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

Chapter 690 We must eat the big fish, and not let the small fish go! A two-stage leap, directly to 14 nanometers!

After the iPhone 6 and iPhone 6 Plus were launched in China, sales fell far short of expectations.

Before Cook could even show any signs of anxiety, the mobile phone accessory manufacturers in Huaqiangbei were already in a panic.

In order to seize the market opportunity, they had already obtained sample units from North America. Many vendors had also prepared phone cases, tempered glass screen protectors and other accessories worth hundreds of thousands or even millions of dollars, hoping to make a fortune by taking advantage of the popularity of the new phone.

But reality dealt them a heavy blow: only 30 units of the new machine were sold on the first day, and the remaining 120 million pre-orders would take three to five days to arrive, leaving them with nowhere to sell the parts.

"Damn it! It's all useless stuff!"

Parts factory owners in South China were deeply disappointed and frustrated as they looked at the mountains of inventory.

After all, for them, earning less is a loss!
It's worth mentioning that although Orange Technology did not directly target Apple, it has quietly left a clear impression on users by leveraging its strength in core areas such as processors, operating systems, touchscreens, camera modules, and battery management.

Apple's newly released phone is actually inferior to the Orange X2 Plus released by Orange Technology six months ago.

at the same time.

The morning mist over the Huangfu River had just dissipated when the Shanghai International Convention Center welcomed hundreds of attendees and media reporters from home and abroad.

The scene was bustling with noise and excitement.

Global giants gathered here, ostensibly for exchange, but in reality for spying, competition, and choosing sides.

The industry representatives from China's semiconductor sector all wore expressions of joy.

In contrast, the business representatives from Europe and North America all had somber expressions, without the slightest hint of a smile.

After finishing breakfast, Chen Yansen got into a silver and blue Hongqi L5 and drove towards the International Conference Center.

Just then, the air raid siren sounded.

Some attendees, still in the conference hall, then realized why StarSource Technology had communicated with the International Semiconductor Association to schedule the summit for September 18.

At the entrance, a large group of reporters stood.

"Why hasn't Chen Yansen arrived yet? This morning there's not only the International Semiconductor Summit, but also the new product launch of Xingyuan Technology. Our newspaper sent two teams over."

The reporter from the Shanghai Evening News leaned against the wall, peeking out from time to time, and chatting with his colleague next to him.

"I heard that six Dawn A220 units have already been sold. I wonder if we can take advantage of the International Semiconductor Summit to sell a few more?"

A reporter from the Luzhou Daily muttered to himself.

In his view, the higher the shipment volume, the higher the market acceptance of the Dawn A220 EUV lithography machine.

Good things never have trouble selling!

“Lithography machines are not as common as cabbages. Polishing and coating a single aspherical mirror takes several months, let alone the production of the entire machine. ASML, as a giant in the lithography machine industry, only has a production capacity of about 100 units per year.”

"Ilbo's reporter said with a smile."

Judging from Chen Yansen's consistent style of doing things, he has always attached great importance to the independent control of core technologies, especially the layout in key areas such as chips.

Therefore, in the early stages of capacity expansion, StarSource Technology prioritized investing its valuable production capacity resources in the establishment of its own chip production lines.

It is important to understand that only by taking control of chip manufacturing can a company truly solidify its advantages in core areas.

In essence, when StarSource Technology was founded, its market positioning was that of a fab factory, not an equipment manufacturer.

ten minutes later.

The Hongqi L5 slowly came to a stop at the main entrance of the International Conference Center. The moment the car door opened, Chen Yansen stepped out steadily. His well-tailored suit made his figure look exceptionally tall and straight.

Upon seeing this, the reporters quickly jogged forward.

Four security personnel from Fengjun Security immediately formed a human wall, protecting Chen Yansen in the middle.

"Mr. Chen, does Xingyuan Technology have any plans to enter the DUV lithography machine market?"

The CCTV reporter was the fastest, leaving behind a host of domestic and international colleagues, and handed the microphone to Chen Yansen.

Chen Yansen smiled slightly and raised his hand to indicate that the security personnel did not need to obstruct him excessively.

He cleared his throat, his voice neither too loud nor too soft, yet perfectly clear: "DUV lithography machines are crucial equipment in the semiconductor manufacturing field, especially in the production of mature process chips, where they play an irreplaceable role. Xingyuan Technology certainly won't overlook this area."

The implication is that Xingyuan Technology wants to target both big fish and small fish.

Several journalists from Nordic media outlets exchanged glances, each seeing a hint of worry on the other's face.

Judging from the power stability and production efficiency of the Dawn A220, StarSource Technology definitely possesses multiple core patents that can improve wafer processing efficiency and yield. ASML is in danger!

It is important to understand that ASML holds an absolute dominant position in the DUV lithography machine market. If StarSource Technology were to actually enter the market, it would undoubtedly have a severe impact on its existing market position.

"Currently, most companies in the industry develop DUV first and then move on to EUV. We are doing the opposite: we break through EUV technology first and then go back to optimize the DUV solution."

Chen Yansen further explained, then paused and said, "There are two considerations for doing this: First, EUV technology can directly solve the 'bottleneck' problem in high-end chip manufacturing. For example, the subsequent products of Tiangong A-series processors need more advanced process support. After all, Apple has already used the 20-nanometer A8 processor, and Tiangong Technology cannot stand still."

Therefore, our strategy is to skip the 20nm and 16nm processes and start with the 14nm process to launch a truly super chip!

Secondly, the precision control and optical imaging technologies accumulated during the EUV R&D process can benefit DUV equipment and the upstream and downstream industrial chains, giving StarSource Technology's DUV lithography machines a greater advantage in performance and cost.

Upon hearing this, the scene immediately fell silent!
Not only were the reporters listening intently, but even the representatives from ASML, Qualcomm, and Micron, who were not far away, stopped what they were doing and listened carefully to every word Chen Yansen said.

A reporter from the National Daily immediately followed up with, "When is Xingyuan Technology's DUV lithography machine expected to be launched? Which companies will be prioritized for supply?"

"Part of the delivery is expected by the end of this year or the first quarter of next year."

Chen Yansen said lightly.

In fact, most of the people around him were still in shock because he had just said that he would skip two stages and develop a 14-nanometer chip.

At first glance, it may seem a bit reckless and ambitious, but in reality, even if Chen Yansen did not interfere, with Liang Jinsong's abilities, given six months, he could definitely improve the yield rate to over 60% in the 14-nanometer process field; given a full year, a yield rate exceeding 95% would be no problem.

The reason behind it is simple: Liang Jinsong had done similar work at Shanxing before.

He led his team to complete the technological leap from 28 nanometers to 14 nanometers, and achieved mass production of 14 nanometers earlier than TSMC in Taiwan.

With mature process experience and solid technical accumulation, it is not too difficult for them to overcome the 14-nanometer process from scratch.

This is precisely why TSMC Taiwan was so furious that it sued Liang Jinsong and triggered the non-compete agreement.

Because Liang Jinsong truly possesses the hard power to threaten them.

"Mr. Chen, now that we have domestically produced lithography machines, do you think the price of domestically produced smartphones will decrease?"

A reporter from Huxiu IT asked a sensitive question.

The subtext of his words is that once they have their own lithography machines, the manufacturing cost of chips will naturally decrease, and as chips are the core component of smartphones, the reduction in their cost will directly lead to a reduction in the overall material cost of the phone.

Following this logic, smartphone prices should logically be lowered accordingly.

When Chen Yansen heard this question, he first nodded slightly, which can be regarded as his approval of the reporter's judgment on the "relationship between chip cost and mobile phone pricing".

He then calmly gave his answer: "The decrease in chip costs will indeed provide more room for mobile phone pricing, but 'price reduction' should not be the only direction, much less our ultimate goal in breaking through technology."

Don't you want to lower the price?
Reporters who had been expecting "low-priced phones" perked up their ears.

Chen Yansen continued, "In the past, the domestic mobile phone industry generally had to pay high patent fees and procurement costs. For example, a certain overseas chip manufacturer once required Chinese mobile phone manufacturers to pay an additional 5% technical service fee for every mobile phone equipped with its chip sold, which directly increased the cost of mobile phones."

Upon hearing this, the reporters knew that Chen Yansen was referring to Qualcomm, and a smile involuntarily appeared on their lips.

In the mobile phone industry, Orange Technology is the most assertive, going head-to-head with Qualcomm and holding its own.

Furthermore, in the past year, it joined forces with Nvidia and MediaTek to snatch 30-40% of the market share from Qualcomm.

No one is more skilled at forming alliances and maneuvering than Chen Yansen.

"Now that we have domestically produced EUV lithography machines, we can independently control the pace of chip research and development, production and supply, which will first break the inherent pattern of 'overseas chip manufacturers monopolizing pricing'."

Chen Yansen's voice gradually rose, and then he added, "But what I hope to see even more is that the cost reduction can be invested in technological research and development, such as improving the phone's battery life, imaging, and AI performance, or developing innovative features such as foldable screens, flexible screens, and satellite communications, rather than falling into a vicious cycle of low-price competition."

A reporter from Huxiu IT pressed further: "When will ordinary consumers be able to feel the real benefits? We can't just see manufacturers upgrading their technology without seeing any price changes, can we?"

"The benefits to consumers will be reflected on two levels: In the short term, the stable supply of domestic chips will allow mobile phone manufacturers to get rid of the risk of 'chip supply disruption'. People will no longer have to engage in 'hunger marketing' to grab chips, and will have more choices when buying mobile phones, without having to pay high prices to 'buy at a premium'."

In the long run, once domestically produced chips achieve breakthroughs in high-end fields, overseas chip manufacturers will inevitably lower prices and grant more technology licenses in order to compete, ultimately benefiting consumers.

Chen Yansen explained patiently.

If mobile phone manufacturers continue to engage in price wars, upstream and downstream suppliers and workers will not make money, so who will consume the mobile phones produced?
Does that mean we can't just keep exporting?
This statement was echoed by many people present.

A reporter from the National Daily wrote in his notebook: "The ultimate significance of technological breakthroughs is to break monopolies, reshape industry rules, and allow all links in the industrial chain to return to 'healthy competition,' so that manufacturers have the motivation to innovate and consumers have more benefits."

Just then, GlobalFoundries CEO Sanjay got out of his car and, upon seeing Chen Yansen, hurriedly greeted him with a broad smile.

This scene instantly broke the defenses of representatives from North American semiconductor companies, who couldn't help but wonder in their hearts, "Are you a semiconductor company from China or the United States?"

(End of this chapter)