I can become stronger by paying salaries. I have one billion employees!

Chapter 641 He dares to sell, I dare to buy! Playing dirty tricks? Don't they know the Chinese are their ancestors?!

Inside a highly private luxury club in California.

Executives from several semiconductor companies, including Qualcomm, Micron, SEG, GlobalFoundries, and Intel, held an impromptu discussion meeting regarding the rise of StarSource Technology.

"Paul, your business overlaps the most with Xingyuan Technology. What's your take on that?"

Intel CEO Brian Krzanich, holding a glass of whiskey worth thousands of dollars, asked Paul Jacobs across from him.

"I will relay this to the business association and request that import restrictions on China be strengthened, including but not limited to lithography machines, silicon wafers, photoresist, and specialty gases."

Paul Jacobs, his face ashen, took a puff of his cigar, slowly exhaled the smoke, and was the first to express his opinion.

He knew Brian Krzanich's true intentions; he simply wanted him to be the first to lead the charge.

However, he didn't mind.

In just three months, Qualcomm lost 30% of its orders in the Greater China region, resulting in a loss of $3 billion in revenue.

This amount of money is enough to buy hundreds of Chen Yansen's lives!

How could he possibly sit idly by and let Xingyuan Technology grow and compete with him for business?
Sanjaya, the head of GlobalFoundries, swirled the amber liquid in his glass, which shimmered under the light. He chuckled and said, "It's just a 28-nanometer process. Is it really worth calling a meeting to deal with it?"

要知道，格罗方德在20纳米、16纳米制程上的良品率已达90%以上，就连14纳米制程也达到了50%的水准。

TSMC and Samsung are even better!
In his view, Xingyuan Technology is like a three or four-year-old child right now. Is it worth targeting it specifically?
Of course, he also had his own selfish motives for jumping out to oppose it—he wanted to take advantage of the good cooperative relationship between GlobalFoundries and StarSource Technology to obtain the other party's HFOB transistor architecture technology through patent cross-licensing.

After all, as far as he knew, this hybrid process far surpassed the traditional Poly-Sion or HKMG structures in terms of performance and power consumption.

While it cannot compare to FinFET technology, StarSource Technology's advantage lies in its ability to integrate FinFET and Soi technology, achieving a balance between manufacturing cost and performance.

That's something GlobalFoundries can't do.

Furthermore, he also wants to use the HFOB architecture to optimize GlobalFoundries' 14nm LPP solution.

"Sanjay, do you think StarSource Technology will still pay you to manufacture their products after achieving mass production of 28-nanometer technology? Wake up! StarSource Technology's ultimate goal is to rob us of our money!"

Paul Jacobs snorted and raised his right hand, which was holding a cigar, to question Sanjaya.

After he finished cursing, as if he wasn't satisfied, he looked at Micron's chairman Mark Duncan and pointed at him without any restraint, saying, "As for your idea, it's even more foolish. You actually want to sell the previously banned NXT 1980i lithography machine to StarSource Technology. Are you Chinese or from the United States?"

“Paul, even if your father were here, he wouldn’t be so rude to me.”

Mark Duncan was furious.

He had had enough of the spoiled brat in front of him; his emotions were too unstable.

“Paul!” Intel’s Bryn Krzanich shouted.

"Sorry, I apologize! But you have to understand one thing: even the weakest opponent deserves your full attention."

Paul Jacobs shrugged, offering apologies, but his attitude was extremely arrogant.

Eric Sanford, CEO of Sega, who had been sitting silently in the corner, finally spoke up to break the deadlock: "Paul's impatience is understandable, but Sanjay's point is not wrong either."

We now need to figure out whether Xingyuan Technology's HFOB architecture is an "accidental breakthrough" or a "systematic R&D capability".

If its only advantage is the 28nm process, then it only threatens the low-to-mid-range foundry orders of GlobalFoundries, TSMC, and UMC.

But if this hybrid process can be backward compatible with 20nm, 16nm, and even adapted to automotive-grade and industrial control chips, that would be the real challenge.

As soon as he finished speaking, he pushed a labeled test report to the center of the coffee table and added, "This is the teardown report of the Tiangong A100T processor manufactured by Xingyuan Technology. Its transistor density is 18% higher than the traditional 28-nanometer HKMG process and is closer to the level of the 20-nanometer Planar process."

More importantly, their leakage current control rate is 9% lower than that of TSMC in Taiwan, meaning this process can be directly used in power-sensitive smart wearables and medical devices.

Intel's Brian Krzanich squinted, took a casual sip of his drink, and then replied, "So you mean we can't just focus on 'restricting devices,' we also need to restrict 'application scenarios'?"

Eric Sanford smiled faintly and nodded in agreement, "That's right!"

Brian Krzanich's gaze swept over everyone: "We're stuck on application scenarios. How exactly do we do that? The supply chains for smart wearables and medical devices are fragmented; we can't just put pressure on each one individually, can we?"

Eric Sanford leaned over and turned to the second page of the report, pointing to a line of data and saying, "The key lies in 'ecosystem binding'! Xingyuan Technology's OEM orders are 100% from Orange Technology, and they are heavily reliant on our EDA tools and IP licensing."

He paused, his tone turning cold: "If we just get Synopsys and Cadence to cut off supplies to Xingyuan Technology and suspend EDA upgrade services for low-end chip design companies in China, even if Xingyuan Technology masters 20nm and 16nm process technology, due to the lack of supporting design software, they can only become foundries and work for us."

Eric Sanford's plan was brilliant, but he overlooked one problem: Chen Yansen had already developed Mass V1.0 two months earlier.

His restrictive measures are completely useless!
Eric Sanford continued, "Then, by leveraging the power of the International Semiconductor Association, European semiconductor companies, in order to protect their market share, will naturally not seek out StarSource Technology for manufacturing."

After hearing this, Sanjaya of GlobalFoundries frowned even more deeply and shook his head, saying, "There's no need! I personally prefer Mark's strategy of selling the NXT 1980i lithography machine to StarSource Technology. That's true wisdom! It will keep China's semiconductor industry 'a generation behind' and prevent it from forming real competitiveness."

The implication is that Eric's scheme, though seemingly ruthless, could push China to its limits, resulting in a lose-lose situation.

If all chip supplies and cooperation were completely cut off, China would be completely lost, and this would trigger a global supply chain earthquake.

In his view, the 28-nanometer manufacturing process is not important.

On the contrary, the fact that Xingyuan Technology's Optical Department, in conjunction with the Institute of Optoelectronics and the Institute of Opto-Mechanical Engineering under the Huazhong University of Science and Technology Association, launched a major scientific research campaign and developed polishing and coating technology for aspherical mirrors is more alarming.

Therefore, before a technological breakthrough, their attitude was: strict embargo, delaying the research and development process;
After the breakthrough: immediately lift the ban on products that are one generation more advanced.

As a result, domestic chip manufacturers will find that although imported lithography machines are only slightly more advanced, they are superior to the newly developed domestic equipment in terms of maturity, production capacity, and cost.

Purchasing imported equipment allows for faster production and profitability!

Chip manufacturing is a business activity that pursues efficiency and profit.

Fab plants will only choose more stable and efficient imported equipment.

The end result is that even if China can develop a 28-nanometer lithography machine, it will lose the most important early market and customer feedback loop.

Without large-scale commercial application, it is impossible to improve performance, stability, and yield through iterative improvements. The R&D cycle will become extremely difficult, thus "locking" the company into the laboratory level or the low-end market, and it will never be able to catch up with the world's leading level.

It appears to be supplying advanced equipment to China's semiconductor industry, but in reality, it harbors malicious intentions and is playing a calculated scheme!

That's what you call strategy!
When Micron Chairman Mark Duncan saw that Sanjay had grasped the deeper meaning of his plan, he couldn't help but smile with satisfaction.

Compared to Sanjaya, Paul Jacobs, this rich second-generation, is completely brainless.

He was able to become the chairman of Qualcomm thanks to Qualcomm's previous chairman and founder, Irwin Jacobs.

That's right, the two are father and son. In North America, the practice of passing down relationships from father to son is quite common.

Paul Jacobs' abilities were not apparent when Qualcomm was doing well, but his true level was exposed once he encountered external competitive pressure.

"Since it can be sold to Xingyuan Technology, it can also be sold to Huaxin International, let them fight among themselves."

Mark Duncan said slowly.

In fact, the methods he used are common practices in the industry.

Whenever a competitor makes a breakthrough in a certain generation of technology, the US and Europe will immediately remove or lift the ban on the previous generation of technology, which is still more advanced than the current technology.

They only ever sell technologies or products that are "about to break through but not yet fully broken through," with the aim of undermining competitors' determination to invest in independent research and development!

High-tech research and development requires continuous and massive financial investment. If every breakthrough leads to the immediate opening of exports of even more advanced products, it will spark a debate:
"Is it really necessary to spend exorbitant sums on independent research and development? Wouldn't it be cheaper and faster to just buy it directly?"

Such debates could shake the resolve and patience of policymakers and investors to invest in domestic substitution in the long term, and could very likely lead to the interruption or reduction of R&D funding, thereby undermining the momentum of independent innovation from within.

It's like a "fishing game"!
You are a fish that wants to learn to hunt on your own; the angler will never give you bait until you are about to starve.

But just when you finally catch a small fish after all your hard work and are about to enjoy it, he will immediately put a bigger and more tempting fish in front of you.

If you can't resist eating his fish, you'll never learn to hunt for yourself and you'll become dependent on him.

Market stifling, technology lock-in, economic gains, and internal disintegration—this is an extremely clever and ruthless combination of tactics.

Intel CEO Brian Kernsich pondered for a moment, then echoed, "I agree with Mark's decision!"

"I second that!" Sanjaya, the head of Grofond, agreed.

In an instant, most of the people in the box agreed with Mark Duncan's plan.

Paul Jacobs's "table-flipping" approach affected everyone's interests, and nobody supported him at all.

……

……

"ASML is willing to provide Huaxin with an NXT 1980i lithography machine? Did you hear me correctly? Are you sure it's 1980i, not a 1950i DUV lithography machine?"

Liu Xunfeng was slightly taken aback, then came to his senses and asked again to confirm.

"Boss, I've confirmed with the other party repeatedly, it's definitely an NXT 1980i!"

Xie Zhuojian, Vice President of Global Supply Chain at Huaxin International, answered with a pleased expression and a confident tone.

Showing courtesy for nothing is either cheating or stealing!

Liu Xunfeng was extremely wary and remained calm in the face of temptation. After thinking for a moment, he said to Xie Zhuojian, "Go and check if there are any additional terms in this sale. For example, the scope of use of the equipment, the maintenance cycle, or the bundled consumable procurement agreement, etc."

Although the NXT 1980i is also a DUV lithography machine, it can barely be considered a second-tier product globally, but it is not without its merits.

The NXT 1980i lithography machine can etch 14-nanometer chips onto a wafer with just one exposure.

The NXT 1950i lithography machine requires two or four exposures to achieve 14-nanometer process production.

Each additional exposure increases the difficulty and cost of production exponentially.

In other words, the NXT 1950i lithography machine is simply not suitable for commercial production of 14-nanometer processes. It can be manufactured, but the cost is prohibitive.

"Okay, boss, I'll go investigate right away."

Upon hearing this, Xie Zhuojian's smile faded slightly.

"Ask ASML how many units they have in stock? We'll take them all! If the quantity is less than 5 units, we'll order 5 more in futures."

Liu Xunfeng gave instructions.

The reason ASML suddenly lifted the sales restrictions needs to be investigated, but the NXT 1980i lithography machine is indispensable.

Although Huaxin International doesn't need this equipment right now, some things are better to have than not.

If you don't buy more while you can, are you going to regret it later?

the other side.

Chen Yansen had a similar idea: if ASML dared to sell, he dared to buy!
The NXT 1950i lithography machine will at most last until the first half of 2015 before it becomes a production equipment for low- to mid-range chips.

At that time, if there is no NXT 1980i lithography machine, how will StarSource Technology produce the next generation of Tiangong A system products?
Self-developed?

We can't keep up with the speed!
Despite the rapid progress that Xingyuan Technology's Optical Department has made in optical system R&D, there are still many technical hurdles to overcome.

From silicon wafers, sputtering targets, and CMP materials to photoresists, electronic specialty gases, and photomasks, which one doesn't require a significant amount of research and development time?

Just then, the cell phone on the table rang; it was Liu Xunfeng from Huaxin International calling.

"Mr. Chen, I heard you're also in talks with ASML about purchasing the 1980i?" Liu Xunfeng's voice came through the receiver, tinged with a hint of probing.

Chen Yansen laughed: "Could it be that ASML told you?"

What a coincidence, it really is!

Liu Xunfeng had already figured out some of the deeper meaning.

Then, recalling the rumors I had heard before, I immediately realized what was going on.

These foreigners may look well-dressed on the surface, but they're actually quite cunning.

In the 60s, China's first automatic alignment step-by-step projection lithography machine was killed by this method.

Chen Yansen and Liu Xunfeng chatted for a few minutes before hanging up the phone.

"Trying to outsmart me? Don't you know that the Chinese are our ancestors?"

Chen Yansen sneered.

(End of this chapter)