"That couldn't be better!"
Wang Yi knows how fast Xia Guo's infrastructure construction is.
Building a small 12-inch wafer fab with a monthly output of 25,000 wafers requires an investment of 13 billion yuan.
It takes two years for Europe and the United States, but one year for Xia Guo.
If we add strategic projects, work day and night, and carry out construction from multiple parties, it may be completed in half a year.
Now the second and third phases are being advanced simultaneously, and it is estimated that they will be delivered in about half a year, the equipment will be available in April next year, and full production will be in May or June!
After all, the 40nm process is mature and is just installation and debugging.
However, the construction speed of the second wafer fab will be slower, taking about a year.
After all, the second wafer fab is two factories with a monthly production capacity of 50,000 pieces, and the construction period is naturally double that of two factories with a monthly production capacity of 25,000 pieces.
But it doesn’t matter, the 28nm process is not that easy. When Kunpeng 901 and 902 are successfully developed, tape-out and mass production will have to rely on TSMC.
As for the Xingyi wafer fab, it can only produce 40 nanometers in the early stage. It is also promoting the mid-range 40 nanometer process and cannot even do 32 nanometers, thereby reducing the fear of the US emperor!
The U.S. emperor mistakenly thought that Xingyi Semiconductor was stuck in the 40nm process and was unable to break through the 40nm process, and could not even do 32nm. However, Xingyi Semiconductor quietly managed to achieve 28nm!
At that time, it will definitely give the US emperor a big surprise.
Once 28nm is produced domestically, there will be no crisis in the next few years.
After all, the 28nm process is enough to make many chips.
What is needed now is to paralyze the enemy and keep a low profile.
Therefore, after the Kunpeng 901 and 902 are successfully developed, we will turn to TSMC for initial tape-out and mass production.
The outside world feels that Xingyi Semiconductor's technology is limited and will not be able to produce 28 nanometers in a few years, so it has to rely on TSMC for foundry.
In the second half of next year, the second and third phases of the expansion of the Xingyi wafer fab will be fully put into production. The monthly production capacity will increase by 50,000 pieces, and the annual output of 40-nanometer chips will reach more than 500 million pieces.
There are more than 300 million pieces for personal use, and there is an additional production capacity of 200 million pieces.
We can mass-produce 40nm Kunpeng 702 and Kunpeng 700 and sell them to the outside world.
By then, after the release of Kunpeng 901 and 902, Kunpeng 702 and 701 will become mid-range chips, which can be sold to the outside world and seize the market of Qualcomm Snapdragon 600 and Nvidia Tegra 3.
There is also Kunpeng 500, which can also be sold externally to grab the market of Qualcomm Snapdragon 400 and Snapdragon 200.
And it’s very competitive!
The simplest ones, Qualcomm's 600, 400, and 200, do not have integrated basebands, and you have to spend extra money to purchase basebands. Then the manufacturer's cost will be high, and the integration technology will be difficult.
This is a disaster for those mobile phone brands that are only good at assembly.
However, Xingyi Technology’s Kunpeng 702, Kunpeng 700, and Kunpeng 500 all integrate baseband SOC chips, which are lower cost, more cost-effective, and less difficult to integrate!
When Wang Yi sets up a technical team to provide a full range of paid chip tuning services to large customers, it will be even harder to sell Qualcomm's mid- to low-end chips!
Of course, MediaTek is even worse.
Xingyi Technology’s flagship chips cannot be sold casually, but sub-flagship and mid-to-low-end chips can wildly grab the market.
With performance comparable to or even surpassing Qualcomm Snapdragon 400 and 600, and at a price similar to that of MediaTek, it is easy to capture half of the mid-to-low-end chip market.
As for Qualcomm and Nvidia, they should go grab the flagship chip market.
Wang Yi accepted the mid- to low-end market with a smile!
After finally mastering the 40nm process, we naturally need to use the 40nm process to produce more chips and make more money.
There is no way, the wafer fab is too expensive. A small fab with a monthly output of 100,000 wafers costs 52 billion yuan.
Among them, land and infrastructure only account for 20%-30%, which is more than 10 billion, and are the responsibility of the imperial capital.
Lithography machines and other equipment account for about 70%-80%, up to 40 billion, all of which Xingyi Technology pays for itself.
There is no way, the more advanced the process, the higher the equipment cost.
If he doesn't make money quickly, Wang Yi won't be able to bear it, let alone subsequent expansion.
This is why the Imperial City strongly welcomes Wang Yi’s expansion of the new fab. The land is its own, and the Imperial City does not have to spend any money. It only needs to spend billions in infrastructure costs in exchange for Wang Yi’s tens of billions of investment. It’s so cool.
.
Even if there are tax incentives in the early stage and tax exemption, you still have to pay money later.
In the previous life, SMIC paid taxes a year, and after subsidy, it still had over a billion.
More importantly, this is a political achievement and an indicator!
The official has arranged indicators for each first-tier city.
But unfortunately, distant water cannot quench near thirst.
The monthly production capacity of the second and third phases of 50,000 will not be put into production until eight months at the earliest.
If you want to increase production capacity as soon as possible, you have to look at SMIC's on-site wafer fab.
Wang Yi looked at Director Qin again: "Director Qin, the matter of SMIC's wafer fab..."
Director Qin smiled kindly: "Mr. Zhao has already gone to the Magic City, and the results are expected to be available soon. In order to increase the chance of winning, why don't you go there too?"
"Should I go too?"
Wang Yi's expression was calm, but he was a little unhappy in his heart.
The attitude of the Magic City is a bit high.
When Song Sining went to Shanghai to talk about Xingyi Automobile, the other party had a very high profile.
Although I am willing to introduce him, the treatment I receive can only be said to be average and does not meet expectations at all.
Therefore, the negotiation has not yet been concluded.
Now having Wang Yi go to the Magic City in person is indeed a bit of a sign of catching up.
This kind of investment promotion is just like love. Whoever takes the initiative and rushes in will lose!
Wang Yi smiled slightly: "This is a bit difficult. I have to go back to Jeju. There is a big project there."
"Oh? Are there any other big projects?"
Director Qin became interested. What big move did this guy make in Jeju?
"Director Qin, you have forgotten that the first phase of our Xingyi Cloud Data Center was delivered before. After a period of equipment installation and debugging, it will be officially put into use. I have to go back and preside over the putting into operation of the Xingyi Cloud Data Center!"
"Yes, this is a big project and this is important!"
Director Qin's eyes lit up, and he was even a little envious.
That is the Xingyi Cloud Data Center with 100,000 servers after it is fully completed. There is no such large data center in the imperial capital.
Moreover, Jeju has also given another piece of land of the same size. If Xingyi Technology has the money, it can build another one, which will then have 200,000 servers.
If it weren't for the high electricity bills and tight water and electricity supply in the Imperial Capital, Director Qin would have wanted Wang Yi to locate the data center in the Imperial Capital!
But this is not realistic.
After communicating with Director Qin about the expansion of the second and third phases of the Imperial Capital Wafer Factory 1, Wang Yi left the management committee directly.
Wang Yi doesn't need to worry about the rest.
The Imperial Capital Management Committee will naturally take care of everything until the factory is completed and handed over to Wang Yi.
Similarly, the constraint requires Wang Yi to introduce a production line and put it into full production within one year. Otherwise, Wang Yi will have to pay the full 5.2 billion in hardware construction costs and land costs.
This is all harmless.
Now Wang Yi is worried that the wafer fab is not enough, so he will not leave the wafer fab unused.
The next day, Wang Yi set off again and headed straight to Jeju.
Prepare to attend the official opening ceremony of Xingyi Cloud Data Center!
Mr. Zhao, who was far away in the city, met a leader of the city:
"Lao Zhou, I have a big gift for you, and I didn't even say anything to Lao Xu."
"Big gift? You?" Mr. Zhou looked at Mr. Zhao with a suspicious look on his face: "Are you so kind?"
"Of course, you know what I, Old Zhao, am like."
"Haha, I don't believe it! In what way?"
"Chip production process!"
"Memory chip?"
"Logic chip!"
"55 nanometers?" Mr. Zhou picked up the tea cup, blew on the floating tea leaves, and took a sip.
It’s just a 55nm logic chip process, it’s not scarce, and SMIC can make it too.
"Of course not, who are you looking down on? 40 nanometers!"
"Pfft!" Mr. Zhou shouted directly: "What did you say? Mass production of 40-nanometer logic chips?"
"Isn't it possible? Even SMIC can't do it!"
"As for our 12-inch wafer fab in Shanghai, the only logic chip fab in the mainland, SMIC can only produce 55-nanometer logic chips."
"We are currently negotiating with IBM to introduce IBM's 45-nanometer process technology. However, IBM is not willing and the price is too high. It wants SMIC to work for them!"
"Made, these foreigners are just greedy!"
"SMIC raised money and borrowed money from everywhere, invested in building factories, and introduced advanced equipment. The total investment exceeded 10 billion, and SMIC Magic City was established. IBM is good. It just wants to come up with some technology and wants to share 30% of the profits. It is really greedy.
!”
"If it's 28nm advanced technology, that's all. It's just 45nm, and it will cost 30% of the profit."
"Made, you are so greedy!" Mr. Zhou became angrier as he spoke.
Mr. Zhao chuckled: "IBM is greedy, so don't use their technology, use our own."
"Our own technology? We have made 45 nanometers?" Mr. Zhou didn't believe it:
"Stop kidding, without IBM's technology, SMIC wouldn't even be able to make 45nm memory chips, let alone logic chips!"
Mr. Zhao waved his hand: "SMIC is not good, but Xingyi Semiconductor is."
"Xingyi Semiconductor? Real or fake?"
"real!"
"They developed a 45nm process?"
"No!"
"Then tell me something!" Lao Zhou was speechless: "I've been so excited for nothing."
Mr. Zhao chuckled: "They didn't make the 45nm process, but they directly made the 40nm process!"
"Holy shit, is it true or not?" Mr. Zhou couldn't calm down anymore and was completely incredulous.
Mr. Zhao didn't say much and handed over a small box: "See for yourself."
Zhou Lao was startled and quickly opened the box, only to see three chips inside, all with X printed on them:
"Are these three chips developed by Xingyi Semiconductor?"
"Did you hear that too?"
Mr. Zhou nodded: "Of course, although it has not been announced to the public, everyone in the industry knows that Xingyi Technology has developed three chips, Kunpeng 702, Kunpeng 700, and Wing Loong 3000 baseband."
"Especially Kunpeng 702 is very powerful and can catch up with Nvidia Tegra 3."
"There is also the Pterosaur 3000 baseband, which is a full Netcom 3G baseband that supports China Mobile, China Unicom, China Telecom 2G and 3G. It is really amazing!"
Mr. Zhao nodded: "Then do you know where these three chips are taped out?"
"This..." Mr. Zhou was stunned: "I really don't know. It's not like TSMC, Samsung, or Intel. Where is it taped out?"
"Xingyi Wafer Factory!"
"What? Xingyi Wafer Factory has really realized the 40nm process?" Mr. Zhou was completely uneasy.
"certainly."
"My own technology?"
"right!"
"Oh my God." Mr. Zhou stood up directly with a confused look on his face:
"SMIC relies on IBM's technology, but it can only do 45 nanometers. Xingyi Technology relies on its own technology, but it can do 40 nanometers. It's incredible, it's incredible. You didn't lie to me, did you?"
"You want nothing, why should I lie to you?" Mr. Zhao looked disgusted.
"Then...then...what's the yield rate?" Mr. Zhou stuttered a bit.
"The yield rate of tape-out before was 89%. Now it has been officially mass-produced, and it is estimated to be over 90%!"
"What! Self-developed 40nm process, 90% yield rate! I'll be nice."
Mr. Zhou lost his composure at all and even felt it was unrealistic: "Old Zhao, is this all true? You haven't been deceived, have you?"
"Of course it's true!"
Mr. Zhao sighed: "At that time, we went to Xingyi Technology with a team of experts to witness the process of lighting up after the film was returned. It was also that time that a spy came out and sold the information to Qualcomm.
!Fortunately, it was not exposed that Xingyi Wafer Factory has achieved self-production of 40 nanometers, otherwise we would be in big trouble."
"..." Mr. Zhou fell silent.
He sighed for a long time: "So that's it. Xingyi Technology is really low-key and does big things quietly! It has surpassed SMIC quietly!"
"This...this..."
Mr. Zhou's expression was extremely complicated, and he didn't know what to say for a moment.
"What? Not convinced? SMIC, which you Shanghai strongly supports, was overthrown by Xingyi Semiconductor who came out halfway! Hahaha."
"!!!"
Mr. Zhou sighed: "So what if you are not convinced, it is the fact, and it is a good thing! The success of Xingyi Semiconductor is the pride of our Xia country! No, the Magic City has to introduce Xingyi Wafer Factory and build it for them for a month
A very large wafer fab with a production capacity of 100,000 wafers, 12 inches!”
Mr. Zhao couldn't help but roll his eyes: "Do I need you? The imperial capital has already invested in the construction of a second wafer fab with a monthly output of 100,000 wafers. It will be delivered to Xingyi Technology in two phases next year."
Mr. Zhou: "..."
"And the current Xingyi Wafer Factory Didu No. 1 will be expanded three times, and the monthly production capacity will reach 75,000 wafers."
Mr. Zhou: "!!!"
This week, Lao Zhou was no longer calm: "Old Zhao, your imperial capital has been wiped out. There are two large factories at once, with a monthly production capacity of 175,000 pieces. What else can we do?"
"Who can blame this? We can only blame our imperial capital for having a discerning eye and trusting Director Wang. We invested heavily in supporting Xingyi Semiconductor before it even started, and we are where we are today!"
"Alas!" Mr. Zhou sighed, this is incomparable.
Who would have thought that a person who makes mobile phones can also develop chips?
It’s just research and development of chips, but also mass production of chips!
That’s it for mass production chips, they are still 40nm logic chips!
It’s still self-developed technology!
SMIC has been unable to develop technology for so many years, and it is even difficult to introduce technology from foreign companies. Xingyi Technology has quietly developed it on its own.
I can only say it’s incredible, it’s incredible.
Whether it is Wang Yi or Xingyi Technology, they are both monsters!
It's difficult to reason about.
Mr. Zhou’s expression was complicated, and it would be a lie to say he was not envious:
"Old Zhao, you have made a lot of money in the imperial capital this time. What's the point of coming to the magic capital? Are you going to laugh at me in front of me?"
Mr. Zhao waved his hand: "Don't talk nonsense. I said I'd give you a big gift, and it's a big gift."
"How do you say this?" Mr. Zhou's face looked a little better.
Zhao Lao said: "Simple. In the second half of next year and the year after that, Xingyi Semiconductor will not be short of 12-inch wafer fabs, but now it is short of 12-inch lines that can be put into production immediately."
"What's the meaning?"
"You think, Xingyi mobile phones, Xingyi tablets, and Xingyi TVs all use NVIDIA Tegra 3. Now the self-developed and self-produced Kunpeng 702 chip has completely caught up with NVIDIA Tegra 3 and will definitely replace it, right?"
"This is for sure. Once replaced, the cost will inevitably drop."
"Yes, but! Xingyi mobile phones, Xingyi TVs, and Xingyi tablets all combined consume 20 to 30 million Kunpeng chips a month. However, the Xingyi wafer fab in the Imperial Capital currently only has one phase, with a monthly production capacity of only 14 million.
Chips are not enough at all. Unless there is another 12-inch wafer fab, which can be delivered directly to Xingyi Technology, the urgent need can be solved."
"This..." Mr. Zhou understood what Mr. Zhao meant: "You mean the 12-inch wafer fab in Shanghai?"
"That's right, among the several 12-inch wafer fabs in the mainland, apart from the Xingyi wafer fab in the Imperial Capital, only your wafer fab in the Imperial Capital has advanced enough equipment to be able to bring the 40-nanometer process online to produce logic chips!"
"If we give it to Xingyi Technology, it will take less than two months to directly launch the 40-nanometer process and mass-produce Kunpeng 702 chips and Kunpeng 700 chips!"
After hearing this, Mr. Zhou was lying if he said he was not moved, but he was a little embarrassed:
"But... that is SMIC's wafer fab, and they are also planning to introduce IBM's 45-nanometer technology..."
"You want me to snatch SMIC's wafer fab and give it to Xingyi Technology? There's no way you can do that!"
Mr. Zhao waved his hand: "Who asked you to rob it? Buy it!"
"How much money did SMIC invest, and how much did Xingyi Technology spend to buy it. You will pay for the infrastructure and land costs, and Xingyi Technology will pay for the saved equipment costs. SMIC will not be treated unfairly."
"This..." Mr. Zhou was still a little hesitant.
"Pedantic!" Mr. Zhao scolded: "SMIC's current technology is poor. Even if it introduces IBM, it is still 45 nanometers. What's the use? Xingyi Technology is already 40 nanometers, and SMIC's 45 nanometers have been put into production, and they are lagging behind. There is no competition at all.
But Xingyi Technology.”
"More importantly, SMIC now has too much debt and is losing money every year. It occupies a large wafer fab, but can only produce 55 nanometers and 65 nanometers. It is really a waste. It is better to sell it to Xingyi Technology and replace it with
Money, paying off debts, and developing new technologies are all good."
"Of course, you, the Magic City, will also have to make compensation, such as granting SMIC a larger land to build a new, larger wafer factory as compensation!"
"This..." Mr. Zhou thought quickly, weighing the pros and cons.
On one side is Xingyi Semiconductor and on the other side is SMIC.
On one side are emerging semiconductor giants with a bright future.
On one side are the established semiconductor overlords, some of whom do not seek advancement, but have cooperated for many years...
It’s really hard to give up. After all, once we do this, even though we can bring in Xingyi Semiconductor, there will definitely be resentment from SMIC.
Mr. Zhao spoke again: "To tell you the truth, the second and third phases of the Imperial Capital Xingyi Wafer Factory No. 1 have already started. We will rush the work according to the strategic project and can deliver it in half a year at most."
"In other words, you only have a chance of half a year, no, only a few months."
"If we don't decide as soon as possible, if you want to give it to us by then, Xingyi Semiconductor won't need it."
"It will be difficult to introduce Xingyi Semiconductor in the future. After all, the monthly production capacity of the Imperial City is 175,000 pieces, and the Shenzhen City side is also waiting pitifully, at least 100,000 pieces per month."
"How can Mr. Wang have time to talk to you in the Demon City anymore?"
"This..." Mr. Zhou's expression changed drastically, and then he took a deep breath: "Okay, I agreed. I will go to SMIC and let them sell the wafer fab!"
"At best, we can give them more support and build them a bigger fab."
"That's right. If you don't want to give up your children, you can't trap the wolf. In addition, SMIC has only been fighting for power in recent years and has no intention of making progress. It has been going downhill. It's time to beat it!" Mr. Zhao said meaningfully.
Mr. Zhou frowned, then nodded: "What you said makes sense, it should be beaten down. Before there was no Xingyi Semiconductor, SMIC was the only prince. If we continue to mess around, we have to endure it."
"Now that we have Xingyi Semiconductor, if SMIC can understand the general situation, know its shame and then be brave, there will be development."
"If you continue to be unwilling to make progress and only know about intrigues, the devil will not mind deposing the prince and supporting the new king!"
"Old Zhao, you gave me a great gift, hahaha!"
Seeing Mr. Zhou looking up to the sky and laughing, Mr. Zhao's expression changed drastically, full of fear:
"Mr. Zhou, are you also eyeing Xingyi Technology?"
"I'm telling you, don't mess around. Xingyi Technology is the pride of our capital. We have all-round and in-depth strategic cooperation with Xingyi Technology. Don't be greedy, you capital!"
"Old Zhao, the situation has become too small! Xingyi Technology is the pride of Xia State, and your imperial capital should not be greedy, hahaha."
Mr. Zhou must understand that if SMIC fails to live up to expectations, then he will vigorously support Xingyi Technology.
Knowing that they are bad stocks, if you don’t rush to sell them and buy high-quality stocks, do you have to wait and be locked up?
"Fuck! If you don't respect martial ethics, I shouldn't have come to you!"
For a moment, Mr. Zhao regretted it endlessly.
"Hahaha." Mr. Zhou smiled brightly.
That afternoon, the two went straight to SMIC and met SMIC Chairman Zhang Wen.
"Two leaders, sit down quickly and drink tea." Zhang Wen was flattered.
Mr. Zhou waved his hand and got straight to the point: "Old Zhang, to be honest, I have come to discuss a big matter with you today."
"What's the big deal?"
"That's right, Xingyi Semiconductor wants to buy an advanced 12-inch wafer factory to mass-produce 40-nanometer chips."
Zhang Wen is a smart man, and he immediately understood what the other party meant. He wanted to buy the SMIC Magic City fab!
"Leader, we also need the Magic City Wafer Factory."
"Isn't your 45nm process not finished yet? And this fab is a bit small. If you sell this, we will give you more land, build a larger fab, and directly develop the 40nm process!"
"Developing a 40-nanometer process?" Zhang Wen was startled, and his expression changed sharply: "Is it possible that Xingyi Technology has achieved a 40-nanometer process?"
Mr. Zhao nodded: "Yes, Kunpeng 702 is already in mass production, with a yield rate of over 90%."
"So that's it. I was still wondering where Xingyi Semiconductor taped out the chips, but it turned out to be a self-developed process and its own wafer factory. It's amazing, it's amazing!"
Zhang Wen's face darkened.
SMIC has been developing for so many years, but it was photographed on the beach by a rising star.
It was also shot to pieces!
Chapter completed!