Rekindle 2003

Chapter 1170 He is a very successful businessman!
Zhang Zhongmou is planning a commercial war in full swing, trying to lock down the development of the Yanhuang Group through a price war.

At the same time, in another corner, Zhang Rujing was also staring at the TV screen intently.

When he saw the news that the Sakura Country had successfully launched a 157nm lithography machine, he couldn't help but smile meaningfully.

"It seems that the semiconductor industry is really going to be in chaos."

Qing Yun, who was beside him, was shaking off the ashes of his cigarette leisurely, but her tone was full of excitement.
"It's better to be a little chaotic. I'm afraid of not being chaotic. Only when there is chaos can we take advantage of the situation."

After hearing this, Zhang Rujing nodded, feeling that this made sense.

The overly stable market structure is indeed not conducive to their development.

Qing Yun put out the cigarette butt and turned to Liang Mengsong with a hint of expectation in his eyes. "Mr. Liang, how is our progress so far? I hope you can tell me some good news."

Liang Mengsong frowned, as if thinking about how to answer this question, "Chairman, it will be difficult for you to achieve your wish.

If we only talk about the research and development of lithography machines, Huaguo Microelectronics' research on the third-generation 248nm and fourth-generation ArF193nm is actually almost the same.

However, not only the core components cannot be produced domestically, but even the vast majority of parts cannot be produced domestically.

I dare say that this type of lithography machine can only remain on the drawing board, and we dare not announce that it has been successfully developed."

Anyone can tell at a glance that this lithography machine is made by an international company. If there is any problem in any link, this thing will be difficult to produce.

Zhang Rujing also sighed and expressed his understanding, "There is no other way. The reason why the lithography machine is called the jewel in the crown of industry is that it is a system product that requires cooperation from all aspects."

Qingyun was not discouraged after hearing this.

This is the status quo and we have to accept it.

Besides, this is much better than the previous life, right?!

"What about those with high maturity? I mean those with a domestic production rate that can reach the safety line," he continued to ask.

Liang Mengsong smiled when he heard this, "Mr. Xu has all the I-line 365nm lithography equipment, but it can't be miniaturized. It was your original idea for the factory."

Speaking of this, Zhang Rujing also laughed out loud, "You are really smart! If the lithography machine can't be produced, then we can build a lithography factory."

The reason why a lithography machine is a system product is that it covers a large number of precision components.

However, the lithography factory proposed by Qingyun is full of the Soviet style of "hard work makes miracles happen".

Since it is impossible to miniaturize, micro-scale, or make it mobile, just make it big and stay where it is.

In this way, many parts with tolerances that were originally unattainable can be perfectly solved by domestic production.

"That is to say, the etching machine, mask, photoresist and so on are not available now, otherwise KrF248nm can be barely produced."

Qingyun shrugged his shoulders, “DUV, don’t rush, just take it one step at a time.

As long as it can make chips, I don’t care whether it is a lithography machine or a lithography factory. I don’t plan to become ASML and rely solely on this equipment to make profits.”

Zhang Rujing looked at Qingyun with a hint of admiration in his eyes.
"Xiaoqing, your idea is bold, but it is indeed feasible. Although the photolithography plant is huge, as long as the production is stable, the cost will naturally decrease."

Qing Yun nodded, "That's right, Mr. Zhang, as I said before, our goal is not to become a giant in the production of lithography machines.

The core is still on the chip, but it is about utilizing existing technology and resources to quickly capture the market.

On this issue, the semiconductor industry has to take into account the big picture, and we will just pass over the small account of the lithography machine.

As long as we can produce qualified chips, we will have no problem finding customers.

As long as you don’t have to worry about customers, you don’t have to worry about overall profits. The wool comes from the sheep.”

Liang Mengsong also interjected, "The chairman is right. If we can be the first to achieve large-scale production, we will be able to gain an advantage in price and further squeeze the living space of our competitors."

Qing Yun closed his eyes and fell into deep thought.

Inside the office, time seemed to have stopped, with only the sound of the wind outside the window and the occasional sound of car horns in the distance.

After a long while, he opened his eyes and looked at Zhang Rujing firmly, "Mr. Zhang, thank you for your hard work. We will immediately build a 1-inch wafer demonstration plant in Huating with 4-micron technology.

同时，0.8微米在鹏城建6英寸晶圆厂，0.6微米在长安建8英寸晶圆厂、0.35微米工艺在锦城建光刻工厂。

But the next three factories must be kept strictly confidential, especially the 0.35-micron lithography factory. The relevant departments will cooperate with you."

“Mr. Liang, the 0.25 micron and 0.18 micron preliminary research must be completed as soon as possible!
Together with 0.35 micron, these three generations of processes will be the largest sellers for at least the next ten years, and we must firmly control this market.”

Anyone could hear that his voice was filled with unquestionable determination.

This is not a consultation, but an order.

Zhang Rujing and Liang Mengsong nodded immediately.

Then, he turned to Xiao Ya who was silent on the side and said, "Sister Xiao Ya, contact the higher-ups to release guidance documents for 1-micron lithography kits and guide domestic companies to follow up."

Zhang Rujing was stunned when he heard this, then he frowned and objected, "Xiaoqing, this is not appropriate. If we push this matter in the name of the higher-ups, it will easily lead to duplication of efforts.

By then... I'm worried that it will become like the TV factories that sprang up all over the country back then."

There was a hint of anxiety in his voice, as if he had seen the chaos that might ensue.

Although the 1-micron process is a technology from 1984, 20 years ago, it is not considered a completely backward process internationally.

But it's also too mature.

Xiao Ya, who was about to agree, was startled when she heard this, and a hint of hesitation flashed in her eyes.
"Chairman, what Mr. Zhang said is correct. Local governments are very enthusiastic now. I even think it is overheated. Mr. Zhang's concerns are justified."

When it comes to other things, she might still be confused, but the example of television given by Zhang Rujing is the pain of an era in China.

At the craziest time, almost every city in China had its own TV factory, and even counties with better conditions had one.

Qing Yun smiled, with a hint of relief in his tone, "Mr. Zhang, don't worry about this situation. The 1-micron process will be in rigid demand for quite a long time in the future.

Chips are not only used in electronic products.

It can be used in high-power, analog, and sensor applications, and even in household appliances such as refrigerators, washing machines, and microwave ovens.”

He paused and continued, "The nanoscale has its own application environment, the microscale has its own application environment, and the large-process chips and small-process chips each have their own advantages."

Large-process chips have lower manufacturing costs and are suitable for producing large numbers of chips of the same specifications, while small-process chips can achieve higher integration and lower power consumption and are suitable for producing high-performance, highly integrated electronic products.

Zhang Rujing immediately retorted, "I know you are talking about the future.

The future is bright, but the demand is released year by year, while local construction requires a one-time investment.

In this case, many companies will not survive the future you mentioned. In the short term, there will be a stampede and a clearance effect, and by then, there will be bloodshed.”

Qing Yun nodded, indicating that he understood Zhang Rujing's concerns. "Mr. Zhang, I understand your concerns. Indeed, the enthusiasm for domestic construction may lead to overcapacity in the short term.

but……"

Qing Yun shrugged his shoulders, “But what I want is trampling!
Only in this way can we lower the price to a point where others cannot survive.”

This statement shocked everyone.

Zhang Rujing looked at him in confusion, "No... In this situation, if you can't even survive on your own, what's the point?"

There was a hint of confusion in his voice, as if he was questioning Qing Yun's decision.

Qing Yun shrugged his shoulders, with a sly look in his eyes.
"Mr. Zhang, don't worry, in two years at most, my costs will naturally be much lower.

Then I will not only survive, but live.”

He smiled and continued, "In three years at most, I will have electronic-grade monocrystalline silicon raw materials, which will greatly reduce production costs.

Because monocrystalline silicon is a key raw material for chip manufacturing, its price fluctuations have a huge impact on chip manufacturing costs.

By being self-sufficient, I can avoid the cost uncertainty caused by market fluctuations and gain an advantage in price wars.”

“Secondly, as you can see, I have a vertically integrated supply chain layout.

Not only does it have a layout in the chip manufacturing link, but it has also achieved vertical integration in the upstream material supply and downstream packaging and testing links.

This integration allows me to better control costs and quality and improve production efficiency.

For example, by internally supplying materials such as photoresists and masks, we can reduce our reliance on external procurement, lower procurement costs and supply chain risks.”

Zhang Rujing had to admit this point. The boy in front of him always considered the overall coordinated operations of semiconductors.

The photolithography machine alone can actually reach a higher level, at least up to 0.25 microns.

But this guy would rather hide his true self, and the strength he demonstrated is measured by the shortest shortcoming in the entire industry.

However, Zhang Rujing could not agree with his approach and patiently persuaded him, "Xiaoqing, you are destroying the industry ecology."

He understood that Qingyun was just normal business logic. But at this moment...

This is not the time to consider normal business logic. He believes that since Qing Yun is the future flag bearer of China's semiconductor industry, he should have a higher vision and responsibility.

"Xiaoqing, the overall overcapacity, under the stampede, have you ever thought about how much investment will be wiped out? This is all money! It is the country's hard-earned accumulation."

Qing Yun shook his head, "Mr. Zhang, this is a battle for the fate of the country. A merciful army is not suitable for generals, and I cannot show mercy to my teammates who are useless.

If I talk about a scientific and reasonable construction plan now to ensure the gradual release of production capacity and match it with market demand, do you think they will listen to me?

Everyone has their own little tricks. Everyone wants to take advantage, everyone wants to produce more and sell more.

But if you add up all the different places of this "little bit", it becomes no small number.

Mr. Zhang, think about the steel production capacity?

We must learn to respect the laws of the market.

Otherwise, I won’t need anyone from abroad to do anything, the backstabbing of those companies inside will kill me without a burial place.”

Zhang Rujing fell silent after hearing this.

He knew Qing Yun was right.

The information from the two is not equal, Qingyun's perspective is too high.

But he hoped that Qing Yun's decision would be a little more moderate.

At this time, Qing Yun passed over a cigarette and smiled, "Grandpa, I know what you mean, don't worry, I will back you up when the time comes.

Market issues should be resolved by the market, and there will not be a problem of large numbers of industrial workers being laid off.”

After Qing Yun said this, Zhang Rujing immediately understood and looked at him speechlessly.

Damn, this guy has such a dark heart!
It is estimated that there will be another major integration by then.

It is equivalent to the local government helping him build a factory.

That being said, he could accept that the meat was rotten in the pot.

only……

“You have to know that when you integrate, you will be facing state-owned enterprises, not the large number of private enterprises in the PC industry before.

The price you offer may not be a discounted price, and it will be hard to explain to others.”

Qing Yun shook his head slightly after hearing this, and a puff of smoke passed over him, "Old man, you still don't quite understand how domestic state-owned enterprises operate.

Even if a wafer fab can only produce 1-inch wafers with a size of more than 4 micron, the cost of building one wafer fab is more than 8 million yuan.

This amount of funds cannot be figured out by state-owned enterprises. It must be through the issuance of special bonds by local governments, or direct coordination of bank loans.

Whether it is local special bonds or bank loans, they are all bank debts.”

His words revealed a deep understanding of the domestic financial system, but this understanding made Zhang Rujing, Liang Mengsong and Xiao Ya a little confused.

Liang Mengsong asked in confusion, "What's the difference? Local state-owned enterprises are also state-owned, and banks are also state-owned. It's nothing more than transferring money from one hand to the other."

In his opinion, domestic state-owned enterprises are better. They don’t have to worry about funding issues when doing real work, as there is plenty of money.

Qing Yun shrugged his shoulders and said, "It's very simple. After a company suffers huge losses and cannot continue to operate, it will naturally look for creditors to negotiate an extension or renewal of the loan.

But you have to understand one logic: enterprises are under local jurisdiction, but banks are directly managed by the central government.

The extension or renewal of loans is not entirely decided by the local authorities.

For banks, this is actually a bad debt and they are also responsible.

So, for the purpose of assessment, they need to pass on the blame.

According to our institutional arrangements, this kind of buck-passing will be removed from the balance sheet through the four major asset management companies.

Even if they don’t want to come out, we can force them to come out.”

Hearing this, Xiao Ya rolled her eyes at him and said unhappily, "That counts as asset loss!"

Qing Yun's eyes were full of cunning, "At this time, if I simply and crudely buy discounted assets through the four major asset management companies, it will definitely be suspected of asset loss.

But what if I propose to revitalize the company by injecting capital and sign a bet agreement with them at the same time?

On one hand, they report to the central government to dispose of assets at a discount, and on the other hand, they introduce chain-leading enterprises to promise employment and thus revitalize assets. What do you think the local governments will choose?"

Xiao Ya's face turned green when she heard this.

How to choose? There is no choice.

Damn, it’s such a shame that the little brat doesn’t go into politics.

This is a funeral celebration that is worth writing about.

In fact, it is not fatal if things go wrong, because such things are usually decided collectively.

The key lies in how to solve the problem after messing up.

In times of crisis, it is actually a good thing to keep your capital.

Then the chain leader is introduced, which is considered as attracting investment.

Signing a bet, revitalizing assets, and promising employment, this is crisis management ability.

Liang Mengsong didn't understand this logic, but Zhang Rujing did.

It is true that this old man is a industrialist, but he is more of an entrepreneur.

There was no need for Qing Yun to explain the ins and outs of this in detail; he could even guess what steps Qing Yun would take to achieve it.

After figuring this out, he laughed out loud, "You are such a wicked man!"

He completely understood Qing Yun's logic.

This little bastard doesn't have the money to build dozens or even hundreds of wafer fabs across the country.

So, he asked the local governments to invest in the construction first, and then after some trouble, he operated these wafer fabs.

By doing this, the result is that Qingyun has set up a lever at a very low cost and leveraged the entire country.

What is the cost? It is the management expenses incurred by the enterprise in the early stage. The fixed assets formed by the enterprise's production and operation are invested by the local government and are just there.

Qing Yun smiled slightly, "Mr. Zhang, I am just using the laws of the market to let resources flow to the most efficient places.

Although this integration seems cruel, the entire industry will ultimately benefit.

We will ensure that in this process, there will not be a large number of industrial workers laid off. This is the bottom line.”

Zhang Rujing nodded. Although he felt helpless about Qing Yun's methods, he also knew that this was a necessary move to achieve his goal.

Moreover, as long as it does not bring about social pressure, the meat is still rotten in the pot, and the state-owned shareholders are not out of the game, it does not matter to the country.

but……

Zhang Rujing frowned, his eyes showing a trace of worry. He spoke slowly,
"Aren't you afraid that Zhang Zhongmou will come to the mainland to start a price war with you? Their Huating factory will be put into production by the first quarter of next year at the latest.

And...boy, based on my understanding of Zhang Zhongmou...

Faced with the current situation of advanced process obstruction, he cannot just sit there and wait for death.

I think reducing costs and striving for mature processes will be his most likely choice, and I would even say it is the inevitable choice.

Don’t let yourself get trampled to death.”

His gaze lingered on Qing Yun, as if waiting for a reasonable explanation.

As an old rival who has worked with Zhang Zhongmou for many years and fought with him for more than ten years, he knows Zhang Zhongmou's character very well.

Liang Mengsong was about to speak out to refute the old man's point of view, believing that Yiji Semiconductor would definitely continue to climb the process, just like they overtook others in one fell swoop with the Nightingale Project.

But when the words came to his lips, he frowned again and nodded in agreement, "Chairman, what Mr. Zhang said is very likely to happen. Zhang Zhongmou is essentially a businessman."

He paused and continued, "Although I don't like him, I have to say that he is a very successful businessman."

……

(End of this chapter)