Chapter 289 I'll Pour Hot Oil All Over You: A Trip to Tokyo

The downfall of Mr. Zhou was like a domino effect, with one falling and a whole string of others following suit.

On May Day, at the celebration, Zhou, the Party Secretary of Shougang Group, announced on the spot that he was resigning from all positions due to his advanced age so that he could enjoy his retirement.

Shougang's public announcement also emphasized that Secretary Zhou was getting old and was voluntarily retiring in accordance with the central government's call.

But no one believes this claim, despite the rumors circulating.

For most people, being over seventy would indeed mean retiring and returning to their families. But this is Secretary Zhou, the Secretary who famously said he'd rather die at his desk.

How could he possibly care about enjoying his grandchildren? In his heart, Shougang is probably his home, his child.

His ignominious departure also became a symbol of the end of an era.

Starting with him, purges followed one after another. Not only was there a massive internal reshuffle at Shougang Group, but two members of the secretarial faction in Beijing were also taken away in succession.

Some of them had served as secretaries to top officials, others as secretaries to mayors, and some were even cadres from Beijing's State Security Bureau.

Times change.

Last year's Deng Bin case didn't escalate and didn't bring him down, but this year it's finally his turn.

Wang Xiao was oblivious to the bustling activity in Beijing. Because matters like "double regulation" (a form of internal party discipline) are rarely mentioned in the news unless they reach a certain level.

All the information was leaked internally; outsiders only heard rumors.

Unfortunately, in this era, objective conditions have not yet cultivated internet users, so people can only spread information by word of mouth, which has a limited reach.

While things seemed to be happening in the mainland as if nothing had happened, Hong Kong was in an uproar, with various media outlets reporting extensively on the dramatic events in Beijing.

It's not that Zhou Gongzi (Zhou Ruyi) really has that many die-hard fans in Hong Kong. No matter how handsome or muscular he is, Hong Kong has plenty of them.

Besides political events, the media's focus is mainly on the economy, particularly stocks.

On October 23, 1992, Shougang Group went public through a reverse takeover. Dongrong Steel (Shougang stock) opened for trading and its share price soared from 0.92 yuan to over ten yuan.

Many Hong Kong investors who bought Dongrong shares made money.

If the head of a listed company gets into trouble, it will definitely affect the stock price. How can shareholders not care?

According to Tang Yicheng, stock market investors are the most anxious people.

However, Wang Xiao had no time to pay attention to the undercurrents in Beijing or the bustling activity in Hong Kong.

Extreme joy can turn into sorrow.

While she was engrossed in reading gossip, her home was burgled.

The promised STN-LCD production line from Sharp has fallen through.

What can Wang Xiao do?

The factory buildings are under construction, engineers have been recruited, and even the training of skilled workers has begun.

You're telling me now that the equipment can't arrive? Are you kidding me? Money isn't something you can just throw away.

Without saying a word, she put down her cane and flew to Japan.

She didn't feel ashamed at all. When the seller's market is greater than the buyer's market, it's perfectly normal to seek help from suppliers.

Xiaomi had been popular for years, but Lei Jun still flew to South Korea to beg Samsung to be lenient on the issue of phone screens.

How can you say that making money is shameful?

But Wang Xiao didn't plan to down three bottles of red wine right away; she met up with Yamashita Shichiro first.

Some things are hard to say over the phone, but you can always make them clear face to face.

The tatami room has a thick wool carpet on the floor, with square seating trays placed in the four corners. The room is lit entirely by hanging paper lanterns, with the light concentrated on the dining table, creating a dim, twilight-like atmosphere.

But Wang Xiao wasn't interested in that right now, and cut to the chase: "If the Ministry of International Trade and Industry won't allow exports to mainland China, can we go to Hong Kong instead?"

It's pointless for her not to ask why it's not allowed.

If you're looking for reasons, you can always find all sorts of excuses. But if you give these reasons without any logic, and people argue with you until a conclusion is reached, it'll be too late.

Since this path is blocked, let's try another one.

As for how to transport it from Hong Kong to Jinning? That's another matter.

To put it simply, let's look at when the Xiamen Yuanhua case started: 1994, which is this year.

Why 1994? It can't be a coincidence.

Starting April 1st of this year, Coordinating Committee for Multilateral Export Controls (COCOM) was officially dissolved.

Yamashita Shichiro looked worried and sighed, "It won't work. The company's opinion now is more inclined to invest in and set up a factory in mainland China to produce LCD screens directly."

Why? Because the successful launch of Shougang Nippon Electric's production line spurred Sharp's top management. Executives generally believed that joint ventures were the best way to further penetrate the Chinese market.

“Miss Wang,” Yamashita Ichiro tried to persuade her, “If we form a joint venture, Sharp can provide more technical support, and we can start production very quickly.”

Wang Xiao shook his head without hesitation: "No, I don't like being managed. There's nothing wrong with Shougang NEC, it's just that in actual production, Shougang is completely an executor of NEC. I can't stand that."

A soft knock sounded on the shoji door, and a waitress in a dark blue kimono came in to collect the plates.

She was wearing wooden clogs, but because she was walking on her toes, she was almost silent.

Wang Xiao admired the waitress's balance; carrying trays of all sizes, she walked steadily.

The arrival and departure of the waiters eased the tense atmosphere in the private room.

Wang Xiao's expression also calmed down, and he lightly tapped the table with his finger: "Mr. Yamashita, our orders are synchronized. If Sharp cannot meet our needs, we will probably have to look for others. Of course, I still hope to cooperate with Sharp."

The bronze incense burner placed in the niche emitted a faint scent of incense sticks, which mixed with the fragrance of iris roots, creating a complex aroma.

The sound of flowing water in the courtyard drifted into the private room through the cypress wood planks.

The sake that Yamashita Ichiro had just drunk felt like it was stuck in his stomach.

He knew perfectly well that the Chinese businesswoman sitting across from him would truly keep her word.

Otherwise, she wouldn't have needed to make the trip to Tokyo herself.

Wang Xiao smiled at him and said slowly, "Of course, Mr. Yamashita, you can continue to find ways to expand the in-vehicle screen market in China. In any case, I wish you all the best."

Yamashita Ichiro now felt the sake stuck in his stomach rising up.

He had certainly tried to market Sharp's in-car screens to taxi companies, but unfortunately, it didn't work out; the taxi companies showed absolutely no interest.

As for his attempt to persuade the other party by citing the example of Japanese taxis, the other party simply replied that the situation in China is different from that in Japan.

Wang Xiao wasn't afraid that Yamashita Ichiro would find a taxi company alone, and that's precisely why.

The national conditions are different.

The domestic taxi market is currently only about two years old, and it is a seller's market rather than a buyer's market, so there is very little competitive pressure among taxis.

With drivers having no worries about making money, taxi companies are also raking in huge profits from their share of the revenue.

If that's the case, why would the company spend two thousand yuan per car to install a so-called in-car screen?

Two thousand yuan isn't much money; a car costs two thousand yuan.

Such a large expense, in a state-owned enterprise, unless the leader acts arbitrarily, would take forever just to go through the procedures.

Why would someone create trouble for themselves?

Of course, at this moment, in front of Wang Xiao, Yamashita Ichiro would never admit that his attempt to poach Wang Xiao's girlfriend had failed.

He repeatedly emphasized, "Miss Wang, I really want to work with you, otherwise I wouldn't still be in Tokyo now."

Wang Xiao poured himself a glass of sake, smiled slightly, and raised his glass: "Then let's toast to our cooperation."

Yamashita Shichiro looked worried: "But now I don't know how to convince the company. Shougang NEC's chip success has given the company a significant boost."

Wang Xiao didn't put down his glass. Instead, he smiled faintly and said, "You mean Shougang? Shougang is really in a bit of trouble now. I wonder what will happen next."

This presents another information gap problem.

With only three years left until 1997, and given that Shougang's stock was issued in Hong Kong, the Hong Kong media paid close attention to the company's dramatic changes. Just interview any housewife on the street, and they'd all know that Shougang had undergone a transformation.

But in Japan, sorry, Shougang's presence isn't as strong.

At least Yamashita Ichiro, who was busy lobbying the higher-ups, didn't realize what it meant for Shougang to change its leader.

In his view, Chinese state-owned enterprises are completely different from Japanese family businesses. In China, changing the leader of a state-owned enterprise is like changing a local government official—no big deal.

Wang Xiao smiled and said, "The chip industry is a money-guzzling industry, and so is the LCD screen industry. In China, companies that have the courage to enter this industry must have a strong leader. Otherwise, it is difficult for the company to afford to invest a large amount of money but not be able to make a profit in the long term."

She raised her glass again, expressing her goodwill, "Let's wish Shougang Electric Power can hold on. After all—"

She laughed. "I went to their mass production ceremony. A very beautiful factory, a fantastic production line, and excellent workers. I wish them the best of luck."

With a "bang," the ceramic cups gently bumped together.

Yamashita Ichiro quickly calculated the pros and cons of the two options in his mind.

Partnering with Chinese companies to quickly capture the Chinese market through their sales channels is certainly a very good option.

In fact, Japanese companies have already achieved considerable success in this regard.

However, Miss Wang's words were not alarmist. The characteristics of the semiconductor industry determine that it is very different from other traditional industries.

Ichiro Yamashita even questioned whether China was truly suited to develop semiconductors.

After all, this country is characterized by its tendency to make do, patching things up for three years after new ones, then three years after old ones, and then another three years after that. They are too good at making do. "So-so, just passable, as long as it works" is what they always say.

Is it really acceptable for them to abandon a production line that costs hundreds of millions of US dollars after only a few years?

If their companies invest with only a momentary enthusiasm, they may not be able to sustain the investment for long and may want to give up.

So, wouldn't Sharp, which has already entered the market, be in a dilemma?

Conversely, selling off Sharp's obsolete production lines would at least guarantee a basic level of revenue.

Yamashita Ichiro filled his glass with sake again and raised it once more: "Miss, I wish our cooperation a great success."

Wang Xiao raised his glass, his smile deepening: "I hope this trip to Tokyo will bring me back with good news."

Business meals are much faster than regular banquets; this meal took them less than an hour in total.

After finishing his meal, Yamashita Ichiro went to the company to resume his lobbying efforts.

As for Wang Xiao and the others, they could go wherever they wanted.

Where to go? To a Chinese restaurant.

No, didn't they just have lunch? There were plates and plates of food spread all over the table.

Yes, it's a whole table of them.

But the problem is, it's Japanese food.

Japanese food is for display, not for eating.

One plate after another, just a tiny bit, not even enough to fill a tooth gap.

Since none of the bodyguards were full, the two bosses felt they could have a bite to eat.

So they went to their old acquaintance's shop without hesitation.

Who is this acquaintance? Xiao Hei, I guess.

Almost a year has passed since we parted ways in Hokkaido last summer.

Xiao Hei and his fellow villagers took the $150,000 reward they received for saving Wang Xiao and Ivanov during the Hokkaido tsunami and went to Tokyo to open a restaurant.

Although his family's main business is making bento boxes, they do offer dine-in service.

The shop is small, with only six tables in total.

The three incense sticks in the corner represent Guan Yu, not Mazu. It seems even deities have their own roles.

The screen in the innermost partition room is a poorly painted fusion of Mount Fuji and the Great Wall—with a panda carrying a sushi roll at the foot of the mountain.

That's really creative.

Unfortunately, even this one private room had guests, so they simply sat at the large table outside.

Sure enough, even after three years of famine, cooks won't starve; nine out of ten cooks will gain weight.

Last year, Xiao Hei was dark-skinned and thin, but less than a year later, Wang Xiao suspected that he had gained 20 pounds.

Unfortunately, the smoke from the fire was quite smoky, so even though he stayed in the kitchen all day, he didn't get any whiter; he was still just as dark.

Upon seeing Wang Xiao and Ivanov, he smiled so broadly that the fat on his chin began to tremble, repeatedly assuring them that he would definitely serve them his signature dishes.

The food served on the table made Wang Xiao, Xiao Gao, and Xiao Zhao question their existence.

Wait a minute, bro, you seem to be from Fujian. Are you sure you're serving Fujian cuisine? Mapo tofu and twice-cooked pork, it's clearly Sichuan food.

The kitchen was filled with the aroma of stir-fried chili peppers and fermented bean paste.

Xiao Hei chuckled, "This is the most popular Chinese dish. Otherwise, why would we still have new customers coming in at this hour?"

The sound of wind chimes rang out along with his words.

When Ivanov saw the person who had come, one word immediately came to mind—fate.

Look, he has made a point of avoiding the Chinese restaurant where Wu Haoyu had run into them when they last came to Tokyo.

As it turns out, even though they look just like you with a dog's nose, they can still find you even though you're miles away and it's not mealtime.

Wu Haoyu's heart skipped a beat when he saw Wang Xiao.

He and his colleague Chen Bin had just returned from Osaka and were starving, so they went to a Chinese restaurant to grab a quick bite.

He never expected to run into Wang Xiao here.

Chen Bin was much more enthusiastic than him, greeting everyone he met: "What a coincidence! I didn't expect to run into you here. When did you arrive in Tokyo?"

While he was speaking, his hand was still frantically poking Wu Haoyu's back.

Hey buddy, are you stupid? You don't even have a reaction when you see your girlfriend?

Did you break up? When did that happen? If you really broke up, why don't you consider that Ms. Zhao?

Wang Xiao nodded to Chen Bin: "Just arrived. You guys have been busy until now and are only now eating?"

Chen Bin felt that since his friend was really letting him down, he had to help him out.

He sighed, "That's right, I have business in Osaka."

Then, as if grumbling, he said, "Osaka is short-staffed, and Haoyu volunteered to go there, but the higher-ups didn't approve it."

Hey, beautiful lady, did you understand what I meant?

Comrade Wu Haoyu really had no intention of getting involved with that Ms. Zhao. He wanted to avoid her and had even applied to go to the consulate in Osaka, but he was unsuccessful.

Wang Xiao just smiled, seemingly uninterested in his topic.

Xiao Hei brought out more dishes and, seeing this, casually asked, "Would you like to sit together, or have a separate table?"

Chen Bin quickly pulled Wu Haoyu aside: "Sit together, sit together, so you don't have to set up another table."

Ivanov reluctantly shifted his position, thinking to himself: It's not cold in Tokyo in May, why do we have to squeeze together?

He could only gnaw on the duck head in frustration.

Fortunately, the braised duck head tasted good, salty, fragrant and delicious, with just the right amount of spiciness, which made even this Russian who doesn't eat spicy food finish half of it and then have another half.

The air was filled with the rich aroma of Sichuan peppercorns and sesame seeds released by the hot oil. Xiao Gao couldn't help but tease, "Hey, Xiao Hei, you can even make boiled fish? You might as well just change your name to Sichuan Restaurant."

Xiao Hei laughed and said, "Would you like a bowl of that too? -- Hey, I'll bring it over to you, be careful it's hot."

As soon as she finished speaking, the aroma of oil and Sichuan peppercorns wafted over.

Wang Xiao had his back to the kitchen when he heard a woman scream behind him: "Rat!"

Just as she instinctively tried to stand up, Xiao Gao across from her suddenly yelled, "Watch out!"

Then all she saw was darkness before her eyes as Lyuba shoved her head down.

So she didn't see that Xiao Gao's suit jacket, draped over the back of the chair, was covered in bright red oil soup.

That pot of magma-like oily soup was poured directly over Wang Xiao's head.

Without the protection of bodyguards, Wang Xiao would probably have been torn apart, instead of only having a drop of hot oil splattered on the back of his hand.

Similarly, the one screaming wouldn't be the woman behind her.

"What are you doing?" Xiao Zhao had already pinned down the young woman who was splashing hot oil on the boss. "What's wrong with you?"

The fashionable woman struggled, her left arm already covered in blisters, and her Chanel suit was smeared with fish slices and bean sprouts.

She shouted, "She suddenly stood up and bumped into me!"

Xiao Hei rushed over, quite startled: "Miss, you were sitting behind the screen, what are you doing here? My goodness—"

He immediately called for an ambulance.

Thank goodness, ambulances are free in Japan.

It's so frustrating how they calculate the medical expenses after I got to the hospital, with burns like this.

Wu Haoyu anxiously checked on Wang Xiao: "Are you alright?"

Hearing the voice, he turned around, and the fashionable-looking woman immediately flew into a rage: "What's wrong with you? Zhao Xiuzhi! You're not even sitting here, what are you trying to do by bringing over this boiling fish?"

Oh! It's Zhao Xiuzhi!

Xiao Gao and Xiao Zhao said they really didn't recognize him.

The main point is, as Hamlet says: God made women one face, and they made themselves another.

Wang Xiao turned her head, unable to tell for a moment whether Zhao Xiuzhi had undergone minor cosmetic procedures or was simply a master of makeup; in any case, she didn't look like it at all.

What shocked her even more than Zhao Xiuzhi's face was Zhao Xiuzhi's mind.

Truly, a thousand thoughts from a wise man are not as effective as a single brilliant idea from a fool.

Wang Xiao never imagined that Zhao Xiuzhi would personally pour hot oil soup in front of everyone.

Indeed, at this moment, Wang Xiao's stereotypes about the children of the powerful and wealthy were reinforced.

Overpowering others with sheer force is extremely harmful. Because over time, those with power will confuse their abilities with their actual power.

Just like that Mr. Zhou, after he was scammed by a fake second-generation rich kid while on medical parole, he actually gathered a group of people, went to find the scammer, imprisoned him, and forcibly transferred the money from his account.

He was clearly still living in the fantasy that he was the young master of Shougang Group, thinking that this little thing was no big deal and that someone would clean up his mess anyway.

And what happened? Well, it backfired.

Zhao Xiuzhi is the same now. She thinks she's still in China and can do whatever she wants. Even if she makes a huge mess, someone will cover for her.

Aren't all Celestial Dragons this arrogant?

Foolish and arrogant, yet self-righteous.

That's true, they have every right to be arrogant.

Her violation of regulations by studying abroad turned the political scene in Jiangdong Province upside down.

Despite being the catalyst, she could still wear a Chanel suit and a pearl necklace, continuing to live a carefree life in Tokyo as a wealthy and beautiful woman.

That's the confidence that her background gave her.

Now that she'd been exposed on the spot, Zhao Xiuzhi, disheveled and reeking of alcohol, decided to throw caution to the wind: "You bitch! I burned you! You've ruined my whole family!"

She received a call from her mother this morning, telling her to stay in Japan and not to go back home unnecessarily.

Because Dad was taken away early this morning too.

The day before, the brothers left the office and none of them were able to go home.

She didn't know what was going on; she was terrified.

She went to the embassy to look for Wu Haoyu, but couldn't find him, and no one would tell her where he had gone.

So she went to Longfeng Pavilion, where she had seen Wu Haoyu eat at the small, shabby Chinese restaurant last time.

But she couldn't stand the lower class people who ate at the restaurant, so she hid in a screened partition, drinking sake and hoping to wait for Wu Haoyu.

If Wu Haoyu hadn't been in Japan, she really wouldn't have wanted to stay any longer. She couldn't understand Japanese and didn't know Japanese customs. Those Japanese women gathered together, laughing at her, calling her a country bumpkin, an ignorant bumpkin.

She really couldn't take it anymore.

Ironically, she hadn't recognized Wang Xiao's voice at all until Wu Haoyu's colleague called out her name.

But this did not diminish her hatred for Wang Xiao.

Especially after Wu Haoyu appeared and even sat down with Wang Xiao.

She didn't know what was going on with her father and brother, but she was absolutely certain that all the troubles in their family had happened after the fifth day of the Lunar New Year.

Retaliate! It must be that bastard who's getting revenge!

Wu Haoyu felt this person had really gone mad: "What's wrong with you? Don't start slandering people with your mouth. How could Wang Xiao possibly have anything to do with your family's affairs?"

"Who else could it be but her?" Zhao Xiuzhi's eyes burned with a frenzied hatred. "It's her, it's definitely her!"

Wang Xiao sneered: "Your father and brother were investigated because they broke the law and committed crimes, weren't they? What, you, the child of a cadre with impeccable political credentials, actually think that the central government's anti-corruption campaign is a form of retaliation? Oh dear, that's really inappropriate. Your father didn't say that when he was on the news."

Zhao Xiuzhi roared, "Baka! You bitch! Don't talk nonsense!"

Before she could finish speaking, police sirens blared outside the store, growing ever closer.

When the police came in, Wu Haoyu felt a sudden darkness before his eyes, realizing that things had gotten out of hand and would be on international news.

He looked at Wang Xiao in surprise: "You called the police?"

Wang Xiao remained calm: "Shouldn't we call the police? Someone attempted murder."

Zhao Xiuzhi attended language school for several months, but her Japanese level was still terrible.

But that didn't stop her from immediately shifting the blame, repeatedly emphasizing in a few Japanese words: "She suddenly went crazy and poured oil soup on me, scalding me. You should arrest her."

Xiao Gao was furious after hearing the translation: "Don't talk nonsense! You just admitted that you deliberately tried to scald the boss to death."

"Who admitted it? Don't make false accusations!" Zhao Xiuzhi forgot the pain of her burns for a moment, and proudly puffed out her chest. "You're all in cahoots, you've all ganged up to frame me. Even the shop owner is with you. You know him, you're friends, so you're turning the tables and framing me."

Ouch.

Xiao Gao was furious. They're utterly shameless! Like father, like son. How could a corrupt official possibly raise anything good?!

Zhao Xiuzhi continued to shout, "Now that I've been burned, I'm the evidence. You burned me, you should go to jail!"

She wasn't afraid at all.

Because she used a damp cloth when serving the boiled fish, there were no fingerprints on the porcelain basin.

"Evidence, is it?" Wang Xiao smiled slightly. "What a coincidence, I actually do have evidence."

She picked up the Sony camera on the table and gestured for the police to see, saying, "I wanted to take a picture just now, but I accidentally switched to video mode, so it recorded her statement."

The young lady attempted evil but failed; does she still want to turn the tables?

dream!

"Right! It's a video recording!" Xiao Hei suddenly slapped his forehead. "There's a video recording at the cashier, to prevent thieves. They must have caught her bringing over the boiled fish to rob someone."

Ah! This is an unexpected surprise.

There's video footage of the crime scene and video footage of her confession on the spot. Ms. Zhao, just wait to go to jail.

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Some people have expressed confusion about 6-inch and 5-inch chip production lines. The following information is sourced from the internet.

The core differences between 6-inch and 5-inch chip production lines lie in three dimensions: technological evolution, production efficiency, and market positioning. These can be analyzed from the following six aspects:

I. Wafer Size and Productivity Efficiency

A six-inch wafer has a diameter of 150mm, while a five-inch wafer has a diameter of 125mm, making the former 44% larger in area. For the same chip design, a six-inch wafer can hold approximately 40%-50% more chips. For instance, when producing 50mm chips, a five-inch wafer yields about 30 chips, while a six-inch wafer can produce 43. This difference directly impacts the unit chip cost—a six-inch production line can reduce the cost per chip by 20%-30% during mass production.

II. Equipment and Process Complexity

Six-inch production lines need to be compatible with larger equipment:

- Lithography machine: Six-inch lithography machines have larger lens diameters and higher precision requirements for projection systems. For example, ASML's PAS 5500 series supports 150mm wafers, while five-inch devices (such as GCA 3600) only support 125mm.

- Etching machine: Six-inch etching machines require longer robotic arms and larger reaction chambers. For example, Applied Materials' Centura etching machine can handle 150mm wafers, while five-inch devices (such as Tegal 5500) have smaller chamber sizes.

- Process challenges: The edge effect is more significant in six-inch wafers. For example, the linewidth uniformity deviation within 5mm of the edge during photolithography may reach ±5%, while it is only ±3% in five-inch wafers.

III. Yield and Cost Control

- Yield differences: Due to their smaller size, five-inch wafers have a lower percentage of edge defects, and their initial yield is typically 5%-8% higher than that of six-inch wafers. For example, in 80nm process technology, the yield of five-inch wafers can reach 90%, while six-inch wafers need to use technologies such as Optical Proximity Correction (OPC) and Edge Exposure Compensation (EEC) to improve the yield to over 85%.

- Cost structure: The equipment investment for a six-inch production line is 30%-50% higher than that for a five-inch line, but the cost per chip can be reduced by 20%-30%. Taking power semiconductors as an example, the cost per six-inch wafer is about $800, while that for a five-inch wafer is $600, but the cost per chip for the former (about $18.6) is 7% lower than that for the latter (about $20).

IV. Differentiation of Application Areas

Typical application technology demand market size

Five-inch conventional power devices (such as MOSFETs) with low voltage (10^6 hours) are projected to generate approximately $28 billion globally in 2024 (accounting for 40%).

Five-inch wafers are still used in low-end consumer electronics (such as remote control chips), while six-inch wafers have become the mainstream choice for power semiconductors. For example, BYD Semiconductor's six-inch IGBT production line has an annual capacity of 1.2 million wafers, supporting its demand for electric drive systems for new energy vehicles.

V. Current Status and Technological Evolution of the Industrial Chain

- 5-inch wafers: Only a few manufacturers worldwide (such as Yangjie Technology) maintain production capacity. In 2024, global shipments of 5-inch wafers decreased by 12% year-on-year, mainly used to replace old equipment and in specific military fields.

- Six-inch: The global six-inch wafer market size reached US$28 billion in 2024, with a compound annual growth rate of 8%. BOE and HC SemiTek's 6-inch Micro LED production line has achieved mass production, driving the development of new display technologies.

- Technological substitution: Eight-inch wafers (200mm) have achieved a 65% penetration rate in the power semiconductor field, but six-inch wafers still dominate the low-to-mid-range market due to their cost advantage. For example, Silan Microelectronics' six-inch BCD process platform supports its smart sensor business.

VI. Comparison of Economic Benefits

Specifications: 5-inch production line, 6-inch production line

The investment for a single production line is approximately US$150 million (50,000 pieces/month) or approximately US$250 million (50,000 pieces/month).

The cost per chip is $20 (50mm chip) and $18.60 (50mm chip).

Investment payback period: 2-3 years (consumer electronics) 3-4 years (automotive electronics)

Typical customers include small appliance manufacturers (such as Midea) and automotive-grade manufacturers (such as Tesla).

Case Study: Yangjie Technology's five-inch wafers are primarily used to produce TVS diodes, with each wafer yielding approximately 500 chips at a cost of about $0.80 per chip. Its six-inch wafers, on the other hand, are used to produce IGBTs, with each wafer producing approximately 200 chips at a cost of about $12 per chip. Although the cost per chip is higher for six-inch wafers, the premium for automotive-grade products can reach 300%, resulting in a higher overall gross margin (35% vs. 25%).

Summary: Recommendations for Technology Route Selection

- Choose 5-inch: Suitable for low-cost, small-batch needs, such as replacing old equipment or customized military products.

- Choose six-inch: Suitable for mid-to-high-end power semiconductors, such as new energy vehicles and photovoltaic energy storage, where costs can be reduced through large-scale production.

- Future Trends: Eight-inch wafers are squeezing the six-inch market, but six-inch wafers remain irreplaceable in specific processes (such as BCD and SOI) and emerging fields (such as Micro LED). Companies need to dynamically adjust their production line layout based on product positioning and technology roadmap.