The Millennium Semiconductor Survival Guide.

Chapter 195 Baidu swallows Google
Hu Zhengming is very familiar with the history, but not the current situation. After listening to it, he quickly grasped the key point: "Hua Hong Semiconductor is now equivalent to being held hostage by Neon Enterprise.

Previously, all energy was devoted to memory chip foundry, resulting in revenue being completely kidnapped by the market environment of memory chips. "

Zhou Xin nodded: "That's right, Hua Hong Semiconductor and Neon's NEC have established a joint venture company, and the joint venture company will do memory chip foundry. Although Hua Hong Semiconductor's equity in this joint venture company accounts for more than 70% , but the actual control is in the hands of Neon Enterprises.”

Hu Zhengming said: "I understand that although the 909 project adopted a chip foundry model that is more in line with the current international mainstream, Hua Hong Semiconductor is also mainly engaged in chip foundry.

However, the status quo of 909 and the status quo of Project 908 seem to be different. In fact, the root cause behind it is that Huaguo's chip industry is too weak.

Even if there are advanced chip foundry companies, they need to be parasitic in the neon chip system to survive.However, Neon's chip industry has experienced a peak in the 80s and has been declining since the signing of the American-Neon Semiconductor Agreement.

Neon's semiconductor market is constantly squeezed by Goryeo and Wanwan, and they can't protect themselves, let alone help Huaguo's chip industry develop. "

Zhou Xin said: "NEC's condition for Hua Hong Semiconductor is to underwrite products, which means that Hua Hong gave up the chip foundry and switched to NEC's downstream manufacturers. The other links are quite correct."

Hua Hong Semiconductor's huge loss in the first half of this year has caused huge controversy in the semiconductor industry in Huaguo, and there is little discussion about it in the outside world. In the industry, this is comparable to an eight-magnitude earthquake.

Both the government and the industry have placed high hopes on Hua Hong Semiconductor, which is code-named Project 909, but they never expected that the most advanced production line would start to suffer huge losses just after it was put into production.

The reasons for the status quo, the industry's views vary.

"The reason why Huahong invested in the risky product field of memory chips is a must for joint ventures." The director of Yanda Microelectronics said: "As the main project of '909', Huahong was originally going to be a chip foundry. But the reform of the enterprise system was not in place, the specific management team was not established, and the international market was not available. So at that time, we had to negotiate joint ventures with some large foreign companies, and the conditions offered by NEC were the most favorable at that time.”

The general manager of Yan Dayuhuan Microelectronics System Engineering Co., Ltd. said bluntly: "The cooperation between Hua Hong and NEC has little effect on driving the chip industry in China, and the effect is almost equivalent to that of Motorola building a new factory in China."

Zhou Xin continued: "And when we were discussing cooperation with Huahong, it was very difficult to push forward because the specific operation was in the hands of the Neon people.

Their willingness to help test the lithography machine is already the result of coordination.

Mphone's chip is 130nm process, while Hua Hong Semiconductor's process is 350nm, which is obviously not enough.

Hua Hong Semiconductor has no way to become a foundry of A1E chips, but this does not mean that I have no other way.

The decoding chip we designed for Apple, Hua Hong Semiconductor's manufacturing process can completely manufacture the chip with this precision requirement.

However, when negotiating cooperation with Huahong Semiconductor, Neon was extremely reluctant to do so. "

Neon, Goryeo, and Wanwan, semiconductor technologies are all imported from American, and then self-developed on this basis.

Only China can’t do it. Two years after the dissolution of Batumi in 1994, American organized and signed the Wassenaar Agreement in the Netherlands, which led to the fact that the semiconductor technology exported to China must be two generations behind.

Originally, when the 909 project was started, we could only buy 0.5 micron or 500nm process production lines. Later, we cooperated with NEC to obtain 350nm process production lines from NEC.

At that time, the production line of the 350nm process was already a rare good condition, even if it was known that it was a sugar-coated bullet, it had to be swallowed.

Hu Zhengming said: "I know about the cooperation between NEC and Huahong, it is not surprising that NEC will do such a thing.

NEC would offer such a condition back then, purely because Tadahiro Sekimoto took a fancy to the Huaguo market.

He wanted to take this opportunity to open up the Huaguo market, but after the Hua Hong and NEC production line was put into production, he found that 95% of the memory chips produced by this production line depended on NEC to help digest them.

Originally, the calculation was that Huaguo's own market could digest these chips, but Huaguo could only digest 5%, which was far beyond his expectations.

When I chatted with Yang Chonghe on the email recently, I also talked about the operation of NEC. The most rogue point of NEC is to cut off the industrial chain.

For example, the unpackaged chips produced in Hua Hong NEC, Nihong bought all of them, took them to Malaysia for packaging, and then brought another kind of chip from Malaysia to Yanjing for packaging.

First, Hua Hong NEC is not allowed to master the core technology, and second, Hua Hong NEC is not allowed to form a complete industrial chain. Hua Hong NEC is just a processing department of Japan's NEC located in Huaguo. "

After Zhou Xin listened to it, he suddenly realized that his network was far inferior to that of Hu Zhengming, and Guan Jianying could not find out such detailed news in China: "No wonder Hua Hong Semiconductor did not dare to make an order. Surrounded by neon.

So if there is an order that can allow them to reverse the current huge loss, they also have to look at the neon people.

Apple's decoding chip not only helped them turn losses into profits, but it was also a huge profit. Moreover, if the order is completed, it will be a long-term business cooperation.

Moreover, the decoding chip does not have high technical requirements. I have never figured it out before, but now I finally understand it. "

Zhou Xintou is a bit big. SMIC's shareholding structure is complicated, and marketization and profit requirements make it difficult to advance cooperation with SMIC.

Not to mention that when SMIC was founded, the chip industry was in a trough caused by the Internet crash, and the Philadelphia Semiconductor Index fell all the way.

If Mphone's A1E chip order is given to SMIC, it is guaranteed that they will face west, and they will not face east.

But the problem is that Hua Hong Semiconductor cannot manufacture chips with a 130nm process, nor can SMIC.

Hu Zhengming said: "So it is best to cooperate with TSMC, and Huahong can be regarded as an alternative.

After I go back, I'll see if I can solve this problem. I still have some energy in Huaguo.

As a well-known entrepreneur in Silicon Valley, you have a huge amount of capital in your hands, and you can affect more than just your companies.

Mphone's chip can be used as a bargaining chip, and Apple's decoding chip can be used as a bargaining chip. You can also help Xinxin Technology to fight for the chip foundry of other companies.

Nvidia's chip foundry can also be used as a bargaining chip.

The other is Intel, the most important thing is to convince Intel, as long as Intel is willing to support us.

The first thing I will do after returning to Huaguo this time is to cooperate with Xinxin Technology and Intel to develop a chip specifically for the Huaguo market, focusing on cost performance.

Then cooperate with computer manufacturers in Huaguo, focusing on low prices.

But there are many things that need to be done, such as understanding the consumption capacity and actual needs of the Huaguo market, predicting the future situation, and so on. "

In the past, Intel has made special supply for Huaguo. As early as 2006, Intel launched a lot of 533MHz FSB residual blood products. These residual blood products mainly supply the Huaguo market. The price is one low.

"In the field of chips, Intel is the most important player at the moment. From Samsung to TSMC, the positive cycle of the chip industry has been formed, and all of them have taken the express train of Intel."

After Zhou Xin chatted with Hu Zhengming, he found that the other party had formed a complete train of thought and a set of clear ways of playing.

This made him heave a sigh of relief. Guan Jianying's ability is fine, but there are too many things to do, which obviously cannot be done by himself.

In addition, in Huaguo, personal connections are too important. Compared with Hu Zhengming, who has dealt with Huaguo's academic and industrial circles since 1985, Guan Jianying has no connections in Huaguo. Haishi.

After Hu Zhengming returned, he greatly improved Xinxin International's work in all aspects.

"Zhou Xin, you don't seem to be in a good mood?" Back home, Li Jingyi, who was reading a book, looked at Zhou Xin, who seemed to be looking at her mobile phone, but she didn't do any operations with her fingers, and her gaze seemed dull.

After Zhou Xin glanced at the other party, Li Jingyi, who was wearing home clothes, always gave him the feeling of a good wife and mother, "Professor Hu promised me to return to China to serve as the chairman of Xinxin Technology, and take full charge of all my business in China. "

Li Jingyi asked curiously: "Then why are you not interested?
Isn't that something to celebrate?

Didn't you always want to persuade Professor Hu to go back and help you?

For you, Professor Hu can be completely trusted, and he is the top talent in the field of integrated circuits. With his help, it should be easier for Huaguo to develop its own semiconductor industry. "

Zhou Xin told Hu Zhengming not to mention resignation, but to go back to Huaguo and settle down, and then resign with Berkeley by email, and then he will act as Hu Zhengming's plenipotentiary representative to help him discuss with the school whether he can retain his position.

Before Hu Zhengming returned to China in the name of academic exchanges, he saw a lot of strange deaths of Chinese scientists on the news. When scientists of Hu Zhengming's level went back, Zhou Xin was worried about what would happen if the target was first exposed.

Although the current situation is far less severe than 20 years later, it is always right to be careful.

Zhou Xin said: "Because I lost another person I knew well in Silicon Valley, parting is always sad.

The only people I know well in Berkeley are Professor Hu and Senior Brother Zhang. Senior Brother Zhang has gone to Texas Instruments. Although he comes to Silicon Valley frequently, when he comes to Silicon Valley, either I am not there or I am not free. It is rare for everyone to see each other.

As for Professor Hu, we can meet almost every week. He has been of great help to me both academically and when I first came to Silicon Valley. We are both teachers and friends.

He replied that Shen Hai was doing things for me, but everyone could only communicate through WeChat for many years. "

Zhou Xin also wanted to get Zhang Zhongbo back, but the problem was that Zhang Zhongbo was very happy at Texas Instruments.

Zhang Zhongbo used to be a digital signal processor, but after the Mphone fire, major mobile phone manufacturers began to demand semi-smart phones.Therefore, Texas Instruments is also conducting research and development according to market trends, intending to develop a mobile chip that supports Internet applications more.

Zhang Zhongbo was transferred to this new research group.

This also made Zhou Xin not so urgent to dig him, and it would be good to stay at Texas Instruments for a few more years.

Li Jingyi comforted: "No one can be satisfied with everything."

Zhou Xin sighed: "Yeah, because there are too few people, I can't find suitable people to do many things.

I feel more and more that I should learn from Mr. Mengchang and raise three thousand diners, so that I won't worry about not having talents in hand.

What you said just now that no one can have everything they want is too true. Even things that were said to be good before will change later.

Do you remember Senior Brother Li? Robin is the one who does the search engine. "

Li Jingyi nodded: "I remember, what's the matter? He has come to our house for dinner several times.

Every time he comes to eat at home, I feel that when you talk, he looks at you with affection in his eyes. If he is a woman, he will definitely be interested in you. "

Zhou Xin Fu forehead: "The point you pay attention to is too strange.

Last year, Google wanted to merge with Baidu, and wanted to annex Baidu. At that time, the investors behind Baidu, represented by Goldman Sachs, put pressure on Baidu and wanted Baidu to accept Google's conditions.

At that time, Robin came to talk to me, expressing that he did not want to accept the merger and hoped to get my support.

Of course I support him, we have such a good relationship, and I haven't paid attention to the benefits of Google and Baidu's merger and listing.

At that time, everyone agreed that I would support him and help him resist the pressure from Goldman Sachs. One year later, Baidu firmly suppressed Google in the search engine market.

Mphone's built-in search engine, I also handed over to Baidu.

As a result, Robin came to chat with me recently and said that after thinking about it, he still plans to merge with Google. After the merger, the listing can enjoy a premium far exceeding that of Baidu's separate listing. "

Li Jingyi was surprised: "How could such a change happen?
He rejected it before, and now he has achieved staged victories in the search engine battlefield, so it is not normal to give up now. "

Zhou Xin said: “Because this time Baidu merged with Google, in the merged search engine company, Robin will be the chairman and CEO.

So Robin was moved.

Originally, Baidu accounted for about 43% of the search engine market, Google accounted for 38%, and then other companies.

Baidu has always been ahead, but the lead is limited.The premium that can be enjoyed by going public will not be very high.

It is different from the merger with Google. After the merger, they can be said to have a similar share in the search engine market as the Windows monopoly operating system market.

The new Baidu-Google will be seen as the Yahoo of the new era.Storytelling is the most important thing in the capital market. Baidu alone doesn't have many stories to tell, but it will be different after merging with Google.

Furthermore, Baidu is now annexing Google, but it is not Google annexing Baidu. "

　I've been too busy at work recently, so I'm a little lazy to update, and I'll slowly recover later!
　　Another very important reason is that these chapters are really difficult to write, and some specific information is too difficult to find
　　
　
(End of this chapter)