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 can get started with designing digital i after two or three years of study and practice. 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.

Technologies such as CPU and memory will be updated in one or two years, and 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 is still 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 NE5532, which has 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 to rise like a comet.

But this rise is only in the field of digital IC, and the analog IC industry relies on the accumulation of time. If Dongfang Electronics relies on its own investment, it will take a long time to improve. And make up for the shortcomings in this regard. The best way to do this is through acquisitions. 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. 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 relied on 4004, 8008, 8080, and 8086 to accumulate and grow all the way, and finally relied on the x86 series to reign in the world. And Fairchild did nothing in this area either, 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 the focus of Fairchild's research and development 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 still bright. Since the 80s, the internal production lines of large manufacturing enterprises have become more and more intelligent, and many of the 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 acquire Fairchild, Li Xuan will naturally not let it enter the digital IC field again. The Oriental Research Institute in his hands is already good enough in this regard.

Fairchild's strength is still in the field of analog semiconductors, relying on the early accumulation, Fairchild can still eat the old capital, discrete devices, amplifiers, power ICs and other market segments. There is still a lot of market share. If Li Xuan can invest a lot of money to recruit technical talents in related fields, there is still a chance to re-emerge in these market segments.

And Fairchild has a large number of patents and technologies in its hands. It also has a heavy dà significance for Dongfang Electronics. Fairchild is the first company in Silicon Valley to establish a professional integrated circuit production line. Zhang Zhongmou's Oriental Semiconductor Company has acquired and built its own wafer factory. It can quickly form production capacity, but there is still a big gap with Deyi, Intel, IBM and other companies in terms of process innovation.

Now Dongfang Semiconductor has cooperated with Deyi and IBM. Obtain a part of the technology license, but after all, this is controlled by others, and Fairchild has a strong reserve. 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 S structure and technology were proposed as early as 1963, but it was not until 1982 that Intel realized the 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 and abandoned the x86 architecture in favor of the RISC camp, which has bought Dongfang a lot of time. The reason why Li Xuan lifted the hostile relationship with IBM and turned to co-opting cooperation 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 processor in 1984. In 1985, Motorola launched a low-power S version of the MC68000 in collaboration 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's technical reserves in TTL circuits are also very strong. 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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