Reborn in 2011, 985 missing from two copies

Chapter 440: Xingyi Semiconductor rises, SMIC is left on the beach

"That couldn't be better!"

Wang Yi knew very well how fast the infrastructure construction of Xia Country was.

Building a small 2.5-inch wafer factory with a monthly output of 12 wafers requires an investment of 130 billion RMB.

It takes Europe and the United States two years, but it takes Xia Country less than a year.

If we add a strategic project to the mix, work day and night, and involve multiple parties, it might be completed in half a year.

Now the second and third phases are being promoted 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 mass production will be possible in May or June!

After all, the 40-nanometer process is already mature and it’s just a matter of installation and debugging.

However, the construction of the second wafer factory will be slower and will take about a year.

After all, the second wafer factory is a factory with two monthly production capacities of 5 wafers, so the construction period is naturally twice that of two factories with a monthly production capacity of 2.5 wafers.

But it doesn’t matter. The 28nm process is not that easy. Once Kunpeng 901 and 902 are successfully developed, both the tape-out and mass production will have to rely on TSMC.

As for the Xingyi wafer factory, it could only produce 40 nanometers in the early stage, and its external publicity was also about the 40-nanometer mid-range process. It couldn't even produce 32 nanometers, thus reducing the fear of the United States!

While the United States mistakenly believed that Xingyi Wafer Factory was stuck at 40-nanometer process and could not even reach 32-nanometer, Xingyi Semiconductor quietly succeeded in 28-nanometer!

By then, it will definitely give the United States a big surprise.

Once 28nm is achieved domestically, there will be no crisis in the next few years.

After all, the 28-nanometer process is enough to make many chips.

What we need now is to paralyze the enemy and bide our time.

Therefore, when Kunpeng 901 and 902 are successfully developed, TSMC will be chosen for the initial tape-out and mass production.

The outside world believes that Xingyi Semiconductor’s technology is limited and it will not be able to produce 28 nanometers within 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 Xingyi wafer factory expansion will be put into production, with monthly production capacity increased by 5 pieces and annual output of 40-nanometer chips reaching more than 5 million pieces.

With more than 300 million pieces for self-use, we can still have an additional production capacity of 200 million pieces.

You can just mass-produce the 40-nanometer 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 that can be sold to the outside world and grab the market share of Qualcomm Snapdragon 600 and Nvidia Tegra 3.

There is also Kunpeng 500, which can also be sold to the outside world to grab the market share of Qualcomm Snapdragon 400 and Snapdragon 200.

And it’s very competitive!

The simplest example is that Qualcomm's 600, 400, and 200 do not have integrated basebands, and you have to spend extra money to purchase the basebands, which increases the cost for manufacturers and makes the integration technology 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 have integrated baseband SOC chips, which have lower costs, higher cost-effectiveness, and lower integration difficulty!

By then, Wang Yi will set up a technical team to provide comprehensive paid chip tuning services to major customers. Then Qualcomm's mid- and low-end chips will be even harder to sell!

Of course, MediaTek is even worse.

Xingyi Technology’s flagship chips cannot be sold casually, but its sub-flagship, mid- and low-end chips can be sold like crazy to grab the market.

With performance comparable to or even exceeding Qualcomm Snapdragon 400 and 600, and a price similar to MediaTek, it will be no problem for it to take over half of the low- and mid-end chip market.

As for Qualcomm and Nvidia, they should just go and grab the flagship chip market.

Wang Yi gladly accepted the mid-to-low-end market!

Now that we have finally mastered the 40-nanometer process, we naturally have to use it to produce more chips and make more money.

There is no way around it. Wafer factories are too expensive. A small wafer factory that produces 10 wafers a month costs 520 billion RMB.

Of this, land and infrastructure only account for 20%-30%, or more than billion yuan, which is the responsibility of the imperial capital.

Equipment such as lithography machines account for about 70%-80%, totaling 400 billion yuan, all of which is funded by Xingyi Technology itself.

There is no way. The more advanced the process, the higher the equipment cost.

If Wang Yi doesn't make money quickly, he won't be able to afford it, let alone subsequent expansion.

This is also the reason why the imperial capital strongly welcomes Wang Yi to expand the new wafer factory. The land is theirs, and the imperial capital does not spend any money. It only needs to pay a few billion in infrastructure costs in exchange for Wang Yi's investment of tens of billions. It is simply awesome.

Even if there are tax incentives in the early stages and you can be exempt from tax, you still have to pay later.

In its past life, SMIC paid taxes every year, and after deducting subsidies, it still had more than ten billion.

More importantly, this is a political achievement and also an indicator!

The government has assigned indicators to each first-tier city.

But unfortunately, distant water cannot quench immediate thirst.

The second and third phases, with a monthly production capacity of 50,000, will be put into production in eight months at the earliest.

If you want to increase production capacity as quickly as possible, you have to look at SMIC's on-site wafer factory.

Wang Yi looked at Director Qin again: "Director Qin, the matter of SMIC's wafer factory..."

Director Qin smiled amiably, "Mr. Zhao has already gone to the Magic City, and I think there will be a result soon. To increase your chances of success, why don't you go there too?"

"I'm going there too?"

Wang Yi's expression was calm, but he felt somewhat unhappy in his heart.

The attitude of the Demon City is a bit high.

Before, when Song Sining went to Shanghai to discuss the matter of Xingyi Automobile, the other party was very arrogant.

Although they are willing to bring them in, the treatment they offer is only average and does not meet expectations at all.

Therefore, no agreement has been reached so far.

Now asking Wang Yi to go to the Magic City in person does seem a bit like taking advantage of the situation.

This kind of investment promotion is just like falling in love. Whoever takes the initiative and rushes forward 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? Any other big projects?"

Director Qin became interested. What big move did this kid make in Jeju?

"Director Qin, have you forgotten that our Xingyi Cloud Data Center Phase I was delivered? After a period of equipment installation and debugging, it will be officially put into use soon. I have to go back to preside over the commissioning of the Xingyi Cloud Data Center!"

“Yes, this is a big project, this is important!”

Director Qin's eyes lit up, and he even felt a little envious.

After it is fully built, the Xingyi Cloud Data Center will have 10 servers. There is no data center this large even in the imperial capital.

Moreover, Jeju also gave another piece of land of the same size. If Xingyi Technology had enough money, it could build another one, which would have 20 servers.

If it weren't for the high electricity bills and the shortage of water and electricity in the imperial capital, Director Qin would have wanted Wang Yi to build the data center in the imperial capital!

But this is not realistic.

After communicating with Director Qin about the expansion of Phase II and Phase III of the Imperial Capital Wafer Factory, Wang Yi left the Management Committee directly.

Wang Yi doesn’t have to worry about the rest.

The Imperial Capital Management Committee will naturally take care of everything until the factory building is completed and handed over to Wang Yi.

Similarly, the constraint condition is that Wang Yi must introduce the production line and put it into full production within one year, otherwise Wang Yi will have to pay the full amount of 52 billion yuan for hardware construction costs and land costs.

It's all harmless.

Wang Yi is now worried about the lack of wafer factories and he will not leave any wafer factories unused.

The next day, Wang Yi set out again and headed straight for Jeju.

Get ready to attend the official opening ceremony of Xingyi Cloud Data Center!

Mr. Zhao, who was far away in Shanghai, met a leader of Shanghai:

"Old Zhou, I have a big gift for you. I haven't told Old Xu yet."

"A 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 kind of person I am, Old Zhao."

"Haha, I don't believe it! In what aspect?"

“Chip production process!”

"Memory chip?"

"Logic chip!"

"55 nanometers?" Mr. Zhou picked up the teacup, blew on the floating tea leaves, and took a sip.

It’s just a 55-nanometer logic chip process, which is not scarce and SMIC can also produce it.

"Of course not. Who are you looking down on? 40 nanometers!"

"Pfft!" Mr. Zhou said, "What did you say? Mass production of 40-nanometer logic chips?"

"Impossible? Even SMIC can't do it!"

"Even in our 12-inch wafer fab in Shanghai, the only wafer fab in mainland China that produces logic chips, SMIC can only produce 55-nanometer logic chips."

"We are currently negotiating with IBM to introduce IBM's 45nm process technology. But IBM is not willing to do so because the price is too high. They want SMIC to work for them!"

"Damn, these foreigners are just greedy!"

"SMIC raised funds and borrowed money from everywhere to invest in building factories and introducing advanced equipment. The total investment exceeded 10 billion yuan, and only then did SMIC Magic City come into being. IBM, on the other hand, only wanted to provide some technology and wanted 30% of the profits. How greedy!"

"If it was 28 nanometers of advanced technology, it would be fine, but it's only 45 nanometers and they want % of the profit."

"Damn, how greedy!" Mr. Zhou became angrier as he spoke.

Mr. Zhao laughed and said, "IBM is greedy, so why not use their technology? Use our own."

"Our own technology? We can do 45 nanometers?" Mr. Zhou was full of disbelief:

"Don't be ridiculous. Without IBM's technology, SMIC can't even make 45-nanometer memory chips, let alone logic chips!"

Mr. Zhao waved his hand and said, "SMIC is not good enough, but Xingyi Semiconductor is good enough."

"Xingyi Semiconductor? Is this true or not?"

"real!"

"They developed a 45-nanometer process?"

"no!"

"What the hell are you talking about!" Lao Zhou was speechless: "You just excited me for nothing."

Mr. Zhao laughed and said, "They didn't make the 45-nanometer process, but they directly mastered the 40-nanometer process!"

"Shit, is this true?" Mr. Zhou lost his composure and was filled with disbelief.

Mr. Zhao didn't say much, and directly handed over a small box: "Look for yourself."

Mr. Zhou was startled and quickly opened the box. He saw three chips inside, all with X printed on them:

"Are these the 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 Yilong 3000 baseband."

"Especially the Kunpeng 702 is very powerful, on par with Nvidia Tegra 3."

"There is also the Yilong 3000 baseband, which is a full-network 2G baseband that supports 3G and 3G of China Mobile, China Unicom, and China Telecom. It's really amazing!"

Mr. Zhao nodded: "Then do you know where these three chips were taped out?"

"This..." Mr. Zhou was stunned: "I really don't know. It doesn't look like TSMC, Samsung, or Intel. Where did they tape out the chips?"

"Xingyi Fab!"

"What? Xingyi Wafer Factory has really achieved 40-nanometer process?" Mr. Zhou was completely shocked.

"of course."

"Your own technology?"

"Correct!"

"Oh my god." Mr. Zhou stood up, looking confused.

"SMIC can only produce 45 nanometers with IBM's technology. Xingyi Technology can produce 40 nanometers with its own technology. It's incredible. It's really incredible. You didn't lie to me, did you?"

"You don't have what you want, why would I lie to you?" Mr. Zhao looked disgusted.

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