Chapter 263: OEM Production
When the two returned to the workshop, Wang Shouwu felt a little emotional, and couldn't help but introduce to Lin Qiangsheng the achievements and setbacks of the domestic semiconductor industry in recent years.
At present, the domestic IC industry is supported by the "two hegemons", coupled with countless local small factories, to piece together a domestic industrial system that is not strong and the industry is scattered and scattered. Nanba Shanghai Radio 19th Factory (split from the 5th component factory), Beiba Beijing State-owned Dongguang Industry 878 Factory (formed by BJ Electron Tube Factory with a part of the technical force).
In the years when foreign countries imposed blockades on China, integrated circuits were high-tech products and were forbidden to be exported domestically. Therefore, in the era of closed self-reliance and planned economy, the ICs of these two factories once became the most popular products at the electronic component ordering meeting held twice a year. At that time, if you wanted to get your hands on a J-K flip-flop right away, you had to get your hands on it with the minister's signature. Before the implementation of China's reform and opening up policy, IC was a completely seller's market in China. In the first half of the seventies, the annual output of a factory was only a few hundred thousand pieces, and by the end of the seventies, the annual output of Shangwu 19 factories exceeded 5 million pieces, ranking first in the country.
In the early 70s, due to the rapid development of foreign IC and the influence of domestic "electronic centrism", coupled with the high price of IC at that time, the price of a non-gate circuit has reached 500 yuan, and the profit margin is larger, and the sales profit margin is as high as 40% or more, and the supply is very tight, resulting in a large number of IC factories around the country, and there has been a "IC fever".
At that time, many provinces, municipalities and autonomous regions, as well as some other industrial sectors, built their own IC factories, resulting in a rush to rise. During this period, more than 40 integrated circuit factories were built across the country. The factories directly under the Fourth Machinery Department include Factory 749 (Yonghong Equipment Factory), Factory 871 (Tianguang Integrated Circuit Factory), Factory 878 (East Optoelectronics Factory), Factory 4433 (Wind and Photovoltaic Factory) and Factory 4435 (Shaoguang Optoelectronics Factory). Among the factories built in various provinces and cities, the famous ones are: Shanghai Component No. 5 Factory, Shangwu No. 7 Factory, Shangwu No. 14 Factory, Shangwu No. 19 Factory, Suzhou Semiconductor Factory, Changzhou Semiconductor Factory, Beijing Semiconductor Device No. 2, No. 3, No. 5, No. 6 Factory, Tianjin Semiconductor (No. 1) Factory, Xi'an 691 Factory of the Ministry of Aerospace and so on.
Once integrated circuits appeared, with the continuous development of equipment and processes, the degree of integration increased rapidly. Integration from a small scale (SSI). After medium scale integration (MSL), it quickly developed to large scale integration (LSI), which took 8 years in the United States. However, China has only completed this road in seven years in the initial stage of development, and the gap with foreign countries is not very large.
In 1972, China's first PMOS-type LST circuit was successfully developed in Sichuan Yongchuan Semiconductor Research Institute, and in order to accelerate the development of LSI, China held three national conferences in succession. The first was held in Beijing in 1974 and the second in Shanghai in 1975. The third was held in 1977 in the province of Gui State, the third line.
In order to improve the technical level of process equipment and understand the development of IC abroad, on the occasion of the first anniversary of the resumption of diplomatic relations between China and Japan in 1973, China organized a 14-member electronics industry delegation to Japan to inspect the IC industry, and visited the eight major IC companies in Japan at that time: Hitachi, NEC, Toshiba, Mitsubishi, Fujitsu, Sanyo, OKI and Sharp, as well as many equipment manufacturers. Originally, we wanted to negotiate with NEC to introduce the entire line, but due to political and financial reasons, we did not succeed and lost an opportunity.
Later, it was changed to seven units to purchase equipment from abroad, with the expectation of building seven process lines. In the end, only Beijing878 factory was completed. Ministry of Aerospace Shanxi Lishan 771 and Guizhou Duyun 4433 Factory.
In the 15 years of this stage, from the development of small-scale to large-scale circuits, China has relied on its own strength in technology, but imported some low-level process equipment from abroad, and the gap with foreign countries has gradually increased. During this period, the United States and Japan have successively entered the stage of IC large-scale production.
Wang Shouwu introduced these to Lin Qiangsheng, so that Lin Qiangsheng has some of the most basic understanding of the domestic IC industry, in general, China's start time is much earlier than Wanwan and South Korea, and the technical achievements are relatively high. But then the development slowed down. Coupled with domestic unrest and foreign blockades, the time for technological development has been delayed. The domestic IC industry gradually lagged behind the world from the mid-sixties to the seventies and eighties. This period of time is an important period for the fastest development of the world's IC industry!
Now Lin Qiangsheng has a new idea after listening to Wang Shouwu's introduction, there is such a strong semiconductor industry strength in China, although the industrial system is relatively scattered and unreasonable. But there are a large number of large-scale industrial workers and infrastructure in the country, coupled with cheap labor in the country. The monthly salary paid by a large factory with 2,000 employees is only more than 200,000 yuan, and the cost advantage is very large. Nowadays, the popular in the international IC market is a large number of low and mid-range spare parts in Japan and low-quality cheap foundry in Wanwan, why not learn from Wanwan in China, not to mention anything else, the product must be cheaper than Wanwan!
He said to Wang Shouwu: "Since there are so many IC production units in China. Is it possible to come up with a few joint ventures with our company, and the new company will adopt a 1-to-1 share situation, and I will provide financial equipment, technology research and development, advanced management technology, and build several large-scale production companies? ”
Wang Shouwu was stunned for a moment after hearing Lin Qiangsheng's suggestion and said, "Aren't you going to build a semiconductor company by yourself?" How did you come up with the idea of a joint venture with China? ”
Lin Qiangsheng said with a smile: "I want to do it myself, but there is a lack of technical talents and professional workers, and it is foreseeable that the development will be relatively slow!" Since our country has such a good foundation, I might as well take advantage of it, which will also help my own semiconductor company a lot! In addition, maybe Deputy Director Wang doesn't know, I have two other computer companies in the United States, one is called Pentium Computer Company, and the other is called Compaq Computer Company, and I have registered these two companies in Hong Kong, and the trademarks of the two companies in China have also been approved! ”
"What? You say that the two computer companies, Compaq and Pentium, are yours? Wang Shouwu asked in surprise.
He is too familiar with these two computer companies, and the American microcomputer that is currently being copied by the Semiconductor Research Institute has the products of these two companies, and it is the main imitation object, but he didn't expect to meet the founders of these two companies today, and it is the young man in front of him, which is amazing!
"Uh-huh! Pentium computer company has launched two generations of products, the current Pentium 2.0 computer in the United States is selling well, taking the civilian route of 3,500 US dollars per unit, annual sales have exceeded 600 million US dollars to reach more than 200,000 units of sales! Compaq also released a generation of products, laptops, but for now it is the size of a small suitcase and sells well at $5,800 each. It has a simple window-based interface, advanced mouse operation, and an integrated set of mature office software, which can realize WYSIWYG, and it also has some mini-games that are very fun."
Listening to Lin Qiangsheng's vivid language to introduce his products, Wang Shouwu blushed slightly, he kept nodding, the research team led by Academician Wu Xijiu of the Semiconductor Research Institute also intends to imitate this portable computer, although it is impossible to have the manufacturing level of the Americans, and it cannot be miniaturized, but the window interface, mouse, and WYSIWYG These functions can also be realized, this microcomputer is indeed a rare good product!
It's really incomprehensible, these two computer companies with high-tech content in China seem to be all founded by Lin Johnson in front of them!
"My two computer companies are now in a period of development and expansion, although it is very convenient to invest in the United States, but I still think that it is better to put some industries in China, which can greatly help the development of the domestic semiconductor industry, and the country has a huge cost advantage, which can not be ignored! I want to put part of the production of spare parts of the two computer companies in China, or joint venture or acquire some domestic semiconductor companies to do OEM for my two computer companies, what do you think of my proposal? Lin Qiangsheng asked Wang Shouwu.
"Contract production?" Wang Shouwu said ponderingly.
Lin Qiangsheng nodded expectantly and looked at Wang Shouwu with a curious expression.
"Take computer spare parts to domestic production, joint ventures, technological transformation, production, and export to earn foreign exchange!"
After listening to Lin Qiangsheng's suggestion, Wang Shouwu thought of a few words in his mind, and he immediately reacted.
Wang Shouwu immediately stood up and said with a serious expression: "Comrade Xiaolin, your proposal is very good, if you can take some parts of your two computer companies to domestic production, it will be of great help to China's IC industry!" This news is very important, and I would like to inform the Institute immediately, and I am sure that the Institute and the higher authorities will consider your suggestion carefully! (To be continued......)