The proposal from Professor Hu Zhengming inspired Fang Zhuo, or in other words, it made him review the omissions in the integration of the semiconductor industry.
After thinking about it this way, it seems that SMIC should indeed play a greater role.
It’s not that it has no effect. It has launched a 20nm process that can be called an advanced process, and Yike Optoelectronics adopts this solution, but... it can be even bigger.
Time is about to enter 2016. Looking to the future, Aobi has one year left in his term. After all, he cannot ignore the existence of Yike and Bingxin this year. He half-heartedly approved the actions of BIS and other institutions, effectively banning the two top companies.
restrictions were imposed.
This kind of restriction is indeed powerful, but it is also a routine and predictable action. It only pinches the tip and does not expand.
Hu Zhengming believes that no matter what factors led to this strategic move, it has essentially given the mainland semiconductor industry a lot of operating space - others can't, but Fang can always do it.
That being the case, that means...
On December 12, after much thought, Fang Zhuo approved Professor Hu’s strategy of changing the company and invited SMIC’s senior executives to come over for a meeting, including CEO Wang Ningguo, CTO Yang Shining, CFO Zeng Zonglin, CMO Ji Kefei and others were all present.
Wang Ningguo and Yang Shining had a relatively sharp conflict when Datang attempted to control SMIC. However, after Fang Zhuo stabilized SMIC's equity situation and increased 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.
At that time, Fang Zhuo had said to the two of them that "the matter is not completely irreversible" and "SMIC can still move forward." 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 time since the "SMIC Change".
Wang Ningguo came by car with Ji Kefei. On the way, they discussed and speculated on the theme of this meeting, and believed that it would still be about technical cooperation.
The recent turmoil and difficulties of Yike and Bingxin are in everyone's eyes, especially the supply of photoresist has been cut off, which has been quite fatal.
It's not that the other party's president, Yike, and Bingxin have no confidence, but the more they are in the industry, the more they understand how dangerous the current situation is.
Without photoresist and no substitutes, the most advanced technology will inevitably gradually reduce or even cease production, and consumer electronics products that rely on it will inevitably not be able to be brought to the market.
In addition, Yike has withdrawn from the U.S. market, and Washington and BIS seem to have follow-up restrictive measures.
When Wang Ningguo talked about this in private with many SMIC senior executives, he felt a sense of empathy and tragedy.
Yike has long proven that it has the ability to stand on top of the world, and Ice Core has also worked hard and plainly to catch up to the world's most advanced level. The sweat, tears and even luck involved in this process are immeasurable.
If Yike and Bingxin were really defeated in the business competition, no one would be unconvinced. However, it is the official agencies that are taking action this time. They do not hesitate to amend the existing laws to curb the development of the two companies. It is really disappointing.
anger.
Under such circumstances, Yike really needs an alternative with at least 16nm production capacity.
When Wang Ningguo and Ji Kefei arrived at the conference room of Yike 23 and saw that 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 can maintain good competitiveness.
As for whether SMIC will follow in the footsteps of Ice Core...
Wang Ningguo's answer was: "Hey, take one step at a time and trade time for space."
All SMIC executives who arrived at the conference room nodded in approval.
It's just... when Fang Zhuo arrived in the conference room, and when he bluntly proposed suspending 16nm research and development and switching to 10nm technology, Wang Ningguo, Yang Shining and others' hearts suddenly exploded.
They looked at each other, only to hear Mr. Fang's voice continuing to ring in their ears.
"As long as SMIC breaks through 10nm, Yike will gain a lot of time to compete."
"Next year will still be the 16nm era, and the breakthrough of 10nm means that our technology will not fall behind in the two years of 2017-2018."
"In this way, Yike's research and development in PCs, servers, mobile phones, etc. can be combined with technology to achieve breakthroughs in many aspects and create a new blood circulation system."
Yike lost the US market, which is undoubtedly a major loss.
There is no hope for this market to come back in the short term, and it will only be possible after a complicated struggle. Yike cannot only hope to tap the domestic mobile phone market, but must also open up more businesses to make up for its 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 make more strategic breakthroughs in To B business.
The basis for this breakthrough must still be based on the guarantee of advanced technology.
The achievement of the two nodes of 16nm and 10nm is enough to ensure competitiveness for a considerable period of time.
Wang Ningguo, Yang Shining, Zeng Zonglin and others listened silently, this, this...
To be honest, everyone has guessed that it is related to the intensity of technology research and development, but Mr. Fang, you are too diligent!
Wang Ningguo also wanted to express his opinion. SMIC wanted to take a step forward, not a step away...
Is this step too big for this run?
Stop 16nm R&D?
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... Isn't this risk a bit 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 became 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 leader of Yike who was in crisis, a shareholder of SMIC, the founder of Bingxin, and the leader of Mainland Semiconductor: "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 research and development of 10nm, 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
I agree that it will 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, she just hopes that it will be paid more reasonably, so that a step-by-step approach can better ensure the supply of production capacity in the future.
Even if SMIC is restricted by then and enjoys the same treatment as BingXin, its operation will be guaranteed until at least 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. He was 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, which made me feel 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 everyone 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 showed up, 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 Taiwanese media have 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 R&D situation, "Now that we are at SMIC, your 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 is avoiding American equipment to a certain extent, but SMIC has not done 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 question.
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 eggs in the same basket" needs to evolve into a more ultimate resource integration.
The orthodoxy of Zhongxin lies in the ice core, and the orthodoxy of ice core lies in the two cores of Zhongxin.
Anyway, they are all limited, so what else is there to say? It is better to integrate them together to exert greater power.
This is his new thinking after being inspired by Professor Hu. He has not yet communicated with SMIC and plans to see the situation and then adapt measures 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, and the truth will be ranked behind them for the time being.
…
There are no obstacles to SMIC's affairs, or in other words, obstacles have preconditions.
Liang Mengsong will lead the team to secretly develop 10nm and quickly finalize and implement it. He will still take care of part of the ice core process optimization work, but the main focus needs to be transferred to SMIC first.
At the same time, the limitation of photoresist in ice cores has attracted increasing attention.
People in the industry know how serious the situation is, and outsiders can also know the same after going through popular science.
It is now the last month of this year, and Yike has basically completed its withdrawal from the US market. All major products have been basically cleared by operators and channel dealers, and there have even been price increases before Christmas.
There is nothing wrong with Yike's products. Now that the world's number one attribute is coupled with the invisible sign of "out of print", it will naturally become even more popular.
Unfortunately, there is no way to restock this time.
On December 25, Time magazine unexpectedly published a cover article on Christmas Day, becoming the only media to interview the head of Yike in recent times. It was also rare for Fang Zhuo’s own views to appear in American public opinion again.
above.
"Washington is definitely going about it the wrong way."
"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 not too distant future."
In the cover article, reporter Fang Zhuo asked: "Mr. Fang, are you so sure that BIS is wrong?"
Fang Zhuo responded: "Yes, the media can discredit my 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 'blockade' poison is more toxic."
"Mr. Fang, when do you think the 'near future' will be?" The reporter's last question.
Fang Zhuo ended the interview with this answer: "When you think it is very necessary to interview me next time, then the countdown will begin."
