry chain companies that have invested in building factories in Jeju. And more than a dozen industry chain companies are making arrangements and are about to invest in building new factories!"
Mr. Zhou's eyes lit up: "Then Jeju has established an entire smartphone industry chain? And it has been nationally produced and directly ranked first in the country?"
Wang Yi nodded: "That's right, this is the industrial cluster effect. Where a company builds a factory, the upstream and downstream industry chain companies will follow suit, bringing with it the entire smartphone industry chain and production technology."
Mr. Zhao said: "This is a good thing. If smartphone manufacturing is located in first-tier cities, resources will inevitably be tight. If it is located in third-, fourth-, and fifth-tier cities, it will be a bit difficult to supply. In second-tier cities like Jeju, a province with a large population, then
Very suitable.”
Wang Yi changed the subject: "What if we go to Asan Country to build a factory?"
Mr. Zhou’s face changed drastically: “Once you build a factory in Asan Country, you will move the entire industrial chain to Asan Country, create GDP for them, help them build a complete smartphone industry chain, and bring them smartphones.
Production technology!”
"The smartphone industry in Asan Kingdom will rise, grab our market, and make the money we deserve! That will have a huge impact on our domestic smartphone industry!"
Mr. Zhao also frowned slightly: "This is not a good thing, Mr. Wang, you don't want to do this, do you?"
Wang Yixiao said: "Of course I will not help the other party upgrade its industry, but it is hard to say whether other domestic companies will."
Click till then.
The second elder understood the implication of Wang Yi's words.
Mr. Zhao's face changed drastically: "Especially now that many domestic mobile phone brands are going to Asan Country for development. Once they build factories in Asan Country, they will..."
Wang Yi nodded: "Competition will become more and more fierce in the future. Once the smartphone industry chain is transferred to Asan or the Philippines, we will lose a lot of job opportunities, a lot of GDP, and a lot of wealth. I suggest
, this kind of behavior must be restricted.”
"It doesn't mean that we can't build factories overseas, but we can't transfer the entire industry chain."
"For example, Xingyi Smart TV has factories in Mexico and Poland, but there is no industrial chain transfer. 90% of the products are produced domestically, packaged and sent over, and the final screwing and packaging are done."
"This can reduce taxes and eliminate taxes, and there will be no industrial chain transfer or technology transfer abroad."
"Yes, this is a good strategy." The two elders were happy, completely understanding what Wang Yi meant.
The cake is just that big. Our manufacturing industry has risen, while OMI’s manufacturing industry is hollow.
With the rise of Asan Philippines, our orders and profits will be reduced, and there will be fewer employment opportunities.
"Thank you, Director Wang, for reminding us that we attach great importance to this matter."
The two elders were filled with emotion and chatted a lot with Wang Yi about the technological war before leaving.
Wang Yi breathed a sigh of relief. Now, the establishment of factories in Asanguo, another smartphone brand, and the transfer of the industrial chain, should they be over?
It's also a good thing.
Wang Yi didn’t want them to be defrauded of money, technology, or factories!
Moreover, at present, Wujie mobile phones focus on low-end products and Xingyi mobile phones focus on high-end products. Domestic brands can continue to focus on mid-range products as before and still make a lot of money.
Even the Unbounded Note is made of domestically produced components, with sub-flagship configurations, and the price is not low. It has little impact on the domestic flagship configurations of around 2,000 yuan, and friends still have sales.
There is really no need to go to Asan Country to build a factory.
Regarding Xingyi Semiconductor's 28nm process breakthrough and official mass production, Wang Yi still insisted on keeping a low profile and not making any big publicity.
Before realizing the security of the entire industry chain, it is best to stay steady.
If you are too high-profile, it will easily arouse the other party's fear.
Maybe the Sword of Damocles will fall prematurely.
At the very least, Wang Yi would feel uncomfortable if he did something to acquire the patent.
After several months of negotiations, the matter of acquiring patents has reached its most critical stage, so we are still keeping a low profile.
In this way, in September, the Xphone 3 equipped with Kunpeng 902 will be directly released, and the mass production of 28nm chips will be officially announced, which will shock the world.
At that time, the patent acquisition matter was almost over.
Wang Yi didn't want anything to happen during the critical period.
Therefore, only a few senior executives know about Xingyi Technology's mass production of 28 nanometers, and others know nothing about it.
Mr. Song, who was far away in Shenzhen City, was not happy:
"Okay, Imperial City and Magic City are really ghosts. They quietly built a wafer fab for Xingyi Technology before, saying it was a 40nm process, but when it was put into production, it turned out to be 28nm! You screwed me!"
"Yes, we can be a little less jealous of the 40nm wafer fab. We are really jealous of the 28nm fab!"
Fu Han, the head of the Shenzhen Investment Promotion Bureau, was also helpless:
"Leader, the 28-nanometer wafer fab in Imperial Capital has already started mass-producing chips, and the 28-nanometer wafer fab in Magic City is about to go into production. Our Shenzhen market has not yet seen its shadow. How can we do this? We Shenzhen market cannot fall behind!"
"Yes, we can't fall behind. In this way, you immediately arrange for people to study the plan and directly plan two large-scale wafer fabs..." Mr. Song said solemnly, and then changed the subject:
"Forget it, tomorrow you take people directly to Xingyi Technology and discuss with them face to face. We will give them whatever specifications they need, and we will provide them with all kinds of benefits, even more than the Magic City and the Imperial Capital!"
"As the top leader of China Merchants Group, as long as it's not too excessive, you should do it!"
"Okay leader, I will go directly there tomorrow, no, I will fly there tonight!" Fu Han responded.
"Okay, if we can't negotiate well, don't come back. Whether it's a wafer factory, a packaging and testing factory, or a silicon wafer factory, whatever you want, you'll get whatever you want!" Song Lao said with a smile.
If other companies invest, they may be in vain or in trouble.
But Xingyi Technology is different. It has made breakthroughs in its 28nm process and has mass-produced it. It is first-class in the world and first in the mainland, with absolutely zero risk!
It would be foolish not to hurry up and attract investment at this time.
That night, Fu Han took his people and flew directly to the imperial capital.
The next day, as soon as Wang Yicai arrived at Xingyi Technology, Zhu Changlin greeted him:
"Chairman, Shenzhen City is here to attract investment. I hope we will also go to Shenzhen City to build a wafer fab!"
"Go to Shenzhen to build a wafer factory!" Wang Yi was not surprised:
"The 40-nanometer process has made breakthroughs, and the city of Shanghai can no longer sit still. They come to ask us to build a wafer factory in the city and provide all kinds of support."
"Now that the 28nm process has achieved a breakthrough, the Shenzhen market can no longer sit still!"
"And this is just the beginning. Next, other cities will probably take action and invite us to invest in building wafer fabs."
"Yes, that's for sure." Zhu Changlin said, but he was a little embarrassed:
"But this is embarrassing. By the middle of next year, we will have a monthly production of 300,000 12-inch wafer equivalents and a monthly production of 180 million chips. Our production capacity has already overflowed and cannot be used at all. If we invest in new construction in Shenzhen and other cities,
Wouldn’t it mean that the wafer fabs have more overcapacity?”
"This is indeed a problem, but it's not a big problem." Wang Yi waved his hand:
"Currently, the 28nm process is still the world's top process. The world is short of 28nm production capacity. Xingyi Technology cannot use it itself, but it can also OEM it for a third party!"
"As long as the price is right, not to mention domestic companies, even foreign companies can grab orders."
“Whether it’s 40nm or 28nm, we can manufacture it!”
Originally, Wang Yi planned to upgrade the 40-nanometer production lines of the first phase of the B1 wafer fab in Didu and the M1 wafer fab in Magic City to 28-nanometer production lines.
But now it seems that it is not necessary at all.
In the second half of the year, the first phase of the B2 wafer fab in Didu and the first phase of the M2 wafer fab in Modu will be delivered, both of which can be directly turned into 28-nanometer production lines.
The current monthly production capacity of 28-nanometer chips is 30 million. By then, the monthly production can reach 60 million, or even 90 million, which will not be used at all!
The 40-nanometer production line must also be retained. After all, the processors of all Xingyi mobile phones, Xingyi tablets, and Xingyi TVs are all 40-nanometer chips, and they rely on these two production lines for mass production!
Even if our own products are fully upgraded to 28nm in the future, these two 40nm production lines will still have to be left to third-party companies for OEM!
Since we want OEM, we need more varieties.
In the next few years, 28nm will be a high-end process, and 40nm will be a mainstream process, and they will always exist.
Even ten years later, 40nm chips are still around.
Semiconductor giants such as TSMC, SMIC, and Samsung will all maintain 40-nanometer production lines in ten years.
Similarly, if Xingyi Semiconductor wants to do wafer foundry, it must do the same.
Even if you don’t use it yourself, you still have to keep it for your customers and make it for them.
Even if it is upgraded to a 28nm production line now, it will be necessary to build a 40nm production line in the future, which is not enough trouble.
In addition to these two 40-nanometer production lines, the monthly output is 50,000 wafer equivalents, which is about 30 million 40-nanometer chips, which is not too much.
It just keeps producing chips for older models and doing OEM work for third parties.
Wang Yi continued: "In addition to doing OEM work, we will also produce more and more chips of our own."
Zhu Changlin nodded: "Yes, with the launch of Unbounded mobile phones, Unbounded tablets, and Unbounded TVs, the demand for chips will double again next year!"
"That's for sure. Don't forget, next year we will launch global sales, and mobile phone sales will reach another level!" Wang Yixiao said.
"Yes, it will definitely be internationalized next year!" Zhu Changlin suddenly realized.
Once fully internationalized, Xingyi's annual sales volume of mobile phones is expected to reach 250 million units.
What about cheaper Unbounded phones?
Once it becomes internationalized, it can only be higher. 350 million units is definitely not a problem.
Xingyi Tablet + Unbounded Tablet have annual sales of 150 million units, no pressure.
Xingyi TV + Unbounded TV, with annual sales of 250 million units, is not a big problem.
This requires 1 billion mobile chips.
"Not just these mobile chips, but also CPUs and graphics cards next year!" Wang Yixiao said.
Since acquiring VIA last year, Wang Yi has invested heavily in research and development of CPUs, graphics cards, and NPUs.
In one or two years of research and development, even if we can’t make a high-end CPU comparable to Intel, we can make a mid- to low-end CPU, right?
Even if you can't make a high-end graphics card, there is hope for a low-end graphics card, right?
After all, it is the S3 graphics card team that develops it. The once king of graphics cards in the 2D era can still make mid- to low-end 3D graphics cards no matter how much it regresses, right?
Wang Yi is not very demanding.
Zhu Changlin was overjoyed: "Once the CPU, graphics card, and NPU all break through, they will all have to be mass-produced, which will consume a lot of production capacity."
Wang Yi nodded: "That's not all. Next, we have to lay out the memory chips."
"Xingyi mobile phones, Xingyi tablets, Xingyi TVs, plus the Unbounded series consume so many memory chips and flash memory chips every year, we can completely develop our own chips!"
"Yes, it's time to lay out the plan. I will arrange people, recruit people, and develop memory chips!" Zhu Changlin said with a smile.
Wang Yi nodded: "Recruit, invest heavily, and accelerate research and development!"
"Once there is output, it will consume a lot of production capacity. I'm afraid we don't have enough of this production capacity ourselves!"
"???" Zhu Changlin was startled: "Isn't that true? In the second half of next year, Xingyi Wafer Factory's monthly production capacity is 180 million chips, and the annual production capacity is 2.16 billion chips the year after that. How can it not be enough?"
Wang Yi smiled: "After the Xingyi brand + Wujie brand mobile phones, tablets, and TVs are put on sale globally, the combined annual sales volume will be about 1 billion units."
"A device requires a SOC processor chip, a memory chip, and a running memory chip. As long as a breakthrough in memory chips can be achieved, one billion devices will have 3 billion chips!"
"Hiss!" Zhu Changlin took a breath of cold air: "As a result, our fab's production capacity is not enough for our own use, let alone OEM for a third party!"
Wang Yi nodded: "In a word, the 28nm production capacity is completely insufficient. The more 28nm wafer fabs, the better."
"The wafer fab in Shenzhen City must be built, and it must be built on a large scale, directly investing in the construction of a large-scale wafer fab that can produce 100,000 wafers in two months!"
"Okay, Chairman." Zhu Changlin was extremely excited.
Wang Yi fell into deep thought:
The Shenzhen wafer fab will start construction in the second half of this year and will not be put into production until the year after that, that is, 2015.
If Hu Lao's 14nm process progresses smoothly by then, the two new wafer fabs in Shenzhen City can directly adopt the 14nm process and become the first and second 14nm wafer fabs!
That would be so cool!
If the progress is not smooth, we can only go online with 28nm and continue to be a 28nm fab!
The 14nm production line will have to be handed over to other fabs.
Thinking of this, Wang Yi continued: "If there are other cities that want to invest in construction in the future, as long as the policies are good, the conditions are suitable, and the support is sufficient, we will build factories!"
There is a huge shortage of high-end Fabs in the Mainland, especially domestic ones.
For this reason, Wang Yi needs to be a factory-building maniac, build factories crazily, develop radically, and prepare for the technological war!
It’s hard to break through the 28nm process. If we don’t build factories like crazy, we will be sorry for Mr. Hu’s team!
"???" Zhu Changlin was startled, thinking that the chairman was crazy!
Chapter completed!