20 years of restarting life

Chapter 3698 It's not just about the subsidy

"The most critical factor right now is to ensure that there is sufficient demand after the factory is built. Without sufficient purchasing demand, the factory is meaningless. In my opinion, the demand can definitely fill the chip factory's capacity, but I believe it is useless. Siemens and Ericsson still need to be convinced. So the subsequent Zhengzhou Pro factory, Mingzhu Excellence Technology, and even the trip to Waterloo and Seattle in North America will be very necessary."

Hearing Zhao Chang'an say this, everyone in the room relaxed, because this meant that Jiang Cheng had this first opportunity. The next step was to see if Jiang Cheng could reach a cooperation agreement with Siemens and Ericsson.

If Siemens agrees to a joint venture with OneNano to build a factory, it will be very important for both OneNano and Jiangcheng.

OneNanometer has its own chip manufacturing plant, and Jiangcheng has filled this gap, giving the name Optics Valley a more genuine high-tech connotation, and it no longer seems a bit lacking in confidence.

Just like Zhao Chang'an previously suggested that Subo use two lithography machines in Jiangcheng to take on some small jobs for 6-inch wafers, such as IoT sensors, power management chips, etc.

With these two lithography machines, and an additional investment of 60 to 70 million yuan, a small chip manufacturing plant can basically be built.

However, if a modern 8-inch wafer fab were to be built, with a chip production line covering 130nm process, in addition to the lithography machine as the main component, the cost of single-crystal silicon wafer slicing process, photoresist and supporting materials, high-purity sputtering targets, packaging process, cleanroom, etc. would all start at 10 billion yuan, and the construction period would take at least one and a half years.

Therefore, both of these are factories, but their investment potential, scale, and radiating influence are worlds apart.

-

Zhao Chang'an discussed this idea with Su Bo and the others, and Su Bo and the others hurriedly left the hotel and returned to the nearby R&D center to prepare to draft the application email.

It's a little past 2 PM now. If I hurry, I can definitely send the email before I leave work.

Zhao Chang'an dialed Tang Shuang's number.

"Have we arrived in Jiangcheng?"

"We've arrived! Wow, what a grand welcome! Luo Yu, Secretary-General He Daoxing, Shen Chunlin, Qu Xuezhi, Hu Zhiwen, and Tang Juqin are all at the airport to greet us. We just had dinner together."

"Could it be that they want to keep the chip factory in Jiangcheng?"

"That's what I mean."

"Giggle~"

Tang Shuang laughed on the other end: "Although every Chinese person has a dream of chip manufacturing, like the Jiangcheng R&D Center, this chip factory, and the numerous chip factories and packaging plants invested in across the country. Currently, there are more than a dozen backbone chip factories, more than twenty packaging plants, and more than three hundred IC design companies or R&D centers in China. It can be said that the market is already saturated. With investments of billions or even tens of billions of yuan, I really don't understand why you are all so persistent?"

Zhao Chang'an understood what Tang Shuang meant. From the beginning, she had opposed building this chip manufacturing plant because the chips needed for one nanometer in the future could be manufactured by TSMC, and there was also SMIC in another city, as well as several other companies that were entering this field.

There is absolutely no need to expend so much effort and money to enter this already saturated market.

00年6月24日发布了《鼓励软件产业和集成电路产业发展的若干政策》(国发18号文)，01年9月20日，又以国办函[2 001]5 1号函的方式，对集成电路产业政策作了补充和完善。

The document outlines preferential policies for integrated circuits in areas such as encouraging industrial development, tax reductions and exemptions, investment incentives, import and export policies, accelerated equipment depreciation, support for research and development, strengthening talent cultivation, encouraging equipment localization, and intellectual property protection.

The "Regulations on the Protection of Layout Designs of Semiconductor Integrated Circuits" were promulgated on April 2, 2001, and came into effect on October 1 of the same year. Against this backdrop, various regions have been very proactive in supporting the semiconductor industry, providing high-quality and inexpensive land for construction, ensuring the provision of various supporting facilities and projects, and offering subsidies of 15% to 25% for equipment purchased for factory construction.

Take the PAS5500 that OneNano ordered for the R&D center this time, which costs $630 million. If we go through this application, Jiangcheng will reimburse up to $157.5 million, or 1300 million RMB, for the equipment subsidy.

If 1nm and Siemens and Ericsson jointly build a factory, the equipment cost will account for about 70% to 80%, and even with a 15% equipment subsidy, it will still be $110 million.

If Jiangcheng were to be even more generous, a 25% equipment subsidy would amount to approximately $1.8 million.

Of course, it would be very difficult for Jiangcheng to come up with so much money all at once, but it can be offset in various aspects such as land and taxes.

So, we should hurry up and get on board while there's still a chance to take advantage of this policy.

Once Dr. Chen's misdeeds came to light, such policy support ceased.

Last year, 122 chip factories closed worldwide, including 76 in North America and 60 new ones in several East Asian countries. One-third of these were built domestically, a phenomenon that can be described as "springing up like mushrooms after rain."

However, most of these are small factories, with investments ranging from several hundred million to over a billion RMB.

Of course, another part involves taking over equipment from shut-down chip factories abroad, then repainting the cheaply purchased second-hand equipment through various operations, increasing its price several times or even ten times, and then receiving local equipment subsidies of 15% to 25%. Before the company even starts operations, it has already made a fortune.

The research institute of Dr. Chen at Jiaotong University, as well as the Jiangcheng R&D Center for One Nanometer, were all established under this background, relying on the encouragement and support of national policies.

Despite the abundance of chip factories in China today, and the fact that every city across the country with economic and technological ambitions wants to develop its own semiconductor industry, more than 20 years later, the only chip manufacturers that can truly stand out are TSMC, which is now a giant in China, and SMIC, which is currently ranked number one.

So, after all that competition, what's become of all these chip manufacturers now?
Including SMIC, to be honest, it was already doing so well now, and more than 20 years later it is still doing so well, so there is nothing to say about it.

To put it bluntly, Zhao Chang'an doesn't understand every single person, but he understands human nature. As a fish that once had the good fortune to leap out of the water, he absolutely has to build this chip factory.

-

After Zhao Chang'an contacted Tang Shuang, he called Yang Yixin to his room.

They were supposed to talk about something, but as they talked, the conversation drifted to the bedroom.

Zhao Chang'an is going to accompany Ye Yiyi to Shancheng. Wang Yu, Qi Xuan'er, and Fan Chufei have also booked their tickets back to Mingzhu for tomorrow morning. So, Yang Yixin, Tian Xue, He Danni, Chu Yanling, and the local Jiangcheng authorities need to coordinate and make proper arrangements for Ericsson and the Siemens team's visit to Jiangcheng over the next two days.

After feeding Yang Yixin, Zhao Chang'an felt that spending the afternoon in Jiangcheng was a complete waste. It was only a little past four o'clock, and driving back to Shancheng would only take three hours even by taking the national highway. With the city exit, he could be home before nine o'clock tonight.

So he simply gave the room to Yang Yixin to rest in, and called Ye Yiyi to ask if she was willing to go to Shancheng now.

Ye Yiyi was eager to spend time alone with Zhao Chang'an, so she readily agreed upon hearing the suggestion.