As the plane landed in California, the group became acquainted and chatted about the semiconductor development cycle, especially the development direction of some cutting-edge technologies. Before they knew it, they had arrived at Intel's wafer fab.
The entire plant began operation in 1996, covering 1,000 acres. It is considered their best factory at present, mainly producing six-inch wafers. In the next two years, it will mainly produce eight-inch wafers.
The group visited the cleanroom and observed the processes of monocrystalline silicon refining, silicon ingot production, cutting, and etching. It must be said that the level of professionalism in the factory here is much better than in China. There are enough professionals, each performing their duties, and the whole environment and process are particularly smooth, with a relatively high yield rate.
Lu Feng didn't know much about these professional issues, but he had learned quite a bit from what he had seen and heard in Liucheng. After asking some questions, he felt a little heavy-hearted. He wasn't worried about the factory itself, but rather about personnel training. The factory had a team of two hundred PhDs stationed there.
They regularly exchange ideas with the R&D center team, which not only provides them with theoretical and experimental research, but also practical opportunities. Chemistry PhDs are a rare breed in private enterprises!
Lunchtime was at the cafeteria, where the benefits were excellent. Food, clothing, accommodation, and transportation were basically all taken care of. Even if it wasn't free, it was at employee price or with subsidies. The working hours were guaranteed to be eight hours, and there was overtime pay for overtime work.
Inside the cafeteria, as the waiters served the dishes, Lu Feng glanced around at the employees. They all seemed to be in good spirits. The United States can still afford high welfare benefits, let alone high-tech companies like this.
"To be honest, I really want to work here!" Lu Feng said in a low voice in Chinese.
"Otherwise, why would so many people in China be so eager to go to developed countries?" President Su said in a low voice.
As the food was served, Amy greeted everyone warmly, saying, "There will be a welcome dinner tonight. We've arranged lunch here today so that everyone can experience the atmosphere of the factory."
After a long exchange of pleasantries, everyone began to eat. During the meal, they talked a lot about the factory's annual output, automation, and the interaction between the factory and the R&D center.
I didn't drink alcohol at noon because I had to go to another factory in the afternoon.
"The output of this factory is sufficient to meet Intel's global sales needs, and there is no need for expansion in the next few years," said an Intel representative.
Everyone felt a little disappointed upon hearing this, but Lu Feng noticed that their wafers had a particularly high unit price.
"What is the current cost per six-inch wafer?" Lu Feng asked the Intel representative.
The other party looked somewhat troubled upon hearing this, clearly unwilling to disclose their costs. Seeing their hesitation, Lu Feng quickly asked, "Then I'll give you a figure. Is the price per piece less than 25,000 US dollars?"
The other party smiled and said, "More or less!"
According to Lu Feng's estimation, their unit price is between 28,000 and 30,000 US dollars, which is significantly more expensive than Hurricane Semiconductor's Tianjin plant.
"Our six-inch wafers can be priced at $18,000 per piece. We came here this time hoping to find opportunities for cooperation. Our factory is also a new factory, and its production standards are world-class. The reason why we can offer such low prices is mainly due to low labor costs, low land costs, and low prices for major utilities such as water and electricity!"
“I believe that exporting wafers from China to here will be much cheaper than producing them here. If Intel has this need, we can sign a long-term order and the price is negotiable! And within the next two to three years, we can achieve mass production of eight-inch wafers.”
Lu Feng was the first to reveal his purpose. The Intel representatives present were somewhat tempted, but they had also made sufficient preparations beforehand, and they had basically figured out which company would seek which kind of cooperation.
They cannot outsource wafer fabrication to mainland China. They are currently in talks with Samsung. Compared to mainland China, they prefer to find regions or countries that they can control as manufacturing locations.
“Wafer fabrication is an industry with extremely high precision requirements. I have faith in your company’s capabilities, but as a global leader in semiconductors, our requirements for wafer fabrication are even higher than those of ordinary companies.” He looked at Lu Feng with a smile and said, “We can conduct an on-site inspection; perhaps we can cooperate.”
Lu Feng could tell it was just an excuse, so he exchanged a few polite words and didn't say anything more. However, Amy, who was standing next to him, noticed the price Lu Feng mentioned.
As the second-largest semiconductor company in the United States, AMD has been suppressed by Intel for many years. The two companies are locked in a life-or-death struggle in the market. Being able to wage a price war in the end market is an excellent opportunity for them.
Currently, there are not many countries in the world that can produce six-inch wafers, let alone eight-inch wafers. These countries are basically developed countries, and the costs of labor, land, water and electricity are huge. The production cost of 18,000 to 19,000 is unique in the world.
After lunch, Lu Feng took a short break and strolled around the factory area, mainly observing their office system and employee management.
As Lu Feng walked into a lounge, he suddenly saw Amy making a phone call in a corner. Listening closely, it seemed to be related to him, so Lu Feng immediately perked up his ears.
“I’m not surprised they can produce six-inch wafers; what’s surprising is their ability to improve yield and reduce costs at such a competitive price,” Amy said into the phone.
"Intel won't give them orders. I know this company. They are currently in dire need of orders. They will do it if they are given a tiny profit margin. This would be a huge reduction in our costs."
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