Chapter 691 It’s okay to be stupid, but you treat others as fools too? Chen Yansen: Are you qualified?
Shanghai, entrance to the International Convention Center.
As soon as GlobalFoundries CEO Sanjay saw Chen Yansen, he immediately put on a smile and walked quickly towards him.
"Mr. Chen, nice to meet you at last. I'm Sanjay from GlobalFoundries."
Accompanied by his assistant and bodyguard, Sangjie walked to about two meters away from Chen Yansen and greeted him with a smile.
"Mr. Sanjay, nice to meet you! Thank you also to GlobalFoundries for your support of Tiangong Technology."
Chen Yansen turned away from the media, took a step forward, and took the initiative to extend his right hand and shake hands with Sanjay.
"I also want to thank Tiangong Technology for being willing to give some of its chip foundry orders to GlobalFoundries. In a fully competitive market, TSMC shouldn't be the only one dominating."
Sanjay said meaningfully.
He is a professional manager who values the interests of the company more than the overall strategy of North American semiconductors.
Everyone has different thoughts in their hearts from the macro and micro narrative perspectives.
GlobalFoundries is also a leading company in the chip manufacturing industry, but it is smaller than TSMC in scale.
However, who doesn’t want to make progress?
Sanjay also wants to increase the company's revenue and surpass its industry status and market share before the 14-nanometer process node.
Therefore, cooperating with Xingyuan Technology is his best choice.
"Mr. Sanjay has a very clear view. TSMC's excessive consumption is not good for the development of the supply chain of the entire industry."
Chen Yansen let go of his hand, glanced at the media who were still taking pictures not far away, and said with a chuckle.
The market for chip foundry business is too huge. TSMC's annual revenue is 150 billion, while GlobalFoundries' is 26 billion, not even a fraction of the other.
After hearing Chen Yansen's words, Sang Jie's smile widened. He nodded slightly and couldn't help but sigh, "TSMC has almost monopolized the high-end chip foundry market with its technological advantages and production capacity. This has severely squeezed the living space for other companies.
Take the A8 processor, for example. TSMC took all the orders, and GlobalFoundries wanted to secure some to improve its 20nm process, but couldn't find any opportunities.
To put it bluntly, everyone has the same goal, which is to build TSMC.
The chip foundry sector has such a small cake, and TSMC has taken up most of it, leaving UMC, GlobalFoundries, and Sanxing to pick up the leftovers. Who can endure this?
So when Xingyuan Technology and Tiangong Technology jumped out to disrupt the situation, others saw it as a crisis, but Sanjay saw it as an opportunity - an opportunity to redistribute market interests.
You should know that GlobalFoundries has been making losses for three consecutive years. At the end of 2011, the accumulated deficit reached 1.12 billion US dollars, in 2013 the net loss was 900 million US dollars, and in 2014 the net loss reached 1.5 billion US dollars.
The continuous huge losses have limited its capital investment, making it difficult for it to invest large amounts of money in advanced process research and development, equipment upgrades and capacity expansion like TSMC, thus affecting its process improvement and market competitiveness.
Even the 14nm FinFET process technology was purchased from Shanxing at a high price.
"We will discuss this in detail after the summit. Tiangong has recently planned a new product in the B series, which will be manufactured using a 20nm process technology.
If GlobalFoundries can meet Tiangong Technology's cooperation requirements in terms of both yield rate and foundry costs, I would definitely consider outsourcing this product to GlobalFoundries."
Chen Yansen said slowly.
"Thank you, Mr. Chen." After hearing this, Sangjie looked at Chen Yansen more eagerly.
The scene of the two men shaking hands and greeting each other was clearly recorded on camera by reporters from home and abroad.
The sounds of shutter clicks came one after another beside the two of them!
A reporter from the National Daily couldn't help but ask loudly, "Mr. Chen! You just mentioned that Tiangong's new B-series products might use a 20nm process. Does this mean that Tiangong Technology will officially abandon its partnership with TSMC and switch to GlobalFoundries?"
As soon as the question was asked, the remaining media pointed their microphones at Chen Yansen, and the flash lights lit up again, illuminating the area around the two as bright as day.
Sangjie stood aside, still with a smile on his face, but quietly adjusted his posture to leave more camera space for Chen Yansen.
"Tiangong Technology and GlobalFoundries do intend to collaborate on new products, but the claim that they are abandoning cooperation with TSMC is not accurate.
A mature chip design company typically employs a diversified supply chain to ensure stable production capacity. We currently have no plans to cancel our partnership with TSMC. If we do, it is because TSMC cannot meet Tiangong Technology's needs in terms of yield, production capacity, foundry pricing, and delivery speed.
Chen Yansen raised his hand slightly, signaling the reporters to remain calm, and then spoke lightly.
Tiangong Technology will continue to maintain its current operating strategy, while promoting both self-operation and OEM routes to ensure Xingyuan Technology's R&D momentum and technological vitality.
After all, if all orders are given to Xingyuan Technology, the other party will inevitably become lazy and lose its enterprising spirit.
Continuing to cooperate with TSMC, UMC, and GlobalFoundries is equivalent to introducing external competition to Star Source Technology, thereby pushing it to continuously break through technological bottlenecks.
This is like why Ma Wenteng could have used the QQ team to incubate WeChat, but he insisted on setting up an independent business unit.
The core is to avoid internal stagnation and stimulate innovation through competition.
Chen Yansen paused and continued, "As for the communication with GlobalFoundries, it's mainly to expand cooperation channels. As I just said, TSMC's share of the chip foundry market is too high, which is not conducive to the stability of the industry's supply chain.
Tiangong Technology is willing to cooperate with more high-quality foundries, including GlobalFoundries. On the one hand, it can ensure the diversity of its own production capacity supply and avoid the impact on product delivery due to problems with a single partner.
On the other hand, we also hope to promote technological advancement and cost optimization in the entire semiconductor foundry industry through healthy competition, which will have positive significance for the healthy development of the domestic and even global semiconductor industry."
These remarks neither denied the cooperation with TSMC nor clarified the strategic intention of cooperating with GlobalFoundries. They not only demonstrated the company's pragmatic attitude but also reflected its sense of industry responsibility.
When it comes to empty talk and bragging, Chen Yansen is also a master.
"Then, Mr. Sanjay, GlobalFoundries has been in the red for three consecutive years. If we can win this order for Tiangong's Series B, can we reverse this situation? To meet Tiangong Technology's production needs, what further investments will GlobalFoundries make in production capacity and technology?"
A reporter from EE Times immediately asked.
Upon hearing this, Sangjie couldn't help but spit in his heart.
As the saying goes, don't hit people in the face, and don't expose people's weaknesses when scolding them.
What happened to GlobalFoundries losing money?
I invested in and built a large wafer fab in Temasek, completed the upgrade from an 8-inch fab to a 12-inch fab, and invested heavily in the 14nm process technology. How come you didn't say a word about these things?
However, EE Times is a well-known media in the field of electronic engineering in North America, and its influence cannot be underestimated.
Although Sanjay wanted to curse, he could only smile and reply: "Profitability is not GlobalFoundries' top priority for now. Mastering more advanced process technology is our most important goal.
Of course, we are also adjusting our business strategies by optimizing production lines and reducing costs. The orders for the Tiangong B series are of great significance to us. If we can cooperate successfully, in addition to bringing stable revenue support, it can also help us accumulate production experience in the 20-nanometer process and lay the foundation for the subsequent expansion of more customers.
Regarding capacity investment, we have actually reserved 50,000 wafers of 20nm production capacity per month. We will subsequently decide whether to invest in equipment upgrades and process optimization based on order volume to ensure that yield and delivery cycle times meet Tiangong Technology's requirements."
"Do you think Star Source Technology will threaten Lighthouse Country's dominance in the semiconductor industry?"
The reporter from EE Times asked again, and this time the question was obviously much more pointed.
Sanjay was slightly startled, his brows furrowed, his brain working rapidly, carefully considering how to respond.
At this moment, a voice was heard: "The semiconductor industry needs China! It needs Xingyuan Technology! The upgrading and transformation of the industry should involve China."
The reporters looked in the direction of the voice and saw an elderly white man with white hair and beard, wearing a pair of black-framed glasses, a well-tailored suit, and shiny leather shoes, walking slowly towards them, followed by two assistants.
"It's Neuton, the president of the Lighthouse Country Semiconductor Association!"
Seeing this, the reporters subconsciously surrounded them.
Neuton's words are really intriguing!
Two years ago, he said at an industry exchange conference in Phoenix, Arizona that "we will always sell chips to China."
This sounds like there's nothing wrong with it!
But he also said the second half of the sentence: "We will never sell the most advanced chips to China"!
It is clear that they want to reap the market dividends of China's consumer electronics industry by relying on high-priced chips.
But now, Neuton's attitude has obviously changed.
Chen Yansen smiled faintly. He knew in his heart: it was not that the other party suddenly changed his nature, but that Xingyuan Technology had the ability to overturn the table after acquiring the Dawn A220.
In the final analysis, it’s not that the enemy has become kind, it’s just that you have become strong enough.
Once people are in good circumstances, most of the people they meet are kind faces, and most of the words they hear are flattering and fawning.
The same is true for an industry.
Neuton walked into the crowd, first casually glancing at Sanjay, then looking at Chen Yansen. A complex expression flashed across his eyes, but he remained calm. He smiled and greeted, "Mr. Chen, the progress made by Xingyuan Technology in the field of EUV lithography equipment has truly amazed the global semiconductor industry."
However, Chen Yansen still saw Neuton's true thoughts from the other party's micro-expressions.
Damn it!
A two-faced person!
Seeing that he couldn't suppress the situation, he resorted to trickery to win them over.
Chen Yansen knew what was going on, but didn't say much.
The world is bustling with people, all for profit. Who isn't pursuing profit?
Seeing that Chen Yansen did not respond, Noyton took the initiative to move forward half a step, his tone becoming more friendly:
"Mr. Chen, the Dawn A220 lithography machine has opened up new possibilities for the entire semiconductor industry. The Lighthouse Semiconductor Association has always been committed to promoting technology sharing. If Star Source Technology is willing to open up some of its patents, we can not only coordinate with companies within the association to provide support for your company in chip raw material supply and advanced process research and development, but we can also promote the removal of some restrictive policies targeting China's semiconductor industry."
This sounds tempting, but it actually contains hidden calculations.
Open patents mean that technological barriers are weakened, and the so-called "support" and "removal of restrictions" are nothing more than an attempt to exchange vague promises for Xingyuan Technology's real technological achievements.
Chen Yansen almost laughed out loud. He was not an idiot, so how could he share his patent?
The next second, his face darkened and he retorted impatiently: "It's okay if you are stupid, but don't treat others as fools."
What a bullshit president of the Semiconductor Association!
If I give you face, I will pay attention to you; if I don’t give you face, you will have to eat shit.
This is what we call the young to be feared!
There wasn't a single dirty word in Chen Yansen's words, but Noyton felt deeply insulted. His originally pale face turned the color of liver in an instant.
When the domestic news media saw this scene, they quickly took photos to record it.
It’s so fucking uplifting!
Looking back over the past three decades, China has been fleeced countless times in the semiconductor industry.
Now that we have Tiangong chips and the Dawn lithography machine, we no longer have to depend on others!
The atmosphere at the scene froze instantly, but the shutter sounds of the reporters' cameras became more and more frequent, for fear of missing this extremely impactful scene.
Sanjay stood aside, his smile froze on his face, but he was secretly shocked in his heart.
He didn't expect Chen Yansen to be so bold and not show any mercy to Neuton.
You have to know that Neuton represents the Semiconductor Industry Association of the United States. In the past, in the industry, even Zhang Zhongmou of TSMC had to be polite when meeting him.
Noyton was so angry that he was shaking all over. He pointed at Chen Yansen and couldn't utter a complete sentence for a long time: "How dare you say that? Doesn't Xingyuan Technology want to develop in the global market?"
Chen Yansen sneered and asked, "Can you make the decision?"
In his eyes, although Neuton has a big name, he is ultimately just a spokesperson promoted by the North American semiconductor industry.
In other words, it is a "human-shaped loudspeaker".
In this case, what does it matter whether you give face to the other party or not?
Neuton took a deep breath and had to accept the fact that the attempt had failed. The strength displayed by Chen Yansen was even greater than he had expected.
Noyton thought for a moment, forced a smile and said, "Since Mr. Chen doesn't want to, then forget about me saying it."
As soon as he finished speaking, he saw that Chen Yansen didn't pay any attention to him at all, so he could only laugh awkwardly and walked towards the conference hall with his head down.
There's no way, it's too embarrassing to stay!
"What an idiot! You can't even figure out who the protagonist is today!"
Chen Yansen snorted, then turned around and talked with Sangjie about business cooperation in the second half of this year and next year.
It's about forming alliances and making connections!
Those who should be suppressed should be suppressed, and those who should cooperate should cooperate. Mr. Chen has made it clear.
(End of this chapter)
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