Rebirth 2010: I'll be a big shot

Chapter 234 The production can be sold out! A chip production line with a cost of 40 billion

Author: The bright moon once shone on the ancient river

Chapter 234 The production can be sold out! A chip production line with a cost of 40 billion

"He is He Tingbo, CEO of Shanhai Microelectronics. It is a great honor to meet you on this important occasion!

First of all, he would like to sincerely thank every guest present and thank everyone for their attention and support to Cuoshanhai Microelectronics.

At tomorrow's press conference, it will be announced that Shanhai Microelectronics has become the first company in China to mass-produce 28 nanometer chips. It also marks a milestone achievement for Shanhai in the semiconductor industry.

He will introduce the performance and power consumption of 28nm chips in detail..."

He Tingbo was calm and composed, talking to dozens of industry leaders without any hint of stage fright.

"Mr. Chen's vision is better than his brains. He thought that he also wanted to invite He Tingbo to join the company at the beginning of the year, but I was the first to join."

Yu Dong opened his mouth wide and joked with a smile.

"Dong once, Mr. Yu must remember that Dong's legs need to be fast enough."

Chen Heyu smiled slightly and joked casually.

As the host, he walked in the first row of the conference hall, flanked by Yu Dong and Xu Hao, the president of Haotong Greater China. The people in Yu Dong were all well-known figures in the industry and could easily influence the people of China.

Semiconductor industry landscape.

“Compared with the 40nm process technology, the superiority of 28nm is mainly reflected in three aspects:

First, size and integration: Due to the reduction of process nodes, the transistors on the chip can be arranged more closely on the chip surface, so it has a higher integration level and smaller size, and can accommodate more transistors and circuit components.

Second, performance: The transistors of the 28-nanometer chip will switch faster and the circuit's response time will be shorter, allowing the chip to perform operations faster and provide higher processing power.

Third, efficiency and power consumption: 28nm chips can generally provide higher performance for the same workload while consuming less power, which means the device can be more energy efficient and extend battery life."

He Tingbo continued.

"Mr. He, I'm sorry for allowing him to interrupt Yidong. The 28nm chip process is a very mature technology node in overseas markets. Intel is more concerned about whether it has passed the HECC test?"

Yang Rui, executive director of Intel Group Greater China, raised his leg to question.

The full name of HECC is the Central Laboratory of Electronic Components of China. The authority of its test reports has been recognized by Europe, North America, Neon and other regions. In other words, it is necessary to obtain the test report of HECC before it can be explained.

Is the production process of Shanhai Microelectronics perfect and feasible?

"Of course, if you look at Yidong Big Screen, the document can clearly explain that his company's chip manufacturing technology has been tested on power supply voltage, control logic and wafer CP, and it has brought about a computing performance improvement of up to 40%.

In actual experience, system control will be smoother, programs will open faster, and web page loading times will be shorter.

Shanhai is confident to provide the highest quality chip processing services to the world!"

He Tingbo was well prepared and opened a technical document, which contained the official chip test report issued by HECC.

“Is Shanhai Microelectronics a qualified disruptor?”

Yang Rui suddenly became speechless and shrugged. His face was indifferent, but his heart was surging.

Gao Lexian of Huaxin International looked around and observed the reactions of others. Most of them were surprised or moved. He couldn't help but sigh quietly.

"Those honors should have belonged to Huaxin. Damn it, a small player like Shanhai Microelectronics has taken the lead!"

He looked at He Tingbo with hatred.

"Mr. He, I wonder how much your company's processing cost per wafer is?"

That time, Lu Lei, Apple’s Vice President of Yazhou District, asked a question.

In 2015, the smart phone market was in a golden period of rapid development. The supply of mid-to-high-end chips exceeded demand, leaving a huge production gap. Multinational giants like Apple also had supply chain concerns.

For example, the A9 chips in the upcoming iPhone 6s and iPhone 6s Plus will be manufactured by Bay Semiconductor Manufacturing Co., Ltd.

But the original cooperative supplier was Sanxing. Because Bay Semiconductor Manufacturing Co., Ltd. has made breakthrough progress in 16nm process technology, which can provide better production efficiency and yield rate, Apple immediately abandoned Sanxing and chose to sell the A9 The chip foundry task is handed over to Bay Semiconductor Manufacturing Co., Ltd.

When I came to attend the press conference, I also wanted to see if Shanhai Microelectronics' technological level and production scale could be used as a backup supplier for Pingcheng.

After all, the A8X chip installed in the iPad Air 2 uses the 28nm process technology. If there is a problem with Bay Semiconductor Manufacturing Co., Ltd., it can immediately start a new plan.

That kind of situation is not impossible, such as water shortage, power shortage, hacker attacks, and Apple needs more alternatives to improve the supply chain.

"The processing price of 8-inch wafers is US$4,500 per piece, but it is not aimed at the foreign semiconductor industry. The price in overseas markets is US$4,700, which takes into account issues such as taxes and quota fees. I hope everyone understands."

He Tingbo looked at Chen Heyu, saw the boss nodded slightly, and answered.

$4500!

It’s a full $600 cheaper than Bay Semiconductor!

For manufacturers, this can reduce manufacturing costs by 12% and save no profit at all.

"What's the yield rate?"

Lu Lei quickly realized that the price offered by Shanhai Microelectronics was extremely low, so the yield rate would definitely be extremely low.

His question made a group of excited potential customers calm down again.

"81%, that's the average data for the first three months. In the second half of the year, our company will upgrade equipment and aim to increase the yield rate to 90%.

Therefore, the cooperation price will also be readjusted at that time."

He Tingbo explained in detail.

81%?

It is indeed lower, but the cost of OEM processing is also low. Representatives of major foreign display manufacturers, especially those who want to compete in the mid-range display market, have begun to calculate the cost of chips to decide whether to seek cooperation.

After entering the question and answer session, most companies that wanted to cooperate gathered around He Tingbo and Wang Maosong to further understand the methods of cooperation.

"Mr. Chen, what is the estimated annual output of Shanhai Microelectronics?"

Lu Lei was obviously interested. He came over with his assistant and asked with a smile.

"It depends on how big an order Apple wants from Dongfang."

Chen Heyu invited the wrong party to the east and replied with a smile.

"I wonder if Mr. Chen knows about the A8X chip?"

Lu Lei smiled and said indifferently. Based on his understanding of Shanhai Microelectronics, based on the two medium-sized production bases in Shanghai and Jinling, he had overestimated the 30,000 8-inch pieces per month.

“As you know, iPad Air 2 is equipped with a high-performance processor that adopts a three-core 64-bit architecture and integrates a three-core CPU with a main frequency of 1.5 GHz and a six-core graphics processor called PowerVR GXA6850.

Mr. Lu, do you want to hand over its processing orders to Shanhai?"

Chen Heyu asked rhetorically.

He knew very well that this was not Taiwan Semiconductor Manufacturing Co., Ltd.'s business. With Shanhai Microelectronics' current production capacity, even if it was brought to his lips, he would be powerless.

"You can consider it."

Lu Lei held his head high and his attitude was somewhat serious.

"Oh? No?"

Chen Heyu glanced sideways and laughed.

"It's a dog's way of looking down on people."

He snorted and cursed in his heart, but there was nothing he could do about it. The technology was backward, he had no hard power, and he lacked confidence.

"Mr. Chen, he can give 20% of the order volume to Shanhai Microelectronics. Of course, it is limited to the processing of A8X chips."

Lu Lei thought for a while and said.

Chen Heyu put aside his status as the big boss of Shanhai Microelectronics and was the boss of Future Technology. There was a competitive and cooperative relationship between Apple and he certainly did not dare to offend too much.

"20%?

It is very limited to the A8X chip business, which is indeed a mosquito leg!

It’s better than nothing.”

Chen Heyu nodded slightly and nodded in agreement to Donglai.

"Mr. Lu, thank you for your support. I will stay with him for a while. I can discuss the detailed cooperation plan with Mr. Wang."

He said with a smile and left the job to Wang Maosong.

Then, I walked straight to the side. In that area, there were major foreign manufacturers, computer brands and communication companies, and even sensor manufacturers.

Those people are wrong that the demand for 28nm chips is huge.

"Mr. Chen, are you exhausted?"

Yu Dong asked curiously.

"No matter what, who makes the skills of mountains and seas inferior to others?"

Chen Heyu curled his lips and didn't say much, asking him if he could use the mature processes of 14 nanometers and 10 nanometers. Apple and Pandora would have to lick their heads, including Intel and Lianfeng Technology, who would also rush to ask for cooperation.

"Don't worry, you need to eat one meal at a time and walk one step at a time. With their support, Shanhai has no shortage of orders."

Yu Dong said with a smile.

Half of their group of people came with a mission, and they came to give money if they became popular. Besides, the price quoted by Shanhai Micropower was not high, so they were naturally relaxed and comfortable.

Everyone was talking about it, and they all divided up Shanhai Microelectronics' monthly production of 34,000 pieces.

Calculated based on US$4,500, monthly sales are as high as US$108 million. After conversion, it is close to US$660 million. After deducting various costs and expenses, there is probably only 40% of the net profit left.

Without increasing production, the annual profit of 28 nanometers will be limited to about 3 billion Chinese dollars. Adding in the sales of chips of other specifications, the maximum will not exceed 4 billion, which is barely the same as Huaxin International.

But before that, Zigang Electronics, the predecessor of Shanhai Microelectronics, was less than half the size of Huaxin International. If it could achieve a win-win situation in sales and profits just because it mastered the 28nm chip process, would it have the advantage of advanced process technology? benefit.

Whoever can take the lead can make crazy money and control the pricing power!

Chen Heyu heard He Tingbo mention that the total research and development costs of the global semiconductor industry last year were as high as 56 billion US dollars.

For example, giants like Intel had annual sales of US$51.4 billion in 2014 and invested US$11.5 billion in R&D. They earned more and spent more.

Even Bay Semiconductor's R&D exceeded $1.8 billion...

Is that the core reason why the foreign chip industry is unable to catch up? For example, Huaxin International's annual sales are just over 2 billion. If I ask the wrong party to spend 1.8 billion on research and development, the company will be very difficult to survive?

"When labor and management come up with the 14-nanometer process, they will directly charge US$10,000 per piece, and they will be ruthlessly slaughtered."

Chen Heyu Yuanji looked at the heads of the Greater China Region of Intel, Haotong, and Apple, with a cold light flashing in his eyes.

"Mr. Chen, is he Zhou An of Pudong Electronic Port? I hope you will visit more in the future. If you have any needs, please let me know."

A middle-aged man wearing a black and gray jacket came over and said enthusiastically.

"Secretary Zhou, it's a pleasure to meet you. What a coincidence, he happens to have some questions about his property and would like to consult with you.

Do you have time at Dongwu? We are in the hotel and would like to meet you for a cup of tea?"

Chen Heyu raised his eyes slightly and asked politely.

If you want to increase production, you have to buy land to build a factory and increase wafer output and the number of photolithography machines. Only in this way can you make money faster.

"Mr. Chen, you're welcome. No problem."

Zhou An knew that he had long been out of the sight of the upper echelons and was being cared for by top bosses, so he was unwilling to put on airs and behaved in a very easy-going manner.

What's more, Chen Heyu's company is in his field, and he has a share of credit for the achievements, so it doesn't hurt to give him some support.

"Just waiting for the photolithography machine! With Shiyang's help, the purchase of deposition equipment, etching equipment and heat treatment equipment went very smoothly.

If there are no problems, Shanhai Microelectronics can increase its production capacity by at least 60 times in the second half of the year, but this requires sufficient wafer silicon wafers."

Chen Heyu thought secretly.

As for whether to purchase that advanced production line, he has estimated that he will need to invest close to 40 billion, and only with Nadong's 14-nanometer chip technology can he have a chance to make back the investment within one year!

(End of chapter)