Reinventing the Millennium.

Chapter 1441 Finalized (4k)

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

Thinking in this way, it seems that SMIC should indeed play a greater role.

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

Time is about to enter 2016. Looking into the future, there is still one year left in Aobi's term. After all, he could not ignore the existence of Yike and Bingxin this year. He reluctantly approved the actions of BIS and other institutions, effectively restricting the two top companies.

This restriction is indeed powerful, but it is also a routine and predictable action that only pinches the tip and does not expand.

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

In this case, then...

On December 12, after much consideration, Fang Zhuo agreed with Professor Hu's strategy of changing companies and invited SMIC's senior management to a meeting, including CEO Wang Ningguo, CTO Yang Shining, CFO Zeng Zonglin, CMO Ji Kefei and others.

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

Ultimately, development can solve or cover up many necessary and unnecessary problems.

At that time, Fang Zhuo said to the two of them separately, "The situation is not completely irreconcilable" 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, this solemn high-level meeting is the first after the "SMIC Change".

Wang Ningguo came with Ji Kefei by car. On the way, they discussed and speculated about the theme of this meeting and believed that it would still be about technical cooperation.

Everyone has seen the recent turmoil and difficulties of Yike and Bingxin, especially the supply cut of photoresist, which is already quite fatal.

It’s not that Mr. Tai, Yi Ke and Bing Xin have no confidence, but the more they are in the industry, the more they understand how dangerous the current situation is.

Without photoresist and alternatives, the most advanced technology will inevitably be gradually reduced or even discontinued, and the consumer electronics products that rely on it will inevitably not be able to be brought to market.

In addition, Yike has already withdrawn from the US market, and Washington and the BIS seem to have subsequent restrictive measures.

When Wang Ningguo privately talked about these things with many SMIC executives, he all felt 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 working hard and simply to catch up to the world's most advanced level. The sweat, tears and even luck involved are immeasurable.

If Yike and Bingxin really lost in the business competition, no one would be dissatisfied. However, it was the official agencies that took such blatant action this time. They were willing 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 option with at least 16nm production capacity.

After 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 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 trade time for space.”

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

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

They looked at each other, only to hear 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 time to compete."

"Next year will still be the 16nm era, and the 10nm breakthrough means that our technology will not be outdated in 2017-2018."

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

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

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

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

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

The achievement of the 16nm and 10nm nodes is sufficient to ensure competitiveness for quite some 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 technological research and development, but Mr. Fang, you are exaggerating!

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

Are my steps too big when running?

Stop 16nm research and development?
Not to mention that SMIC has already invested in this area, the research and development of this node alone is based on the fact that ice cores have already made breakthroughs, so everyone has confidence.

Now we are working on 16nm without even figuring out 10nm. Although Bingxin will obviously provide help, Bingxin itself hasn’t figured it out yet... Isn’t this risk a bit too big?

This is not a simple decision, but one that concerns SMIC's technology route and its development for at least the next four to five years.

The meeting room fell silent.

Fang Zhuo looked around at everyone at SMIC, and just as he was about to call out their names, CFO Zeng Zonglin spoke up.

"Mr. Fang." Zeng Zonglin was very grateful and absolutely grateful for Mr. Fang's help to SMIC. Whether it was the stability of management operations or the cooperation in technology, this was extremely rare, but...

I love Mr. Fang, but I love the truth more.

He weighed his words carefully, trying not to offend the head of Yike, a shareholder of SMIC, the founder of Bingxin, and the leader of mainland semiconductors who was in crisis: "SMIC's research and development on 16nm has seen initial progress, and its profit growth in the past two years has also been good. At this moment, switching to the research and development of 10nm may send a negative signal in terms of finance."

Fang Zhuo took a sip of tea.

Zeng Zonglin was relieved to see that Mr. Fang did not refute him. As he was considering his words, he noticed the approving look of CEO Wang Ningguo opposite him.

He still controlled his tone and discussed tactfully: "SMIC has the hope of mass-producing 16nm next year. With the help of Bingxin, this time may be earlier. If SMIC lands on 16nm, I personally strongly support it to be manufactured by Yike."

What does it mean to be an OEM for Yike?
This means that if SMIC does this, it may also face restrictions from Washington.

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

Zeng Zonglin is not unwilling for SMIC to make efforts, but he hopes that the efforts will be more reasonable. This step-by-step approach seems to be able to better guarantee the production capacity supply for some time to come.

Even if SMIC is restricted by then and enjoys the same treatment as Bingxin, it will at least be guaranteed to operate until mid-2017.

Isn't it that time is fought for and squeezed out bit by bit?
"The industry is a chess game, and SMIC's 10nm breakthrough is of greater strategic significance." Fang Zhuo said slowly, "At this stage now and in the future, I hope that everyone will look at the development of the industry and enterprises from this perspective."

Zeng Zonglin pursed his lips and hid in the meeting room for a while.

Wang Ningguo looked at Yang Shining who was thinking, looked at Zeng Zongli who was lowering his head, thought about Bingxin's situation, and thought about Mr. Fang's determination to do things, and felt his scalp tingling.

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

Fang Zhuo glanced at SMIC's CEO and said simply, "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, it was nine fifty-nine.

He raised his cup to drink tea.

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

He didn't sit down either. He glanced at the people attending the meeting in the conference room and said concisely: "I have confidence."

Four words, just four words, but the senior executives of SMIC seemed to have piled up layer upon layer of confidence in their hearts.

Dr. Liang's appearance was obviously about the 10nm research and development, and it was also obvious that he would be the one leading the team this time. Otherwise, Mr. Fang would not have taken it so seriously and would not have made such a request.

Who is Liang Mengsong?
He was once abandoned by Taiwanese reporters, but in recent years the Taiwanese media have frequently lamented his departure, considering it a major setback.

As the current leader of Bingxin technology, since he joined Bingxin, formed a team, and took over research and development, the progress of advanced processes has shown rapid development.

The technological development of ice cores is certainly not the result of just one person’s efforts, but Liang Mengsong’s contribution is absolutely indispensable.

Such a person deserves and indeed gains recognition and respect from people in the industry.

The atmosphere in the conference room suddenly changed.

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

Wang Ningguo said solemnly: "What I want to say is that we are all from the same family."

He stood up from his seat, applauded, and continued, "Welcome Academician Liang to SMIC to give us guidance."

Other people in SMIC had no intention of applauding at this time, but since the CEO took the lead, they had no choice but to follow suit.

Liang Mengsong curled the corners of his mouth but didn't say anything unpleasant.

"Dr. Liang will lead the team to prioritize the development of 10nm. Bingxin already has a certain foundation. According to our original plan, if everything goes well, we hope to start trial production in Q2017 of 1." Fang Zhuo introduced the development of Bingxin. "Now we are at SMIC. Your equipment is even more advanced. If we are optimistic, SMIC may still be able to ensure the progress of Q1."

SMIC now has not only ASML's lithography machines, but many other equipment are more advanced than Bingxin's. This is because Bingxin is avoiding American equipment to a certain extent, but SMIC does not do so. The most important thing for SMIC is to keep up with the progress of technological research and development.

Based on this situation, Liang Mengsong's team leading the secret research and development at SMIC this time may not delay the final mass production.

If SMIC can make a breakthrough and Bingxin continues to make process adjustments and optimizations, it basically means 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 ICE and SMIC. The original "don't put all your eggs in one basket" needs to evolve into a more extreme integration of resources.

The orthodoxy of the core is in the ice core, and the orthodoxy of the ice core is in the core, which is a combination of the two cores.

We are all restricted anyway, so what else is there to say? We might as well merge together to exert greater power.

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

The atmosphere in the conference room became heated.

Zeng Zonglin participated in the discussion and summarized the situation.

I love Mr. Fang and Academician Liang. Truth will temporarily take its place behind them.

……

There are no obstacles to SMIC's business, or rather, any obstacles have prerequisites.

Liang Mengsong will lead the team to secretly develop 10nm and quickly finalize and execute it. He will still take into account some of the process optimization work of Bingxin, but his main focus needs to be shifted to SMIC first.

At the same time, the limitations of photoresist in ice cores have received increasing attention.

People in the industry know how serious the situation is, and people outside the industry will also know the same after receiving scientific research.

Now is the last month of this year, and Yike has basically completed its withdrawal from the US market. All major products have been basically cleared out at the operators and channel dealers, and there has even been a price increase before Christmas.

There is nothing wrong with Yike's products. Now that their global No. 1 attributes are coupled with the invisible mark of "out of print", they are naturally even more popular.

Sadly, there is no way to restock it this time.

On December 25, Time magazine unexpectedly published a cover article on Christmas Day, becoming the only media outlet to interview the head of Yike in recent times. It was also a rare occasion that Fang Zhuo's own views appeared in American public opinion again.

“Washington is definitely taking 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 they overcome the 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 responded: "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 already achieved extraordinary achievements. Isn't this like two cups of poison?"

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

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

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

(End of this chapter)