Elder Hu said earnestly,
"Plus, the three chips George and his team developed are all 40nm process. I think our Xingyi Wafer Fab should also abandon 45nm R&D and start directly from 40nm!"
"This way, with the wafer fab delivered by the end of the year, we can mass-produce 40nm next year! We can then independently research and produce those 40nm chips!"
Wang Yi was in a great mood, thinking the same thing:
"That would be perfect, but will going straight to 40nm create pressure?"
Elder Hu waved his hand,
"No pressure, not a bit of pressure."
Wang Yi suddenly realized, right, Elder Hu was the one who overcame the core technology for 22nm.
For him to tackle the outdated 40nm process would be even easier.
Moreover, Elder Hu was not the only one joining Xingyi Semiconductor this time.
There were also Elder Hu's numerous proud disciples and many semiconductor talents!
Elder Hu had originally compiled a list, and Wang Yi directly arranged for people to negotiate. Compensation was not an issue; all were recruited.
Another portion was brought directly by Elder Hu.
In his previous life, when Elder Liang joined SMIC, he brought hundreds of semiconductor talents with him, which led to SMIC's rapid rise in a short period.
Similarly, when Elder Hu joined Xingyi Semiconductor, he also brought hundreds of core talents.
And the capabilities of these talents were even stronger than those Elder Liang brought.
After all, Elder Liang was merely one of Elder Hu's proud disciples.
With Elder Hu and these talents, the 28nm process is only a matter of time, let alone the outdated 40nm.
Wang Yi still underestimated Elder Hu's strength!
"Good that there's no pressure, then we'll go straight to the 40nm process!"
Wang Yi said with a smile.
"No problem!" Elder Hu nodded, "Chairman, there's another matter."
"Please, go ahead!"
"It's like this, could we perhaps discuss a phased delivery of the wafer fab?"
"Phased delivery?" Wang Yi understood Elder Hu's intention, "You want a portion delivered early to start 40nm process verification as soon as possible?"
Whether it's chip R&D or wafer fab process R&D, the initial design work can be carried out in the research building.
But in the later stages, everything must move into the factory building for formal trial production, verification, and adjustment!
Elder Hu nodded,
"Yes, if we can get an early delivery of some factory buildings in the second half of the year, even just one. We can bring in equipment and use it as an R&D fab, debugging and verifying as early as possible. This would essentially mean starting offline verification of 40nm in the second half of this year."
"If problems are found during verification, we solve them. If there are no problems, we can proceed with trial production, optimize the process, and improve the yield. This way, after other factory buildings are delivered at the end of the year, we can bring in equipment and go straight to debugging, trial production, and full production."
Wang Yi's eyes lit up, "This way, the entire process will be accelerated by half a year!"
"Exactly!" Elder Hu said with a smile, "If we wait until the end of the year for delivery, then bring in equipment, debug it, and only then proceed with 40nm verification, adjustment, trial production... everything would be too slow. At the earliest, verification would be complete by mid-next year, and mass production wouldn't start until the second half of next year."
"But if we can get an early delivery of one factory building in the second half of this year, we can start 40nm process verification and trial production this year, and achieve mass production in the first half of next year!"
"Okay, no problem. I'll go talk to Director Qin about this tomorrow. No, I'll go this afternoon!"
Wang Yi said with a smile.
This matter is too crucial.
A difference of half a year is truly important, very important.
After all, giants like Intel and TSMC will begin verifying 20nm next year.
Wang Yi remembered that TSMC mass-produced 22nm in the second half of 2012, verified 20nm in 2013, and mass-produced 20nm chips in early 2014!
By then, Xingyi Semiconductor would only be mass-producing 40nm, with 32nm, 28nm, and 22nm in between, a full four generations behind!
If partial delivery can be brought forward by half a year, verification can also be brought forward by half a year.
This way, 40nm can be mass-produced in the first half of 2013, then 32nm can be skipped, and 28nm process R&D can be started directly!
If all goes smoothly, 28nm could be mass-produced in 2014, which would put them only two generations behind TSMC's 20nm!
The future is promising.
Just thinking about this makes one excited.
Wang Yi couldn't wait until tomorrow.
Seeing Wang Yi's dedication to the semiconductor industry, Elder Hu was in a great mood, fully understanding that Wang Yi was not just playing around with semiconductors, but genuinely committed to it!
"Then I'll leave this matter to Chairman Wang."
Wang Yi waved his hand,
"It's all part of my responsibility. But I estimate that the 20 lithography machines we ordered previously won't be enough!"
"???"
Elder Hu was bewildered.
20 lithography machines, still not enough?
A single production line requires multiple lithography machines.
The number of lithography machines needed varies with the scale of the production line, output, and process technology.
Wafer fabs typically measure monthly capacity in tens of thousands of wafers.
An 8-inch production line, with a monthly output of 10,000 wafers, typically requires 4.3 lithography machines.
A 12-inch production line, with a monthly output of 10,000 wafers using mature processes like 28nm, 32nm, or 40nm, typically requires 8 lithography machines.
If using a 12-inch line with advanced FINFET processes to produce 22nm, 20nm, or 16nm, an average of 7.5 machines is needed!
Wang Yi ordered 20 lithography machines from ASML at once, which, once fully operational, could produce 25,000 wafers per month!
This exceeded TSMC's Jingnan Fab capacity, as Jingnan Fab's monthly capacity was only 20,000 wafers.
And a single wafer can yield hundreds to thousands of chips.
Now Wang Yi still thinks it's not enough and needs to add more lithography machines.
Could he be planning something much bigger?
Elder Hu frowned,
"Chairman, are you planning to build a second 12-inch wafer fab?"
Wang Yi nodded,
"Exactly, how can one wafer fab be enough? We need at least one more! Here, I'll give you another ten billion yuan, and order 30 more lithography machines!"
"This... good!"
What more could Elder Hu say?
He could only say that as long as Chairman Wang was happy, it was fine.
He was eager for Xingyi Semiconductor to grow stronger and drive the rapid development of domestic semiconductors.
Preferably, it would surpass SMIC and catch up with Intel, TSMC, and Samsung, thereby eliminating worries about sanctions and being held back.
"Chairman Wang, in which city will our second wafer fab be built?"
Elder Hu was very curious.
Wang Yi smiled faintly,
"We don't need to worry about this issue; someone is giving it away for free!"
"For free?" Elder Hu's eyes lit up as he understood the reason, "Is it still the Imperial Capital providing it?"
Wang Yi nodded.
According to the previous betting agreement with the Imperial Capital, if the wafer fab could mass-produce 55nm process within two years of delivery, the 12-inch wafer fab, valued at 8 billion yuan, would be given to Wang Yi for free; otherwise, Wang Yi would have to spend 8 billion yuan to buy it back.
Wang Yi impulsively said at the time,
"What if by chance we mass-produce the 40nm process?"
The big shots laughed, stating directly that if 40nm mass production was achieved within three years of the wafer fab's delivery, another 12-inch wafer fab would be given away for free!
Now with Elder Hu, not to mention three years, 40nm mass production can be achieved within one year of delivery!
This way, Wang Yi would continue to get the Imperial Capital's second wafer fab for free.
Of course, the equipment still had to be bought independently.
For this, Wang Yi again asked Elder Hu to contact ASML and order another 30 DUV lithography machines.
Wang Yi didn't even consider the most advanced EUV lithography machines, as they would simply not be sold to Xingyi Technology.
Even the new 1960Bi DUV lithography machine released last year would not be sold.
For example, the 20 DUV lithography machines ordered this time were all 1950i models launched in 2009, products from three years ago!
Only such older products and models would be sold to Xia Country.
However, it doesn't matter; the 1950i, 1960Bi, and even the unreleased 1970i, 1980i are all of the same generation, with small differences, and all are usable.
After all, what TSMC is currently using are mostly 1950i models sold three years ago.
Wang Yi sold 20 units at a unit price of 350 million, spending a total of 7 billion yuan.
Fortunately, with Elder Hu's influence, ASML would prioritize the production and shipment of these lithography machines, and all would be delivered in the second half of the year.
Otherwise, they would have to wait at least a year.
Now with the second wafer fab provided by the Imperial Capital, Wang Yi would not hesitate, and equipment like lithography machines would also need to be ordered in advance.
Wang Yi smiled faintly,
"Elder Hu, there are some things I can't say much about. But, as long as 40nm can be mass-produced next year, there will be a second 12-inch wafer fab, quickly starting construction and on an even larger scale!"
Elder Hu's eyes lit up,
"I understand, leave this matter to me, no problem at all!"
"Good, then it's settled. You contact ASML and order another 30 lithography machines. Once agreed, the finance department will transfer the deposit!"
"Okay!"
With the global launch of Xingyi tablets, Xingyi Technology earned a considerable amount of US dollars and Euros.
This foreign exchange would be perfectly used to purchase lithography machines and other equipment, spending it all!
Of course, Wang Yi also had a concern: he was afraid that with the rise of Xingyi Semiconductor, it would be targeted by the empire and sanctioned prematurely!
By then, Wang Yi would have nowhere to cry.
It's better to secure the fifty lithography machines while the empire isn't paying attention here.
As for ASML being able to remotely lock down the lithography machines?
There's no need to worry about that.
ASML actually never wanted to stop selling products; they even wanted to sell EUV lithography machines.
In his previous life, domestic enterprises purchased EUV lithography machines.
ASML sold them.
But the presence of certain troublemakers led to the inability to complete transactions.
If the backend is truly locked, we also have countermeasures.
For example, if the export of semiconductor basic materials like gallium and germanium is cut off, the global semiconductor industry would suffer greatly.
Great powers have means to check and balance each other!
ASML is just a company, caught in the middle, only thinking about how to survive, and wouldn't dare to recklessly court disaster.
And locking from the backend would be akin to flipping the table and courting death, ASML doesn't have that kind of guts.
However, restricting the export of lithography machines to Xingyi Technology is still possible.
Therefore, Wang Yi must acquire 50 DUV lithography machines as quickly as possible!
With these fifty lithography machines, Xingyi Technology can essentially overcome its semiconductor crisis for the next few years.
Once domestic 28nm lithography machines and domestic photoresists achieve breakthroughs, there will be no need to worry about sanctions anymore.
But for now, extreme caution is still needed.
Self-developed chips are the foundation, and self-produced chips are the foundation of the foundation!
The matter of the wafer fab is particularly important.
Wang Yi left the semiconductor department, and just as he was about to ask Jian Ziyan to arrange a meeting with Director Qin, he instead sent Director Qin a chat message directly:
"Director Qin, are you busy? I have something I'd like to consult you about in person."
His relationship with Director Qin had grown much closer, so a direct appointment was more suitable.
Indeed, Director Qin quickly replied, "Come!"
He even included a tea-drinking emoji.
Wang Yi was in a great mood, decisively called Wu Shuang, and headed straight to Director Qin's office.
Twenty minutes later, Wang Yi was drinking Director Qin's tea:
"Good tea, this year's pre-Qingming Longjing?"
Director Qin smiled without speaking, but everything was understood without words.
Then, changing the subject, he said,
"Xingyi Semiconductor is developing very quickly, with astonishing progress. In just half a year, three chips have not only been successfully developed but have also begun mass production. Excellent!"
Wang Yi smiled faintly,
"They are just low-end chips, nothing significant."
"Everything is difficult at the beginning. With low-end chips successful, high-end chips won't be far. Could you reveal some information? What are the specifications of your mobile phone chips? When will they be mass-produced?"
Director Qin looked at Wang Yi with a smiling face, full of curiosity.
As an enterprise that Director Qin initially prioritized supporting, Xingyi Semiconductor was closely related to him.
If Xingyi Semiconductor develops well, Director Qin's political achievements will be significantly enhanced, perhaps even forming an entire magnificent chapter!
He naturally cared deeply:
"Is it 40nm, or 28nm? Dual-core, or quad-core?"
Wang Yi chuckled heartily,
"Nvidia's quad-core processor, 40nm, launched early this year. Qualcomm's quad-core processor, 28nm, will launch in the second half of the year. Our Xingyi Technology's self-developed high-end chip can't catch up with them in terms of time, but it cannot fall behind in performance and process. The Kunpeng 700 processor uses a 28nm process, 4 cores. It has an external 28nm Yilong 3000 baseband, supporting 3G."
"28nm!"
"Kunpeng 700, Yilong 3000!"
"Good, very good!"
Director Qin was visibly delighted,
"Chairman Wang, I truly didn't misjudge you!"
"Thanks to Director Qin's support and guidance!"
Wang Yi said with a smile, feeling very grateful.
Investing in the construction of a wafer fab for Xingyi Technology involved an initial capital of 3 billion yuan and land valued at 5 billion yuan.
This was equivalent to giving 8 billion yuan to Xingyi Technology for free!
Back then, so many people opposed it, but Director Qin went against all opinions, painstakingly persuaded others, and even gambled his political future to make it happen.
It could be said that if Wang Yi's Xingyi Semiconductor failed and was scrapped, Director Qin's promising future would be over!
The risks involved were imaginable.
Wang Yi kept such kindness in his heart:
"Director Qin, I have no way to repay your support for Xingyi Technology and Xingyi Semiconductor. I can only ensure Xingyi Technology's rapid development and Xingyi Semiconductor's growth and strength! Only then can I live up to your expectations and support!"
If Xingyi Semiconductor developed well, this political achievement would be Wang Yi's best return to Director Qin.
As for other aspects, they couldn't be given; that would be making a mistake...
Director Qin was in a great mood, waving his hand,
"This is enough. If you need anything in the future, just say so! When Xingyi Semiconductor just started, they were giving me trouble and opposing it in various ways. Now three chips have already entered mass production, and the future is boundless, no one will object anymore! As long as you work hard, I can guarantee you the greatest support!"
"Our Imperial Capital, it lacks everything else, but it never lacks resources and policies."
In 2011, providing land and a wafer fab worth 8 billion yuan at once would strain most cities.
But for the Imperial Capital, that was a piece of cake.
Precisely for this reason, most of SMIC's major wafer fabs in his previous life were located in first-tier cities and direct-controlled municipalities like the Imperial Capital, Jinmen, Shenzhen, and Magic City.
There's no way around it; wafer fabs burn too much money, and smaller cities can't afford them.
Wang Yi's eyes lit up,
"That's exactly what I was waiting for you to say: 'Director Qin, I actually have something to trouble you with.'"
"Just say it!"
Wang Yi said with a smile,
"It's like this: could a portion or one factory building of the wafer fab be delivered ahead of schedule? We would bring in equipment to use as Xingyi Semiconductor's R&D factory, to conduct 40nm process verification and trial production in advance."
Director Qin understood instantly,
"Wait for me a moment, I'll ask."
After saying that, Director Qin directly called the wafer fab's chief engineer and asked a few questions.
He then looked at Wang Yi:
"With three shifts, continuous construction without stopping for personnel, the first factory building is expected to be delivered in April. You can arrange for people to take over and introduce equipment then."
"Delivered next month!" Wang Yi's face lit up with joy, "This is fantastic! Delivered in April, then bringing in equipment and debugging, verification of the 40nm process can probably begin in August. If all goes smoothly, mass production can start next year!"
"Excellent!" Director Qin was also very excited, then his expression suddenly changed, "Wait, when did you say mass production?"
"Next year."
"..." Director Qin, eyes wide, "What process?"
"40nm!"
Director Qin remained silent: "!!!"
Then he picked up his teacup, took three big gulps, and finally said,
"Chairman Wang, weren't you working on the 55nm process? How did it become 40nm?"
Wang Yi smiled faintly,
"55nm is too outdated. Xingyi Technology's least advanced chips right now are 40nm, so there's no need to waste time on backward processes. We went directly to 40nm."
"This... this... can this work?" Director Qin's mouth twitched, "SMIC's 40nm has been in development for several years, and it hasn't even reached mass production yet!"
Wang Yi sighed,
"SMIC is an exception. After all, ever since Elder Zhang left, SMIC hasn't been the same SMIC!"
"Sigh!"
Director Qin's expression was complex, and for a moment, he didn't know what to say.
As a young leader with real power, Director Qin paid the most attention to industries like the internet, high-tech, and semiconductors.
He had originally placed high hopes on SMIC, but its development in recent years had truly disappointed him.
This was why he strongly supported Xingyi Semiconductor, even at the cost of gambling his political future.
There was no alternative; Xia Country absolutely needed a powerful semiconductor giant!
"40nm process, good, very good. You said the 40nm process can be achieved next year?"
Director Qin found it unbelievable:
"Didn't you say that, if all went smoothly, the 40nm process would be achieved within three years after the wafer fab's delivery? How did it become one year?"
"This isn't scientific, truly not scientific!"
Wang Yi laughed wryly,
"I didn't expect it to be this fast at first, but Elder Hu is very confident. There's nothing else I can do but pour money into supporting him!"
"Elder Hu, Elder Hu!" Director Qin murmured, his eyes lighting up. "That's right, he was TSMC's first-generation technical director; Elder Jiang was even behind him! If Elder Hu says it can be done, then it definitely can!"
"Next year, Xingyi Semiconductor will mass-produce 40nm process! Excellent, I await the good news!"
Wang Yi smiled faintly,
"This isn't a big problem, but Director Qin, don't forget one thing."
"What thing?"
Director Qin was a little confused.
Wang Yi pulled out a memorandum and waved it at Director Qin:
"40nm mass production within three years, a second 12-inch wafer fab!"
Director Qin's mouth twitched: "..."
He had overlooked that!
At that time, they thought this matter was unrealistic and impossible to achieve, so they spoke grandiosely and directly made the promise.
Now, it turns out they actually have hope of achieving it!
What should be done about this?
Big trouble!
In the Imperial Capital, even in the most remote large suburbs outside the Sixth Ring Road, land for a 12-inch wafer fab is worth 5 billion yuan!
Infrastructure would cost another 3 billion yuan!
Another 8 billion yuan!
A headache, a real headache.
Seeing Director Qin's bewildered expression, Wang Yi couldn't help but say,
"Director Qin, you wouldn't go back on your word, would you? We have a memorandum, after all."
Director Qin's mouth twitched: "..."
This kid started setting traps for them last year.
Wang Yi changed the subject:
"Never mind, if the Imperial Capital feels pressured, then let's forget it. I won't force anyone; Xingyi Semiconductor will just find another solution."
Hearing this, Director Qin's expression subtly changed, and he quickly said,
"It's fine, no pressure. It's just 8 billion, what kind of pressure could that be?"
"You just go ahead. I'll report it immediately, approve the land, and make plans. As long as your 40nm process successfully achieves mass production—no, successful trial production—our Imperial Capital will immediately provide funding and start construction!"
"Director Qin is generous! Xingyi Technology choosing the Imperial Capital was indeed the right decision!"
Wang Yi said with a smile.
Director Qin's mouth twitched: "..."
Yes, you kid didn't choose the wrong target, but we're in trouble now: 8 billion a year, 16 billion in two years!
No, there's also a 1-billion-yuan mobile phone factory, making it 17 billion.
Fortunately, the mobile phone factory is already at full capacity, and its annual production has expanded from the original 20 million to 30 million, with substantial tax contributions.
This investment is very worthwhile; it will pay for itself in a few years, and after that, it's all profit.
Moreover, it created a large number of employment opportunities and boosted the GDP development of the Imperial Capital's suburbs!
Next, if Xingyi Wafer Fab successfully mass-produces 40nm, catching up with or even surpassing SMIC, its future will be even more boundless.
Although the 17 billion yuan investment is painful, it's worthwhile!
Director Qin's perspective fully opened up:
"I'll give you the contact information for the wafer fab's head; you arrange for technical personnel to liaise with them, communicate, and deploy in advance. The first factory will be delivered in April. Once 40nm is successfully trial-produced, the second factory will immediately commence construction!"
"Thank you so much, Director Qin!" Wang Yi was in a great mood, murmuring, "The Imperial Capital is so generous. In the future, if Magic City wants to attract Xingyi Semiconductor, it won't be easy to negotiate without two wafer fabs!"
Director Qin's mouth twitched: "..."
This guy is really getting ahead of himself!
But then again, it made sense.
The Imperial Capital spent two wafer fabs and invested 16 billion yuan to get Xingyi Semiconductor's Imperial Capital Factory One and Factory Two.
How could Magic City easily attract Xingyi Semiconductor for free, trying to catch up with the Imperial Capital?
It would also have to invest in two wafer fabs, and also spend 16 billion yuan!
No, by next year or the year after, when Magic City wants to attract Xingyi Semiconductor, land prices will have skyrocketed.
It won't be 16 billion anymore; it'll probably be 26 billion, or even more!
Small cities compete for low-end industries, while first-tier cities compete for high-end industries.
In his previous life, first-tier cities like the Imperial Capital, Magic City, and Shenzhen all scrambled to attract SMIC to build factories.
This time, they would naturally promise various preferential policies, eager to attract the more promising Xingyi Semiconductor!
(End of chapter)