Rebirth 08: Rise from copycat phones

Chapter 161 The First Photolithography Machine
The investment in the semiconductor industry chain will be huge. Although Xu Shenxue does not consider it and it is impossible to do everything by himself, the cost of taking the lead and making semiconductor integration equipment such as lithography machines, etching machines, and ion implantation machines is not a small amount.

As for the real later stage, it may involve the huge proposition of the entire industrial underlying system...Xu Shenxue will definitely let Zhiyun Technology be the main operating entity, and then bring in a large number of related domestic companies and institutions to work together.

After all, this kind of thing is not something that can be handled by one person or even one company alone.

What does Xu Shenxue want to do at this stage? What does Zhiyun Technology want to do?
It is actually very simple to say. Xu Shenxue wanted to make a start and make a sample... For example, he wanted to use the relatively mature domestic technology foundation to develop a DUV dry lithography machine.

In this process, Zhiyun Technology's huge capital and industrial chain business will be used to first industrialize the DUV dry lithography machine, and then drive a series of industrial chains of semiconductor manufacturing equipment and raw materials.

Simply put, it is to industrialize the field of lithography machines first, generate actual economic benefits, and then drive the continuous progress of the entire industrial chain.

The entire model is actually similar to making smartphones and then driving the entire smartphone industry chain...

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The current DUV dry lithography machine is still very popular in the market, because this type of lithography machine is mainly used for 65-130 nanometer ultra-large-scale integrated circuits or chip manufacturing, and a lot of second-rate mobile phone chips are still using 9 nanometer technology. For example, the MSM8X50 chip used in the S mobile phone is actually a nanometer process...

The performance of the 8X50 chip is still enough to rank among the top five at present.

The 65-nanometer support can be manufactured using a DUV dry lithography machine.
Various memory and other types of chips are also manufactured using a process ranging from 65 nanometers to 130 nanometers.

This level of process technology will still have a considerable market share, not to mention now, even after a dozen years.

This means that DUV dry lithography machines will still have a market in more than ten years... Gulf Technology's DUV dry lithography machines still have great market prospects.

Gulf Technology not only has the more advanced DUV dry lithography machine project, but also has the seemingly more backward KRF lithography machine, which uses a 248-nanometer wavelength light source and can achieve a minimum process of nanometers.

There are even i-line' lithography machine projects with a wavelength of 365 nanometers and a minimum process of only nanometers.

Because even in the mid-twenties, lower-tech KRF lithography machines and even i-line lithography machines still have broad market demand and value!
In the 22 years of ASML's lithography machine shipments in the Netherlands, there were top-level EUV lithography machines, ARFI (DUV immersion) machines, and ARF (DUV dry) machines.

Then, the seemingly outdated third-generation KRF lithography machine had a staggering shipment volume of 151 units.

Even the second-generation I-line lithography machine has shipped 45 units.

The above mentioned is the top lithography machine manufacturer, ASML of the Netherlands.

Then there is Nikon, which shipped four ARFIs, four ARFs, seven KRFs, and fifteen i-line units.

Then there is Canon, with 51 KRF units and 125 i-line units.

The seemingly backward second-generation i-line lithography machines and third-generation Krf lithography machines still had very large shipments in the 1920s.

And this refers to front-end lithography machines, not back-end lithography machines. The process technology of back-end lithography machines is generally lower, and the shipment volume is also huge.

Why is this happening?

Because apart from mobile phones, computers and some smart terminals, the chips needed for ordinary devices actually do not have such high requirements for manufacturing processes.

Microcontrollers, power electronic devices, telecommunication circuits, automotive electronics and many other devices are widely used in various industries. Due to technical and cost reasons, 65-350nm is basically sufficient, and products produced by this low process technology account for more than 60% of the market!

The 350-nanometer lithography machine developed by Russia during the war with all its national strength is actually a second-generation technology level... and it is enough to sustain its war and basic social and industrial operation needs.

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Of course, for most industries, the higher the chip technology, the better. Two or three hundred nanometers are barely enough, but sixty-five nanometers is better, right?

Even 28-nanometer and 14-nanometer chips are better for use in ordinary home appliances. Ordinary TVs can be transformed into smart TVs, which are very easy to use.

In the current 10-year lithography machine market, there are not only the top-level EUV lithography machines, but DUV lithography machines still dominate the shipments. Even DUV immersion lithography machines are still considered top-level lithography machines, but they are expensive and their shipments are not very large.

The DUV dry lithography machine seems to be outdated from the perspective of future generations, but it is still the mainstream lithography machine at present.

Zhiyun Microelectronics' new factory has also purchased a large number of imported DUV dry lithography machines.

Even KRF lithography machines and i-line lithography machines are being purchased...

Fortunately, some of the core technologies required for domestic KRF and i-line lithography machines have been gradually resolved.

Although some core technologies are still lagging behind advanced foreign products, they can still be used.

It’s just that its industrial utilization is not very good. The front-end lithography machines produced have poor production efficiency compared with similar foreign products and their market competitiveness is too poor.

Therefore, these two technologies are mainly used in China to make back-end lithography machines.

Often, even if the technology exists, it doesn’t mean it can be used commercially…

Especially since these two things are not blocked abroad, we will sell you as much as you want. Under the impact of imported products, these two low-process domestic front-end lithography machines have basically no market.

In a sense, the domestic front-end lithography industry is being killed by the dumping of similar foreign products...

Under a normal business environment, even if domestic manufacturers develop seemingly backward i-line lithography machines and KRF lithography machines, because they are newly developed, there will definitely be some gaps and the production efficiency will not be very good. Therefore, chip factories will not force support.

You can't blame these domestic chip factories. After all, the low-process chip manufacturing industry is also very competitive. If domestic lithography machines are used, the cost will be too high, and the chip factories will make less profit or even lose money.

If the chip factory supports you, you will die first.

But how can the field of lithography machines develop without the support of the industrial chain?
Then when the country was blocked, a number of mid- and downstream manufacturers rolled their eyes. Only then did they hurriedly remember that they had to support domestic lithography machines... but it was too late.

In the field of back-end lithography, domestic technology is better and the market competitiveness is stronger. Zhiyun Microelectronics has purchased a lot of domestic back-end lithography machines. Based on domestic KRF and i-line lithography machine technology, all subsystems have been made more mature, so Gulf Technology is also developing these KRF lithography machines and i-line lithography machines. These two are simpler and easier to cultivate the industrial chain.

As for the usage issue...Xu Shenxue has his own chip factory, Zhiyun Microelectronics. Not only does he have a chip factory, he also has a chip design company, Zhiyun Semiconductor...The most important thing is that there are two downstream terminal product manufacturers, Zhiyun Technology and Wecoo Electronics, which can pay for these backward chips that use domestic lithography machines!

This is the benefit of industrial chain integration. Even if the cost is slightly higher in a certain link, the cost can still be spread out through other links and ultimately achieve profitability.

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Not long after, Xu Shenxue received good news from Gulf Technology. They successfully used domestic components to develop a prototype of the i-line lithography machine!

Although it is just an i-line lithography machine, which can only be used for the minimum 350-nanometer process and its technical level is relatively low, Xu Shenxue still attaches great importance to it.

Even though it is backward, it is still one of the most advanced core semiconductor devices in the contemporary world, and there are only a few manufacturers or countries in the world that can produce it.

Gulf Technology was able to achieve this because it stood on the shoulders of giants... and was supported by a large number of basic domestic technologies.

This is the first product developed by Gulf Technology since its establishment... Although it is very disappointing, it is enough to cultivate a series of technical teams for Gulf Technology, accumulate experience in whole machine design, and at the same time establish industrial chain connections with a large number of semiconductor industry chain subsidiaries under Fairy Mountain Holdings.

The more than 100 supply chain companies controlled by Fairy Stone are all counting on Gulf Technology to be able to produce lithography machines to drive the operation of the entire industrial chain.

Many of this thing's core technologies were developed by more than 100 companies under Fairy Mountain Holdings... Of course, they didn't start from scratch. The advancement of these semiconductor technologies under the Fairy Mountain Holdings system was based on the accumulation and breakthroughs of corresponding basic technologies in the country over the past years.

Not starting from scratch!

For example, the company that is engaged in light source systems is "Southern Optics" under Xiannvshan. The predecessor of Southern Optics was actually a domestic optical company that originally engaged in light source systems. Its technology was not bad, but it also faced the embarrassing situation that its products could not be commercialized, and its business situation was extremely bleak.

After Fairy Mountain Holdings acquired the company, it immediately made large investments in poaching, acquisitions, and integration, and first developed a better 356-nanometer light source system.

The light source system is then delivered to Gulf Technology and eventually integrated into a lithography machine.

Therefore, even if it is a very backward lithography machine, its practical significance is still very great, and a large number of industrial chains are counting on it.

At the same time, even the i-line lithography machine still has considerable commercial value... In order to meet the production needs in the low-process chip field, the chip manufacturing industry needs to purchase this seemingly backward lithography machine product, and there will still be such demand even after more than ten years.

For example, Zhiyun Microelectronics not only has the relatively advanced 90-nanometer and 65-nanometer product lines, but in fact, among Zhiyun Microelectronics' existing product lines, the 130-nanometer to 350-nanometer product lines are still quite large in scale.

In order to meet the large number of orders for low-end chips and electronic components within the group, Zhiyun Microelectronics is even expanding these low-process production lines.

As long as Gulf Technology develops a lithography machine, no matter what process it is, Zhiyun Microelectronics can place an order tomorrow... because they need them all!
Due to the importance of this thing, Xu Shenxue made a special trip to see this i-line lithography machine.

In Haiwan Technology, Wang Daolin introduced to Xu Shenxue with a happy face: "Boss Xu, this is the first product we developed, model H100A, it uses contact proximity exposure, uses a 365nm light source, and can achieve a minimum of nanometers of process technology, which is a relatively mainstream level in the market!"

"We have very good control over costs. Almost all parts are domestically produced. This not only ensures the security of the supply chain, but also has lower costs than similar foreign products!"

"We have calculated that if we mass-produce our products, our costs should be only about 60% of similar foreign products!"

"Of course, our production efficiency is not as good as similar domestic products, the failure rate is relatively higher, and the subsequent maintenance costs are also higher!"

"When we were doing it, we had already considered the issue of integration with the existing production line, because a lot of design standards have adopted international standards, which can be well integrated into Zhiyun Microelectronics' existing production line!"

While listening, Xu Shenxue looked at the photolithography machine in front of him... This thing actually looks like a big cabinet from the outside... In fact, you can't tell what's inside it.

But it seemed as if there was some kind of magic that attracted Xu Shenxue to watch it.

Strictly speaking, this thing is the most technologically advanced device that Xu Shenxue has developed after working on the company for so long!
Don’t underestimate the front-end lithography machine with a 350-nanometer manufacturing process... This thing is still the most advanced precision industrial equipment in the contemporary world, and there are only a few manufacturers in the world that can make it.

Currently, there are only three companies engaged in commercialization: AMSL, Nikon, and Canon... Gulf Technology should be considered the fourth!

As for Shangwei, they also have these backward front-end lithography technologies and even products, but no one wants the products they produce and their market share is almost zero, so there is no question of commercialization. However, their back-end lithography machines are doing well, and Zhiyun Microelectronics has ordered a lot of them.

Of course... not many manufacturers would do the same as Xu Shenxue and bother with these backward front-end lithography machines. After all, if other manufacturers want lithography machines, they can just buy them directly.

Only Xu Shenxue planned to do everything on his own in order to prevent being blocked...

As for the backward lithography machines, those who have the ability don’t need to make them, and those who don’t have the ability can’t make them, and even if they do make them they can’t sell them... It’s such an embarrassing situation.

After walking around it, Xu Shenxue asked, "Can this thing be used? I mean, can it be mass-produced? Can it be used on a production line?"

Upon hearing this, Wang Daolin immediately said in a hurry: "Boss Xu, this can definitely be mass-produced and can definitely be used in the production line... Although this thing has a high technical content, our domestic technical level can still make it. I also made it when I was at my old employer, but I couldn't compete with similar foreign products. In the end, no one wanted it and it failed in the marketization!"

Xu Shenxue said: "If that's the case, then what else is there to consider? Let's take a look at whether it's a mule or a horse. We can get a few units and take them to Zhiyun Microelectronics to see the results."

Wang Daolin asked, "Really? Are Zhiyun Microelectronics really willing to use it?"

Xu Shenxue was speechless when he heard this: "If we make our own products, we will definitely use them ourselves. Is there a problem with this?"

But Wang Daolin's eyes moistened as he listened, and he said, "No problem, I will definitely use it, I must use it... I'm just... a little excited."

"I have been working on lithography machines for my entire life, and I have made quite a few different types of lithography machines, but this... this is the first time that a lithography machine I have developed is going to enter the production line... I was suddenly..."

"In the past, I also developed this kind of i-line lithography machine, but after making one or two prototypes, I threw them into the warehouse. Those chip factories didn't even take a look at them. They said our products were not as good as imported ones before they even saw them!"

"This lithography machine is on the production line. This is the first time for me to be a young lady in a sedan chair... I am very happy."

As he was talking, Wang Daolin squatted on the ground and wiped his tears.

(End of this chapter)