Reborn in 2011, 985 missing from two copies

Chapter 402 Industrial Closure, Xiaomi’s Despair
"Mr. Hu, I believe in your ability, but don't put too much pressure on yourself. Just do your best."

王逸淡淡一笑：“如果12月之前良品率超过85%，实现40纳米量产，咱们会有第二座月产10万片的12英寸大型晶圆厂。”

"Is it settled?" Mr. Hu was delighted.

Wang Yi took out the contract signed by Director Qin: "Look, I have already negotiated with the Imperial Capital Management Committee."

Although this contract is not a formal contract in the legal sense, it is only a private agreement between Wang Yi and Director Qin and does not have much legal binding force.

But with this contract, Director Qin will naturally keep his promise and do his best to promote it.

As long as Xingyi Semiconductor has output and someone is pushing for it, this kind of thing will be a sure thing.

If no one pushes 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 took the "agreement" to find the superiors:

"Boss, I made a mistake!"

The leader was confused: "You have always followed the rules and never overstepped the boundaries. What mistake did you make?"

"I was fooled by Wang Yi!"

"Wang Yi's fraud? He also forged chips?" The leader frowned slightly.

"No, it was Wang Yi who tricked me..." Director Qin recounted the whole process.

The leader smiled and said, "Hey, it's not a big deal. As you said, if Xingyi Fab can really achieve mass production of 40nm process and the yield rate exceeds 85% before the end of this year, it will be worth it. This is my opinion, and it is also the opinion of others."

"You mean, we want him to mass produce 40 nanometers, even if it means giving him a large wafer fab?"

"Yes!" the leader nodded.

"Boss, you said it. A large wafer fab alone would cost 700 to 800 million for land and hardware facilities. I can't take the blame. 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 black face. This kid learned bad things from Wang Yi!

Then he pointed to the door: "Get out!"

Director Qin: "..."

"Come on, old boss. When Xingyi Wafer Factory goes into mass production of 40 nanometers, I'll treat you to a drink. No, let Director Wang treat you! Forget it, he will definitely treat you more than he wants. I'll do it instead."

Director Qin walked out the door with a smile, then put on his usual serious expression.

Only with his old leader does he feel as free and unrestrained as the college graduate he was back then.

"This kid is so dishonest."

The old leader shook his head and then made a phone call.

This is a big deal, but it complies with policy and incentives are given after output is achieved, so there is not much risk.

With his and Director Qin's endorsement, this matter is settled!

On the other side, when Mr. Hu saw the "contract", he was in a good mood and his fighting spirit was instantly high:
"Mr. Wang, don't worry. It won't take until December. I'll issue a military order to raise the 12-nanometer yield rate to over 10% by the end of October!"

"Okay, Mr. Hu, I'll be waiting to celebrate with you!" Wang Yi began to look forward to it.

"The 40-nanometer process is not a problem, but I am still worried about the upstream and downstream industrial chains." Like Wang Yi, Mr. Hu has long-term considerations:

"One is the issue of lithography machines. We can order them in advance. The new wafer fab is larger and requires more lithography machines."

Wang Yi nodded: "The new wafer factory will be built in at least two phases. The first phase will be delivered the year after next, and the second phase will be delivered in 2015. We should prepare in advance and purchase equipment such as lithography machines in advance. In addition, there is the issue of photoresist. If it is stuck, it will be a big problem."

Mr. Hu agreed and couldn't help asking, "Director Wang, do you mean to develop your own photoresist?"

"Yes, relying on imports will only make us controlled by others. If we want to retain the greatest voice and absolute strategic security, we must achieve comprehensive self-research and self-production. I am prepared to invest 1 billion to develop photoresist."

"Okay, I was right about you, Mr. Wang, you are definitely a semiconductor pragmatist!" Mr. Hu was completely excited.

As a semiconductor expert, many people have approached him over the years and asked him to come out of retirement and be the technical director to focus on semiconductors.

Even playing the emotional card, for the rise of Xiaguo 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 research funds, to make money with semiconductors, and to raise funds using his name...

In the end, these people took the money and ran away, and he was neither a good person nor a good person...

Such examples abound.

Even when Wang Yi came to him, he didn't believe it and was even full of doubt.

It was not until later that I saw Wang Yi’s sincerity, the excellence of Xingyi mobile phones, and that Wang Yi was ready to invest huge sums of money to build a wafer factory. I also saw that Wang Yi had no intention of raising funds at all, and that the money spent was Xingyi Technology’s own money!

Only then did Mr. Hu believe Wang Yi and was willing to join Xingyi Semiconductor.

If Wang Yi had borrowed money under the name of Xingyi Semiconductor, Mr. Hu would have run away long ago.

After all, that's what scammers do.

For example, that bastard in the previous life first spent a huge amount of money to buy a high-end lithography machine, introduced Mr. Jiang to join the platform, and then frantically solicited investment, raised a lot of money, and finally ran away, leaving a mess behind.

Mr. Jiang almost lost his reputation in his later years and was so angry that he vomited blood.

This is also the reason why Wang Yi did not raise a large amount of funds. On the one hand, the clothing, mobile phone and other businesses are very profitable, and Xingyi Technology is not short of money and does not need financing.

Secondly, they are afraid of being suspected of raising funds and making money.

It is normal for entrepreneurs to raise capital, but it has been ruined by those bastards, especially in the chip and semiconductor field, so that the public does not believe it, the capital and the government also question it.

After all, he had been cheated too many times before, so when it came to Wang Yi, he also had doubts and did not dare to invest.

But now, to Mr. Hu’s surprise, Wang Yi not only really built a wafer factory, but also built a second large wafer factory.

We are also preparing to invest in upstream and downstream photoresists!
I can only say that he is a 100% doer!
For a moment, Mr. Hu was completely excited.

He had long wanted the mainland's semiconductor industry to rise completely, but unfortunately he had no money and no pragmatic entrepreneurs willing to invest endlessly.

But now, it has!

But since Wang Yidu is so decisive, he has to do his best too!

"Don't worry, Mr. Wang. I will go all out to help you build a wafer factory. I will also fully support you in developing your own photoresist!"

Mr. Hu said firmly: "I have been in the semiconductor industry for a lifetime, and I am familiar with all the experts and masters in the upstream and downstream industry chains. If you want to develop photoresist, I have to contribute. So, I will contact a few old friends to see if they are willing to come to Xiaguo to develop!"

"Thank you." Wang Yi smiled. It would be much easier to have Mr. Hu come forward to recruit people personally.

Every circle has its own signboard, and Mr. Hu is the golden signboard of the semiconductor circle.

Even his students are famous!

"It's all what I should do." Mr. Hu said, and then changed the subject: "If Mr. Wang wants to completely get rid of external dependence, he has to invest in silicon wafers. Especially the 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 stages.

The first step is to prepare silicon wafers, which are processed into mature wafers through a series of processes. The mature wafers are then tested, split, and packaged to become individual chips.

Most wafer fabs purchase silicon wafers directly.

Currently, 8-inch silicon wafers can be produced domestically, but 12-inch silicon wafers cannot be produced domestically.

In the fourth quarter of 2017, Modou Xinsheng mass-produced 12-inch silicon wafers, achieving a domestic breakthrough.

Therefore, the 12-inch silicon wafers produced by Xingyi Wafer Factory can only be imported.

It has been sold in many countries in recent years and the competition is fierce, so that's not a big deal.

But once it gets stuck, it will be very troublesome.

Modou Xinsheng was founded by Mr. Zhang, the founder of SMIC!

Even after Mr. Zhang was forced to withdraw from SMIC by TSMC's boss, his passion has not yet cooled.

We are well aware that SMIC's chip production is only one link in the chain and still requires upstream and downstream industries.

For example, upstream silicon wafer production and downstream packaging and testing.

Therefore, in 2014, Mr. Zhang jointly established Shanghai Xinsheng with two A-share listed companies, Shanghai Xinyang and Xinsen Technology, and Xinao Technology under the Shanghai Institute of Microsystem and Information Technology of the Chinese Academy of Sciences, and officially entered the field of large semiconductor silicon wafers.

Later, through a series of investments, the Magic City Silicon Industry Group acquired companies such as Magic City Xinsheng, Xin Ao Technology, and Okmetic, becoming the Magic City Silicon Industry Group.

Today, Xingyi Semiconductor is also facing the same problem and the possible silicon wafer crisis in the future, so it should also prepare for it.

At present, Modou Xinsheng has not yet been established, so Wang Yi can just bring Mr. Zhang over to set up a subsidiary to develop semiconductor silicon wafers.

With Wang Yi's investment, mass production of 12-inch silicon wafers can be achieved several years ahead of schedule.

If the second wafer factory is built at the end of the year, the first phase will not be put into production until the year after next. In the short term, there will be little demand for silicon wafers, so we can purchase silicon wafers from international giants.

After all, international silicon wafer giants are also competing fiercely and scrambling for customers, and they will not get stuck unless it is absolutely necessary.

Silicon wafers are different from high-end lithography machines.

ASML is the only company that produces high-end lithography machines, and customers all over the world are begging them to buy them, so they are naturally arrogant. But even so, they do not want to ban sales and delay making money.

Silicon wafers are different. Even 12-inch silicon wafers can be produced by Japan, South Korea, the United States, Germany and other countries.

Even if one company is banned from selling, other companies will scramble to grab customers and sell frantically.

As long as it affects their ability to make money, allies will turn against them.

After all, the whole world is made up of makeshift teams.

In this way, Xingyi Semiconductor has a few years to make the transition until it can achieve self-production of 12-inch silicon wafers.

Wang Yi had a plan and had to invest in silicon wafer research and development.

Whether Mr. Zhang joins or not, Xingyi Technology has to do it.

Simply recruit people from several foreign countries, start a whole team, and add domestic talents, and a breakthrough is only a matter of time.

Wafer packaging and testing also need to be planned.

Domestic development in these areas started too slowly, so Wang Yi had to do it himself.

Another two large sums of capital investment!
But sharpening the knife does not delay the chopping of wood.

The money invested 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.

In terms of volume, no one can compare with the domestic ones.

The prerequisite is to achieve technological breakthroughs and your own technology.

If not, it's better to keep a low profile.

In short, Wang Yi had to make full preparations before the environment deteriorated sharply. In the field of lithography, he stockpiled food for the winter and made moderate investments to support high-quality enterprises.

Photoresist, silicon wafers, packaging and testing, advance layout, independent research and development, and preparation for fallback.

"Mr. Hu, we have at least a few years in terms of silicon wafers. I plan to invest money and recruit talents to achieve self-production of 12-inch silicon wafers! If necessary, we will bring in the official participation." Wang Yi said firmly.

Silicon wafer production is a basic industry, but also a field where expenditures exceed income, especially in the R&D stage, where high investment yields little return.

Coupled with the fierce international competition, only a few giants can make profits, while other companies are left with nothing.

For 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: "Director 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, "We also need to plan for packaging and testing. We need to realize the full industrial chain of silicon wafer mass production, self-developed and self-produced photoresist, wafer foundry, and chip packaging. Add chip design, and Xingyi mobile phones, tablets and other products will purchase chips and sell them profitably, and then it will be a perfect closed loop."

This is Wang Yi’s strategic layout.

Only such an industrial closed loop will not be easily stuck.

Of course, this is a long process and must be done step by step.

"Mr. Wang, you are the most ambitious entrepreneur! Regardless of anything else, I, as Old Hu, will definitely do my best!" Old Hu was extremely excited.

Wang Yi has planned all the industries he wants to work in.

Wang Yi also made plans for things he didn't want to do.

What else can you say when you meet such a boss?
Just try your best.

Mr. Hu guaranteed: "With the 40-nanometer process, the yield rate will definitely exceed 10% in October, and exceed 90% in November! I guarantee it!"

"Okay!" Wang Yi nodded, very pleased.

Silicon wafers and photoresists are both long-term strategies. It would be great if we could make breakthroughs in the next two to three years.

However, the mass production of 40nm process is something we can look forward to right now.

Although it is only a 40-nanometer process, which is far less advanced than 28-nanometer technology, it is still very powerful.

Currently, mobile phones equipped with Qualcomm's 28nm APQ 8064 have not yet been officially launched on the market.

40nm chips are still the top trend!

There is no choice, the first launch of 8064 was given to Xingyi Technology Xphone 2.

Wang Yi is preparing to release it in September, and other competitors will have to wait.

In its previous life, the APQ 2 was first launched by Xiaomi 8064. However, this time, Xiaomi was still selling Xiaomi 1T in India and had not developed Xiaomi 2 at all!

In its previous life, Xiaomi 1 sold more than 2 million units and made a lot of money, so it naturally had the strength to make Xiaomi .

But this time, the Xiaomi Mi 1 and Xiaomi Mi 1T were hit hard by the Xingyi mobile phone. The total sales of Xiaomi Mi 100 and Xiaomi Mi 2T were only about million in one year. Even Lei Jun was annoyed, so naturally he had no money to make Xiaomi Mi .

There is no way. In the high-end market, the Xphone 2999 priced at 1 is crushing it, and in the same class, the Meizu MX priced at 1799 is competing closely with it.

Xiaomi’s situation is truly miserable.

Xiaomi headquarters.

Lei Jun was a little melancholy: "India's consumption capacity is much worse than we thought! Damn, 1799 is too expensive, that's enough!"

Lao Li on the other side nodded and said, "Yes, Xiaomi Mi 1T has only sold 50 units in India. Together with Xiaomi Mi 1 and Xiaomi Mi 1T in China, the total number of units shipped is only 100 million."

In this regard, Lei Jun didn't know what to say.

Ideal is full, the reality is very skinny.

"But Huawei P1 also sold poorly, so the price was also reduced, from 2999 to 1999!"

Another supervisor laughed and said that everyone felt a lot more balanced.

I am not afraid of everyone else being miserable, I am just afraid of myself being miserable!

Lei Jun sighed: "The only thing we can be thankful for is that the price of Xphone 1 has not dropped significantly, otherwise we would have no room to survive. But this day is not far away."

"Yes, Xphone 2 is coming soon, so it's normal for Xphone 1 to drop in price."

Everyone agreed. The total cost of Xphone 1 has dropped from the original 1500 yuan to the current 600 yuan.

The cost was reduced by 900 and the selling price was reduced by to , which are all routine operations.

After all, the price of iPhone 4S has dropped from 4999 to 3999. When iPhone 5 is released in September, the price of iPhone 4s will probably drop again, going straight to 3499!

This is much worse than the previous life.

After the release of iPhone 5 in the previous life, iPhone 4s cost around 4000 yuan.

The reason is that iPhone 1s had dismal sales due to continuous beating by Xphone 1 and Xphone 4pro, especially in Xia country, where sales collapsed and the company had to cut prices repeatedly.

Lei Jun sighed: "Xphone 2 is coming soon, and Xphone 1 will definitely drop in price. The key is how much will it drop?"

"If the price is only reduced by 500 yuan, it's fine. But if it is reduced by 1000 yuan, it will be a disaster for Xiaomi and all mobile phone manufacturers!"

Hearing this, all the senior executives were terrified.

Although Xphone 1 is not as good as Xphone 1pro, it still beats all its competitors including iPhone 4s and Sony flagship.

The Xphone 1 was priced at 3299 when it was first released, and came with a two-year membership. Now, the membership is no longer included, and the price starts at 2999. It can be said that the price has not dropped at all.

Xphone 2 will be released next month, and the price of Xphone 1 will inevitably drop. There will definitely be a price stampede, and competitors will be in trouble then.

Lei Jun is aware of this, as are all Xiaomi's top executives, and the more they think about it, the more desperate they become.

"I hope the price of Xphone 1 will only drop by 500!" Lei Jun looked complicated:

"This way, we can still sell Xiaomi 1T for 1399, and we can continue to sell it, making a considerable profit. If the price of Xphone 1 drops to 1999, then Xiaomi 1T, Meizu MX, and Huawei P1 will all be unsaleable. Unless they are all reduced to 1099, and sold as thousand-yuan phones! But the profit will be horrible!"

"Yeah, it's too difficult." All the senior executives looked unhappy. It would be a lie to say they were not worried.

"Chairman, when will we develop the second generation of Xiaomi?" a senior executive couldn't help but ask.

Hearing this, everyone looked over.

The reason why Xiaomi 1 and Xiaomi 1T were such failures was that their configurations and functions were too poor, and they were completely beaten by Xphone 1.

This makes users prefer to spend more than a thousand to buy an Xphone 1 rather than save a thousand to buy a Xiaomi!

The only way out now is for Xiaomi 2 to explode, fight back strongly and turn the game around!

At the very least, there shouldn’t be a huge generation gap between it and the Xingyi phone.

Lei Jun waved his hand and said: "Xiaomi 2 must be developed, but not now, there is no rush."

Lao Li's eyes lit up: "Chairman, do you mean that we should develop Xiaomi 2 after Xingyi Technology's Xphone 2 is released?"

Lei Bushi nodded: "The one who knows me best is Lao Li!"

"That's right. No one dares to take action unless Xphone 2 uses its ultimate move. Have you forgotten the lesson you learned before?"

Lei Jun sighed: "After the release of Xphone 1, it was a huge success and stunned all of us mobile phone manufacturers. So, Xiaomi, Huawei, Meizu, even Samsung, HTC, etc., quickly followed suit and began to develop according to Xphone 1, trying to catch up with Xphone 1. What was the result? Have you forgotten?"

"As a result, before we finished developing our new generation and caught up with Xphone 1, Xingyi Technology released the newly upgraded Xphone 1pro! It killed the new generation in seconds, and all our R&D investment went to waste. The Xiaomi 1, which we had developed halfway based on Xphone 2, was also killed in the cradle!"

"Yeah, it's too tragic! Xingyi Technology has no moral principles!"

"The move was too ruthless, the action was too cruel, and there was no room for mercy!"

Lei Jun sighed and said, "So, we can't rush into it this time. After Xphone 2 is released and Xingyi has revealed all its trump cards, we will develop Xiaomi 2 based on Xphone 2! This way, we won't end up with a tragic situation where the product is killed instantly after it is developed."

"The chairman is wise, this is still the safest way!"

"Yes, that's what we should do. We don't have much money in our account. Xiaomi 1T didn't sell well and didn't make much money. We can't afford to fail again!"

Lei Bushi nodded: "What a pity, we went to Xingyi Technology to study before, but they didn't let us in, and they sent us to Meiyou and got us all drunk! Otherwise, why would we be so passive? Alas!"

A sigh of helplessness.

But soon, Lei Jun rekindled his fighting spirit: "Xphone 2 will not be released until September, so we have to keep up the good work this month. As for India, we need to get it up and running as soon as possible, and use more hunger marketing. If hunger marketing doesn't work, then we can open up sales and hire people to line up in stores to create the illusion of hot sales!"

"Okay." Lao Li nodded, and then asked: "Then do you want to lower the price?"

Lei Jun thought for a while and said: "Let's reduce the price to 1599 first to promote it. We'll wait and see the price of Xphone 1 later, and then decide whether to reduce it further!"

"it is good!"

The next day, Wang Yi came to the chip R&D department.

There has been good progress in the wafer fabs, and there should also be progress in chip design.

"William, how is the development of Kunpeng 510 going?" Wang Yi asked directly.

"Chairman, the CPU, GPU and baseband are all ready. There is no problem testing them separately. Now all that's left is the final integration!" said Williams.

If it is an external baseband, Kunpeng 510 has already succeeded.

But the 510 is a system chip with integrated baseband, so there is still one last and most critical step left, which is to integrate the baseband together.

Wang Yi nodded: "Very good, it can be regarded as a great progress. The situation is similar to that of the wafer factory."

Williams was a little surprised: "A breakthrough at the wafer factory?"

Wang Yi did not answer, but took out a chip.

"This is the Xingyi router chip R1!" Williams was shocked: "The -nanometer process has already been completed? So fast?"

Wang Yi smiled: "Not yet. The yield rate is not up to standard. We need to continue to optimize it."

"I see!" Williams nodded, his expression turned serious, and he felt the pressure increasing.

Xingyi Semiconductor started to be established in October last year, and ten months have passed, but the 40nm SOC has not yet been developed.

As for the Xingyi wafer factory, although it started later, it has already started production. Although the yield rate does not meet the standard, at least it has produced chips.

Comparing the two, Williams just felt embarrassed.

I was even more impressed: "Damn, Orientals are so hardworking, too hardworking! If it were Westerners, they wouldn't be able to do it next year!"

Then he said: "Chairman, I will make sure that Kunpeng 510 is successfully taped out in two months at most!"

"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?"

(End of this chapter)