This press conference shook a large number of manufacturers in the same industry. There is no impermeable wall in the world, how can the Demon Star Company, as his supplier, not be known by others. But when they came to negotiate, many manufacturers retreated. Moxing requires a minimum purchase of one million units at a time. And the number of high, medium and low grades should all be there. This has sent back a lot of manufacturers who are ready to OEM.

In fact, this is Lin Feng's intention, Chinese mobile phone brands don't need so many manufacturers, especially not that kind of price killer. Brands such as Xiaomi. As soon as you come up, everyone is not mixed up, and everyone has no profit, so it's a fart.

Of course, they are not without benefits, with flash speeds of 800 megabits/600 megabits/400 megabits per second in an open supply. Cameras are available in three sizes, including high, medium and low, and processors are available in open supply, but they are sold with double the performance or lower. The screen is not sold separately, which means that you have to buy the processor, flash memory, and camera to get permission to buy the screen.

Moxing Company opens the software design channel, and all the underlying files of the system are all in Chinese, and Lin Feng's purpose is very clear. If you don't cooperate with me, then you will die. If you cooperate with me, eating soup, meat, and gnawing bones, it will not be a problem.

Two days later, the magic smart housekeeper system was automatically updated with a patch, so whether it was Android users or Apple users, they found that the mobile phone information display in their mobile phone system had become the magic star smart housekeeper system. Domestic mobile phone manufacturers like the system name to be expressed in English, followed by an OS suffix, of course, this may be for the convenience of export. No matter what version of the Moxing intelligent butler system, the location of the user information is all in Chinese. So far, the Moxing intelligent butler system has become the world's first mobile phone system. Become the world's No. 1 mobile phone hardware supplier.

In the following time, the industry was disrupted. Apple's mobile phone sales have fallen by nearly half, and Samsung is even more miserable. Flash memory, which is his first source of income, has been cut off by the Demon Star Company. As the main customer of high-end OLED screens, OPPO, vivo has all run to the side of the magic star company. And there are too many competitors with ordinary LCD mobile phone screens.

The company directly provides chip 3D printers to domestic chip manufacturers. This is a completely new chip production equipment, an improvement on the original scanning tunneling microscope. Moxing offers a completely different chip architecture. The products of these chip manufacturers include various domestic industries. SD cards, flash memory cards, SSDs. TV memory chips. A variety of network set-top boxes. and all devices that require flash memory products.

These things are not really valuable, but they have always had to be imported. For example, the memory chip used on the TV is only a dozen yuan expensive, and a few cents cheaper. The reason why there are no domestic manufacturers who spend a lot of money to do this is because the profits are too low, because there are many foreign manufacturers who do storage.

So you're going to see the prices of all kinds of electronics drop pretty fast. However, the price of PC memory modules has been stable. There are even frequent price increases. The same goes for SSDs. For two or three years, the price has been fixed in that position, neither rising nor falling.

The root cause is that the way of producing chips is too backward. As mentioned earlier, the tape-out cycle of producing a chip can be as long as several months or even half a year. Therefore, it is impossible for the chip industry to burst production. And the Magic Star Company makes all this impossible possible. After the direct printing is completed, the packaging is divided, and a chip is completed. The efficiency is directly increased by hundreds of times.

The domestic chip design capability was once very weak. But after all, the first step was taken. Therefore, these domestic manufacturers began to compete for those chip foundry businesses. And China's chip design field is rising strongly.

China's layout of semiconductors has actually started a long time ago. The days of the Wanwan semiconductor industry are already not easy. Now the Demon Star Company has given him a fatal blow.

With the full support of the government and huge market forces, the semiconductor industry has entered a golden age of savage growth; When the market, time, capital, and even talent are no longer on the side of Wanwan, Taiwan's one or two leading companies have to face the entire Chinese government.

As Dickens said: This is the best of times and the worst of times. For Wanwan's technology industry, the national treasure semiconductor industry, it is now in such an embarrassing moment.

The best moment is that in 2014, Wanwan's overall semiconductor output value was as high as 2.2 trillion Taiwan dollars, a record high, and the growth rate was as high as nearly 17%. But the elders of the Wanwan semiconductor industry are not happy. Because, at the same time, the crisis has quietly come.

The mainland, which was originally far behind and did not pose a threat at all, began to vigorously support the semiconductor industry. Since 2013, Tsinghua Unigroup has acquired two major IC design companies in mainland China, Spreadtrum and RDA, and is ready to work together, and then Intel, the world's largest semiconductor company, has invested $1.5 billion in Tsinghua Unigroup, shocking the market.

In 2014, China issued the "National Integrated Circuit Industry Development Promotion Outline", launched a large investment fund of 120 billion yuan, and drove local governments to increase the small fund of 30 billion ~ 50 billion yuan, plus the inflow of private capital, the total investment is expected to be 1.2 trillion yuan

The acquisition cases of a lot of money are dizzying. The world's fourth largest semiconductor packaging and testing factory, Xingke Jinpeng, the well-known optical image sensing chip manufacturer Omnivision, the memory chip factory Silicon Cheng (ISSI), and Hewlett-Packard's H3C Communications, were all acquired by mainland capital.

Wang Duan, vice president of Gartner, who once worked for SMIC, the largest wafer manufacturing plant in the mainland, said that in the next 10 years, the growth of the semiconductor industry in the mainland will definitely surpass the rest of the world, "and not only 10 years, once the investment is made, it is a point of no return!" "It's just that the mainland, which has been developing poorly in semiconductors for more than ten years, why is it actively targeting semiconductors and vigorously increasing the size?

The mainland imports more than 200 billion US dollars of semiconductors every year, surpassing oil and becoming the largest project in the supermarket, accounting for 70% of the global semiconductor market. Compared with the self-sufficiency rate of semiconductor chips in the mainland, it is less than 20%, which is scary.

In addition, the surveillance crisis exposed by the Snowden incident in 2013 has made mainland officials even more uneasy, believing that the development of core electronic semiconductor chips is related to national security and is imperative.

The semiconductor industry can be roughly divided into three parts, IC chip design, semiconductor manufacturing (including wafer foundry, memory manufacturing) and semiconductor packaging and testing.

The two sides of the strait contrasted, and the results made Wanwan worried. The mainland's semiconductor industry has assembled a large army and is approaching the city. Since 2010, the overall annual average growth has exceeded 20%, especially in the field of IC design, which can grow by up to 30%.

The fastest progress in the mainland is none other than IC design, because it does not require large capital, equipment and plants, and can be supported by powerful engineering talents.

From a company that could barely say its name more than ten years ago, to the strongest now, Huawei's HiSilicon, can not only develop its own high-end mobile phone communication chips with a high threshold for Huawei's mobile phones, but also surpass Novatek, which ranks second in Wanwan, in terms of revenue, and is almost half the scale of MediaTek.

Spreadtrum, the "sworn enemy" that once made MediaTek suffer a big loss in the 2G era, has revenue on par with Taiwan's third-ranked IC design company. Recently, a Lianxin under Datang Semiconductor has also emerged, because of its cooperation with Xiaomi, it has come to the forefront.

Several of the top ten IC design companies in mainland China also have their own breakthrough points. For example, Rockchip eats the world's largest MP3 and chip market, and Geke Micro specializes in CMOS image sensing chips.

Mainland IC design companies have sprung up, reaching as many as 700, although the good and bad are uneven, the level is far from the same, but because of the huge market, low-end chips can also find buyers. The output value of the overall IC design industry is close to Wanwan, and it may even be on an equal footing with Wanwan this year, or even surpassing.

On the other hand, Wanwan, relying on MediaTek to support the overall situation, MediaTek's revenue exceeded 210 billion Taiwan dollars in 2014, and Qualcomm, the world's largest mobile phone chip, had to chase after it, and then took into account the rise of mainland manufacturers. So far, not only has no one caught up with Wanwan manufacturers, but it is also one against ten, and the top ten IC design companies in the mainland can compete with MediaTek in terms of revenue.

In terms of semiconductor packaging and testing, because the mainland counts the output value and includes local foreign investment, the overall output value seems to have surpassed Wanwan, but Peng Maorong, manager of the system IC and process research department of the Industrial Technology Research Institute IEK, estimates that "about seventy percent of foreign investment, only three of which are land." ”

Look at Wanwan, which has two major semiconductor packaging and testing companies: the world's No. 1 ASE and the third largest silicon product. ASE has recently focused on high-cost system-in-package (SiP) technology, absorbing most of Apple's orders, and silicon products are also actively deploying mid-to-high-end packaging, and the operation can be said to be stable and upward. However, most people in the industry are worried that the field of packaging and testing will be the most fierce field of cross-strait competition in the future due to the relatively low technical threshold.

Especially at the end of last year, the mainland's official investment "big fund" was launched, assisting Jiangsu Changdian Technology, the first largest packaging and testing factory, to merge and acquire Singapore's packaging and testing factory Xingke Jinpeng

In the semiconductor manufacturing part, Wanwan's most powerful is "wafer foundry", with an overall output value of nearly one trillion Taiwan dollars, nearly half of the entire Wanwan semiconductor industry, several times that of the mainland, and the only field that still has a chance of winning ahead of the curve.

Among them, TSMC's revenue in 2014 was as high as NT$762.8 billion and its profit was NT$263.9 billion, both hitting a record high, and it continued to be the most profitable company in Wanwan, with a market share of 50% in the global wafer foundry market, ranking first in the world, and has always been the largest company in the Taiwan stock market.

In today's most advanced 14/16nm process, the only ones that can compete with TSMC are Intel in the United States and Samsung in South Korea. If you compare SMIC, the largest wafer foundry in the mainland with an annual revenue of about 60 billion Taiwan dollars, the scale is not only 12 times worse than TSMC, but TSMC's profit is 70 times that of SMIC.

TSMC, which has achieved brilliant results, is not unaware of the pressure from the mainland. There are more and more customers in the mainland, the proportion of revenue has increased to 8%, and a large part of the chips produced by IC design customers in Europe and the United States are sold to mobile phones or electronics manufacturers in the mainland, which has made TSMC repeatedly state its position since last year, "Actively evaluate the advantages and disadvantages of setting up a 12-inch wafer factory in the mainland." ”

UMC, which has regained the throne of the world's second-largest foundry, has taken the lead in building a 12-inch wafer fab in mainland China in a joint venture with the governments of Fujian and Xiamen, and will officially start production in the second half of next year. It will go so aggressively because UMC is faster than TSMC to face the threat of mainland factories, and its number one competitor, SMIC, has announced that its monthly production capacity of 28nm will reach 35,000 pieces by the end of next year, which may exceed UMC. If the strength of cross-strait semiconductors is comprehensively evaluated from the six major directions of technology, operation, settlement, capital, market, and talent, Taiwan's record is three wins, two defeats, and one draw.

In terms of technology, operation, and settlement, Taiwan still has advantages. However, the mainland's abundant market and capital are far from being matched by Taiwan. Lv Qianhao, vice president of ZTE's consumer terminal strategy department, mentioned that the most powerful thing in Wanwan is technology (technology), and the strongest in the mainland is the vast market.

Regarding the "market", the mainland market bought more than 400 million smartphones in 2015, and 6 of the world's top 10 smartphone manufacturers are mainland merchants; Not to mention the funds, the mainland government has spent a lot of money to cultivate the semiconductor industry.

Even if the two sides of the strait are currently "tied" for talent, Wanwan is also facing a great crisis, and the industry has already felt the threat of the mainland to grab talent.

Yuan Diwen, who moved from MediaTek's senior management to Spreadtrum, a mainland IC design company, as senior vice president, is the epitome of Wanwan's loss of outstanding talents. It is rumored that Huawei's HiSilicon also has a number of Taiwanese engineering talents, and SMIC now has more than 100 directors who are Taiwanese.