The car giant started by marrying the daughter of the king

Chapter 437: Big moves continue, 4-inch equipment has just arrived, and the 5-inch project has started

Not long after the foundation stone of BMW Group’s new factory was laid, the second-hand equipment purchased by Lingnan Semiconductor from America arrived.

Others may not know that China only has a limited time window to introduce advanced equipment and production lines, but Jiang Hui is very clear about this.

So when these equipment came in one after another, he called the two responsible persons, Zhang Shaohua and Chen Qingxiang, to his side.

"Mr. Zhang, Mr. Chen, the production lines we have introduced now are all dismantled from other people's factories."

"Everyone has made full understanding in advance about how each device should be installed and what situations may arise."

"The relevant manufacturers in the United States have also arranged personnel to come over for on-site guidance."

"According to the plan, all these equipment will be installed in place within the next three months."

After Jiang Hui said this, Zhang Shaohua and Chen Qingxiang both felt something was wrong.

They were not stupid, so they naturally heard that Jiang Hui had not finished speaking.

"When Lingnan Semiconductor laid the foundation stone for the factory, it had already completed the three connections and one leveling work for the first and second phases of the project."

"The construction of the factory building is also being carried out simultaneously."

“I think now that the equipment for Phase I has started to arrive, we can start considering the equipment for Phase II.”

"This time I plan to directly order production equipment for a 5-inch wafer fab and 1.8-micron chip processing equipment."

"Since this is new equipment, it is estimated that it will take more than a year from ordering to delivery."

"At that time, the first phase of the factory had already been officially put into production, so there would be time to deal with the second phase of the factory project."

Jiang Hui didn't beat around the bush and directly expressed his thoughts.

Lingnan Semiconductor wants to purchase the most advanced chip processing equipment internationally, and this is the last window of opportunity.

Next year, huge changes will begin to take place on the polar bear side, which will inevitably lead to changes in various American policies.

By then, suppressing China will become their new strategic direction.

Not to mention the most advanced chip processing equipment currently available, even relatively advanced second-hand equipment may not be allowed to be sold to you.

"Boss Jiang, the time is exactly as you said."

"However, we estimate that the production capacity of our first phase factory will not be fully utilized within the next year."

"In this case, we should quickly build the second factory, and then the output will be even greater."

"It is very likely that Lingnan Semiconductor's financial data will be very ugly and face huge losses."

Zhang Shaohua naturally also hopes to introduce the most advanced production equipment.

Whether it is a 5-inch wafer production line or a 1.8-micron process chip production line, it is already at an advanced level internationally.

Although by the time Lingnan Semiconductor has fully mastered this technology, other manufacturers will certainly be using more advanced things.

But that is already a huge progress, something that we never dared to think about before.

Zhang Shaohua is well aware of how complicated the approval process for introducing large-scale production lines is in China.

Previously, a 4-inch wafer production line could take several years to be approved without any conclusion, not to mention the 5-inch one.

And the funds required to purchase new equipment are much higher than those of second-hand equipment.

Things that originally could be accomplished with tens of millions of dollars will now cost hundreds of millions of dollars, or even more.

Zhang Shaohua knew that the relevant departments would not have the funds to support the purchase of imported equipment on this scale.

In other words, Lingnan Semiconductor has sufficient profits transferred to it by the BMW Group, so it is not short of money.

"The semiconductor industry itself is not an industry where you can make money immediately once you enter the market."

"Look at Samsung Electronics in Korea. It has been losing money in the semiconductor field for several years now."

"But not only have they not cut their investment in the semiconductor industry, they have been increasing it."

"I don't expect Lingnan Semiconductor to be profitable in the next five years. As long as we can catch up with the mainstream technology level in the industry, it will be a great progress."

"So you don't need to have any pressure on profitability for now."

After Jiang Hui said this, Zhang Shaohua and Chen Qingxiang breathed a sigh of relief.

I am afraid that the boss does not understand the business and only looks at operating indicators. In that case, it will be difficult to develop the semiconductor industry.

Lingnan Semiconductor is a latecomer in the industry. It is completely unrealistic for it to catch up with the industry level and make a lot of money in a short period of time.

However, as long as the business is well managed, it may only take a few years to recover all the previous investments.

This industry is, to a certain extent, a winner-takes-all situation.

Later generations of Samsung Electronics continued to invest in memory, even when industry prices plummeted, and eventually reaped several dividends.

It is normal for the price of memory that costs 50 yuan to rise to 200 yuan once the supply exceeds the demand.

At that time, chip factories turned into money printing machines, providing huge profits continuously.

"Mr. Jiang, according to the various situations we have previously grasped, the prices of several key types of 1.8-micron chip equipment are very high."

"For example, the most critical lithography machines, whether they are Canon or Nikon, are very expensive."

"When the entire production line is purchased, the investment in equipment alone will probably be hundreds of millions of dollars."

Although Zhang Shaohua knew that the BMW Group's business performance in recent years was very good, he actually had no idea to what extent.

So he wanted to let Jiang Hui know the level of investment in the second phase of the factory.

Otherwise, when we start working on the project, it would be depressing if the boss goes back on his word.

"If the investment in a wafer fab or chip factory that can keep up with the world's advanced level is only about $1 million, I think it is completely acceptable."

"It's because we have a good relationship with the West now. Otherwise, they wouldn't sell it to you even for $2 million."

Zhang Shaohua breathed a sigh of relief after hearing what Jiang Hui said.

If the boss knows what is going on, then it will be easy.

"I will immediately arrange for someone to formulate an investment plan and production line plan for the second phase of the factory."

"At the same time, I also officially started to contact key equipment manufacturers to discuss the purchase of equipment."

“The purchasing cycles for different equipment can vary greatly.”

"Some equipment is more versatile, and the equipment manufacturer may have inventory that can be used directly, so the delivery cycle will be shorter."

"But some equipment is customized by various manufacturers, and the equipment manufacturers will only start production after receiving orders."

"This is more time-consuming and not as fast."

"But if we have a year, most of the problems should be gone."

Based on the information he had, Zhang Shaohua quickly began to arrange the next step of work.

A huge project with an investment of over 2 million US dollars, and possibly a combined investment of million US dollars for the wafer factory and chip factory, was actually finalized in such a relaxed atmosphere.

This felt a little unreal to him.

If he was still in his original unit, he would never be able to finalize this project without going through a lot of trouble.

Even if the project is finalized, various approvals can be life-threatening.

Even if it is finally approved, there are still various troublesome things to do to implement the project.

It’s not like Lingnan Semiconductor, where everything is easy to discuss as long as the boss makes the decision.

……

"Lao Zhang, I'm going to call the people in the original institute again to see if there are any others who are willing to come to Lingnan Semiconductor."

"It's worry-free to work with a knowledgeable and decisive leader."

"The first phase of the factory has not yet seen any returns from the tens of millions of dollars of investment, but it has immediately started to promote the second phase of the project."

"This speed is impossible in any other factory or research institute."

"I think it's a waste of talent and a drag on the development of China's semiconductor industry if those people don't come to Lingnan Semiconductor."

After Chen Qingxiang and Zhang Shaohua left Jiang Hui's office, they immediately prepared to swing their hoes to dig people out.

He felt that he would be letting himself down if he didn't poach people at this time.

“The first phase of the factory has just started, and the second phase is about to start.”

“We are indeed short of staff right now.”

"Whether it is domestic or international talent, as long as there is a suitable one, we will consider poaching them."

"Mr. Jiang is an expert and decisive person. We must not waste the opportunity and betray their trust."

Zhang Shaohua is now full of energy.

Over the years, he has always wanted to achieve some results, but there has been a lot of theoretical research but few practical results.

Because every research in this industry needs the support of equipment and factories to achieve results.

You can’t achieve anything just by staying in the office.

"Mr. Jiang asked us to buy back the equipment for the second phase of the factory within the next year. I think there may be some other considerations behind this."

"There are even some things that I feel he may not have said directly, or the timing was not right, so he did not say them directly."

“Do you think there will be some policy changes in the future?”

Chen Qingxiang is not stupid. Through today's conversation, he can still read a lot of information.

Jiang Hui obviously has some concerns about continuing to purchase equipment from international sources in the future.

"I think your guess is probably correct."

"In the past year, the international situation has been changing rapidly, and our relations with many countries have also been constantly changing."

"Like polar bears, the relationship between the two sides was very strained in the past, to the point where they would never see each other again."

"But in the past year, the relationship between the two sides has recovered rapidly, and important figures from the polar bear side will visit this year."

"This will definitely lead to some other actions from the American side. It is hard to say what the reaction will be at that time."

As the general manager of Lingnan Semiconductor, Zhang Tianhua obviously has a stronger sense of the overall situation.

He has keenly noticed something.

"Now that you put it that way, it's true."

Chen Qingxiang and others have all experienced the period when relations with the United States were not good, so they naturally would not take it for granted that the honeymoon relationship of the past few years will continue.

We have all been working for many years and our thoughts are not that simple.

"The power of the polar bear appears to be declining, and the influence of America is rising."

"At the same time, after ten years of reform, our strength has continued to grow."

"In the future, it is very likely that America will see us as a new threat. After all, our systems are completely different."

Zhang Shaohua's guess was very consistent with the actual situation. Although there was no way to get an accurate answer now, after thinking about these risks, they understood Jiang Hui's ideas and arrangements better.

Things may not change that much in the next year.

But if it drags on for two or three years, it’s hard to say.

……

"Boss, I just called to confirm that Lingnan Semiconductor has decided to start the second phase of the project."

"This time they will not continue to import 4-inch wafer equipment and 3-micron process chip processing equipment, but will purchase equipment from all over the world that can produce the most advanced 5-inch wafers and 1.8-micron process chip technology."

Yao Yiming feels that when working in Shenzhen, he can get results even when he is sleeping.

I wonder how much effort it would take to get such a big project in other small places.

But in Shenzhen, he felt that he had done nothing, and Lingnan Semiconductor had already implemented the project.

"This kind of internationally advanced production equipment must be worth a lot, right?"

In the past six months, Liu Tianwu has also made great efforts to supplement his professional knowledge related to the semiconductor industry.

So as to avoid making some low-level mistakes during inspection or reporting.

So he knew very well that the equipment corresponding to the two processes mentioned by Yao Yiming was very expensive.

"Yes, conservatively estimated, the equipment purchase amount alone will be more than $1 million, and may even end up costing $2 million."

"But these amounts shouldn't be a big problem for Lingnan Semiconductor."

"Land Rover now earns several hundred million dollars a month from exports, and the profits of the entire BMW Group for a few months are definitely enough to cover this investment."

Although Yao Yiming is not particularly clear about the actual profit situation of BMW Group.

However, companies have to pay taxes, and a lot can be seen from the data from the tax bureau.

“I’m not worried about the funding, but Lingnan Semiconductor has only been established for less than a year.”

“They probably haven’t even fully grasped the current 4-inch wafer and 3-micron process technology.”

"Will it be difficult to digest if we directly introduce world-leading process equipment at this time?"

I have to say that Liu Tianwu's concern is very reasonable.

He did not become blindly optimistic after hearing Yao Yiming's report, but instead gave his own judgment after a thorough analysis.

For a leader to be able to achieve this level is considered to be very hard work.

"This issue should have been considered within Lingnan Semiconductor."

"Mr. Jiang always plans ahead. Maybe he has already made some arrangements elsewhere."

Yao Yiming was unable to give a convincing reason for the question Liu Tianwu asked and could only express his own guess.

After all, it involves such a huge investment, there is no reason for Lingnan Semiconductor to joke about it.

Even if you have money, you shouldn't waste it like this.

"That's what I said, but I'm worried that the people at Lingnan Semiconductor will be too eager for quick success and deceive Mr. Jiang."

"At that time, it will bring great harm to the development of our semiconductor industry."

"BMW is currently building a supercar factory as well as supporting engine factories, gearbox factories, and parts factories."

"At the same time, the industrial equipment park is also making significant moves."

"Even if the BMW Group is making a lot of money, there is definitely pressure."

"It would be a pity if the equipment worth hundreds of millions of dollars is left idle and cannot be used."

Liu Tianwu is now considering these issues completely from Jiang Hui's perspective, rather than simply considering the political achievements in Shenzhen.

Only when the interests of the BMW Group are guaranteed to the greatest extent can their investment in Shenzhen continue.

Liu Tianwu saw this very clearly.

"Then...how about I find Mr. Jiang's secretary and remind them?"

Yao Yiming asked back with some hesitation.

"No need for now. I will find some time during this period to visit Lingnan Semiconductor to see the progress of their Phase I factory, and by the way, discuss matters concerning the Phase II factory with President Jiang."

There would be no point in just rushing over and saying something speculative.

Liu Tianwu would not do such a thing.

But this concern does need to be resolved.

……

"Director, I just received a message that Lingnan Semiconductor is planning to purchase equipment for producing 5-inch wafers and 1.8-micron chip processing equipment from abroad."

As the chief engineer of the United Microelectronics Corporation, Zhao Dongfang is naturally very concerned about the development of the domestic semiconductor industry.

As a company recently reorganized by its superiors to focus on developing the semiconductor industry, Microelectronics Associates carries the expectations of many people.

However, since their establishment, they have not made any major moves, while other domestic semiconductor companies have been very active.

This naturally creates pressure.

"We just rely on Zhang Shaohua and his gang. Do they understand the 1.8-micron process technology?"

"It would be a waste for Lingnan Semiconductor to buy these devices now."

Wang Honggui is very familiar with several key leaders of Lingnan Semiconductor.

Many of the people there were his former colleagues or acquaintances.

After all, the domestic semiconductor circle is actually very small, and it is almost entirely made up of the various factories and research institutes that were previously under the Ministry of Electronics Industry.

"Yeah, I also think it's impossible for Zhang Shaohua and his team to master the 1.8-micron process technology so quickly."

"Even the 3-micron chip production line that their factory is introducing is probably not as well understood as I am."

Zhao Dongfang felt that he could not understand Lingnan Semiconductor's layout at all.

Is there still such a way to engage in the chip industry?
Don’t treat money as money?
“Although Lingnan Semiconductor is not a state-owned enterprise, the money used is their own money.”

"But it will also waste the country's precious foreign exchange resources."

"Should we report this to our superiors and have this project stopped?"

"With this foreign exchange quota, it would be better to free up some of it for our factory to import more economical second-hand production lines."

When Wang Honggui said this, Zhao Dongfang nodded frantically, "I thought so too. We can't let Lingnan Semiconductor mess around over there."

"Otherwise, it will definitely have a very negative impact on the development of the domestic semiconductor industry."

"We will also suffer losses then."

What Zhao Dongfang said is not entirely without truth.

Once a bad case occurs in an industry, it will not only affect one factory but the entire industry.

Just like the Loongson fraud incident in China in later generations, the impact was definitely not on that team, but the entire Chinese semiconductor industry suffered a huge blow.

This is unacceptable to United Microelectronics.

"This matter affects more than just our factory. It's best to report it to the leadership, not just us."

"Otherwise, the leaders would think that we have some personal grudge against Lingnan Semiconductor."

Wang Honggui has been the factory director for so many years and has a wealth of experience.

In this situation, he knew very well what they should do to achieve their goals to the greatest extent.

"Well, I will contact a few more factories and research institutes later to implement this matter as soon as possible."

Zhao Dongfang did what he said without any hesitation and began to act vigorously.

……

"Xiao Jiang, why is Lingnan Semiconductor suddenly planning to launch the second phase of the project?"

The merger of the Machinery Industry Commission and the Ministry of Electronics Industry into the Ministry of Machinery and Electronics Industry has basically been decided.

Now all that’s left is the final official document.

Therefore, Zhu Jiansheng was the first to know a lot of information from the Ministry of Electronics Industry.

Naturally, he soon found out that various units including United Microelectronics Company and Factory 7424 had jointly reported to their superiors that Lingnan Semiconductor had wasted precious foreign exchange and blindly imported equipment without considering the actual situation.

Jiang Hui decided on the second phase of the project without communicating with Zhu Jiansheng in advance.

Now that something has happened, Zhu Jiansheng naturally has to get to the bottom of the situation first.

He didn't think Jiang Hui would really mess around, he just thought this matter was rather strange.

"Dad, I heard that Polar Bear has confirmed that an important person will come to visit next month. By then, it is likely that the diplomatic relations between the two countries will be fully restored to normal."

"In this way, our relationship with the United States will definitely usher in new changes."

“Polar bears are facing many domestic problems right now, and people’s living standards are declining rapidly.”

"This year they are preparing to withdraw their troops from Afghanistan. It can be said that the United States has completely seen through the weakness of the polar bears."

"Then they will certainly not be so supportive of our development in the next step, and may even start to restrict our development."

"I want to buy the equipment back as soon as possible during this last window of time."

"After all, it takes time for Nanshan Equipment to develop its own chip equipment, so it is impossible to achieve results so quickly in a short period of time."

Jiang Hui naturally had nothing to hide in front of Zhu Jiansheng.

The things I said will happen slowly and quickly.

If you say it out loud now and it is verified one by one in the future, the credibility of your words will continue to increase.

"You bought such advanced equipment, but I don't think you can immediately generate productivity in a short period of time, right?"

Zhu Jiansheng felt a little worried when he thought about the content of the complaints.

The threshold for entering the semiconductor industry is very high. If you rashly order the most advanced equipment, you may not be able to use it.

"It does take some time to digest and absorb, but if we don't order it now, I'm worried that we won't be able to buy it back later even if we have the money."

"That's even more of a pity."

"Now we just need to buy the equipment and install it in the factory. We need more time to debug it and ensure that the yield rate meets the qualified requirements."

Jiang Hui discussed this topic with Zhu Jiansheng for more than ten minutes, and finally convinced him to accept his idea.

This move is a bit risky.

But it’s not meaningless.

(End of this chapter)