Reborn in 2011, 985 missing from two copies

Chapter 537: Factory building maniac, radical development!

The entire semiconductor industry chain is divided into three parts: chip design, chip production, and chip packaging and testing.

The most difficult and important one is chip production!
Chip production is further divided into three parts: large silicon wafer manufacturing, wafer manufacturing, and chip manufacturing!

Wafer manufacturing is the process of turning large silicon wafers into wafers through a series of processes.

The wafer then goes through a series of processes before being cut and packaged into hundreds of chips!
It is worth mentioning that wafer manufacturing and chip manufacturing, generally referred to as wafer foundry, FAB, are completed by one company.

Companies like TSMC and SMIC are of this type.

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.

But in recent years, wafer foundry has entered the 2.0 era, including packaging and testing.

Take TSMC, for example. As a company, it has directly realized all the links including wafer manufacturing, chip manufacturing, packaging and testing. It has made ASE even more angry!
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 large 12-inch silicon wafers, which are all purchased from European, American, Japanese and Korean companies.

There is no other way. Mainland companies can currently only produce 8-inch silicon wafers and cannot produce 12-inch silicon wafers, so Wang Yi can only import them.

Similarly, semiconductor giants such as TSMC and SMIC do not produce large silicon wafers, but purchase large silicon wafers from third-party companies.

Or you can invest in a silicon wafer factory yourself.

Although many parties including Europe, America, Japan and South Korea have large silicon wafer supplies, even if one party stops supplying, the other parties will take the opportunity to grab orders, and generally there will be no collective supply cuts.

But Wang Yi also had to be on guard.

In case the other party unites and cuts off the supply of 12-inch large silicon wafers, Xingyi Semiconductor has developed chips, has wafer fabs, and has advanced chip production technology, but it cannot produce chips without the 12-inch large silicon wafers as the substrate!
As for waiting for other mainland companies to make breakthroughs, it will take around 2017, which is too slow.

I don’t know what will happen in the future.

Therefore, Wang Yi plans to build his own silicon wafer factory to achieve independent research and production of 12-inch large silicon wafers.

In this way, the strategic security of the entire industrial chain can be guaranteed.

As early as last year, Wang Yi discussed this matter with Mr. Hu.

Mr. Hu also recommended several relevant talents, who have now joined Xingyi Semiconductor.

Wang Yi even provided a series of financial support for the development of 12-inch large silicon wafers.

It’s a pity that it’s not that easy to make large 12-inch silicon wafers. More than half a year has passed, but there has been no results.

Wang Yi is not in a hurry about this. He just continues to spend money, recruit people, and continue research and development.

This matter cannot be rushed.

Even if it takes one and a half years, or even two years, to develop a 12-inch silicon wafer, it is worth it!

But even with the technology to produce large silicon wafers, silicon wafer factories are still needed!
Originally, Wang Yi planned to invest in building a silicon wafer factory. Now Shanghai and Beijing have offered to give him big gifts. Isn’t this a coincidence?
Wang Yi said with a smile: "To be honest, we really need support."

"Mr. Wang, feel free to speak!" Mr. Zhao said with a smile.

"That's right, go ahead, we absolutely support it!" Mr. Zhou also smiled.

"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 are still unable to produce the initial large silicon wafer."

Wang Yi said earnestly: "Especially the 28-inch silicon wafers needed for 12-nanometer chips cannot be made in China. There is still a technological gap and we can only rely on imports."

Hearing this, several people frowned.

Director Qin couldn't help but ask, "Director Wang, do you mean that if foreign companies block and restrict the export of large silicon wafers to us, we won't be able to make high-end chips?"

Wang Yi nodded: "Yes, a good cook cannot cook without rice. This large silicon wafer is the rice of the semiconductor industry!"

Mr. Zhao's face changed drastically: "Then this large silicon wafer must be developed as soon as possible and a comprehensive breakthrough must be made!"

"Yes, to be honest, we have recruited some talents since last year to develop 12-inch silicon wafers, but it is very difficult. I can only say that the road ahead is very difficult. However, no matter how difficult it is, we will do our best."

Wang Yi said earnestly: "We have no way out. Before the technological war breaks out, we must make a breakthrough. We must realize the self-production of 12-inch silicon wafers and ensure the safety of the substrate. Otherwise, we will be in big trouble!"

"Mr. Wang is right. Your research and development requires financial and technical support. Just let us know!" Mr. Zhou said readily.

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 produce 12-inch silicon wafers, we still need factories to produce them!"

Hearing this, the two elders understood what Wang Yi meant.

Mr. Zhao took the lead and said, “I will arrange for someone to build a 500-acre silicon wafer factory for you in the imperial capital!”

"I'll build you an 800-acre one in Shanghai!" Mr. Zhou said with a smile.

"..." The corner of Mr. Zhao's mouth twitched: "Mr. Zhou, you don't want to suffer any loss!"

Mr. Zhou waved his hand and said, "Your Imperial Capital is far ahead in wafer fab capacity, and we in Magical Capital must also be ahead in silicon wafer capacity!"

"Okay, I'll give you this chance!" Mr. Zhao was too lazy to say more.

By the middle of next year, after the Didu B2 wafer factory is fully put into production, the total monthly production capacity of the Didu Xingyi wafer factory will reach 17.5 wafers.

After the M2 wafer factory in Shanghai goes into full production in the middle of next year, the total monthly production capacity of the Xingyi wafer factory in Shanghai will reach 12.5 wafers.

Although it is a lot, it is still far behind the imperial capital!

The capital is far ahead in chip production capacity, and the Magic City can only make a comeback in silicon wafer factories.

Finally, the two sides reached an agreement to build a 500-acre silicon wafer factory in the imperial capital and an 800-acre silicon wafer factory in the magic capital!
Wang Yi welcomed this with open arms.

In this way, the silicon wafer factory in the imperial capital can supply the two major wafer factories in the imperial capital without any pressure.

The silicon wafer factory in Shanghai will be able to supply the two major wafer factories in Shanghai, and there will be more than enough left over.

However, this does not matter. The Shenzhen Stock Exchange can continue to invest in and build new wafer fabs in the future!
The excess silicon wafer production capacity of Shanghai is directly supplied to the wafer factories in Shenzhen Stock Exchange!
“Mr. Wang, I’m very interested in your earlier views on technology warfare. Let’s talk about it,” Mr. Zhou said with a smile.

After hearing the theory of technological warfare from Mr. Zhao, he became interested and wanted to hear Wang Yi talk about it again.

"Yes, I am interested too." Mr. Zhao also spoke.

Wang Yi sighed: "I am still preparing for the issue of the science and technology war. I will report it to the leaders in detail at the Ministry of Science and Technology conference. However, the science and technology war is probably something that will happen in three or four years. But there is an imminent problem right now."

"Oh? What's the problem?" Both of them became serious.

If Wang Yi could say it was imminent, then it must not be a trivial matter.

"The problem of industrial chain relocation!" Wang Yi said:
"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 abroad."

"Prevent the industrial chain from moving abroad? Tell me in detail." Mr. Zhou frowned.

Wang Yi said: "Take the Unbounded mobile phone as an example. 80% of its components are domestically made, integrating a whole industrial chain. It has driven the industrial upgrading and GDP growth of many regions."

“Jeju, in particular, has become the country’s top smartphone industry cluster!”

Mr. Zhao nodded and said, "You have built two super mobile phone factories in Jeju, with an annual output of 1.5 million smartphones. There are also two super tablet factories, with an annual output of 9000 million tablets! You have indeed achieved industrial upgrading!"

Wang Yi smiled and said: "Not only that, there are five or six downstream industry chain companies that have invested in factories in Jeju. And more than a dozen industry chain companies are planning to build new factories soon!"

Mr. Zhou's eyes lit up: "Then Jeju has established the entire smartphone industry chain? And it is all domestically produced, and it has directly become the number one in the country?"

Wang Yi nodded: "That's right, this is the industrial cluster effect. Wherever a company builds a factory, upstream and downstream industry chain companies will follow suit and build factories, bringing the entire smartphone industry chain and production technology."

Mr. Zhao said, "This is a good thing. If smartphone manufacturing is all done in first-tier cities, resources will inevitably be tight. In third-, fourth-, and fifth-tier cities, it will be difficult to supply. Second-tier cities like Jeju, with a large population, are very suitable."

Wang Yi changed the subject and said, "What if we build a factory in India?"

Mr. Zhou's face changed drastically: "Once you build a factory in India, you will move the entire industrial chain to India, create GDP for them, help them build a complete smartphone industrial chain, and bring them smartphone production technology!"

"India's smartphone industry will rise, grab our market share, and make the money we deserve! That will be a huge blow to our domestic smartphone industry!"

Mr. Zhao also frowned slightly: "This is not a good thing, Mr. Wang, you don't want this, do you?"

Wang Yi said with a smile: "Of course I will not help them upgrade their industries, but it is hard to say whether other domestic companies will do so."

Click till.

The two elders understood the hidden meaning of Wang Yi's words.

Mr. Zhao's face changed drastically: "Especially now that many domestic mobile phone brands are going to India to develop. Once they build factories in India, it will be..."

Wang Yi nodded: "Competition will become more and more fierce in the future. Once the smartphone industry chain moves to India or the Philippines, we will lose a lot of jobs, a lot of GDP, and a lot of wealth. I suggest that this kind of behavior should be restricted."

“It doesn’t mean that we can’t build factories overseas, but we can’t transfer the entire industrial chain.”

"For example, Xingyi smart TV has factories in Mexico and Poland, but the industrial chain has not been transferred. 90% of the production is completed domestically, and then packaged and sent over for the final screwing and packaging."

"This will reduce taxes and exempt taxes, and will prevent the transfer of industrial chains and technology outflows."

"Yes, this is a good strategy." The two elders were delighted and completely understood what Wang Yi meant.

The cake is only so big. Our manufacturing industry has risen, while the manufacturing industries in Europe and America are hollow.

With the rise of India and China, we have fewer orders and profits, as well as fewer job opportunities.

"Thank you Mr. Wang for your reminder. We take this matter very seriously." The two elders were filled with emotion and talked with Wang Yi about many things in the technology war before leaving.

Wang Yi was completely relieved. Now, the plans of other smart phone brands to build factories in India and transfer the industrial chain should be aborted, right?
That's a good thing.

Wang Yi also didn't want them to be cheated of their money, technology and factory!
Moreover, at present, the WIFI phones focus on the low-end, and the Xingyi phones focus on the high-end. Domestic brands can just focus on the mid-end as before and still make huge profits.

Even the Unbounded Note is made entirely of domestic components, has a sub-flagship configuration, and is priced quite high. It does not have much impact on domestic flagships priced around 2000 yuan, so rival phones still have sales channels.

There is really no need to build a factory in India.

Regarding Xingyi Semiconductor's 28nm process breakthrough and official mass production, Wang Yi still asked to keep a low profile and not to publicize it.

Before achieving security for the entire industry chain, it is better to proceed with caution.

If you are too high-profile, it will easily make the other party wary.

If things go wrong, the sword of Damocles may fall early.

At the very least, Wang Yi would feel uncomfortable if there was any manipulation in the acquisition of patents.

Read the error-free version at 69shuba! 6=9+shu_ba is the first to publish this novel.

After several months of negotiations, the patent acquisition has reached the most critical stage, so it is better to keep a low profile.

In this way, in September, the third generation of xphone equipped with Kunpeng 902 was released directly, and the official announcement of mass production of 3nm chips shocked the world.

At that time, the patent acquisition was almost completed.

Wang Yi didn't want anything unexpected to happen at this critical moment.

Therefore, only a few senior executives knew about Xingyi Technology's mass production of 28nm, and no one else knew anything.

But Mr. Song, who was far away in Shenzhen, was unhappy:
"Okay, the Imperial Capital and the Magic Capital are really tricky. They quietly built a wafer factory for Xingyi Technology, saying it was a 40-nanometer process, but when it went into production, it turned out to be 28 nanometers! I'm screwed!"

"Yes, we should be less envious of the 40-nanometer fab, but we are really too envious of the 28-nanometer fab!"

Fu Han, head of Shenzhen Investment Promotion Bureau, was also helpless:
"Leader, the 28-nanometer wafer factory in the capital has already started mass production of chips, and the 28-nanometer wafer factory in the Magic City is also about to go into production, but our Shenzhen Stock Exchange has not even caught up. How can this be acceptable? We in the Shenzhen Stock Exchange cannot fall behind!"

"Yes, we can't fall behind. So, you should immediately arrange for someone to study the plan and directly plan two large wafer fabs..." Mr. Song said solemnly, and then changed the subject:
"Forget it. Tomorrow you can take your people to Xingyi Technology and discuss it with them face to face. We will provide them with whatever specifications they require. We will provide them with all kinds of treatment, which is more generous than that of the Magic City and the Imperial City!"

"As the head of the Merchants Group, you should accept it as long as it's not too much!"

"Okay, leader, I'll go there directly tomorrow. No, I'll fly there tonight!" Fu Han responded.

"Okay, if we can't come to an agreement, don't come back. No matter it's a wafer fab, a packaging and testing fab, or a silicon wafer fab, I'll give you whatever you want!" Mr. Song said with a smile.

Other companies may invest but lose all their money.

But Xingyi Technology is different. They have made breakthroughs in the 28-nanometer process and have put it into mass production. They are world-class and number one in mainland China, with absolutely zero risk!

It would be foolish not to seize the opportunity to invest and attract investment at this time.

That night, Fu Han took his men and flew directly to the imperial capital.

The next day, Wang Yi just arrived at Xingyi Technology, and Zhu Changlin came to greet him:
"Chairman, Shenzhen Stock Exchange has come to attract investment. We hope we can also build a wafer factory in Shenzhen!"

"Build a wafer fab in Shenzhen!" Wang Yi was not surprised:
"With the breakthrough in 40-nanometer technology, Shanghai couldn't sit still anymore and came to us to build a wafer fab in Shanghai and provided us with all kinds of support."

"Now that the 28-nanometer process has been broken through, the Shenzhen Stock Exchange can no longer sit still!"

"And this is just the beginning. Next, other cities will probably invite us to invest and build 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 produce 30 12-inch wafers per month, or 1.8 million chips per month. We are already overcapacity and cannot use it at all. If we build new wafer fabs in Shenzhen and other cities, won't the capacity be even more excessive?"

"This is indeed a problem, but it's not a big problem." Wang Yi waved his hand:
"The 28-nanometer process is still the world's top process. The world is short of 28-nanometer production capacity. If Xingyi Technology cannot use it itself, it can outsource it to a third party!"

"As long as the price is right, we can grab orders from not only domestic companies but also foreign companies."

"Whether it's 40 nanometers or 28 nanometers, we can do it!"

Originally, Wang Yi planned to upgrade the 1-nanometer production lines of the first phase of the B1 wafer factory in the imperial capital and the M40 wafer factory in the magic city to 28-nanometer production lines.

But now it seems that it is completely unnecessary.

In the second half of the year, the first phase of the B2 wafer factory in Beijing will be delivered, and the first phase of the M2 wafer factory in Shanghai will be delivered. Both can be directly built into 28-nanometer production lines.

The current monthly production capacity of 28-nanometer chips is 3000 million pieces. By then, it will be able to reach 6000 million pieces or even 9000 million pieces. It is simply impossible to use them!

The 40-nanometer production line must also be retained. After all, the processors of all current Xingyi mobile phones, Xingyi tablets, and Xingyi TVs are 40-nanometer chips, and they are all mass-produced on these two production lines!

Even if the company's products are fully upgraded to 28 nanometers in the future, it will have to retain these two nanometer production lines and outsource them to third-party companies!
Since we are going to do OEM, we need more varieties.

In the next few years, 28nm will be the high-end process and 40nm will be the mainstream process, and they will always exist.

Even ten years later, 40-nanometer chips will still be around.

Semiconductor giants such as TSMC, SMIC, and Samsung all have 40-nanometer production lines ten years later.

Similarly, Xingyi Semiconductor must do the same if it wants to do wafer foundry.

Even if you don't need it, you have to keep it for the customer and do the work for the customer.

Even if we upgrade to a 28-nanometer production line now, we will have to invest in building a 40-nanometer production line later, which is not enough trouble.

Adding these two 40-nanometer production lines, the monthly output is 5 wafer equivalents, or about 3000 million 40-nanometer chips, which is not a lot.

It is just right to continue producing chips for old models and to do OEM for third parties.

Wang Yi continued: "In addition to OEM, we will also have more and more chips of our own."

Zhu Changlin nodded: "Yes, with the launch of borderless mobile phones, borderless tablets, and borderless TVs, the demand for chips will double again next year!"

“That’s for sure. Don’t forget, when we launch the product globally next year, our mobile phone sales will reach a new level!” Wang Yi said with a smile.

"Yes, it will definitely be internationalized next year!" Zhu Changlin suddenly realized.

Once fully internationalized, the annual sales volume of Xingyi mobile phones is expected to reach 2.5 million units.

What about cheaper borderless phones?
Once it goes international, the number can only go higher. 3.5 million units will definitely not be a problem.

There is no pressure for Xingyi tablet + Wujie tablet to sell 1.5 million units per year.

With Xingyi TV and Wujie TV, it is no problem to sell 2.5 million units per year.

This would require 10 billion mobile chips.

"Not only these mobile chips, but also CPUs and graphics cards will be available next year!" Wang Yi said with a smile.

Since acquiring VIA last year, Wang Yi has invested heavily in the research and development of CPUs, graphics cards, and NPUs.

With one or two years of research and development, even if we can't make a high-end CPU comparable to Intel, it should be okay to make a mid-to-low-end CPU, right?
Even if we can't make a high-end graphics card, there's hope at least by making a low-end one, right?

After all, it was developed by the S3 graphics card team, which was once the graphics card king of the 2D era. No matter how much they have regressed, they should be able to make mid- to low-end 3D graphics cards, right?
Wang Yi's requirements are not high.

Zhu Changlin was delighted: "Once the CPU, graphics card, and NPU have breakthroughs, they will all be mass-produced, which will consume a lot of production capacity."

Wang Yi nodded: "Not only that, next, we have to lay out the storage chips."

"Xingyi mobile phones, Xingyi tablets, Xingyi TVs, and the Unlimited series consume so many memory chips and flash memory chips every year. We can completely develop our own chips!"

"Yes, it's time to make plans. I will arrange people and recruit staff to develop memory chips!" Zhu Changlin said with a smile.

Wang Yi nodded: "Recruit, invest heavily, and speed up research and development!"

"Once there is output, it will consume a lot of production capacity. I'm afraid we won't have enough of it!"

"???" Zhu Changlin was shocked. "It shouldn't be that serious, right? In the second half of next year, Xingyi Fab will have a monthly production capacity of 1.8 million chips, and the year after that, an annual production capacity of 21.6 billion chips. How can it not be enough?"

Wang Yi smiled: "After the global sales of Xingyi brand + Wujie brand mobile phones, tablets, and TVs, the total annual sales will be about 10 billion units."

"One device requires a SOC processor chip, a storage chip, and an operating memory chip. As long as we can achieve a breakthrough in storage chips, one billion devices will require three billion chips!"

"Hiss!" Zhu Changlin took a breath of cold air: "In this case, our wafer fab's production capacity is not enough for our own use, let alone outsourcing to third parties!"

Wang Yi nodded: "In a word, 28-nanometer production capacity is totally insufficient, and the more 28-nanometer wafer fabs, the better."

"The wafer fabs in Shenzhen must be built, and they must be built on a large scale. We should directly build a large wafer fab that can produce 10 wafers every two months!"

"Okay, Chairman." Zhu Changlin was extremely excited.

Wang Yi fell into deep thought:
The Shenzhen wafer factory will start construction in the second half of this year and will be put into production the year after next, which is 2015.

By then, if Mr. Hu's 14nm process progresses smoothly, the two new wafer fabs in Shenzhen 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 to 28nm and continue to build a 28nm wafer factory!
The 14-nanometer production line will have to be handed over to other wafer fabs.

Thinking of this, Wang Yi continued: "In the future, if there are other cities that want to invest and build factories, as long as the policies are good, the conditions are suitable, and the support is sufficient, we will all go to build factories!"

The mainland is in great need of high-end Fab wafer factories, especially domestically produced ones.

To this end, Wang Yi has to be a factory-building maniac, building factories madly, developing radically, and preparing for a technological war!
We have finally made a breakthrough in the 28-nanometer process. We would be letting down Hu’s team if we don’t build factories like crazy!
“???” Zhu Changlin was shocked and thought that the chairman was crazy!

(End of this chapter)