Chip localization is easier said than done.

The so-called chip is an integrated circuit, which compresses a very complex and large number of transistor circuits into a space the size of a fingernail, so as to build complex circuits in a very small space and complete complex functions such as calculation and control.

Chips are the foundation of all electronic industries, and their impact on human society is extremely huge, whether it is a small mobile phone or a large space station, it is inseparable from the large-scale use of chips.

Chips are also related to national security, and to a certain extent, it can be said that the level of chip capabilities is related to the strength of a country's weapons capabilities.

Of course, for Cao Yang, he can't think about such lofty things, what he wants is to make the chips used in various products of Nanshan Group be localized.

This goal, in fact, is also very difficult.

Not to mention mobile phones, there are many types of chips used in a car alone.

Especially in electric vehicles, the demand for chips is even more extensive.

Although most of the chips used in automobiles are not particularly technologically advanced products, the chips produced by the technology several years ago can also meet the requirements.

But automotive-grade chips do have their own difficulties.

In addition, after intelligence and networking in the future, some automotive-grade chips will also have high requirements for computing power, and the most advanced chip technology needs to be used to meet the requirements.

The construction of Nanshan Semiconductor's Modu wafer factory is the first step for Cao Yang to realize the real localization of chips.

"Mr. Cao, this time the number of people who participated in the commissioning ceremony of the Modu wafer factory is relatively high, and there is a vice president from the Government Council who will attend the event, and there are also many people from the ministry and commission."

"The magic capital is even from the city to the district, and the relevant leaders are all present."

Zhang Jing has been staying in the magic capital for this time, and he personally came to the airport to pick up Cao Yang today, and reported the next arrangements by the way.

Compared with the previous mass production ceremony of the Jaguar Land Rover Magic Capital factory, this time the event is obviously much higher.

Fab!

This is not something that ordinary enterprises dare to do, nor is it something that ordinary enterprises can do.

But the Nanshan Group dared to do it, and it was impressive!

"When I was planning before, it was said that after our wafer factory was put into production, it would be best to produce 8-inch wafers first, and now how much is the production capacity of these wafers expected to reach?"

Silicon wafers are of different sizes, from 4 inches in the past, to 6 inches and 8 inches, and now to 12 inches in the world.

In general, the more advanced the chip, the larger the silicon wafer used.

Because the silicon wafer is round, and the chip is square, the scraps are to be cut out and wasted, and the larger the area of the silicon wafer, the less waste, so the lower the cost.

At the same time, the larger the silicon wafer, the more chips will be cut out of a silicon wafer, and the higher the efficiency during processing, that is, the cost will be reduced.

Chips of 28nm and below are basically all produced by 12-inch wafers, and only some relatively mature chips, such as 40nm and 65nm, are produced by 8-inch wafers.

At that time, Nanshan Semiconductor purchased the most advanced equipment in the world, which was also a blessing from the financial crisis, and theoretically could produce 12-inch wafers.

However, considering that it is the first time to be produced, and the main goal of Nanshan Semiconductor in the initial stage is to use various chips on automotive-grade chips, 8-inch wafers, 28nm and even 40nm technology can meet the requirements.

So in the end, Zhang Jing and Cao Yang discussed, and finally produced 8-inch wafers in the Modu wafer factory to initially solve the needs of Nanshan Group's own chips.

At the same time, Nanshan Semiconductor and Nanshan Equipment are also working together to localize the production equipment of the 8-inch wafer factory.

Cao Yang himself has also taken Nanshan equipment many times to overcome the main bottleneck equipment issues.

Although it is unlikely that 100% of the equipment will be localized immediately when the second fab is built.

However, according to Cao Yang's plan, at the latest in five years, Nanshan Semiconductor's wafer fab must have the ability to use 100% domestic equipment.

Some localized equipment is not necessarily the best, but it can solve the problem of stuck neck at critical moments.

This is very important.

Especially for a company like Nanshan Group, which has mastered core technologies in many fields and has now had subsidiaries that have begun to be sanctioned, it is necessary to consider the risks in advance.

Otherwise, when the time comes, you will be stuck with a few raw materials or equipment, and your wafer factory will be wasted.

That is absolutely unacceptable.

The bottom line of some countries must not be overestimated.

"Now it has just been mass-produced, and it is expected that it will take more than one month to slowly climb up, and it can achieve a monthly output of 50,000 8-inch wafers from March."

"However, according to the current demand of the automotive market, a wafer factory will definitely not be able to meet the demand, and the company can formally consider the construction plan of the second wafer factory this year."

"After the experience of the first one, we can consider building another 8-inch wafer fab with a monthly capacity of 100,000 pieces, or we can directly build another 12-inch wafer fab with a monthly production capacity of 50,000 wafers."

"Considering that it is relatively easy to buy a lithography machine now, I suggest starting the 12-inch project first, and purchasing a batch of the most advanced lithography machines from ASML and other manufacturers as soon as possible."

"And the equipment we are developing at Nanshan Equipment can be used for the next 8-inch fab project."

Although Zhang Jing also has some understanding of the research and development of Nanshan equipment, his energy is mainly on the side of Nanshan Semiconductor after all, and he does not think that Nanshan Equipment can get the relevant equipment so quickly.

He even felt that Cao Yang required 100% localization of chip equipment, which was very difficult to achieve.

Of course, he certainly wouldn't have said these words directly.

After all, deep down, he also hopes that Nanshan Equipment can handle these technologies.

"Then consider building another 12-inch wafer factory next to the Modu wafer factory, and at the same time find a place in Lingnan Province to build an 8-inch wafer factory with a monthly production capacity of 100,000 pieces."

Regarding the development of semiconductors, Cao Yang has already made relatively mature considerations and layouts before.

So in response to Zhang Jing's proposal, he quickly gave a judgment.

Nanshan Group is not short of money now, and it makes no sense to put too much money on the books.

Now is not the time to fight with everyone who has the most cash reserves on their books.

Anyway, according to the current rhythm, the profitability of Nanshan Group in 2010 will not be compared with 2009.

If you spend a lot of money yourself, the funds on your books may not only not decrease, but will increase.

Therefore, Cao Yang did not hesitate to make such a bold decision to directly launch two wafer factories.

The construction of the Modu wafer factory cost almost 60 billion.

If the monthly production capacity is doubled, then the investment is estimated to go to almost 10 billion.

The investment in the 12-inch wafer fab is estimated to be eight or nine billion.

Considering the construction of these wafer factories, Nanshan Semiconductor will definitely continue to recruit more high-end talents to come back, and it is normal to spend 20 billion yuan a year this year.

If you include the fact that the 8-inch wafer factory that is now in production is likely to sell wafers at a loss, then it is not surprising that Nanshan Semiconductor will spend 30 billion yuan this year.

It is no wonder that ordinary enterprises dare not easily touch such projects as wafer fabs.

Even many chip companies are reluctant to invest in the management of wafer factories themselves.

It's really that the capital and technical requirements in this field are too high, and you will lose a lot of money if you are not careful.

"Building two fabs at the same time?"

When Zhang Jing heard Cao Yang say that, he was surprised and delighted.

The Modu wafer factory has spent so much money, and now it can't see the appearance of making money.

He thought that Cao Yang would become cautious about the construction of the wafer factory, but he didn't expect to be so bold.

This must be a good thing for Zhang Jing.

"It can be, but the equipment procurement may not be as cheap as the current factory."

"With the slow recovery of the economy, TSMC and Samsung have also begun to make some moves."

"The previous thing of directly buying lithography equipment from other manufacturers that have canceled orders from ASML is estimated to be untouchable."

Since last year, ASML's influence in the field of lithography machines has surpassed that of Dongying manufacturers, and this trend is changing very quickly.

All chip manufacturers are basically looking for ASML to buy new lithography machines.

As a result, the price of lithography machines has increased, and the lead time has begun to lengthen.

"We can arrange someone to discuss with the equipment manufacturer about the purchase of equipment for the 12-inch wafer factory, and at the same time, we can also ask Nanshan Equipment to prepare the equipment for the production of the 8-inch wafer factory."

"Of course, for the sake of conservatism, we can ask ASML to buy equipment for these two fabs at the same time, and then we will definitely need to continue to build more fabs to expand our chip production capacity."

"Even if you really buy it, you can use it."

At this time, the chip equipment can be sold even if it is bought back and resold.

Therefore, there is no need to worry about the production of Nanshan equipment, and the waste of money to buy equipment.

The main reason is that although Cao Yang has confidence in Nanshan equipment, he is also worried that he will be screwed when a wafer factory has not officially adopted it.

After all, in the field of chip equipment, China is really not good at it.

There are quite a few holes that need to be filled.

"No problem, after tomorrow's mass production ceremony, I will immediately start preparations for the construction of a new factory in the company."

"In the past year or so, we have dug up a lot of chip talents from Dongying, Goryeo and other places, and after a period of running-in, it is time for them to start playing a role."

Zhang Jing couldn't help but rub his hands, and he was very excited.

Nanshan Semiconductor has purchased a community in both Modu and Yangcheng to house chip experts recruited overseas.

In addition, it has also dug up a group of professionals from China, and recruited a large number of fresh graduates from various universities to enter Nanshan Semiconductor, in order to form its own chip production capacity as soon as possible.

This year, Zhang Jing has also been busy with Nanshan Semiconductor.

"By the way, I heard that Intel and TSMC are already working on 18-inch wafers, do you think we need to follow up?"

Although Nanshan Semiconductor has not even built a 12-inch wafer factory, only the industry is considered to be a relatively backward 8-inch wafer factory, but it does not mean that Cao Yang has no ideas.

Of course, knowing that even in 2023, the 12-inch wafer factory will occupy the mainstream, and the 18-inch one will not be carried out, Cao Yang will definitely not really have a hot head, so let the people below start to build an 18-inch wafer factory.

If it really happens like that, let alone 30 billion yuan, it will not be enough to waste it if it is doubled.

After all, the wafer factory has marched from 8 inches to 12 inches, and there are already many successful cases in the industry that can be referenced.

But it's not the same to build an 18-inch wafer factory.

The larger the wafer size, the higher the requirements for microelectronics processes, equipment, and materials.

Because about 75% of silicon wafers are produced using the Straight-pull method, the larger the diameter during the crystallization process, the greater the possibility of lattice structural defects due to unstable rotational speeds.

At the same time, a larger wafer diameter means more weight and is more prone to warpage at the edges.

Therefore, the larger the wafer, the lower the yield rate and the higher the cost per wafer area.

As a result, it is not economical to use larger wafers for production when the cost reduction by increasing the wafer size cannot compensate for the increased cost of wafer defect rate due to large diameters.

In this case, it is better to use 12-inch wafers, and then put manpower and material resources into the chip manufacturing process to tackle key problems.

For example, Intel is now able to produce chips with 22nm process, although it has not yet been mass-produced, but at least people have the ability to do so.

And it is said that they have already started working on the 14nm process.

However, for Nanshan Semiconductor, it now has a mass production capacity of 90nm, 65nm needs to wait until next year, and 40nm will have to wait until 2012, or even later.

Although this can already meet most of the needs of automotive-grade chips, it is not enough for Honor mobile phones to produce the main chip.

According to Cao Yang's plan, before 2015, at least 12-inch, 28nm process chip technology must be available, and all equipment and raw materials will be localized.

After that, it can be further expanded to the 14nm process, which can basically meet most of the needs.

As for the 7nm process, then there is no hurry, and there will be time for Nanshan Semiconductor to do it slowly.

Now the international environment is still relatively friendly, and the chips of Honor mobile phones can still be bought normally.

After mastering the 28nm process, you can start to make the Honor mobile phone completely become a product that uses 100% domestic components.

"Mr. Cao, the threshold for 18-inch wafer fabs is very high."

"On the one hand, from 12 inches to 18 inches, basically all equipment needs to be re-developed, and the relevant equipment manufacturers in the world have not yet made a complete breakthrough."

"On the other hand, the investment in the 18-inch wafer fab is expected to be very huge."

"Now investing in a wafer fab can be done with less than 10 billion yuan, but if it is an 18-inch wafer fab, it is expected to take tens of billions of yuan."

"The most important thing is that the purpose of increasing the wafer size is essentially to reduce costs, but the investment from 12 inches to 18 inches is likely to be more exaggerated than the effect of cost reduction."

"So I don't think the company needs to think about the 18-inch wafer factory for the time being, as long as the next step can smoothly get the 12-inch wafer out, and then focus on improving the chip production process."

Zhang Jing's answer made Cao Yang very satisfied.

It is very important that the person in charge of Nanshan Semiconductor, who was selected by himself, was not dazzled by the upcoming small victory.

Chips, sometimes for Nanshan Group, are not a cost problem at all, but a problem of stuck necks.

If Nanshan Semiconductor can produce chips with 14nm process in an 8-inch wafer factory, it will be able to fully meet the needs of the next 10 years.

Not to mention that in the future it can be produced based on 12-inch wafers.

Putting a lot of manpower and material resources into process improvement, so that Nanshan Semiconductor can quickly catch up with the international mainstream level, this is the main mission of Nanshan Semiconductor.

As long as this can be done, whether it is Cao Yang, the relevant departments of Huaxia, or the customers of Nanshan Semiconductor, they will definitely be very satisfied.

After all, even SMIC, the leader of the domestic chip industry, now has the technology of 65nm process.

As soon as Nanshan Semiconductor comes up, it can go to this level, which is already very good.

Of course, to some extent, this is also a late-mover advantage.

Taking the opportunity of the financial crisis, Nanshan Semiconductor has not been digging chip talents from various countries.

Due to the recession of the semiconductor industry in recent years, and even the general loss, the difficulty of poaching people has also been reduced a lot.

In a few years, the situation may be completely different.

"You're right, in the next ten years, we will only build 8-inch and 12-inch wafer fabs, and try to improve the yield rate of these two wafers as much as possible and reduce the cost."

As soon as Cao Yang said this, Zhang Jing also breathed a sigh of relief.

The two of them chatted, not only Cao Yang was inspecting Zhang Jing, but also Zhang Jing was observing Cao Yang.

If Cao Yang asked Nanshan Semiconductor to go in the most powerful direction, then Zhang Jing would definitely have a big head.

After all, there are some things that you can't just pat yourself on the head.

Even if the real money is spent, it may not be able to be done.

In particular, Nanshan Semiconductor's first wafer factory will only be officially mass-produced tomorrow, and the 12-inch wafer factory has not officially started construction.

At this time, the goal is too ambitious, and perhaps it will not bring you encouragement, but be scared away.

"Huaxia's automobile market is expected to soon exceed 20 million in the future, and the number of chips used in a traditional fuel vehicle is hundreds, and the number of chips required for electric vehicles that began to appear last year has directly doubled, and the demand for chips will increase in the future, whether it is a traditional fuel vehicle or an electric vehicle."

"This means that Huaxia's demand for chips in automobiles can reach nearly 10 billion or even more in a year."

"Although it is impossible for our group to occupy 100% of these chip markets, there is still hope for occupying half of the market."

"After all, most of the core parts of self-owned brand car companies are purchased from Nanshan Group."

"For an 8-inch diameter wafer, about 200 chips can be produced."

"A 12-inch wafer can produce about 500 pieces."

"In this way, if our current wafer factory produces 50,000 wafers per month, it will be 600,000 wafers a year."

"In the end, only 120 million chips can be produced, and this is still without calculating various defect rates, and the actual chips that can be shipped in the end are estimated to be about 100 million."

"In this way, it can only meet 1% of the chip demand of the Huaxia automobile market."

"Even if the next 8-inch wafer factory with a monthly output of 100,000 pieces and a 12-inch wafer factory with a monthly output of 50,000 pieces are successfully put into operation, it can only meet less than 5% of the market demand."

"Not to mention that in addition to cars, we also have related needs for a series of products such as Honor mobile phones, Nanshan equipment, and Nanshan robots."

"At the same time, we also have OEM cooperation with some manufacturers, and there is no way to use 100% of all the production capacity on ourselves."

"Mr. Cao, the 8-inch and 12-inch wafer fabs have been able to meet the development needs of our group in the next 10 years or even 15 years."

Although Cao Yang affirmed Zhang Jing's proposal just now, Zhang Jing still explained in detail the basis of his judgment.

And Cao Yang, who has not been able to settle the relevant process in such a detailed manner, was also shocked when he heard Zhang Jing's words.

After the construction of the three wafer fabs is completed, it can only meet less than 5% of the demand for automotive chips?

This is only the demand of Huaxia, and it is calculated according to the scale of 20 million vehicles, in fact, the Huaxia market can go to more than 25 million vehicles.

In addition, Nanshan Group's parts are not only supplied to domestic customers, but also need to be exported.

In other words, the market faced by Nanshan Group is the world, which is a huge market of 70 or 80 million vehicles a year.

What is the current volume of Nanshan Semiconductor?

It's not enough to see!

"What you say makes sense, listening to what you say, I think the future wafer factory with a monthly output of 50,000 pieces is a bit underplanned."

"After all of our three wafer fabs are mass-produced, the monthly production capacity of the newly planned wafer fabs must all be more than 100,000 pieces, and it is best to have a monthly production capacity of 200,000 pieces or even 500,000 pieces."

"In this way, we can further reduce costs and enhance our competitiveness."

Winning at least 50% of Huaxia's automotive-grade chip market is Cao Yang's goal for Nanshan Semiconductor.

Then, it is necessary to produce at least 5 billion chips per year, or even 10 billion chips.

The gap in the number of wafers needed is still very huge.

Nanshan Semiconductor, there is a long way to go!

"As long as the experience of these three factories is accumulated, it is much less difficult to simply increase the monthly production capacity."

"By 2012 at the latest, we can start building an 8-inch wafer factory with a monthly output of 200,000 pieces, and by 2015, we can build a 12-inch wafer factory with a monthly output of more than 300,000 pieces."

"At that time, we will strive to reach the second level of wafer production capacity in the mainland, and even challenge the first level in the mainland."

Zhang Jing is now like being beaten with chicken blood, very excited.

The chip empire planned in his dream is expected to be realized step by step.

(End of chapter)