Reinventing the Millennium.

Chapter 1440 Technology Never Sleeps (6k)

Yi Ke and Bing Xin faced problems in many aspects. Even though Fang Zhuo had made a lot of preparations, he still felt pressured when faced with such swift and precise restrictions from BIS.

These unconventional competitions are not static and may cause chain reactions, which requires us to be careful.

Bingxin is troubled by the supply of photoresist and has encountered a not-so-good operating time limit. Yike's problems will be transmitted more slowly, but it is already withdrawing from the US market step by step. Apart from them, Yike's competitive situation in domestic e-commerce seems to be suddenly brightening.

A live broadcast with huge traffic by the head of Yike further promoted the fame of Douyin, and along with it also started the vibrant live-streaming e-commerce, which attracted many third-party merchants and bloggers who have accumulated fans in the past year.

Among them, Li Guoqing was the one who acted the fastest.

Ever since he joined the short video platform, he has been thinking about the realization of commercial value. He has experience in e-commerce and is relatively well-funded and has no shortage of resources. When he suddenly saw the performance of Douyin's traffic conversion, he only observed it briefly and then started another business with great fanfare.

I have worked in e-commerce, group buying, and investment. I have a lot of experience. I have drank with major Internet leaders and have been Mr. Fang’s opponent. Now I have learned to laugh at myself and know how to mingle on the Internet...

If we don't start our business while the opportunity presents itself, wouldn't it be like not taking advantage of what heaven has given us, and instead suffering the consequences?
No, Li Guoqing is even more cautious.

He had been tortured many times, and before making up his mind this time, he seriously sent a long Yixin message to Mr. Fang, introducing his situation, expressing his views on e-commerce live streaming, and showing his hope to develop well on the Douyin platform. Finally, he expressed his desire to hear Mr. Fang's opinions.

Perhaps it was because Mr. Fang was too busy recently, the Yixin message did not receive a reply until a day later, which made Li Guoqing's mood, which had been gradually sinking, suddenly warm up again.

"Qingzi, you are too polite. Live streaming e-commerce has a good future. You can definitely do it if you have experience. You just need to pay attention to ensuring the quality of the product so that it can last longer."

Li Guoqing even pasted this reply from Mr. Fang directly in his latest video, and also widely solicited names for the new company from netizens.

——Mr. Fang really calls you "Qingzi"? ?
——Just call it "Qingzi Selection", and if you agree, please like it so that Qingzi can see it.

After soliciting opinions in this way, because of the huge difference in the popularity of the answers, Li Guoqing simply implemented his "online sense" to the end and started the "Qingzi Selection" in a daily updated format.

The blossoming of such an old tree of an old pioneer in Internet business is just a microcosm of the development of Douyin's live e-commerce. The Double Eleven event of Yike has proved the feasibility of new traffic platforms in e-commerce, and Yiguo can even provide part of the warehousing and excellent logistics services. In addition, Alibaba has focused on Tmall in the past two years, so what reason is there not to give it more tries?
Tmall was the first to launch live streaming e-commerce, but Alibaba's entire e-commerce traffic is still a problem. It is naturally stronger than Yiguo, but the traffic of social media platforms is not on the same level. When this kind of traffic can be converted into e-commerce, the trend of strength and weakness has been reversed.

Alibaba's expansion momentum this year is very strong. However, when Double Eleven is over, industry insiders have discovered a new situation. Alibaba seems to be slowing down its competition in other markets. Moreover, its stock price, which has been rising overall since its listing, has suddenly come to a halt.

The reason is not mysterious. The counterattack against Alibaba's core business by Yike Group, which has gathered resources from Yixin, Yiguo, Douyin, Mituan and other companies, has made Alibaba's future unclear.

I originally thought that Yike was in a serious crisis and the domestic market would shrink significantly, but looking at the current situation... Yike is in crisis, but it has a way to make its competitors suffer as well...

"Ali's traffic theory" and "new era of live streaming e-commerce", these remarks that appeared before Double Eleven, have once again become popular.

Fang Zhuo's working time is almost all allocated to Bing Xin and Yi Ke, but after get off work, he can still hear Teacher Xiao Su's informal reports.

Naturally, he was happy to see this happen, but because the difficult problems at hand were not solved, his joy was just like a small ripple on the surface of a lake.

On December 12, just as Fang Zhuo hurriedly finished his meeting and was about to fly to Beijing, he suddenly received a call from Professor Hu Zhengming, informing him that the other party had arrived in Shanghai and wanted to talk about the situation of the ice core.

Fang Zhuo was a little surprised, so he changed his schedule and waited for Professor Hu.

Hu Zhengming is currently in a semi-retired state at Bingxin. On the one hand, he is still researching the optimization of FinFET processes, and on the other hand, he is devoted to education and scientific research.

At ten o'clock in the morning, Fang Zhuo met Hu Zhengming and felt that he was in good spirits.

He was just about to say hello when he heard Professor Hu's teasing.

"Mr. Fang, thank you for your hard work." Hu Zhengming stepped forward and shook hands very solemnly.

"It's not hard, it's mainly because everyone is working hard." Fang Zhuo felt that the old professor was quite formal today.

Hu Zhengming sighed: "You have fallen to the point of performing live on the Internet, and it's not hard for you."

"Well...if the number of people watching me perform rises to several million, it won't be called performing anymore." Fang Zhuo said with a smile, "It's called a new attempt of public media."

"Mr. Fang, you are saying this." Hu Zhengming gave a thumbs up and turned to the main topic, "Once the photoresist is restricted, Bingxin will have a difficult time in the next two years."

"If two years is a definite number, then this time is not too difficult." Fang Zhuo smiled, "If the people in Xinyang Luzhou told me that they could produce usable photoresist 730 days from now, we would all drink two glasses now."

"Photoresist is indeed a problem," Hu Zhengming mused, "but now there are companies that don't have photoresist problems."

"You mean to temporarily transfer it from SMIC?" Fang Zhuo thought about what Professor Hu meant and said, "Not only do we know the time limit of Bingxin's photoresist, but others also know it. Moreover, SMIC's 16nm still needs time. Sometimes, being too advanced is also a problem."

Hu Zhengming smiled and nodded. Bingxin is too advanced now.

In addition to the restrictions caused by this factor, such as the current photoresist problem, other processes can still find ways to borrow. The photoresist required for Bingxin's 16nm process is different from the photoresist used by SMIC's 20nm process.

The former requires higher resolution and better light absorption and pattern transfer.

If the photoresist used in SMIC's 20nm process is directly moved to Bingxin's 16nm process, it will affect the chip's dimensional accuracy and circuit integrity. It will also be difficult to have a standard contrast in finer structures, which will make it difficult to distinguish between patterns and backgrounds during the development process.

In addition, there are compatibility issues between different processes, and process defects such as residues, bridging or missing parts may occur.

These combined problems will lead to a significant drop in yield, and even if a lot of process parameter adjustments and optimization work is carried out, the production cost will rise sharply to an unacceptable level.

Bingxin uses the second-generation FinFET 16nm, which is still the best in the world. This also brings the problem of being too advanced and difficult for the mainland industry to match.

It is hard to blame the domestic industry for this. Under the global division of labor in the industry, the photoresist market is dominated by American and Japanese manufacturers, and you cannot buy usable photoresist even in Europe.

Similarly, Samsung faced a situation where Japan cut off the supply of materials such as photoresists, which it was unable to resolve. Ultimately, it took many rounds of mediation between South Korea and Japan to finally reach an agreement.

In 2012, Bingxin promoted domestic manufacturers to jointly create "core materials" in an attempt to solve the bottleneck problem. Although some results were achieved, they were still not satisfactory. In the end, they could only continue to personally participate in the research and development of "core materials" and continue to work towards the goal.

This process has been going on for three years, and no one can guarantee how long it will take to achieve a breakthrough in the future.

Fang Zhuo poured tea for Professor Hu, and the two drank the tea in silence for a while.

While Professor Hu was drinking tea, Secretary Liu came in to take a look, and he further elaborated on his ideas about ice cores.

"Mr. Fang, I think BIS and the Japanese manufacturers it drives are only targeting the ice core this time. Photoresist is a sharp issue, but if the scope is expanded, we may also face counterattacks in many fields." Hu Zhengming said, "So, BIS only wants to attack the most prominent ice core."

Fang Zhuo nodded slightly. That's right. Although BIS extended its jurisdiction by modifying the FDP, it does not control everything. It just hangs a sword that can fall at any time. What it really controls are several aspects of the equipment, technology, and materials of the ice cores, and the most acute of these is the time-sensitive photoresist.

"In this case, since the ice core may really reduce production and stop production now, if the mountain doesn't come over, I will go over there." Hu Zhengming said slowly, "Let's make the technology more mobile."

"BIS has concerns and is only targeting Bingxin, and is unwilling to launch a full-scale attack. So we will take advantage of this period to speed up SMIC's technological research and development."

"SMIC not only has photoresist, but now also has NXT:2000i, which is more advanced than Bingxin, and is even the most advanced lithography machine besides EUV."

"The SMIC platform can achieve greater results. We have the power to more quickly promote SMIC to become a backup manufacturer for ETek, and we also have the opportunity to continue to develop more advanced processes."

"Although many of SMIC's equipment are American, we will first solve the problem of whether we have them, and then solve other optimization problems. Yield can be sacrificed anyway."

"Since the BIS has concerns and does not want to or dare to impose measures on a larger scale at this time, whether it is due to election factors or conflicts of interest, we must seize this limited time to keep technology awake."

"Mr. Fang, you were right not to push for the merger of SMIC and Bingxin before. If we can continue to push the process forward on the basis of SMIC, the situation will be different."

Hu Zhengming said this with a smile: "The orthodoxy of SMIC is in Bingxin, and the orthodoxy of Bingxin can also be in SMIC."

Fang Zhuo understood what Professor Hu meant and said slowly, "Professor Hu means to ask Dr. Liang to bring people to SMIC?"

Hu Zhengming nodded: "You have discussed with Taiwan's UMC to let Liang Mengsong go there as a consultant. Why can't SMIC do the same? Are you worried that SMIC will also be restricted? If so, how much worse will the situation be than it is now?"

He got up from the sofa and paced around the office: "Huali's first phase of beautification of 45nm can even run a competitive yield. Bingxin gradually has experience in adjusting equipment processes. Xinyang Luzhou's research and development will definitely produce results. We can have a DUV+SAQP 10nm solution based on the current foundation. This is not its limit. How can it get worse?"

Hu Zhengming looked at Mr. Fang and said with a smile, "Mr. Fang, do you think the situation can get worse than it is now? Looking back, this stage is the most difficult."

SMIC also failed to buy EUV, but it got the NXT:2000i, which is more advanced than Bingxin’s existing equipment. The latter’s DUV+SAQP solution has been advanced to 10nm and is expected to continue to expand to 7nm.

Bingxin's existing 16nm process can guarantee excellent competitiveness throughout 2016 and provide good competitiveness for 2017 products. If it goes one step further, it will take at least another two years.

Not counting 7nm, just looking at the two process nodes that are being optimized and developed, it takes 4 years.

Hu Zhengming absolutely does not believe that there is such a foundation, and the situation four years later will be worse than it is now.

Fang Zhuo thought for a moment, nodded in agreement, and said thoughtfully: "Then I will talk to Dr. Liang to see how to allocate time and team."

"Liang Mengsong will definitely not be reluctant. After all, he is in the mainland, so research is done anywhere." Hu Zhengming said this first, and then continued, "In my opinion, he should not reinvent the wheel at SMIC, but go directly to the 10nm work, so as to maximize the results."

Fang Zhuo looked at Professor Hu and suddenly realized that the professor was communicating with him in a progressive manner.

He couldn't help but laugh and said, "Professor Hu, SMIC and Bingxin have made some progress in the technical exchange of 16nm. Now they are asking them to give up 16nm and switch to 10nm. There are many difficulties and risks involved."

"Don't you always say that SMIC and Bingxin are of the same blood?" Hu Zhengming said seriously, "You have been promoting the integration of industry resources in the past two years. This is the biggest integration. What is there to worry about? The industry is like a chess game."

Seeing that Mr. Fang remained silent, he continued, "What do you think is more strategically significant for SMIC to obtain 16nm production capacity or break through 10nm in a limited and unpredictable time?"

"One chess game is one chess game, and two companies are two companies." Fang Zhuo said helplessly, "SMIC is running well now. I came forward to stop it from carrying out research and development as planned, but this..."

"Boss Fang, kindness is not the key to success. Why can't you be ruthless now?" Hu Zhengming frowned and said, "Just think of it as Nokia, Sony, Penguin, Alibaba, etc...."

Fang Zhuo stopped Professor Hu's lobbying: "Hey, hey, professor, that's enough, let me think about it."

He added: "You are talking about rivals, this is a friendly competitor."

Hu Zhengming observed Mr. Fang's operation and said, "Friendly competitors are sometimes also rivals."

He continued, "Bingxin had the opportunity to acquire Zhongxin, and the higher-ups didn't object, right? Also, Mr. Fang, it was you who stopped Datang from acquiring Zhongxin before. Now I'm not asking you to do anything that would harm the world, but just take some risks. What's wrong with that?"

Fang Zhuo looked at Professor Hu helplessly.

"If you insist that this is a matter between the two companies," Hu Zhengming said jokingly, "if you acquire it maliciously now, no one will gossip about it, right?"

Fang Zhuo sighed: "I never meant any harm..."

The ringing of the cell phone on the table interrupted him.

Fang Zhuo took a look and saw that it was Larry from Google.

"No matter whether it is with good intention or bad intention, who can say anything about you at this time?" Hu Zhengming said before Mr. Fang answered the phone.

Fang Zhuo indicated that they could talk later.

But as soon as he dialed the phone, he heard Larry's furious voice.

"Fang Zhuo!!"

Fang Zhuo couldn't help but move the phone slightly away from his ear.

Hu Zhengming originally wanted to take a walk outside the office, but when he saw that he could hear the loud voice from the other side even without any external sound, he changed his mind and sat back on the sofa.

"Larry, what's wrong with you?" Fang Zhuo wondered. This didn't seem like a reaction to any new news.

"Fang Zhuo!! I thought too highly of you!" Larry was furious.

Fang Zhuo was really confused: "What's wrong with me?"

"Who is behind the German map company that Yi Ke wants to acquire?!" Larry asked.

Fang Zhuo was no longer confused. Oh, this is it.

He replied: "Yi Ke has not acquired it yet, it has just been approved, we may not acquire it."

"I'm not asking you about the acquisition, I'm asking you if you are behind that company!" Larry said word by word.

Fang Zhuo pondered over what kind of answer the other party wanted.

Larry had read the answer from the silence. He sneered, "Fang Zhuo, Mr. Fang, you really never take the interests of your partners into consideration."

Fang Zhuo glanced at Professor Hu sitting on the sofa on the other side.

Hu Zhengming noticed this scene. Although he could not hear what the person on the other end of the phone was saying, he suddenly had an idea. He wondered if Mr. Fang was thinking about what he had just said, "Friendly competitors are sometimes also rivals."

"Yi Ke didn't acquire it, and this CM company doesn't have much market share. I don't understand why you are so angry now?" Fang Zhuo first wondered, then questioned, "Is Google planning to cut ties with Yi Ke? Are you trying to harm me?"

Larry laughed angrily: "Who wants to cut off? Who created YMS in China? Who secretly created a map company in Germany? Who wants to harm whom?"

"I want to build YMS? It's you, Google, that can't do it in China! What's wrong with a German company? It has some of my investment! Can't I invest in it?" Fang Zhuo retorted, "Google has such a large global ecosystem, why would I want to build another map without any thanks? Why should I?"

"Is it your investment or your people?" Larry kept on dwelling on this point.

"You're nosy. Okay, okay, I mapped Germany by driving road by road. So what?" Fang Zhuo also raised his voice. "As long as Google doesn't abide by the contract, Yike will have no choice but to fight back. As long as Google abides by the contract, Yike will never fight back. It's that simple."

"Fang Zhuo, Fang Zhuo, Fang Zhuo..." Larry was unable to catch his breath and could only repeat Fang Zhuo's name. Google had already spoken for Yi Ke at the Washington conference, and he had also personally communicated with the White House and had already taken on the pressure. He never expected to receive news from Europe and noticed that one of the senior executives of the new German CM Maps company was a Chinese from China's AutoNavi.

Gaode Company has now been acquired by Yike and has become an important member of Yike YMS.

With just this one piece of news, Larry didn't need to look for any other evidence. He was almost 100% sure that it was from Mr. Fang. He was shocked and angry for a moment, so he made the call.

Larry finally recovered and said, "This CM Maps company has been running for two years. Fang Zhuo, there is no basis of trust between our cooperation, right?"

"I trust you very much, Larry. What Google has achieved today is rare in the world." Fang Zhuo said, and then said, "I just don't trust Google's CEO Schmidt. He is very unpredictable."

"Can I be more unpredictable than you?" Larry said sarcastically. Just as he was about to continue, he suddenly realized, "No, I was the CEO two years ago, not Schmidt!"

"But Schmidt is still the chairman of Google, still a technical advisor to Google, still has great influence, and he has also joined the Pentagon project." Fang Zhuo said confidently, "Am I the only one who is concerned about his close relationship with the military? Where does he stand?"

Larry was silent.

Fang Zhuo reiterated: "I won't hurt others unless they hurt me. Larry, you can't point a gun at me and not allow me to have a stick in my hand, right? Do you think you are crazy or I am crazy?"

Larry's anger subsided a little. He no longer wanted to ask questions or continue the conversation. He did not answer Mr. Fang's question, but finally said, "Mr. Fang, Yi Ke had better stay strong."

"Thank you for your blessing. I will keep fighting with your blessing." Fang Zhuo responded.

call ended.

Fang Zhuo threw the phone back onto the desk.

"Friendly competitors?" Hu Zhengming asked these three words.

"Yes, friendly business." Fang Zhuo was stunned. "What were we talking about just now?"

Hu Zhengming said seriously: "We just talked about you convening a SMIC meeting to introduce Academician Liang Mengsong to them."

Fang Zhuo couldn't help but burst out laughing.

After he finished laughing, he shook his head and said, "Larry hopes that Yi Ke will continue to be strong. Ha, they'd better kill Yi Ke directly. Otherwise, after Yi Ke recovers, they must come one by one."

Hu Zhengming took a sip of tea: "For example?"

"If the limitation of photoresist on 16nm is solved, I will start with Intel. Yike is already developing CPUs for notebooks and digesting AMD's ZEN." Fang Zhuo picked up the teacup, "Intel is a guy who wants to take advantage of me!"

He continued without hesitation: "As for Samsung and others, Yike needs to delegate chips to them and vigorously attack their domestic market!"

"SMIC should make greater efforts in technical cooperation and make the industry a whole, and strive to take over the market share of GlobalFoundries and UMC! Don't live anymore, don't live anymore!"

"Who else, who else, there is Nvidia's computing card, it is more appropriate for Yike to use its own card for training data! There is also AMD's server chip, Yike's Jiuzhang must be pursued!"

"Come one by one! Come one by one!"

Fang Zhuo paced with a teacup in his hand like a beast foraging for food, the name constantly surging in his mind, as if he was tracking the scent of prey.

Hu Zhengming looked at Mr. Fang, whose eyes were red with anger, and suddenly asked, "Isn't AMD a partner? It has obtained a license to cooperate with Bingxin."

"Oh, right." Fang Zhuo stopped and drank half a cup of tea, then suddenly sighed, "Hey, we are friendly business partners, it's just a matter of convenience."

(End of this chapter)