Chapter 690: Eat the big fish, and don't let the small fish go! Jump two levels in a row and go directly to 14 nanometers!
After the iPhone 6 and iPhone 6 Plus were launched in China, sales fell far short of expectations.
Before Cook showed any signs of anxiety, the mobile phone accessories manufacturers in Huaqiangbei were already panicking.
In order to seize the market opportunity, they got prototypes from North America in advance. Many vendors even prepared mobile phone cases, tempered films and other accessories worth hundreds of thousands or millions of dollars, hoping to make a fortune by taking advantage of the popularity of the new phone.
But the reality dealt them a heavy blow: only 300,000 units of the new phone were sold on the first day, and the remaining 1.2 million pre-sale orders would have to wait another three to five days to arrive, leaving them with no way to absorb the spare parts.
"Damn! It's all useless!"
The owners of parts factories in South China were disappointed and frustrated when they saw the mountains of inventory.
After all, for them, less profit means loss!
It is worth mentioning that although Orange Technology did not directly suppress Apple, it quietly planted a clear impression in the minds of users by relying on its own hard power in core areas such as processors, operating systems, touch screens, camera modules and battery management.
This new Apple phone that has just been launched is not as good as the Yaocheng X2 Plus released by Orange Technology half a year ago.
at the same time.
Soon after the morning mist on Huangfu River dissipated, the Shanghai International Convention Center welcomed hundreds of participants and media reporters from home and abroad.
The scene was bustling with people.
Global giants gather here, ostensibly to communicate, but actually to spy, gamble and take sides.
Representatives from China Semiconductor's industry all looked happy.
In contrast, the business representatives from Europe and North America all had gloomy expressions, without a trace of smile on their faces.
After breakfast, Chen Yansen got into a silver and blue Hongqi L5 and drove towards the International Conference Center against the wind.
Just at this moment, the air raid alarm sounded.
Some participants who were far away in the conference hall only then realized why Star Source Technology had to communicate with the International Semiconductor Industry Association to set the summit date on September 18.
At the entrance, there was a crowd of reporters standing there.
"Why hasn't Chen Yansen arrived yet? This morning we're having not only the International Semiconductor Summit, but also a new product launch for Star Source Technology. Our newspaper has sent two teams over."
A reporter from the Shanghai Evening News leaned against the wall, looking out from time to time, and did not forget to chat with his colleagues nearby.
"I heard they've already sold six Dawnbreaker A220s. Can they take advantage of the International Semiconductor Summit to sell a few more?"
A reporter from Luzhou Daily whispered.
In his opinion, the more shipments there are, the higher the market recognition of the Dawn A220 EUV lithography machine will be.
Good things never have trouble selling!
"Photolithography machines are not cheap. Polishing and coating a single aspheric mirror takes several months, let alone producing a complete machine. ASML, a giant in the photolithography machine industry, only has an annual production capacity of around 100 units."
The reporter from the National Daily said with a smile.
Judging from Chen Yansen's usual style of doing things, he has always attached importance to independent control of core technologies, especially the layout of key areas such as chips.
Therefore, in the early stages of Xingyuan Technology's capacity expansion, those valuable production capacity resources will most likely be invested first in the establishment of its own chip production line.
You know, only by taking the initiative in chip manufacturing can we truly consolidate the company's advantages in core areas.
Essentially, when Xingyuan Technology was first established, its market positioning was as a Fab factory, not an equipment manufacturer.
Ten minutes later.
The Hongqi L5 slowly stopped at the main entrance of the International Conference Center. The moment the door opened, Chen Yansen walked down steadily. His well-tailored suit made his figure look particularly tall and straight.
Seeing this, the reporters hurried forward.
Four Fengshun security staff members immediately formed a human wall, protecting Chen Yansen in the middle.
"Mr. Chen, does Xingyuan Technology have any plans to enter the DUV lithography market?"
The CCTV reporter ran the fastest, leaving behind his colleagues from home and abroad, and handed the microphone to Chen Yansen.
Chen Yansen smiled lightly and raised his hand to signal the security personnel not to stop him too much.
He cleared his throat, his voice neither too loud nor too soft, yet it was clearly audible: "DUV lithography machines are important equipment in the semiconductor manufacturing field, especially in the production of mature process chips. They play an irreplaceable role. Xingyuan Technology will certainly not ignore this field."
What this means is that Xingyuan Technology wants to eat the big fish and will not let the small fish go.
Several Nordic media reporters looked at each other and saw a hint of worry on each other's faces.
Judging from the power stability and production efficiency of the Dawn A220, Star Source Technology definitely holds a number of core patents that can improve wafer processing efficiency and yield.
ASML is in danger!
You know, ASML occupies an absolute dominant position in the DUV lithography machine market. If Star Source Technology really wants to get involved, it will undoubtedly have a severe impact on its existing market structure.
"Most companies in the industry currently focus on DUV first and then EUV. We are doing the opposite. We first break through EUV technology and then work back to optimize the DUV solution."
Chen Yansen further explained, then paused, "There are two considerations for this: First, EUV technology can directly solve the bottleneck problem in high-end chip manufacturing. Subsequent products of Tiangong's A-series processors require more advanced process support. After all, Apple has already used the A8 processor with a 20nm process, and Tiangong Technology cannot stand still."
Therefore, our strategy is to skip the 20- and 16-nanometer processes, start with the 14-nanometer process, and launch a truly super chip!
Secondly, the precision control and optical imaging technologies accumulated during EUV R&D can feed back into DUV equipment and the upstream and downstream industry chains, giving Star Source Technology's DUV lithography machines greater advantages in performance and cost."
Upon hearing this, the scene suddenly became quiet!
Not only were the reporters listening with bated breath, but even the representatives from ASML, Qualcomm, and Micron who were not far away stopped what they were doing and paid close attention to every word Chen Yansen said.
A reporter from the National Daily immediately followed up with a question: "When is Star Source Technology's DUV lithography machine expected to be launched? Which companies will be given priority for supply?"
"We expect to deliver part of it by the end of the year or in the first quarter of next year."
Chen Yansen said lightly.
In fact, most of the people around him were still immersed in shock, because he had just said that he wanted to jump two levels and develop chips with a 14-nanometer process.
At first glance, it seems a bit greedy and reckless, but in fact, even if Chen Yansen does not intervene, with Liang Jinsong's ability, as long as he is given half a year, he can definitely increase the yield rate to more than 60% in the 14nm process field; if he is given a full year, it will be no problem to exceed 95%.
The reason behind this is simple. Liang Jinsong had done similar work in Shanxing before.
He led the team to complete the technological leap from 28nm to 14nm process, and achieved mass production of 14nm process earlier than TSMC.
With mature process experience and solid technical accumulation, it is naturally not too difficult to conquer the 14nm process again from scratch.
This is also the reason why TSMC was so angry that it sued Liang Jinsong in court and initiated a non-compete agreement.
Because Liang Jinsong really has the hard power to threaten them.
"Mr. Chen, now that we have domestic lithography machines, do you think the price of domestic smartphones will drop?"
The reporter from Huxiu IT asked a sensitive topic.
The subtext of his words is that once we have our own lithography machines, the manufacturing cost of chips will naturally decrease. As chips are the core components of smartphones, their cost reduction will directly lead to a reduction in the overall material cost of the phone.
According to this logic, the pricing of smartphones should also be adjusted downwards.
When Chen Yansen heard this question, he nodded slightly, agreeing with the reporter's judgment on the "relationship between chip costs and mobile phone pricing."
He then gave his answer in a calm tone: "The decline in chip costs will indeed provide more room for mobile phone pricing, but 'price reduction' should not be the only direction, nor is it the ultimate goal of our technological breakthroughs."
Don't want to lower the price?
Reporters who had been expecting a "low-priced mobile phone" pricked up their ears.
Chen Yansen continued, "In the past, the domestic mobile phone industry generally had to pay high patent fees and procurement costs. For example, a foreign chip manufacturer once required Chinese mobile phone manufacturers to pay an additional 5% technical service fee for every phone sold using their chip. This directly drove up the cost of mobile phones."
When the reporters heard this, they knew Chen Yansen was talking about Qualcomm, and a smile appeared on their faces.
In the mobile phone industry, Orange Technology is the toughest one, and it can face Qualcomm head-on without losing the upper hand.
Moreover, in the past year, it has joined forces with Nvidia and MediaTek to snatch 30% to 40% of the market share from Qualcomm.
When it comes to forming alliances and making alliances, no one is more skilled than Chen Yansen.
"Now that we have domestically produced EUV lithography machines, we can independently control the pace of chip research and development, production, and supply. This will first break the inherent pattern of 'overseas chip manufacturers monopolizing pricing.'"
Chen Yansen's voice gradually rose, and he added, "But what I would like to see is that the cost reduction can be invested in technology research and development, such as improving the phone's battery life, imaging, and AI performance, or developing innovative features such as foldable screens, flexible screens, and satellite communications, rather than falling into a vicious cycle of low prices."
A reporter from Tiger Sniff IT followed up by asking, "So when will ordinary consumers actually feel the benefits? You can't just see manufacturers' technological upgrades without seeing price changes, right?"
"The benefits to consumers will be reflected in two aspects: in the short term, the stable supply of domestic chips will allow mobile phone manufacturers to get rid of the risk of 'chip supply interruption'. People no longer have to use 'hunger marketing' to grab chips, and they will have more choices when buying mobile phones, and no longer have to pay high prices for 'surcharges'.
In the long run, when domestic chips achieve breakthroughs in high-end fields, overseas chip manufacturers will inevitably lower prices and open up more technology licenses in order to compete, and consumers will ultimately benefit."
Chen Yansen explained patiently.
If mobile phone manufacturers continue to engage in price wars, upstream and downstream suppliers and workers will not make money. Then who will consume the mobile phones produced?
Can't we just export all the time?
This statement was recognized by many people at the scene.
A reporter for the National Daily wrote in a notebook: "The ultimate significance of technological breakthroughs is to break monopolies, reshape industry rules, and allow all links in the industrial chain to return to 'healthy competition,' giving manufacturers the motivation to innovate and consumers more benefits."
At this time, GlobalFoundries' CEO Sanjay just got out of the car. When he saw Chen Yansen, he hurriedly greeted him with a smile on his face.
This scene instantly broke the defense of the North American semiconductor company representatives, and they couldn't help but curse in their hearts: "Are you a semiconductor company from China or the Lighthouse Country?"
(End of this chapter)
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