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

Chapter 691 It's okay if you're stupid, but do you treat everyone else like idiots? Chen Yansen: Are you even qualified?

The entrance to the Shanghai International Conference Center.

Upon seeing Chen Yansen, GlobalFoundries CEO Sanjay immediately put on a broad smile and quickly went to greet him.

"Mr. Chen, it's great to meet you. I'm Sanjay from GlobalFoundries."

Accompanied by his assistant and bodyguards, Sangjie walked to a spot about two meters away from Chen Yansen and greeted him with a smile.

“Mr. Sanjay, it’s a pleasure to meet you! I also thank GlobalFoundries for their support of Tiangong Technology.”

Chen Yansen ignored the media, took a step forward, and extended his right hand to shake hands with Sanjay.

"I also have to thank Tiangong Technology for being willing to give some of its chip manufacturing orders to GlobalFoundries. In a fully competitive market, TSMC should not be allowed to dominate."

Sanjay said meaningfully.

He is a professional manager who values ​​company interests more than the overall strategy of North American semiconductors.

Everyone has different thoughts from both macro and micro narrative perspectives.

GlobalFoundries is considered a leading company in the chip manufacturing industry, although it is not as large as TSMC in Taiwan.

However, who doesn't want to improve?

Sanjay also wants to increase the company's revenue and achieve a reversal in industry position and market share before the 14-nanometer process node.

Therefore, partnering with Xingyuan Technology is his best option.

“Mr. Sanjay sees things very clearly. TSMC in Taiwan is taking too much, which is not a good thing for the development of the entire industry’s supply chain.”

Chen Yansen released his grip, glanced at the media still taking pictures not far away, and said with a light laugh.

The market for chip foundry services is huge. TSMC's annual revenue is 1500 billion, while GlobalFoundries' is 260 billion, which is less than a fraction of TSMC's.

Upon hearing Chen Yansen's words, Sangjie's smile deepened. He nodded slightly and couldn't help but sigh, "TSMC in Taiwan has almost monopolized the high-end chip foundry market with its technological advantages and production capacity. This has severely compressed the survival space for other companies."

Take the A8 processor as an example. TSMC in Taiwan secured all the orders, and GlobalFoundries, which wanted to secure some to improve its 20nm manufacturing process, couldn't find an opportunity.

To put it bluntly, everyone shares the same goal: to take over TSMC in Taiwan.

The chip foundry market is only so big, and TSMC in Taiwan has taken the lion's share, leaving UMC, GlobalFoundries, and Singstar to pick up the scraps. Who can tolerate this forever?

So when Xingyuan Technology and Tiangong Technology emerged to disrupt the market, others saw a crisis, but Sangjie saw an opportunity—a chance to redistribute market interests.

It's worth noting that GlobalFoundries had been losing money for three consecutive years, with a cumulative deficit of $11.2 billion by the end of 2011, a net loss of $9 million in 2013, and a net loss of $15 billion in 2014.

The continuous huge losses have limited its capital investment, making it difficult for it to invest large amounts of capital in the research and development of advanced processes, equipment upgrades and capacity expansion like TSMC in Taiwan, thus affecting the improvement of processes and market competitiveness.

Even the 14-nanometer FinFET process technology was purchased from Shanxing at great expense.

"We'll discuss this in more detail after the summit. Tiangong B series has a new product planned for the near future, which will use a 20-nanometer process."

If GlobalFoundries can meet Tiangong Technology's requirements in terms of both yield rate and manufacturing costs, I would definitely consider outsourcing the manufacturing of this product to GlobalFoundries.

Chen Yansen said slowly.

"Thank you, Mr. Chen." After hearing this, Sang Jie looked at Chen Yansen with even more enthusiasm.

The scene of the two shaking hands and exchanging pleasantries was clearly captured on camera by reporters from home and abroad.

The sound of camera shutters clicking all around them!

A reporter from the National Daily couldn't help but ask loudly, "Mr. Chen! You just mentioned that the new products in the Tiangong B series may adopt a 20-nanometer process. Does this mean that Tiangong Technology will officially abandon its cooperation with TSMC in Taiwan and turn to GlobalFoundries?"

As soon as the question was asked, the remaining media outlets all pointed their microphones at Chen Yansen, and the flashes went off again, illuminating the area around the two of them as if it were daytime.

Sangjie stood to the side, still smiling, but subtly adjusted his posture, leaving more space for Chen Yansen in the camera's view.

"Tiangong Technology and GlobalFoundries do indeed intend to cooperate on new products, but the claim that they have abandoned cooperation with TSMC in Taiwan is inaccurate."

A mature chip design company typically employs a diversified supply chain to ensure stable production capacity. Currently, we have not cancelled our cooperation with TSMC in Taiwan. If we have, it's because TSMC in Taiwan cannot meet Tiangong Technology's needs in terms of yield rate, production capacity, foundry prices, and delivery speed.

Chen Yansen slightly raised his hand, signaling the reporter to calm down, and then said casually.

Tiangong Technology will continue to maintain its current operating strategy, while simultaneously pursuing both self-operated and OEM manufacturing routes, thereby ensuring Xingyuan Technology's R&D momentum and technological vitality.

After all, if all orders are handed over to Xingyuan Technology, the other party will inevitably become complacent and lose its ambition.

Maintaining cooperation with TSMC, UMC, and GlobalFoundries is equivalent to introducing external competition into StarSource Technology, thereby driving it to continuously break through technological bottlenecks.

This is similar to why Ma Wenteng could have used the QQ team to incubate WeChat, but instead insisted on setting up an independent business unit.

The core principle is to avoid internal stagnation and stimulate innovation through competition.

Chen Yansen paused and then said, "As for the exchanges with GlobalFoundries, the main purpose is to expand cooperation channels. As I just said, TSMC's market share in the chip foundry market is too high, which is not conducive to the stability of the industry supply chain."

Tiangong Technology is willing to cooperate with more high-quality contract manufacturers, including GlobalFoundries, to ensure the diversity of its own production capacity and avoid product delivery being affected by problems with a single partner.

On the other hand, it is also hoped that healthy competition will drive technological progress and cost optimization in the entire semiconductor foundry industry, which has positive implications for the healthy development of the domestic and even global semiconductor industry.

These remarks neither denied the cooperation with TSMC in Taiwan, nor did they deny the strategic intent of cooperating with GlobalFoundries. They not only demonstrated the company's pragmatic attitude, but also reflected its sense of responsibility to the industry.

When it comes to empty talk and boasting, Chen Yansen is also a master.

"Mr. Sanjay, GlobalFoundries has suffered losses for three consecutive years. If it can secure the Tiangong B series order, will it be able to reverse the losses? To meet Tiangong Technology's production needs, what further investments will GlobalFoundries make in terms of production capacity and technology?"

An EE Times reporter immediately followed up with the question.

Upon hearing this, Sanjay couldn't help but curse inwardly.

As the saying goes, don't hit people in the face and don't expose their weaknesses when scolding them.

So what if GlobalFoundries is losing money?
I invested in a large wafer fab in Temasek, completed the upgrade from 8-inch to 12-inch fabs, and spent a lot of money on 14-nanometer process technology. Why don't you mention any of these things?
However, EE Times is a well-known media outlet in the North American electrical engineering field, and its influence should not be underestimated. Although Sanjay wanted to curse, he could only smile and reply, "Profitability is not GlobalFoundries' top priority at the moment; mastering more advanced manufacturing processes is our important goal."

Of course, we are also adjusting our business strategy by optimizing production lines and reducing costs. The Tiangong B series order is of great significance to us. If we can successfully cooperate, in addition to providing stable revenue support, it will also help us accumulate production experience in the 20-nanometer process, laying the foundation for expanding to more customers in the future.

Regarding capacity investment, we have actually reserved 5 wafers per month for 20nm capacity. Further decisions regarding equipment upgrades and process optimization will be made based on order volume to ensure yield and delivery cycle meet Tiangong Technology's requirements.

Do you think StarSource Technology will threaten the United States' dominant position in the semiconductor industry?

The EE Times reporter asked the question again, and this time the question was noticeably more pointed.

Sanjay paused slightly, his brows furrowing as his mind raced, carefully considering how to respond.

Just then, a voice rang out: "The semiconductor industry needs China! It needs Xingyuan Technology! The upgrading and transformation of the industry should involve China."

The reporters looked in the direction of the sound and saw an elderly white man with white hair and beard, wearing black-rimmed glasses, a sharp suit, and shiny leather shoes, walking slowly towards them, followed by two assistants.

"It's John Neuton, the president of the US Semiconductor Industry Association!"

Upon seeing this, the reporters instinctively surrounded them.

Neuton's words are truly thought-provoking!

Two years ago, he said at an industry conference in Phoenix, Arizona, that he would "always sell chips to China."

That sounds reasonable!
But he added the second half of his statement: "We will never sell the most advanced chips to China!"
It's obvious they want to reap the market benefits of China's consumer electronics industry by using high-priced chips.

But now, Neuton’s attitude has clearly changed.

Chen Yansen smiled faintly. He knew in his heart that it was not that the other party had suddenly changed their nature, but that Xingyuan Technology had the ability to overturn the table after acquiring the Dawn A220.

Ultimately, it's not that the enemy has become kind-hearted, but simply that we have become strong enough.

When people are in favorable circumstances, they are mostly surrounded by kind faces and hear mostly flattering and ingratiating words.

The same applies to an industry.

Neuton stepped into the middle of the crowd, first glancing casually at Sanjay, then looking at Chen Yansen with a complex and unreadable expression in his eyes, but he remained calm and greeted him with a smile: "Mr. Chen, Xingyuan Technology's progress in the field of EUV lithography machines has truly amazed the global semiconductor industry."

However, Chen Yansen still managed to discern Neuton's true thoughts from the other party's micro-expressions.

Damn it!
What a two-faced scoundrel!
Seeing that they couldn't control the situation, they resorted to the tactic of winning people over.

Chen Yansen knew perfectly well what was going on, but he didn't say anything.

The world is bustling with activity, all driven by profit; who isn't pursuing their own interests?

Seeing that Chen Yansen did not respond, Neuton took another half step forward, his tone becoming even more friendly:

“Mr. Chen, the Dawn A220 lithography machine has opened up new possibilities for the entire semiconductor industry. The US Semiconductor Association has always been committed to promoting technology sharing. If Star Source Technology is willing to open up some of its technology patents, we can not only coordinate with companies within the association to provide support for your company in chip raw material supply and advanced process development, but also push for the removal of some restrictive policies targeting China’s semiconductor industry.”

These words sound tempting, but they actually conceal a scheme.

Open patents mean that technological barriers are weakened, and the so-called "support" and "removal of restrictions" are nothing more than an attempt to exchange empty promises for Xingyuan Technology's tangible technological achievements.

Chen Yansen almost laughed out loud. He wasn't an idiot; how could he possibly share the patent?
The next second, his face darkened, and he retorted impatiently, "It's okay if you're stupid, but don't try to fool everyone else."

What a load of bullshit, the president of the Semiconductor Industry Association!

If I'm being polite, I'll give you a once-over; if I'm not, you're as good as dead.

This is what it means to be a force to be reckoned with!
Chen Yansen didn't utter a single swear word, but Neuton felt deeply insulted. His originally pale face turned liver-colored in an instant.

Upon seeing this, domestic news media quickly took photos to document the scene.

That's so incredibly inspiring!

Looking back over the past thirty years, China has suffered countless losses in the semiconductor industry.

Now, with Tiangong chips and the Dawn lithography machine, we no longer have to act according to others' wishes!

The atmosphere at the scene froze instantly, while the sound of camera shutters clicking intensified, as reporters were afraid of missing this incredibly impactful moment.

Sanjay stood to the side, his smile frozen, but he was secretly astonished.

He didn't expect Chen Yansen to be so outspoken, showing absolutely no mercy to Neuton.

It's important to know that Neuton represents the US Semiconductor Industry Association. In the past, even Morris Chang of TSMC in Taiwan had to treat Neuton with great respect.

Neuton was trembling with rage, pointing a finger at Chen Yansen, unable to utter a complete sentence for a long time: "How dare you speak like that? Doesn't Xingyuan Technology want to expand in the global market?"

Chen Yansen sneered and asked, "Can you make that decision?"

In his view, although Neuton has a prestigious reputation, it is ultimately just a spokesperson promoted by the North American semiconductor industry.

In other words, it's a "human megaphone".

In that case, what does it matter whether we give the other party face or not?

Neuton took a deep breath and had to accept the fact that his attempt had failed. Chen Yansen's assertiveness was even greater than he had anticipated.

After a moment's thought, Neuton forced a smile and said, "Since Mr. Chen is unwilling, then pretend I didn't say anything."

As soon as he finished speaking, he saw that Chen Yansen was ignoring him completely, so he could only give an awkward laugh and walk towards the conference hall with his head down.

There's no way around it, it's too embarrassing to stay!
"What an idiot! He doesn't even know who the main character is today!"

Chen Yansen scoffed lightly, then turned to Sang Jie to discuss business cooperation matters for the second half of the year and next year.

It's all about forming alliances and counter-alliances!
What needs to be suppressed should be suppressed, and what needs to be cooperated with should be cooperated with. President Chen makes this clear.

(End of this chapter)