Rebirth 08: Rise from copycat phones

Chapter 455: Galaxy Security Selling Tanks
In early February, Xu Shenxue received the news that the second EUV lithography machine ordered by Zhiyun Microelectronics from Gulf Technology had been officially delivered and installation had begun.

After Gulf Technology achieved a technological breakthrough in EUV lithography machines last year, Zhiyun Microelectronics directly ordered the first batch of two EUV-300A lithography machines from Gulf Technology.

However, although these two EUV lithography machines cost Zhiyun Microelectronics a lot of money, they are still not mass-production models, but just prototypes. Zhiyun Microelectronics ordered lithography machines that are still in the prototype stage, not for chip production, but for various experiments and technical verification to accumulate technology and experience for the large-scale application of EUV lithography machines in the future.

Zhiyun Microelectronics is not saying that it can immediately use the EUV lithography machine to organize production. It still needs to test and experiment with the many characteristics of the EUV lithography machine one by one, and then design and optimize the production process, and finally finalize the various technical indicators and processes of the mass production process.

But it’s not a big problem!

The engineers at Zhiyun Microelectronics can use the HDUV-600B lithography machine to perform quadruple exposure and the equivalent of a seven-nanometer process. Everything they do is aimed at getting infinitely close to the physical limit performance of this lithography machine.

It would be much easier for them to use EUV lithography machines to carry out equivalent seven-nanometer processes.

When it comes to craftsmanship, the engineers at Zhiyun Microelectronics are serious, and their technical level is world-class...

As for Gulf Technology, it still needs some time and a lot of testing to collect data in order to lay the foundation for subsequent mass production models.

For top-level equipment like photolithography machines, even if a prototype of a mass-production model has been developed, it still needs to undergo various tests and improvements, and it will take a certain amount of time before it can enter true mass production.

After all, the prototype is just a product of laboratory research and development. God knows what problems will arise when it is actually used... and Zhiyun Microelectronics' various testing tasks include these testing tasks.

The EUV lithography machine project is progressing smoothly, which makes Xu Shenxue in a good mood!

As long as the EUV lithography machine project progresses smoothly, Zhiyun Group’s various core businesses will not be affected by the public in the next few years.

Currently, most of Zhiyun Group's annual revenue of more than 400 billion US dollars is based on advanced semiconductor technology.

The traditional smart terminal and PC fields are semiconductor businesses, all of which are based on advanced semiconductor technology.

The smart terminal business, with the S series of smartphones as its core, requires top-level advanced SOC, memory, and flash memory chips... Only in this way can it compete globally with Apple and Samsung.

Traditional semiconductor businesses represented by traditional X86 instruction set chips and self-developed AP architecture instruction set chips also require top-level technology.

The emerging artificial intelligence-related technologies in the past two years, which have supported the revenue and profit growth of Zhiyun Group, also require top-level semiconductor technology.

For example, the EYQ series general-purpose terminal computing chips needed in the robotics business, the ZY34 sensor co-processing chip, and the ZY35 motion co-processing chip, these three chips are all computing chips that require top-level technology.

Not to mention, the foundation of artificial intelligence technology: server GPU!

Whether it is the AI ​​series graphics cards for self-use or the APO graphics cards for sale, they all require the most advanced semiconductor process technology available today.

Whether it is the traditional main business or the emerging artificial intelligence-related business, it is inseparable from the underlying core technology: semiconductor design and manufacturing!
This is also the reason why Zhiyun Group has been spending a lot of money in the field of semiconductor design and manufacturing over the past years!
Because without computing chips, artificial intelligence is nothing but a castle in the air...

No matter how powerful artificial intelligence is, it still needs computing chips to maintain it... It's like no matter how smart a person is, he still needs a brain, well, at least under current technical conditions!

This is also the core factor that Xu Shenxue has attached great importance to in semiconductor manufacturing over the past years.

Semiconductor manufacturing requires semiconductor equipment and consumables, otherwise the other party will block the company's semiconductor manufacturing business in minutes.

If semiconductor manufacturing fails, then no matter how powerful the semiconductor design is, it will not be able to produce top-level computing chips.

Without computing chips, the development of artificial intelligence will be greatly restricted.

After all, artificial intelligence requires huge computing power to support it. Whether it is training or running artificial intelligence, huge and sufficient computing power is indispensable.

If the AI ​​algorithm is good enough, it can reduce the use of computing power to a certain extent. But think about it the other way around: if the algorithm is better and there is more computing power, wouldn’t that be better?

So when Xu Shenxue went to Beijing to make reports a few years ago, he brought AI-controlled drones and robot dogs with him for demonstrations several times, and then expressed a very simple but extremely important concept: the future is the era of artificial intelligence, and artificial intelligence is based on the semiconductor industry.

Coupled with the traditional electrified society, a series of smart terminal lifestyles developed in the last decade...from children's toys to robots and AI fighter jets, all are built on the semiconductor industry.

The lifestyle of modern civilization is built on semiconductors!

In the end, with the rapid development of Fairy Mountain Holdings, what outsiders saw as a huge amount of support was various.

Xiannvshan Holdings did not disappoint the expectations of Xu Shenxue and others. After spending many years integrating existing domestic resources, coupled with huge amounts of funding and scientific research personnel, as well as a strong investment in the core scientific research system, it finally produced the DUV immersion lithography machine HUDV-400 lithography machine with an overlay accuracy of 28 nanometers. The single exposure technology can already meet the chip production needs of 45- nanometer nodes.

Although the early models of this lithography machine had low production efficiency, resulting in higher chip production costs, its significance is very important.

The emergence of this lithography machine directly led to the American consortiums giving up the idea of ​​blocking Zhiyun Group in the field of DUV immersion lithography machines...Xu Shenxue has already made a similar lithography machine, and there is not much point in continuing the blockade.

Subsequently, Haiwan Technology, a subsidiary of Fairy Mountain Holdings, produced a deeply improved model, the HDUV-500 lithography machine. Not only did it greatly improve production efficiency, reaching the level of similar products of ASML, it also had an overlay accuracy of 12 nanometers, which means that the lithography machine can use double exposure technology to produce chips equivalent to 18- nanometer process nodes.

Although the above-mentioned HDUV-400 and HDUV-500 are both well made, they are still slightly inferior to the foreign ASML products of the same level in some technical details. After all, the research and development time is tight, so it is good enough to be able to produce them. Some minor problems can be solved slowly later.

This is also the reason why, although Zhiyun Microelectronics purchased these two lithography machines at that time, it still purchased a lot of ASML's NXT1950 and 1970 lithography machines. At that time, it still adopted a two-legged approach.

But things are different in the HDUV-600 era. This lithography machine can be said to have brought together all the top technologies of Fairy Mountain Holdings, no, even the entire Chinese industrial system.

And with the huge investment of resources by Xu Shenxue and the day and night efforts of a large number of scientific researchers, the technology of this lithography machine has undergone very rapid iterations, from the barely usable basic state at the beginning, to the improved model A, and then to the perfect model B.

By the time the HDUV-600B model came along, its basic performance was no less than that of ASML's NXT1980 lithography machine of the same level, except that its trouble-free time was a little shorter and subsequent maintenance was a little more troublesome.

However, in terms of production efficiency and manufacturing precision, they are already at the same level.

The HDUV-600 lithography machine is the culmination of Gulf Technology's DUV immersion lithography machines. It has very complete technology. It can be applied to the equivalent of 10-14 nanometer processes using double exposure, and can be applied to the equivalent of 600 nanometer processes using quadruple exposure technology. The HDUV- lithography machine is currently the main model of Gulf Technology's immersion lithography machines. Even though the unit price has reached more than million US dollars, the cumulative orders have exceeded units.

However, due to scarce production capacity, there is currently only one customer, which is Zhiyun Microelectronics, and other customers have to wait in line.

Zhiyun Microelectronics currently uses this lithography machine to produce chips equivalent to the seven-nanometer process, and will subsequently be used to expand production capacity to 10-14 nanometer processes.

After all, although this lithography machine can use quadruple exposure technology, double exposure is actually its main task and is more suitable.

Using this lithography machine to produce 10-14 nanometer chips is more efficient and less costly.

For many years to come, the HDUV-600 lithography machine will be Zhiyun Microelectronics' main production lithography machine, because the equivalent 10-14 nanometer process will not be obsolete for many years. Analysts who study the semiconductor market believe that the equivalent 10-14 nanometer process will still be the main process in the next decade and occupy a major share of the semiconductor market.

Based on the huge demand from Zhiyun Microelectronics and other domestic semiconductor manufacturers, such as SMIC, Bewin and other manufacturers, the demand for this lithography machine will continue for many years in the future and the sales volume will not be low.

In addition, although its performance is a little behind, its price is also lower, which makes it suitable for the production of HDUV-500 and HDUV-400 with mature processes.

Together, the three HDUV series lithography machines constitute the main revenue and profit source of HaiLan Technology's lithography machine project, and also shoulder the important task of being the core equipment of China's semiconductor manufacturing industry.

Of course, the current DUV immersion lithography machine is no longer a bottleneck, nor is it a cutting-edge technology. Currently, Xu Shenxue and the American consortiums are competing for the next-generation semiconductor manufacturing technology with EUV lithography machines as the core.

The next-generation semiconductor manufacturing technology with EUV lithography as the core will be used in the manufacturing of future logic chips at the equivalent of seven-nanometer process and five-nanometer or even lower process nodes.

Similarly, if we want to continue to make technological breakthroughs in storage chips in the future, we will also need to rely on EUV lithography machines with lower resolution.

At present, Zhiyun Microelectronics' top memory production process '10B' process has an actual process node of 600 nanometers... and this process node has approached the physical limit of the HDUV-B lithography machine.

Before the EUV lithography machine was adopted, it was already difficult to make further technological breakthroughs...

The planned 10C and 10D processes in the future will both require the support of EUV lithography machines.

The same is true in the field of flash memory chips. Currently, Zhiyun Microelectronics' top-level process for manufacturing flash memory also uses the HDUV-600B lithography machine. Its mobile phone products will be launched on the market this year with the new generation of S18 mobile phones.

The next generation of process technology also requires the support of EUV lithography machines... Of course, the flash memory process can be relatively flexible. It can reduce the demand for process technology by stacking more layers, so even without EUV lithography machines, it is actually possible to produce flash memory chips with more layers!

But wouldn’t it be better if we could have more layers while also reducing the size and spacing of transistors, thus strengthening both at the same time?
The performance of logic chips, memory chips and flash memory chips are closely related to the technical level of lithography machines.

What makes Xu Shenxue fortunate is that Gulf Technology's EUV lithography machine project is currently progressing smoothly.

The second experimental machine has now been delivered to Zhiyun Microelectronics. If the subsequent tests and R&D work go smoothly, Gulf Technology will be able to start delivering mass production models to Zhiyun Microelectronics around the fall of this year. Probably next year, Zhiyun Microelectronics will be able to use EUV lithography machines to produce chips equivalent to a seven-nanometer process.

Of course, this is all under the assumption that everything goes well. If there are slight delays in some links, then there will be delays. It would be normal to wait until the year after next to enter mass production.

But there is no need to worry too much. Although the technical progress of ASML's EUV lithography machine and the various tests and tests of TSMC's EUV lithography machine are faster, they still take time and will most likely not be completed next year... In the previous years, Galaxy Security did a very good job and delayed the technological advancement of the other side's EUV lithography machine for several years.

Now the two sides have officially ended their conflict in the field of lithography machines, but it is not so easy for them to recover and continue to advance the progress of technological research and development.

In summary, the progress of both parties in the field of EUV lithography machines is actually almost the same... and this is actually the core reason why the two parties were able to reach an agreement.

Since they are almost the same, why bother fighting? Just pat your butts and go home. Fighting is also very expensive... The operational expenses that Galaxy Security spends in the field of lithography machines every year are not a small amount.

Not only is most of the money Galaxy Security earns every year spent on this, but Xu Shenxue also has to inject large sums of additional funds every year through various means. Just the year before last, when the two sides were fighting fiercely, Xu Shenxue once injected an additional US$1 billion into Galaxy Security in one go by signing overseas corporate security orders.

Galaxy Security itself is actually very profitable. They have regular security business in Africa, mainly providing security services to foreign companies investing in Africa. They also run some mining business locally.

By the way, he also works part-time as an import and export trader, and the trade goods include thousands of things, from bicycles to tanks. Because Galaxy Security also has an arms trading company, the kind with a legitimate license... Well, at least it is legal in many African countries, and it is not a shady arms smuggler. The arms trading company under Galaxy Security can openly participate in various weapons and equipment exhibitions and then order various weapons and equipment.

Galaxy Security, which has a lot of business, has a considerable overall profit... After all, it does business by driving armed helicopters and armored vehicles, so it is hard not to make money. Under normal circumstances, it can easily maintain its own survival, and it can also provide profit dividends to Xu Shenxue, a shareholder.

But... Galaxy Security has been fighting with those American conglomerates for many years, and their own profits are sometimes not enough... Every year, Xu Shenxue has to subsidize part of the funds more or less.

Various operational expenses, personnel salaries, equipment costs, pensions for casualties, medical expenses, etc. are not small amounts!
Although ordinary people in the outside world don't know anything about the fights between top conglomerates, the actual expenditure is comparable to the war expenditure of some small countries... Three years ago when the two sides were fighting fiercely, Galaxy Security's operational expenditure for that year reached 2.8 billion US dollars.

Of course, the security companies under the opposing consortium are similar. They also spend money like water when fighting, or even spend more.

But...if this 2.8 billion US dollars is considered as security expenses, it seems to be a huge number, but if compared with the huge industrial chain of Zhiyun Group, Weiku Electronics, Hailan Automobile and other companies that rely on advanced semiconductor technology, it is not worth mentioning.

Therefore, whether it is Zhiyun Group, Weiku Electronics, or even Hailan Automobile, they all sign huge security contracts with Galaxy Security every year and hire Galaxy Security to provide security services for their overseas businesses... This is actually a form of financial support.

It was precisely because of the security services provided by Galaxy Security that the other party's technological progress in the field of EUV lithography machines was able to be slowed down, and ultimately the basis for negotiations and reconciliation between the two parties was laid.

If you want to get what you want at the negotiation table, it is best to knock your opponent down first. At the very least, you must beat him hard, even if it means both sides suffer losses!
Otherwise, don't expect to get what you want at the negotiating table... The other party is not a soft persimmon, how can Xu Shenxue get whatever he wants!

Want it? Sure, let's have a fight. If you win, it's yours, Xu Shenxue. If we're tied, I'll give you half, so you can join in.

If you, Xu Shenxue, lose... I'm sorry, not only will you not get what you want, but I will also swallow you up in one bite: comprehensive sanctions on semiconductor equipment and consumables... I made you, Xu Shenxue, so awesome, now why don't you make a chip for me to see?
Thanks to the efforts of a large number of scientific researchers and the sacrifices of the Galaxy Security Operations personnel, Xu Shenxue at least achieved a tie. In the end... he successfully sat down opposite several American consortiums and became a diner.

On the dining table are various old or emerging conglomerates from many other regions... They look so delicious and tasty that they make people salivate!

Now, it’s almost time for dinner... So Xu Shenxue is looking forward to seeing the EUV lithography machine go into formal mass production, and then continue to impact the equivalent of five-nanometer process, or even three-nanometer and two-nanometer process!
That is not only the clarion call for technological breakthroughs, but also the order to start eating!

(End of this chapter)