In the investment package agreement between Oriental Group and the City of Austin, Oriental Semiconductor will build a new hyperscale fab in Austin using 8-inch wafer process and 1-micron process. The total investment in this fab is as high as 1. $500 million, will be completed and put into production by the end of next year, and will be mainly responsible for the production of the new ERM-3 series processors after being put into use.

In addition, Lam Research Equipment Technologies, a subsidiary of Oriental Group, will build a new large factory and a technology research and development center in Austin. Oriental Application Software Co., Ltd., Oriental System Software Co., Ltd., Oriental Research Institute, and Aikang Company will also set up new R&D centers in Austin.

Over the next three years, the Eastern Group will create at least 3,000 jobs in the city of Austin. Austin will also become the second largest production and R&D base of the Eastern Group in the United States, after Silicon Valley.

With a pleasant climate and well-planned cities, Austin is one of the best cities in the country to live and work in. One of the important reasons for the rise of Silicon Valley is the intellectual support provided by Stanford University, and Austin also has a very good university, the University of Texas at Austin.

There are no public universities at the federal level in the United States, only public university systems established by individual states. State grants account for a large proportion of the funding for these public universities. In other words, the cost of running public universities in each state is actually closely related to the tax situation of the state.

California is one of the most economically developed states in the United States, so the University of California system is very well funded, and has some of the best public universities in the United States. The most famous of these are the University of California, Berkeley and the University of California, Los Angeles. In addition, UC Davis, UC Irvine, and UC San Diego are also among the top 50 universities in the United States.

In contrast, Texas is the second-largest state in the U.S. economy. The overall level of the Texas university system is much worse than that of the University of California system. However, UC Austin, as the flagship university in the entire Texas University system, has the capital to compete with Berkeley and Los Angeles.

In the Times ranking of the world's top 100 universities, UC Austin is among the top 15. Its computer, electronic engineering and other majors can squeeze into the top 10 universities in the United States. And another characteristic of the Austin campus is that it is both high quality and large quantity.

With a total enrollment of more than 50,000 students, UC Austin is the fifth-largest school in the United States. Compared with. MIT has only 10,000 students, and Stanford and Harvard have only 1 each. 60,000 and 1. 80,000 people. Berkeley, which is also a public university, has a larger student population than private universities. But there are only 3 of them. 50,000 people only.

The size of one university at Austin is as large as that of Berkeley and Stanford combined. In addition, in recent years, the Austin campus is also gradually expanding the enrollment scale of computer, electronic and electrical engineering, microelectronics and other majors, and is fully capable of providing sufficient intellectual support for the development of high and new technology in Austin.

These conditions are for the Eastern Bloc. It has been able to generate enough traction. Not to mention the city of Austin compared to Silicon Valley. It also has its own unique advantages. As an emerging high-tech industry center, its costs are much lower than those of Silicon Valley in all aspects.

For example, the cost of land in Austin is much lower than in Silicon Valley, and Dongfang Semiconductor can save at least $10 million by building a new wafer factory here than in Silicon Valley. The median household income and price level in Austin are also much lower than those in Silicon Valley.

For example, the average median income of a family of four in Austin is one-third lower than in Silicon Valley. In other words, if high-tech companies recruit employees here, they can save one-third of labor costs than in Silicon Valley.

So for the Eastern Bloc, part of the production and R&D center was moved to Austin, Texas. Costs can be effectively controlled. Therefore, after George W. Bush took the initiative to intervene, the Eastern Bloc soon reached an investment agreement with the city of Austin.

And for the City of Austin. The move in a well-known high-tech enterprise like the Oriental Group can not only immediately increase employment opportunities and improve the level of local economic development, but also play an exemplary role and attract other high-tech enterprises to set their sights on Austin.

Therefore, the investment agreement between the Eastern Group and the city of Austin is a win-win option for both parties. Bush Jr., the matchmaker of the cooperation between the two sides, has gained a lot of benefits from it, although on the surface, he has gained a lot.

The city of Austin is the administrative capital of Texas, where the state government and state legislature are located, and it can be described as the political center of the entire state of Texas. Bush Jr. has attracted large-scale investment in Austin City at this moment, and he can undoubtedly add points to the Republican Party's election results in the hot and prosperous election campaign.

Although the position of Texas governor will not be re-elected this year, there will be re-election for the mayor of Austin, the Senator and all the seats in Austin's congressional district, as well as multiple state senatorial seats and all state House seats in Austin's state congressional district.

The announcement of large-scale investment by the Eastern Bloc at such a critical moment is undoubtedly a bright spot for the Republican Party in local governance, and it is entirely possible to use it to make a big fuss. A number of Republican candidates have promised voters more jobs in their platforms, and they have cited cases in which they have chosen the Eastern Bloc.

For example, Mayor Austin, who is preparing to run for re-election, said that he single-handedly fab the super fab project of Dongfang Semiconductor Company. Once the project is put into operation, it will not only provide hundreds of jobs in the region, but also generate a large amount of tax revenue. And Li Xuan has actually met the mayor of Austin before.

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Li Xuan and George W. Bush chatted about the election without a match, and the door of the box was pushed open again, and Lin Jieping, CEO of Lam Research Equipment and Technology, walked in.

"I'm sorry, I'm late!" Lin Jieping smiled apologetically.

Lam Research is the second-largest subsidiary in Austin after Oriental Semiconductor in the investment agreement. Therefore, Lin Jieping also deliberately flew from San Francisco to Texas, and he has been personally coordinating various matters related to the construction of the factory these days, so it is naturally impossible to be as idle as Li Xuan, a big boss.

"David, I heard that your company has just received another big order in China!" Bush Jr. nodded to Lin Jieping and said, David is his English name.

"The wafer factory put into operation three years ago by Shenhai Microelectronics Company uses 3-inch wafer and 5-micron process technology, which is only equivalent to the technical level of the United States 15 years ago. Therefore, the Chinese side has a strong desire to upgrade the equipment of the wafer factory, and we have just passed the audit of the Batumi Committee to build two new wafer production lines with 5-inch wafers and 3-micron process for Shenhai Microelectronics!" Lin Jieping introduced in detail.

After the Shenhai Microelectronics Company was put into operation, China invested in the construction of two other wafer factories of the same technology level in Shanghai and Beijing. Lam Research leveraged its strong relationship with China to secure the equipment supply contracts for the two fabs.

This is of great significance to Lam, because the process technology of 3-inch wafers and 5 microns has been phased out in the global semiconductor equipment market. The reason why Lam Research conducts research and development is mainly to practice and increase its own development experience.

The order from China not only allowed Lam Research to reverse its financial situation, but also allowed the company's equipment to experience the market test for the first time. This is very helpful for the accumulation of the company's reputation, you must know that semiconductor process equipment can easily cost tens of millions of dollars. If your sales volume has been hanging zero, how can you make semiconductor companies dare to recognize the quality of the equipment you provide?

The process of 5-inch wafer and 3-micron process is actually a technology developed by Lam Research two years ago, which is also an outdated and backward technology. Not long ago, Lam Research developed 6-inch wafers, 1. 5 micron process technology, the terminal rod has reached the mainstream technology level.

In order to gain the trust and recognition of Lam's new equipment, the original plan was not to build new 6-inch wafers, 1. Dongfang Semiconductor, a 5-micron process fab, deliberately started building the last 1 at the beginning of the year. Fabs for 5 micron processes.

With the leadership of Dongfang Semiconductor, a giant enterprise in the industry, I believe that Lam's new equipment will soon be able to enter the mainstream market to get a piece of the pie. As for China, the earliest market developed by Lam, Lin Jieping still attaches great importance to it.

This time, Deepsea Microelectronics proposed to upgrade the process, and Lam Research immediately set about opening up various links on the part of the U.S. government. However, the U.S. government would never agree to export mainstream semiconductor equipment to China, so from the beginning, Lam Research focused on obsolete technologies that were easier to get approved.

Now that China and the United States are in their honeymoon period, the United States has relatively relaxed restrictions on technology exports to China. As a result, Lam's 5-inch wafer, 3-micron process technology has successfully obtained an export license. The equipment upgrade project of deep-sea microelectronics can bring at least tens of millions of dollars in profits to Lam, and Lin Jieping is naturally very satisfied with this.

And the Chinese side is also very happy, don't look at the process of 5-inch wafers and 3-micron processes, which are already outdated and backward technologies in the United States, but it has at least touched the tail of the mainstream semiconductor process. You know, six or seven years ago, when the Eastern Bloc produced the first ERM-1 processors, it used this process.

However, the fab responsible for the production of ERM series processors has already been upgraded to 6-inch wafers, 1. The level of craftsmanship in the 5 micron process. Dongfang Semiconductor's new wafer factory in Austin will use more advanced 8-inch wafer and 1-micron process technology. (To be continued.) )

PS: PS: Although the second update is relatively late, but it still does what it says! A new month has begun, where is everyone's monthly pass, and suddenly I realized that I haven't asked for a monthly pass for a long, long time!