Chapter 252: Fairchild Semiconductor

With the gradual maturity of computer-aided software, the design of digital ICs (integrated circuits) is becoming simpler, and many design jobs can be automatically filled in according to a certain logic through computer software. However, in contrast, the design of analog ICs is more complex, and even in later generations, it mainly relied on manual design by engineers.

A graduate majoring in semiconductors, with two or three years of study and practice, can get started with the design of digital I. But if you want to design an excellent analog IC, you can't become a talent without ten or eight years of hard work. In the same way, digital ICs are being replaced very quickly. According to Moore's Law, the number of components on an integrated circuit doubles every 18-24 months, and this law mainly refers to digital ICs.

Technologies such as CPUs and memory will be updated in one or two years, and they will be completely eliminated in four or five years. In contrast, a good analog IC product can even have a lifespan of twenty or thirty years. For example, the audio operational amplifier NE5532 has been one of the most commonly used audio amplification ICs since its introduction in the late 70s and into the 21st century. Almost 50% of multimedia speakers will use the NE5532, with a lifespan of more than 30 years.

Compared with the digital IC industry, which needs to continuously upgrade products and technologies to ensure competitiveness, analog ICs can be eaten all over the world in a calm manner. However, it is the characteristics of fierce competition in the field of digital IC that allow dark horses like Dongfang Electronics Company to rely on one or two new architectures and rise like a comet quickly.

But this rise is only in the field of digital IC, and the analog IC industry relies on the accumulation of time. Dongfang Electronics if only rely on its own investment. It will take a long time to get better. And the best way to make up for this shortcoming is to acquire. Although Fairchild Semiconductor has declined, its heritage is still there. At least it still has a large market share in multiple segments such as discrete devices and amplifiers.

Li Xuan had collected a lot of information about Fairchild before, and after careful analysis, he felt that it could still be saved. The decline of Fairchild in the 70s was mainly due to insufficient investment. The 70s were the golden age of memory, and it was from this that Intel rose to prominence, while Fairchild did nothing.

At the end of the seventies, too, processors showed themselves more and more. in another time and space. Intel relies on 4004, 8008, 8080, 8086, all the way to accumulate and grow, and finally rely on the X86 series to dominate the world. And Fairchild is doing nothing in this area. So the whole seventies were extremely disappointing for Fairchild.

After France's Schlumberger took over Fairchild, the problem of laymen leading insiders was immediately exposed, and Fairchild's R&D focus began to shift to the field of artificial intelligence. Of course, if Fairchild can take advantage of the trend to enter the field of smart phones. The future development prospects are also bright. Because since the eighties. The internal production lines of large manufacturing enterprises are becoming more and more intelligent, and many positions that used to use workers have begun to be replaced by machine equipment.

But Fairchild obviously failed to seize this opportunity, but because the battle line was too long, sales continued to decline. If Dongfang Electronics can successfully merge and acquire Fairchild, Li Xuan will naturally not let it enter the field of digital IC again, and the Oriental Research Institute in his hand is already good enough in this regard.

Fairchild's strength is still in the field of analog semiconductors, relying on the early accumulation, Fairchild is still eating its old capital. There are still a lot of market shares in market segments such as discrete devices, amplifiers, and power supply ICs. If Li Xuan can invest a lot of money. Recruiting technical talent in related fields still has opportunities for re-emergence in these market segments.

The large number of patents and technologies owned by Fairchild also have important significance for Dongfang Electronics. Fairchild is the first company in Silicon Valley to establish a professional integrated circuit production line. Although the Oriental Semiconductor Company managed by Zhang Zhongmou has been able to quickly form production capacity through the acquisition and construction of its own wafer factory, there is still a big gap between it and Deyi, Intel, IBM and other companies in terms of process innovation.

Now Dongfang Semiconductor has cooperated with Deyi and IBM to obtain a part of the technology authorization, but this is controlled by others after all, while Fairchild has strong reserves. At present, most integrated circuits use HMOS technology, which is characterized by high speed and high density. However, it also has the disadvantage of high power, which brings a series of troubles such as power consumption and easy heat generation.

Since the 80s, HMOS technology has been gradually replaced by new low-power CMOS technology. The first to use CMOS technology on the processor was the 80286 processor launched by Intel at the beginning of this year.

Li Xuan can open a gold finger on the processor design, but he can't do anything about the manufacturing process. For example, the COMS structure and technology were proposed as early as 1963, but it was not until 1982 that Intel realized its real commercial application. Every bit of progress in the process requires countless sweat behind it, which is accumulated bit by bit by countless real yàn. In this regard, a newly established company like Dongfang Electronics suffers very much.

Fortunately, Li Xuan relied on the ERM architecture to block X86 in the bud in advance. Now Intel has readjusted its strategy, abandoning the x86 architecture and starting to switch to the RISC camp, which has bought a lot of time for the Eastern company. The reason why Li Xuan lifted the hostile relationship with IBM and turned to co-operation was to obtain sufficient technical support from IBM.

In another time and space, it was IBM that first used the mature CMOS process in its own mainframe RISC processors in 1984. In 1985, Motorola launched a low-power version of the COMS version of the MC68000 in cooperation with Hitachi. Fairchild's research and development of CMOS technology is also not lagging behind, and Li Xuan remembers that it also launched its own mature CMOS technology in 1985.

And in addition to CMOS circuits, Fairchild also has a very strong technical reserve in TTL circuits. As early as 1978, Fairchild introduced the proven third generation of ASTTL technology. In addition, Fairchild can also bring many improvements to Dongfang Electronics in the chip packaging process.

It can be said that the acquisition of Fairchild Company will not only allow Dongfang Electronics Group to walk on two legs in the field of semiconductors, digital and analog, with a more stable pace, but also quickly make up for the shortcomings of Dongfang Semiconductor Company in chip production technology. to deal with the aggressive challenges of rivals, including Intel Corporation, in the near future.

"The acquisition of Fairchild, in addition to bringing us a technical supplement, is also a huge boost to the company's reputation! This is Fairchild, the West Point Military Academy of the US semiconductor industry! The acquisition of it will definitely imprint the name 'Dongfang Electronics Company' into the minds of all electronic engineers in the United States!" Li Xuan said excitedly.

John Martin and Zhang Zhongmou nodded without hesitation, both of them clearly understood the influence of the word "fairy child".

"The acquisition plan is in charge of you, Lao Han, and Zhong Mou is responsible for assisting! Although Fairchild Company will not be merged into Dongfang Semiconductor in the future, the two of you will definitely carry out in-depth cooperation in the production process in the future!" Li Xuan nodded towards Han Peng and Zhang Zhongmou.

Analog semiconductors are different from digital semiconductors in that most of their production lines are dedicated production lines. So, even thirty years later, there is no trend in the field of analog semiconductors to separate fabless design houses from foundries. Therefore, the merger of Fairchild Semiconductor's dedicated wafer fab into Dongfang Semiconductor will not bring much improvement in efficiency.

"At that time, the French company acquired Fairchild Semiconductor from Fairchild Photographic Equipment Company in New York, and the acquisition consultants of the two sides were Morgan Stanley and Goldman Sachs!

A multi-billion-dollar M&A project, a multi-billion-dollar listing project, I believe this is enough to attract these top investment banks on Wall Street to fight for it!" Li Xuan said with a smile.

Although he has no intention of packaging the two projects, as long as these two news are released together, the attention of companies such as Goldman Sachs, Morgan Stanley, and Merrill Lynch will be greatly increased. And the more fierce the competition between them, the more relaxed the conditions will be for the Eastern bloc. For example, the rate of the contracted project is a difference of millions of dollars for each point drop! (To be continued......

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