Chapter 276: Sitting on the mountain and watching the tiger fight
When people's basic needs are satisfied, they will want to pursue something of a higher level.
To be honest, Guan Jianying has a certain amount of accumulation in the past 20 years of working in Silicon Valley, and it is not an exaggeration to say that he has low-level wealth freedom.
After coming to Xinxin Semiconductor, the options you get can also achieve a higher level of financial freedom, and people will have more pursuits.
For a veteran like Guan Jianying, who has worked in the semiconductor industry all his life, the pursuit of a higher level is naturally related to semiconductors, and he sincerely hopes to build the R&D team of Xinxin Zhangjiang into a team with enough combat effectiveness in the industry.
will be fooled by Zhou Xin to return to Zhangjiang to open up the wasteland, and he has a little family and country feelings in his heart.
At that time, Zhou Xin persuaded Guan Jianying to return to China, including participating in the daily operation and management of Xinxin Technology in China, and Guan Jianying had a general understanding of what Zhou Xin wanted to do.
In the final analysis, the Huaguo engineers who will come to Zhangjiang to open up wasteland have a similar purpose, that is, to develop the chip industry in China.
Because Guan Jianying has two brushes, even if Silicon Valley is affected by the bursting of the Nasdaq bubble, a large number of layoffs in the chip industry, engineers like them with two brushes will not be unable to find jobs.
No matter how bad it is, in the current era, in Ameriken, you can find a job and get a salary, which is more than that of senior white-collar workers in China.
Although Guan Jianying is very sure that Zhou Xin has the idea of developing Huaguo's chip industry, it does not mean that Zhou Xin has to use their gang, and if he can't do it, he will be replaced.
Therefore, out of self-interest, higher-level pursuit, and consideration for other employees of the team, Guan Jianying hopes to make achievements.
It is also a process of striving for resources within the company, just Xinxin Technology, which has lithography machines, chip design, chip foundry, industrial software, consumer electronics and other sectors and fields.
The industrial software here refers to EDA, auxiliary software for chip design, after Hu Zhengming joined Xinxin, Xinxin Technology wholly acquired Siluo Semiconductor.
After the acquisition of Silio Semiconductor, Xinxin is slowly moving Silio Semiconductor to China.
Why does chip design pay the most dividends every year, and performance wages take the lion's share? It's not because of the three fist products of Bluetooth chips, Mphone's A-series chips and mobile phone integrated chips.
These three fist products determine the chip design field to generate the most revenue, from the company's performance design can get the most performance salary.
Employees and managers in other fields will not have opinions, because income is confidence, and confidence is here, and it is useless for others to make trouble.
But Guan Jianying knows what is going on, whether it is a Bluetooth chip or a series chip, to put it bluntly, it is the result of the Silicon Valley team.
The mobile phone integrated chip is their research and development results, this achievement research and development difficulty is limited, there is such an idea is completely Hu Zhengming after the full investigation of the Chinese market, their credit is also limited.
Lying on such a report card and enjoying the best resources, Guan Jianying, a middle-aged man with thick eyebrows, big eyes, wide head and square face, felt not so comfortable.
He hopes to train the team with the help of the research and development of smartphone chips, and prove to their team that salary and strength are matched.
Hu Zhengming smiled after listening: "Lao Guan, I fully understand you, no one comes to China to open up wasteland, and the pressure on their hearts is not great.
Taking myself as an example, after coming to Xinxin Technology, I was more tired than when I worked two jobs in Silicon Valley.
At the same time, I was taking classes at Berkeley, and then I was working on Silio Semiconductor, and sometimes I was taking on some jobs for other companies.
But I'm not tired at all, I feel like I'm doing a good job, and I have a good balance between life and work.
I even have time to come to China for academic exchanges and academic lectures.
After coming to Xinxin, I felt like a spinning top, constantly being pushed by all kinds of things, and at the same time making the right decisions.
Looking back now, whether it is the integrated chip of the mobile phone or Xiaomi Electronics, it is the correct strategic planning.
These two steps have bought us time and space, and we have achieved both efficiency and scale at the same time. ”
Hu didn't explain too much, because they talked about it many times in internal executive meetings.
The time and space won here means that with the help of Xiaomi electronics and mobile phone integrated chips, Xinxin Technology has realized the synergy between different chip industries within Xinxin Technology, forming a business linkage.
Without these two products, Xinxin Technology's profit source relies entirely on Bluetooth chips and A chips, both of which have a huge problem, that is, they need to use advanced processes, and advanced processes Huaguo does not have.
In other words, no matter how well these two chips sell, Xinxin Technology can only enjoy the benefits brought by chip design and sales, which is not helpful for chip foundry, semiconductor equipment and industrial software.
The lack of help means that these two chips cannot help them train their teams and put various resources such as equipment, funds, and talents into operation.
For semiconductor companies, the most important thing is to operate these resources, and the more they operate, the better, even if they lose money.
Like Samsung, it expanded against the trend during the memory chip decline cycle, and even if it lost money, it couldn't stop production.
The same is true for Xinxin, Bluetooth chips and A chips are important sources of profits, and it is also true that these two products have achieved substantial profits, but only these two products, Xinxin Technology can only become a chip design company.
It can't be a giant that spans multiple semiconductor fields like Samsung.
Therefore, when Xinxin Technology held the board of directors, it gave Xiaomi Electronics and mobile phone integrated chips a very high evaluation, believing that the success of these two sectors is more important to Xinxin Technology than Bluetooth chips and A chips.
Huawei's consumer business is a matter of life and death for Huawei, why? Because it can digest a lot of internal technologies, so that the internal R&D investment has a clear output, so that the whole enterprise will not fall into a prisoner's dilemma of only R&D but no output.
Xiaomi's electronics and mobile phone integrated chip business is more important to Xinxin Technology than the consumer business is to Huawei.
Hu Zhengming continued: "I was also under a lot of pressure before making a decision.
China has a large number of consumer electronics brands, in addition to Lenovo, HP, Dell, these giants, there are large and small electronic brands, do we really have a market for personal computers?
Will taking the ultimate cost-effective route be suppressed by peers and impacted by public opinion from all directions.
Including mobile phone integrated chips, this is obviously very marketable, but why is there no company to do it? Is there a hole in R&D, or is the company not buying it, or is the regulation not allowing such a product?
I update my list of questions almost every day, and then confirm them one by one, either to do surveys or ask people to satisfy my own inner doubts and uneasiness.
Looking back now, these two decisions are very correct, with good results and good results, so that Xinxin has the possibility of becoming a cross-field giant.
But what happens if those two pieces of business fail? Maybe we can still be a cross-domain giant.
But life and death will be in the hands of others, and our chip foundry business can only fight a price war with TSMC like SMIC.
What is the price of TSMC's chip foundry business, SMIC is their seven or even five percent off.
Not only revenue and profits, but also maintain the scale of the enterprise and keep the business running. ”
SMIC was completely snatched from TSMC in the early days, and when TSMC was about to win the order, SMIC went to the customer and said that I only needed a 7% discount on the price, and even promised to help the customer bear the cost of the defective chip.
Later, Apple forced TSMC to bear the production cost of defective chips in the 3nm chip foundry, which is equivalent to TSMC only charging Apple for those good chips.
This is undoubtedly difficult for chip foundry companies to accept, and SMIC accepted similar terms in the second half of helping Texas Instruments OEM 90nm chips in the early days.
Hu Zhengming said: "Last year, Zhang Rujing helped Texas Instruments OEM 130nm chips, and when I talked to them recently, they expected to help Texas Instruments OEM 90nm chips by the end of this year." ”
Guan Jianying looked at Hu Zhengming with some surprise: "Old Hu, does SMIC have a way to circumvent the restrictions of the Wassenaar Agreement?"
Can they import 90nm key equipment? ”
Hu Zhengming shook his head: "They just helped Texas Instruments make the second half of the 90nm chip, which is equivalent to Texas Instruments doing most of the process, and then the rest will be handed over to SMIC."
Originally, TSMC was going to win this business, they have the ability of 90nm, and they are handy to do it.
As a result, SMIC won it by relying on the cost advantage at all costs, which is why TSMC is desperate to sue SMIC. ”
TSMC sued SMIC in the federal court of Northern California in Ameriken, alleging that SMIC obtained TSMC's trade secrets and infringed TSMC's patents through various improper means.
Hu Zhengming continued: "If we want to rely on external forces to do chip foundry business, there is only one way to reduce prices, and SMIC's price war in this field is already fierce enough."
If we enter again, the price war will be even more fierce.
I don't know where SMIC's technology came from, but to be honest, we've all been making chips for so many years, and SMIC obviously got some technology from TSMC.
We bought it, and they got it through some less open-minded means.
This also leads to our higher costs than SMIC, and we will have a greater disadvantage in the price war.
If you fight a price war, you need to keep transfusing blood to maintain the scale, which is a terrible thing.
The success of Xiaomi electronics and mobile phone integrated chips has allowed us to get out of such a predicament and let the initiative of Xinxin firmly grasp our hands.
So what I want to say is, don't worry too much before you do it, just do it with all your might.
If you feel that the current team is not motivated, you will recruit people, and with the treatment of Xinxin Technology, it will be easy to recruit people in Wanwan, Lion City and Goryeo.
Don't you still have so many recruiting places that haven't been used up?
The best way to feel that the team is less efficient is to add people. ”
Without the sudden emergence of Xinxin Technology, TSMC, UMC and SMIC would occupy more than 80% of the chip foundry market.
UMC is MediaTek, making a lot of money by relying on mobile phone integrated chips.
The emergence of Xinxin Technology has made the life of these three companies not very easy, and it is precisely because the days are not so easy that TSMC started earlier than the original time and space.
Their means are not only to go to Ameriken to sue SMIC, but also to start with a bend and start to attack SMIC and UMC at the same time.
Chen Ronglin, a judge of the Hsinchu District Prosecutor's Office, led more than 120 investigators to conduct a large-scale search of UMC without communicating with UMC Chairman Cao Xingcheng and took away many account books and computer files.
At the same time, the residences of Xuan Mingming, vice chairman of UMC, and Xu Jianhua, chairman of Continental Hejian Technology, were also "searched" by relevant parties. Xu Jianhua was subsequently imprisoned for questioning, and was still prohibited from leaving the country after being released on bail.
UMC and SMIC, who beat the two sets of combinations, were a little confused.
The biggest reason is that the market is not good, TSMC also wants to crack down on Xinxin Technology, the problem is that it can't find a handle, the patent has a contract as proof, and Xinxin Technology is bought at a clear price.
Xinxin Technology does not fight price wars, their own internal business is enough, and there is no need to fight a price war with TSMC to grab customers.
From the administrative point of view, Huaguo will not bird TSMC at all, and compared with Xinxin, TSMC's domestic relationship network can be said to be none.
As for Ameriken, TSMC's relationship network is also inferior to Xinxin, so it has to take the UMC and its enemy SMIC, which are also brothers.
Guan Jianying nodded after listening: "I'll find a way."
It's still TSMC ruthless, I heard my friend at UMC say that Cao Xingcheng didn't know about it at all, and Hsinchu didn't reveal any news in advance. ”
Hu Zhengming said: "Hehe, to put it bluntly, it's still a political game.
Lao Cao is still too tender, and I am also very familiar with him, and UMC sold the technology to SMIC through the shell of Hejian Technology.
To put it bluntly, before this matter was done, Lao Cao had already done it up and down.
All key departments, including the Legislative Review Committee, Lao Cao has already settled down, and he has also assessed the risks in advance, how can he do this casually, you must know that he was a KMT cabinet counselor before, and he is very familiar with various bigwigs.
Before 2000, Lao Cao wanted to participate in Shenhai Beiling, when Beiling was building an 8-inch wafer factory, and Belling only had a 4-inch wafer factory at that time, and Lao Cao's participation was a great help for them.
In fact, Lao Cao has always wanted the mainland to intervene, and there has been no suitable opportunity before, and it is a rare opportunity for Hejian Technology.
It's just that he didn't expect a new change in their political game, which led to him being investigated without any preparation. ”
Guan Jianying said curiously: "Why does he always want to come to the mainland to intervene?" ”
This fully proves that the circles of the two are different, Hu Zhengming and Cao Xingcheng know each other, and have had a lot of dealings, Guan Jianying only knows the core backbone of UMC.
(End of chapter)