Reinventing the Millennium

The proposal from Professor Hu Zhengming inspired Fang Zhuo, or rather, it made him review the omissions in the integration of the semiconductor industry.

Thinking in this way, SMIC seems to be indeed supposed to play a greater role.

It is not without effect. It has already launched a 20nm process that can be called advanced technology, and Yike Optoelectronics adopts this solution, but... it can be even bigger.

Time is about to enter 2016. Looking forward to the future, Aobi's term of office is still one year. After all, he could not ignore the existence of Yike and Bingxin this year. He half-heartedly permitted the actions of BIS and other institutions, effectively restricting the two top companies.

This restriction is indeed powerful, but it is also a conventional and predictable action, only cutting the top, not expanding.

Hu Zhengming believes that no matter what factors lead to this strategic action, it actually gives the mainland semiconductor industry a lot of room for operation - others can't operate, but Fang can operate.

In this case, then…

On December 12, Fang Zhuo thought about it for a while and agreed with Professor Hu's strategy of changing companies. He invited SMIC's senior management to come to the meeting, including CEO Wang Ningguo, CTO Yang Shining, CFO Zeng Zonglin, CMO Ji Kefei and others.

Wang Ningguo and Yang Shining had a sharp conflict when Datang intended to control SMIC, but after Fang Zhuo stabilized SMIC's equity situation and increased the cooperation between Bingxin and SMIC, the relationship between the two was greatly eased.

In the final analysis, development can solve or cover up many necessary and unnecessary problems.

Fang Zhuo said to the two at that time, "The situation is not completely irreconcilable" and "SMIC can still move forward", and the facts have proved that this is indeed the case.

However, although he has strengthened his influence on SMIC to a certain extent, he still respects SMIC's independent development. Therefore, such a solemn high-level meeting is the first after the "SMIC Change".

Wang Ningguo came with Ji Kefei in the car. On the way, they discussed and speculated on the theme of this meeting and believed that it was still the strength of technical cooperation.

The recent turmoil and difficulties of Yike and Bingxin are in everyone's eyes, especially the photoresist supply has been cut off, which is already quite fatal.

It's not that the other party, Yike, and Bingxin have no confidence, but the more they are in the industry, the more they know how dangerous the current situation is.

Without photoresist and no substitutes, the most advanced technology will inevitably reduce production or even stop production, and consumer electronics products that rely on it will inevitably not be able to be launched on the market.

In addition, Yike has withdrawn from the US market, and Washington and BIS seem to have follow-up restrictive measures.

Wang Ningguo talked about these things privately with many SMIC executives, and they all had a sense of empathy and tragedy.

Yike has long proved that it has the ability to stand at the top of the world, and Bingxin has also been arduous and simple to catch up with the world's most advanced level. The sweat, tears and even luck in this are hard to estimate.

If Yike and Bingxin really lost in the commercial competition, no one would be dissatisfied. Unfortunately, this time it was the official agencies that took action. They did not hesitate to amend the current laws to curb the development of the two companies, which is really infuriating.

Under such circumstances, Yike really needs an alternative with at least 16nm production capacity.

After Wang Ningguo and Ji Kefei arrived at Yike 23's meeting room and saw Yang Shining had already arrived, they naturally turned to talk about SMIC's current 16nm research.

As long as SMIC can mass-produce 16nm, Yike will be able to maintain good competitiveness.

As for whether SMIC will follow in Bingxin's footsteps...

Wang Ningguo's answer was: "Well, take it one step at a time and use time to exchange space."

The SMIC executives who arrived at the meeting room nodded in approval.

However... when Fang Zhuo arrived at the meeting room, when he directly proposed to suspend 16nm research and development and switch to 10nm technology, Wang Ningguo, Yang Shining and others were suddenly shocked.

They looked at each other, and only heard Mr. Fang's voice continuing to surround their ears.

"As long as SMIC breaks through 10nm, Yike will be able to gain a lot of competitive time."

"A breakthrough of 1 next year means that our technology will not be outdated in the two years of 2017-2018."

"In this way, Yike's research and development in PCs, servers, mobile phones and other aspects can be combined with technology, achieve breakthroughs in many aspects, and create a new blood circulation system."

Yike has lost the US market, which is undoubtedly a major loss.

There is no hope of returning to this market in the short term, and it will be possible only after a complex struggle. Yike cannot only hope to tap the domestic mobile phone market, but must also open up more businesses to make up for the losses.

Yike Cloud is part of what is already being done. The transformation of technology research and development in the past few years will be the focus of growth in the future. Yike needs to have more strategic breakthroughs in To B business.

The basis of this breakthrough must still be based on the guarantee of advanced technology.

The achievement of these two nodes is enough to guarantee competitiveness for a considerable period of time.

Wang Ningguo, Yang Shining, Zeng Zonglin and others listened silently, this, this...

To be honest, everyone guessed that it was related to the strength of technology research and development, but Mr. Fang, you are too strong!

Wang Ningguo wanted to express his opinion that SMIC wants to take a step, not a run...

Is this run too big a step?

Stop the research and development of 16nm?

Not to mention SMIC’s investment in this area, the research and development of this node alone has already achieved breakthroughs in ice cores, so everyone has confidence.

Now we are going to tackle 10nm without even finishing 16nm. Although Ice Core will obviously help, Ice Core itself has not yet finished it... Is this risk a bit too big?

This is not a simple decision, but is related to SMIC’s technical roadmap and its development for at least the next four to five years.

The conference room fell silent.

Fang Zhuo looked around at everyone at SMIC, and just when he was about to call his name, CFO Zeng Zonglin spoke up.

"Mr. Fang." Zeng Zonglin is very grateful and absolutely grateful to Mr. Fang for his help to SMIC. Whether it is the stability of management operations or technical cooperation, this is extremely rare, but...

I love Mr. Fang, and I love the truth even more.

He considered his speech, trying not to offend the crisis-ridden head of Yike, SMIC's shareholder, Bingxin's founder, and Mainland Semiconductor leader: "SMIC's research and development on 16nm has begun to see the light of day. The annual profit growth has also been good. Now that we are switching to 10nm research and development, there may be relatively negative financial signals. "

Fang Zhuo took a sip of tea.

Seeing that Mr. Fang did not refute her, Zeng Zonglin felt a little relieved. When she was considering her words, she saw CEO Wang Ningguo's approving look across from him.

He still controlled his tone and discussed tactfully: "SMIC hopes to mass-produce 16nm next year. With the help of Ice Core, this time may be earlier. If SMIC launches 16nm, I personally will firmly Agree with it to be OEM for Yike.”

What does it mean to OEM for Yike?

This means that if SMIC does this, it may also encounter restrictions from Washington.

BIS has extended its jurisdiction, and SMIC must have used Milicon's technology and equipment.

It’s not that Zeng Zonglin is unwilling to pay for SMIC, but she just hopes that it will be paid more reasonably. This step-by-step approach seems to be more able to ensure the supply of production capacity in the future.

Even if SMIC is restricted by then and enjoys the same treatment as BingXin, it will at least guarantee its operation until the middle of 2017.

Isn’t this how time is fought for and squeezed out little by little?

"In the industry's chess game, SMIC's 10nm breakthrough is of more strategic significance." Fang Zhuo said slowly, "At this stage and in the future, not only this matter, I hope everyone will view the development of the industry and enterprises from this perspective. Set off."

Zeng Zonglin pursed her lips and lurked in the conference room for the time being.

Wang Ningguo looked at Yang Shining who was thinking, and Zeng Zonglin who was looking down. Thinking about the situation of the ice core and Mr. Fang's determination to do things, he felt his scalp numb in patches.

But he still coughed, cleared his throat, and prepared to speak.

Fang Zhuo glanced at SMIC CEO and said succinctly: "Don't cough yet."

Wang Ningguo: "..."

The words were stuck in my throat, feeling a little uncomfortable.

Fang Zhuo looked at the time, nine fifty-nine.

He raised his cup to drink tea.

At ten o'clock sharp, the door of the conference room was pushed open, and Liang Mengsong walked in quickly.

He didn't sit down, looked at the people in the conference room, and said concisely: "I am confident."

Four words, only four words, SMIC's senior executives present suddenly seemed to have layer after layer of confidence in their hearts.

When Dr. Liang appeared, he was obviously talking about 10nm research, and he also obviously meant that he would lead the team this time. Otherwise, Mr. Fang would not have taken such a serious stance and made such a request.

Who is Liang Mengsong?

He was once an abandoned general in Taiwanese media, but in recent years, the Baodao media has frequently lamented his departure, considering it a major setback.

The current ice core technology leader, since he joined Ice Core, formed a team, and took over the research and development, the progress of advanced manufacturing processes has developed rapidly.

The technological development of ice cores is of course not the result of just one person, but Liang Mengsong is definitely an indispensable contribution.

Such a person deserves and does gain recognition and respect from people in the industry.

The atmosphere in the conference room suddenly changed.

Fang Zhuo looked at Wang Ningguo: "Mr. Wang, what did you want to say just now?"

Wang Ningguo said solemnly: "What I want to say is that the core of ice is the same as the branches."

He stood up from his seat, applauded, and continued: "Welcome Academician Liang to come to SMIC to guide our work."

Others at SMIC originally had no intention of applauding at this time, but the CEO took the lead, so they had no choice but to follow suit.

Liang Mengsong twitched the corners of his lips but did not say anything unpleasant.

"Dr. Liang will lead the team to prioritize the research and development of 10nm. The ice core already has a certain foundation. According to our original plan, if it goes well, trial production is expected to be carried out in Q1 of 2017." Fang Zhuo introduced the ice core. Regarding the research and development situation, "Now that we are at SMIC, our equipment is still more advanced. From an optimistic perspective, maybe SMIC can still guarantee the progress of Q1."

SMIC now not only has ASML lithography machines, but also has many equipment that are more advanced than Ice Core. This is because Ice Core avoids American equipment to a certain extent, but SMIC does not do this. The most important thing is to keep up with technology research and development. schedule.

Based on this situation, Liang Mengsong led his team to develop secretly at SMIC this time, and may not delay the final mass production.

If SMIC can make a breakthrough and Ice Core continues to adjust and optimize its processes, it will basically mean the same breakthrough.

Fang Zhuo is still thinking about a problem.

If SMIC faces the same restrictions from Washington in the future, it may be necessary to promote the merger of Bingxin and SMIC. The original "don't put all your eggs in one basket" needs to evolve into a more extreme resource integration.

SMIC is orthodox in Bingxin, Bingxin is orthodox in SMIC, the two cores are integrated.

Anyway, they are all restricted, what else can we say? It is better to merge together to exert greater power.

This is his new thinking inspired by Professor Hu. He has not communicated with SMIC yet. He plans to see the situation and then take measures according to local conditions.

The atmosphere in the conference room became heated.

Zeng Zonglin participated in the discussion while summarizing the situation.

I love Mr. Fang and Academician Liang. Truth is temporarily behind them.

…

There are no obstacles to SMIC's affairs, or rather, obstacles are all preconditions.

Liang Mengsong will lead the team to secretly develop 10nm, which was quickly finalized and implemented. He will still take into account some of Bingxin's process optimization work, but the main focus needs to be transferred to SMIC first.

At the same time, Bingxin's photoresist restrictions are gaining more and more attention.

People in the industry know the severity of the situation, and outsiders can also know it after popular science.

Now it is the last month of this year, and Yike has basically completed the work of withdrawing from the US market. All major products have been basically cleared out by operators and channel dealers, and even increased in price before Christmas.

Yike's products are fine. Now that the world's first attribute is added with the invisible mark of "out of print", it is naturally more popular.

Unfortunately, there is no way to restock this time.

On December 25, "Time" magazine unexpectedly published a cover article on Christmas, becoming the only media to interview the head of Yike in recent times, and it is rare that Fang Zhuo's own views appear in American public opinion again.

"Washington has definitely taken the wrong approach."

"BIS made a wrong judgment. The best measure is not blockade, but dumping. I believe many people in Silicon Valley can realize this."

"This blockade now will only make Yike and Bingxin stronger after overcoming difficulties."

"We will be back in the near future."

In the cover article, a reporter asked Fang Zhuo: "Mr. Fang, are you so sure that BIS is wrong?"

Fang Zhuo replied: "Yes, the media can discredit me in other aspects, but based on business judgment, this will be reflected in the market."

The reporter asked again: "The problem is that before the blockade, Yike and Bingxin had achieved extraordinary achievements. Isn't this like two cups of poison?"

Fang Zhuo replied: "Yes, but this cup of 'blockade' poison is more toxic."

"Mr. Fang, when do you think the 'near future' is?" The last question from the reporter.

Fang Zhuo ended the interview with this answer: "When you think it is necessary to interview me next time, it will be the countdown moment."