After getting engaged and staying in Dongjiang for a while, Chen Pingjiang rushed back to Shanghai without delay.
Tomorrow, May 6th, Huaxing International's 300mm (12-inch) wafer fab and design service center in Shanghai will officially break ground and commence construction.
Prior to this, Huaxin International had already obtained the land use rights for the Qiaolin area of the Linpu Economic Development Zone in Shanghai, term.
All approval procedures for the factory building construction were fast-tracked and completed in the shortest possible time.
The total investment for this project is approximately 48.7 billion RMB, divided into two phases.
Phase 1 is expected to be completed in the first half of 2013, with an investment of 21.4 billion RMB.
Huaxin International's Phase 1 project in Shanghai covers 240,000 square meters, which includes the FAB3P1 production plant and supporting buildings, structures, etc., with a total of 4,887 foundation piles.
The company mainly operates in manufacturing 12-inch integrated circuit wafers and integrated circuit packaging series; technical testing; and technology development, technical services, and design services related to integrated circuits.
After the Phase 1 factory is completed, it is expected to achieve a monthly production capacity of 80,000 12-inch wafers.
The specific difference between the so-called 12-inch and 8-inch wafers is that 12-inch wafers can accommodate more circuit patterns, making them suitable for producing larger-scale integrated circuits.
In addition, 12-inch wafers are typically used for high-performance logic chips (such as CPUs, GPUs, etc.) and memory chips (such as DRAM, NAND, etc.), which are usually applied in high-performance computing and personal electronic devices.
In contrast, 8-inch wafers are mostly used to manufacture relatively low-end chips, such as those for IoT, automotive electronics, and some graphics cards, where the requirements for cost and performance are relatively lower.
In terms of application fields, 12-inch wafers are mainly used to produce high-end chips required for high-performance computing and personal electronic devices.
Meanwhile, 8-inch wafers are more widely used in industrial control, automotive electronics, and IoT, where cost and performance requirements are not as stringent.
Simply put, 12-inch wafers are superior to 8-inch wafers.
Chips like 4G and 5G are all produced by 12-inch wafer fabs.
Zhang Rujing and Liang Mengsong, as co-CEOs, had also arrived.
As soon as they saw Chen Pingjiang, they remarked with a smile,
"That's quite fast."
Chen Pingjiang nodded and said,
"We can't afford to be slow."
In the past month or so, Elder Zhang went to the United States, while Elder Liang made a trip around Taiwan Island.
Zhang Rujing said,
"I've contacted around two hundred people, and most of them are fine. They will submit their resignations soon, take a break after resigning, and then come over once the factory can start operating."
Liang Mengsong also nodded,
"Sixty on my side are also confirmed, all former colleagues, friends, and my students. Elder Zhang and I estimate that we should be able to bring in another 100 later."
Chen Pingjiang's face was full of joy.
An elder in the family is better than a treasure.
These two didn't expect to recruit so many people in just a month and a half, which shows their immense prestige.
"Zhang Zhongmou will know about this soon, right?"
Chen Pingjiang asked.
Elder Zhang said,
"Since we're here, we're naturally not afraid of him knowing. Even if he knows, it's useless. We don't have any products right now, so he can't sue us. He will only sue us, and it's inevitable, if we officially go into production and our production capacity expands rapidly, threatening TSMC's interests."
Elder Liang jokingly asked Chen Pingjiang,
"Are you scared? The factory isn't even built yet, and we're already being targeted."
Chen Pingjiang scoffed,
"Scared? What's there to be scared of? I had anticipated this day ever since I dared to make chips."
As Chen Pingjiang said, he wasn't afraid at all.
Even if we weren't targeted by TSMC, we'd still be targeted by the US government in another 10 years, so what's the difference?
And if we can develop our own patents amidst continuous sanctions and suppression, then TSMC won't be a concern.
As for the US government, this blade will fall regardless of what we do.
What Chen Pingjiang needs to do now is race against time.
TSMC previously sued SMIC in the United States, alleging patent infringement.
As long as Chen Pingjiang doesn't sell chips to the US, he won't be afraid for now.
And if we fight a lawsuit domestically, who knows who would win or lose.
There will be endless wrangling then.
If someone asks, why must we infringe on TSMC's patents?
It's very simple: the road is there, but checkpoints have been set up.
To pass, you have to pay a toll, and TSMC isn't just any highway robber; even if you pay, they won't license the patent to you.
After all, they make a living from this, so of course they don't want other competitors.
The reason IBM was willing to cooperate with SMIC was entirely because they couldn't compete in chip manufacturing anymore; rather than holding onto it, it was better to sell it for some money.
If we want to pass, we can only secretly use their patents, and if caught, we'll just wrangle over it.
Only by developing our own new technologies and exchanging patents with them is the way to solve the problem.
The big stick of sanctions will eventually fall one day; this is not subject to human will.
What Chen Pingjiang can do is accumulate enough capital before the sanctions, so that like Huawei, he can still survive healthily.
This is the most ideal state!
That's why Huawei is truly amazing; to still survive after so many rounds of sanctions is a miracle in itself.
We can't be too harsh on SMIC either; if you use others' technology, you have to be obedient, otherwise, you won't get raw materials, or even lithography machines.
How would the factory operate then? I'm afraid it won't be long before it closes down.
If ASML goes crazy and locks the lithography machines from the backend.
Chen Pingjiang wasn't worried about that; once it reached that extent, ASML would inevitably face retaliation.
ASML isn't stupid either; they always want to bypass the US to sell lithography machines and even less want to completely lose the mainland market because of this.
Therefore, self-research is the ultimate solution.
......
This time, along with Zhang Rujing and Liang Mengsong, came some key personnel who would hold important positions at Huaxin in the future.
Chen Pingjiang accompanied these people for a good meal and drinks that evening.
The next day at 8 AM, everyone got into cars and rushed to Linpu.
The groundbreaking ceremony was of a very high standard this time, and the top two leaders of Shanghai would also personally attend.
Chen Pingjiang and the other two sat in the first MPV, chatting about their future plans.
Elder Zhang said,
"I believe we should first obtain licenses for 40nm and 32nm from IBM through technology transfer or cooperation, then focus our R&D on 32nm, and achieve mass production of 40nm as early as possible. This way, we can both accumulate customers and reduce the company's operational pressure."
Chen Pingjiang nodded, then asked Elder Liang,
"What do you think?"
Liang Mengsong smiled and said,
"Elder Zhang and I have the same idea."
"Won't we try 28nm?"
Chen Pingjiang asked curiously.
"Uh..."
The two elders looked at each other and let out a wry smile.
"It would be good if we could break through 32nm in the shortest possible time. As for 28nm, we dare not even dream of it. Currently, only TSMC is relatively advanced in R&D and is expected to achieve mass production this year."
Elder Zhang also said,
"It's mainly because it's too difficult."
At this point in time, 28nm is the most advanced, it is the cutting-edge process of this era.
28nm is a major node.
Compared to the 40nm process, 28nm has higher gate density, transistor speed is increased by about 50%, and energy consumption per switch is reduced by 50%.
Chen Pingjiang thought about his wording in his mind:
"I had previously learned about exposure technology. At the time, I was curious why multiple exposures weren't used to improve lithography efficiency and accuracy."
Multiple exposure involves using multiple masks to perform multiple lithography operations on the same wafer, superimposing different patterns to form finer patterns.
This is equivalent to piecing together multiple film negatives to create a finer image.
Elder Liang smiled and said,
"It seems you do have some understanding, Pingjiang, but it might not be comprehensive. In the industry, we've heard of double exposure, but truly multiple exposures are likely not done. It's not that it can't be done, but the yield of the produced chips would be too low, and the cost too high, ultimately not worth it. Assuming our single exposure yield is the same as TSMC's, both reaching 90%, the chip yield after four exposures would be 0.9×0.9×0.9×0.9, which is 65%."
"This yield is too low. What price would we have to sell to customers? And would customers ultimately accept our price? Therefore, it's better to buy the latest DUV lithography machine and perform a single exposure."
Chen Pingjiang nodded with a smile,
"I was just speaking casually. Suppose we first use one mask to etch a coarser pattern on the wafer, then cover the pattern with a layer, such as silicon oxide. Then, use another mask to etch a finer pattern on a hard material. Finally, remove the hard material and excess parts, leaving only the desired final pattern. This is equivalent to using two film negatives to enlarge and reduce an image separately, then superimposing them."
"Of course, we're just chatting idly, and I don't really understand it. Please don't laugh at me, you two elders."
Who knew that as soon as Chen Pingjiang finished speaking, Zhang Rujing and Liang Mengsong's mouths dropped open, looking at him as if he were a monster.
"Did someone tell you this, or did you think of it yourself?"
Chen Pingjiang waved his hand feignedly,
"I won't say anymore, I won't say anymore, haha, I already said I don't understand."
The next second, Elder Liang grabbed Chen Pingjiang's arm and pressed him,
"The solution you mentioned is highly likely to be achievable. Even if it's not as good as producing with a better DUV, it is definitely a solution that can achieve the goal."
Chen Pingjiang put on a surprised expression,
"Really? I genuinely didn't know; I just said it casually. I had read related books before and fantasized about it."
Zhang Rujing also exclaimed,
"This way might solve part of the yield problem. If it really doesn't work, we can perform a similar operation again."
"Definitely, this is equivalent to two exposures, but we must develop a dedicated set of equipment."
Zhang Rujing and Liang Mengsong exchanged glances, seeing hope for Huaxin International to achieve a breakthrough.
Both their eyes simultaneously shone with extraordinary brilliance.
What a truly genius idea.
The two even had no mind to attend the upcoming groundbreaking ceremony; they wished they could go to Fudan University's lab to verify it.
Liang Mengsong looked at Zhang Rujing,
"Elder Zhang, we need to establish a laboratory in advance; we can't wait for the factory to be completed. We should strive to complete the relevant technology R&D and apply for patents before the factory goes into production."
Zhang Rujing nodded,
"I agree. But this is actually a shortcut, so we still shouldn't neglect normal R&D."
"Of course. But you can't deny it's a good method, bypassing many patent restrictions to produce the same products. Moreover, it can also be used for later advanced process nodes. Once we are on the same starting line as TSMC, we can fully concentrate on developing 14nm and even 7nm chips."
The two rubbed their hands excitedly,
"Pingjiang, it's such a pity you're not involved in chip R&D; otherwise, the chip industry would definitely have one more big shot."
Chen Pingjiang gave a silly laugh,
"Let's just forget it; if I only researched chips, no one would invest."
While saying this, Chen Pingjiang couldn't help but wipe cold sweat from his forehead inwardly.
Damn it, it's too difficult for an outsider to instruct experts like this.
Fortunately, I had previously read about Huawei's quadruple exposure technology, which allowed me to speak about it with partial understanding.
I couldn't be too professional; if I were, they would definitely notice something was off, but I also couldn't say nothing at all, as that would be like saying nothing.
Inside the car.
Liang Mengsong and Zhang Rujing engaged in a heated discussion, continuously verifying the feasibility of various technologies.
Chen Pingjiang couldn't understand anything, like an outsider.
They finally arrived at the destination, and he quickly got out of the car to get some fresh air.
A red carpet several hundred meters long extended directly from one end of the road.
It extended all the way to a huge sand table model.
The cost of this 20-square-meter sand table model alone was considerable; at 30,000 RMB per square meter, these 20 square meters would be 600,000 RMB.
It didn't look big, but the production difficulty was very high.
The larger the size and area, the longer the polishing time.
Of course, Chen Pingjiang didn't have to pay for this; it was a gift from the Shanghai municipal government.
At 10 AM, under the scorching sun, the groundbreaking ceremony officially began.
As the sole investor, Chen Pingjiang continuously shook hands with various leaders.
The ceremony continued until noon before ending.
In the afternoon, they were just as busy; the two elders pulled Chen Pingjiang to discuss equipment procurement issues.
A wafer fab is a money-guzzler; the factory buildings and grounds are not valuable, only the various equipment is.
Most of this equipment needs to be purchased from abroad, and factoring in factory production and shipping time, some big pieces of equipment need to be prepared for now.
If they waited until the factory was completed to place orders, too much time would be wasted.
Chen Pingjiang asked,
"What about lithography machines?"
Liang Mengsong smiled and shook his head,
"It's difficult. According to the updated prohibited sales list of the Wassenaar Arrangement last year, the most advanced equipment is not allowed to be sold domestically. Essentially, products two generations behind are the only ones that might enter the domestic market. The most advanced NXE:3100 model EUV cannot be bought even with money; we can only buy DUV. I specifically checked, and the XT:1900i produced four years ago is not on the prohibited sales list, which means we can purchase it."
Chen Pingjiang felt helpless upon hearing this, the Wassenaar Arrangement, which cannot be circumvented no matter how you try.
He hadn't felt it before, but only when truly entering this industry could he feel all kinds of helplessness.
Being able to only buy products from four years ago basically means being two generations behind.
Noticing Chen Pingjiang's frustration, Zhang Rujing smiled and patted his shoulder,
"Don't be disheartened, it's enough for us for now. The XT:1900i is sufficient to produce 40nm chips, and if we adopt the quadruple exposure technology you mentioned this afternoon, Elder Liang and I also believe 28nm holds great promise."
Chen Pingjiang took a deep breath and nodded,
"It will have to be this way. Which of you two elders will take the lead?"
Liang Mengsong pointed at Zhang Rujing,
"Definitely Elder Zhang."
"Okay, I'll go. When I was at SMIC, I purchased many of their machines and have a good relationship with Riemer, the president of their Beijing branch, so it shouldn't be a big problem, and it can save us a lot of time. Of course, we also need a backup plan; if worse comes to worst, we can only buy Nikon."
Liang Mengsong smiled and said,
"Pingjiang, that's why it has to be Elder Zhang. If it were anyone else, even if they could buy it, they'd have to wait for a year or a year and a half, slowly queuing up. You have no idea how many rules ASML has. New customers who want to buy a lithography machine must first register and fill out an application form, which is then reviewed by the China regional president.
After that, it must be submitted to the Netherlands headquarters for further review. During the review, dedicated personnel will conduct on-site inspections at the wafer fab and also check our bank account funds. Only if everything is fine will it be approved."
Chen Pingjiang almost laughed in anger.
How can there be such a pathetic buyer in the world?
Simply put, their on-site inspections are to prevent you from reselling to other state-owned enterprises or domestic research institutes.
If those places want to buy, they probably can only buy second-hand.
"Don't be discouraged, maybe there's good news? After all, we are currently a foreign-invested enterprise, and our background is also very clean in all aspects."
Chen Pingjiang asked again,
"Can't we buy etching machines either?"
Zhang Rujing nodded,
"We indeed cannot buy the most advanced ones from abroad, but we don't need to buy from them. The CEO of Zhongwei Bandao, Elder Yin, has a good relationship with me and revealed that by the end of this year, they are expected to develop 45nm dielectric etching equipment. Anyway, our factory also needs time for construction, so this timing is just right."
Elder Yin's full name is Yin Zhiyao, and he is almost 70 years old.
In his youth, he served as Chief Technology Officer for the Plasma Etch Products Division at Lam Research, so his technical prowess is excellent.
In 2004, he chose to return to China to start a business and founded Zhongwei Bandao.
From initially leading a team of 15, he fought his way through, invented domestic etching machines, broke through the US technology monopoly, and gradually grew into a world-class etching giant.
Frankly speaking, etching machines are the only semiconductor equipment that the US has not restricted against China, because later Zhongwei Bandao's 5-etching machine was of world-class level, and the US had no way to restrict it!
The way Europe and America play this is truly slick.
When you don't have it, they desperately restrict you and prevent you from acquiring it.
Once you have it, they immediately lift the ban, flood you with low-priced alternatives, and then sanction you.
After returning to the hotel, Chen Pingjiang thought for a moment and then called Bu Housheng over.
Bu Housheng was either in Hong Kong or Shanghai, so he arrived quickly.
"Chairman Chen, is there something you need me for so late?"
Bu Housheng still wondered what urgent matter required him at 8 PM, as he had already eaten dinner.
Chen Pingjiang said,
"You know about my investment in the wafer fab, right? First, sell some of the Class B stocks you hold and gather 500 million US dollars for me. I happen to have another 500 million on hand, so that's a total of one billion, which is barely enough for the initial costs."
"Okay, no problem, but I'll have to liquidate in batches. If I dump it all at once, the stock price will drop sharply, and profits won't be much."
Bu Housheng thought for a moment,
"It will probably take about a month."
"Okay, I plan to get some loans from the bank soon. I'll give you the cash when I get it, and you help me invest in a few companies. I'll tell you, and you write them down."
Bu Housheng quickly found some white paper and took out the fountain pen he carried with him.
"Beifang Huachuang."
"Zhongwei Bandao."
"Huater Qiti."
"Hushang Weidianzi."
"..."
Chen Pingjiang listed seven or eight names that came to mind; he couldn't remember any more.
All of them, without exception, were supply chain companies involved in chip manufacturing.
This was the limit of what Chen Pingjiang could do; apart from providing a bit of financial support, he couldn't do anything else.
The most critical lithography machines still needed national-level support; this was not something Chen Pingjiang could manage alone.
As for the so-called lithography factory, Chen Pingjiang felt it might be tough.
Bu Housheng's brows furrowed tighter and tighter upon hearing such a long list of names.
His boss, possessed by who knows what, was entirely focused on the wafer fab.
This endeavor was arduous and unrewarding; how could it be as fast as making money by turning funds in the stock market?
Clearly, putting this money in the stock market and investments would earn more and be easier.
Insisting on using it for a physical industry, and the most difficult one at that—a wafer fab—left Bu Housheng speechless.
He felt that if he were Chen Pingjiang, he would definitely use family funds to frantically buy stocks of companies like Apple and Google, hold them for a few years, and make money effortlessly.
Now, with so much money poured into the wafer fab, there might not even be a good outcome.
The greatest possibility is that even if the wafer fab is built, it will lose money in subsequent operations, becoming an intractable problem.
If that day truly came, it would be too late to cry.
Losing money isn't scary, but time is also wasted.
As a professional manager with ethics and ideals, Bu Housheng still couldn't help but speak,
"President Chen, forgive my bluntness. You might not like what I have to say, but I have to say it."
"These companies you're talking about, some of them might be good, but it's really not worth taking out loans to invest in them. Interest rates are so expensive now. How many years will it take for these companies to produce research results, five or ten years? I personally still believe the money should be placed where it's most suitable, and the capital market is the most suitable place."
Even though Bu Housheng expressed opinions contrary to his own, Chen Pingjiang still appreciated his straightforward nature.
"You're right. How could I not know what you know? It's just that if I don't do it and you don't do it, who will? Someone has to do it, someone has to fill the void."
"State-owned enterprises."
Chen Pingjiang chuckled,
"SOEs are quite capable in other industries, but when it comes to lithography machines and semiconductors, they're not there yet. To put it simply, how much do R&D personnel in SOEs get paid? And how much do R&D personnel in private enterprises get paid? Wanting people to work without paying them, and expecting them to work overtime, is a pipe dream."
"Some industries are destined to require countless people to press forward continuously, built by investing time and money."
Bu Housheng nodded, thinking to himself, his boss was obsessed, so why bother trying to persuade him?
He also didn't know what Chen Pingjiang was so anxious about.
Chen Pingjiang ignored the subtle expressions on Bu Housheng's face.
It was normal for Bu Housheng to have such thoughts.
If he didn't have that memory, he might have dabbled in the internet or finance and made money effortlessly.
How great would that be?
(End of Chapter)