In the past two years, Nanshan Group has been sanctioned one after another.

Nanshan Carbon Fiber, Nanshan Equipment, Nanshan Semiconductor, Nanshan Special Steel......

Although these sanctions have not yet reached the point where the Nanshan Group cannot survive, the impact is also very obvious.

In response to the various sanctions imposed by the United States, it is naturally impossible for Huaxia to react at all.

You must know that Nanshan Group is the enterprise that has won the most awards of various national science and technology progress awards in China, and it is also the top existence of many core technologies in China.

Such a key enterprise related to the future development of science and technology in China will definitely not be bullied.

Just when Cao Yang didn't hear any news, the ministry suddenly announced an export control policy.

[In order to maintain the ......, the ...... Approved and issued the "Announcement on the Implementation of Export Control on Gallium and Germanium Related Items", and decided to implement export controls on gallium and germanium related items. ]

[According to the announcement, gallium-related items include 8 items such as gallium metal, gallium nitride, gallium oxide, etc., and germanium-related items include 6 items such as germanium metal, zone molten germanium ingots, and phosphorus germanium zinc...... It will enter into force on December 1, 2011. 】

As soon as this announcement was announced, ordinary people may not have reacted, but the semiconductor industry immediately exploded.

"Mr. Cao, according to this announcement, from December 1, a large number of products such as gallium metal, gallium nitride, germanium metal, germanium epitaxial growth substrate and so on, if you want to sell overseas, you must apply for a license from the ministry."

"When the company applies, it has to take the initiative to report who the buyer is, what he does, and what he wants to do when he buys it back."

"The impact on international semiconductor companies is huge, and it is also a very significant good news for our company."

Zhang Jing came to Cao Yang's office with great excitement and reported the latest policies.

First, Nanshan Group quickly added a bank, and now it has done export controls in the field of semiconductor materials.

It can be said that the support of the ministry for Nanshan Group has always been in action.

"How about the application of gallium and germanium in the semiconductor industry?"

Although Cao Yang probably has the impression that this export control will have an impact, the professional content must be that professionals like Zhang Jing know best.

"Gallium metal is mainly used in the semiconductor industry, about 98% of gallium metal is used in this industry, and the remaining 2% of gallium metal is also used in alloy manufacturing, biomedical and other industries."

"High-purity germanium is a semiconductor material, which is reduced from high-purity germanium oxide and then extracted by smelting."

"Germanium single crystals doped with trace amounts of specific impurities can be used to make various transistors, rectifiers and other devices."

"It can be said that as long as we engage in semiconductors, we cannot do without these two rare metals and their compounds."

As soon as Zhang Jing explained, Cao Yang immediately asked: "What is the proportion of our production capacity for these two materials?" Is it really possible to restrict international semiconductor companies? ”

If you want to restrict others through export controls, you must be able to get stuck with others.

If no one else lacks this little bit of you at all, then there is certainly no point in regulating it.

"Mr. Cao, because the concentration of gallium in the earth's crust is very low and widely distributed, it does not exist in a pure metal state, but in the form of sulfur-gallium-copper ore, so in general it is a scarce element, and it is a by-product of the industrial treatment process of sphalerite, pyrite, bauxite, and germanium."

"China's supply of gallium accounts for more than 95% of the world's total."

"It's a bit of a similar situation with germanium, where we have more than ninety percent of the world's supply."

As soon as Zhang Jing said this, Cao Yang probably understood why the ministry chose these two materials as the target of the counterattack.

Huaxia is the main supplier of this material, as long as I don't export to you, it will definitely hit the international semiconductor companies in a short time.

However, Cao Yang quickly thought of another question: "Although our production now accounts for a high proportion of the world's production, do other countries have similar mineral deposits?" ”

Production capacity is only one aspect of export control, in case others also have resources, but do not produce because of environmental protection or price reasons, then the effect of this counterattack will be greatly reduced.

"The world's total reserves of gallium are about 230,000 tons, and the reserves in China account for more than 80% of the world's total reserves."

"The world's proven germanium resource reserves reach 8,600 tons, and Huaxia reserves account for more than 4% of the world's reserves."

"So we are also very rich in reserves."

"Of course, the American side is not bad."

"Especially germanium, the number one is actually the United States."

Hearing Zhang Jing say this, Cao Yang's face changed.

People's reserves are so abundant, which means that the export control measures of the ministry are relatively limited.

It can only have an effect in the short term, and in the long run, it will force people to increase the production capacity of related materials.

This doesn't seem like a good thing!

As if feeling the question in Cao Yang's heart, Zhang Jing immediately added.

"Mr. Cao, these two materials, in fact, do not mainly look at the reserves, but rely more on production techniques."

"For example, germanium, most of the associated minerals in the United States are mainly lead and zinc, and if you want to produce germanium, you have to rely on lead and zinc mining."

"However, the scale of the lead and zinc industry in the United States is very small, so the mining volume of germanium naturally cannot be increased."

"As for gallium, there is basically no production line dedicated to gallium production in the world, because in terms of current production demand, there is no cost competitiveness at all to build a special production line, and you can't survive, so why bother?"

"Because the vast majority of gallium is a by-product of the production of alumina, and we are the world's largest producer of alumina."

"It can be said that these two materials, whether in theory the United States or Europe, are not lacking in resources, and there is no shortage of technology."

"But because of the production method, they can't actually meet their own needs, and they have to import from Huaxia."

When Zhang Jing said this, he couldn't help but smile on his face.

The Nanshan Group has been sanctioned so many times, and this time the ministry finally helped out a bad breath.

In the future, if you restrict Huaxia in semiconductor equipment and raw materials, I can restrict rare metals.

And now it is just the beginning, and there will be more similar rare metals in the future that can also be subject to export restrictions.

This is definitely a very impactful means for international semiconductor companies.

In addition, export control is not to refuse to export, but to determine whether to export after applying for it according to the situation.

If you have a good relationship with me, then I will allow it to be exported to you.

For example, Europe and other markets do not currently do anything specifically for Nanshan Group, so it can continue to export.

But on the American side, I'll card you first.

Even if you can get some materials through special means, the cost will be much higher.

"I see, that's great."

"At this time, those chip companies in the United States are estimated to be empty-minded."

"You can also sort out which materials in the semiconductor industry we can restrict from international giants, and you can choose the opportunity to raise them with the ministry later."

"We can't just be reactive, we can be more proactive in the future."

Since the ministry is not worried about the relationship with the United States, Cao Yang feels that he does not need to worry so much.

In particular, the United States is said to be officially adjudicating the case of banning the sale of Honor mobile phones soon, and Apple mobile phones will not live in China at that time.

At least the iPhone4 and iPhone4S, which clearly infringe on the appearance of the HONOR 2 and HONOR 3G, don't want to make money in Huaxia.

……

"Mr. Li, Huaxia has begun to fight back."

After Chai Hang saw the announcement of the ministry, he reported to Li Zailin as soon as possible.

The United States has taken various actions against Nanshan Group, and Samsung is an important driving force behind it.

So they are naturally very concerned about the reaction of the follow-up parties.

Originally, Samsung thought that it was unlikely that there would be any big moves on the Huaxia side, after all, the Chinese economy at this time was still quite dependent on international trade.

If various counterattacks are made, it is likely to have unpredictable effects on other aspects.

Unexpectedly, this time the situation was a little different from what they imagined.

"I have just received feedback from the public relations department that germanium and grafting are going to be subject to export control."

"Although it is not a direct ban on exports, the effect is actually similar."

"This is very detrimental to the development of the international semiconductor industry, and I am ready to make a special report with the headquarters and pull the major chip companies to protest against this behavior."

"It's undermining free trade."

Lee Jae-lin's face was very ugly.

Samsung also needs to import these two types of materials from Huaxia every year, and even the two materials used by Samsung are all from the Huaxia market.

In the future, if every import needs to be approved by the Chinese ministries and commissions, the impact will still be great.

No one knows when the application will be approved or not.

In this way, not to mention that prices will rise, and supply will become very unstable.

This is definitely very bad news for Samsung.

"Huaxia rarely uses similar counterattack methods, this time is the United States' action is too violent, so Huaxia has a counterattack means so quickly?"

It's normal for Chai Hang to think so.

After all, Nvidia, a subsidiary of Nanshan Semiconductor in the United States, has been forced to sell it at a low price.

Then Qualcomm is suing Honor Mobile again, claiming more than one billion dollars.

At the same time, they are also pushing for a ban on the sale of Honor mobile phones, which is basically about to land.

With so many means used together, it is obvious that they are all aimed at the Nanshan Group.

It makes people feel very aggrieved, and the impact is real.

No wonder Huaxia will fight back.

However, Li Zailin did not agree with Chai Hang's view.

He felt that the United States had taken it for granted and justified its dealings with the Nanshan Group.

I can hit you, but you shouldn't fight back.

In the past, they have enjoyed too much preferential treatment in the international market, and now they are a little unbearable when they are hit a little bit.

"Not only do I not think the movement of the American side is too violent, but I feel that the movement of the American side is not strong enough."

"Only if Huaxia fully feels that counterattack is not a good method, will they honestly abide by the rules we have set in the future."

"Otherwise, once Huaxia tries the sweetness, they will have a greater say in the future."

Li Zailin gritted his teeth and said.

The usually gentle rabbit began to bite, which he couldn't accept.

Soon, under his push, Samsung also began to act internally.

And after seeing Huaxia's announcement, ASML reacted greatly.

"Christopher, Huaxia's export control of marrying and germanium-related materials is likely to make some semiconductor companies worry about it and dare not easily deal with Nanshan Semiconductor."

"I don't think the company can let this situation happen, otherwise it will be more troublesome in the future."

Pete has been busy with the next generation of lithography technology lately, and the pressure is still high.

Originally, the lithography machine they produced that could meet the processing of 28-nanometer chips was the most advanced in the world, so there was no need to be in such a hurry to develop the next generation of products.

However, because Nanshan Group has also mastered similar technology, and has begun to invest heavily in chip factories.

In order to continue to gain an advantage, ASML needs to launch lithography machines capable of producing 14nm or even 10nm chips as soon as possible.

Otherwise, if there is no technical advantage for Nanshan Group, it will not be easy to live in the future.

But it's not so easy to create a technological advantage for generational differences.

In the past, there was no need to work overtime, and it was possible to develop slowly, but now it has become overtime every day.

Many R&D personnel are very angry.

These grievances, Pete thinks are all brought by the Nanshan Group.

"This countermeasure is more of a response to various actions on the American side."

"We need to see how the U.S. reacts before we can move forward."

"Otherwise, we won't be enough on our own."

Christopher naturally also knows how influential Huaxia's counterattack on the export control of materials is.

Originally, it was their neck in Kahuaxia's enterprise, but now they are stuck in Huaxia's neck.

This situation must be difficult for them to accept.

But the final counterattack will definitely depend on the reaction of the big business in the United States.

"We can push it behind the scenes, and we can't be intimidated by Huaxia's export controls."

"Whether or not a large number of rare metal elements used in the semiconductor processing process are purchased in large quantities from Huaxia."

"At that time, there will be no export restrictions on the two types of materials, graft and germanium."

When Pete said this, Christopher couldn't help but nod.

Indeed, this is the truth.

Can't let Huaxia try the sweetness, otherwise there will be more measures against them in the future.

Once the international semiconductor industry compromises Huaxia's export restrictions, it will be very difficult to continue to monopolize the right to speak in the future.

……

If Samsung and ASML are just a little worried, then Apple's Huaxia side is a bit like an ant on a hot pot.

"Mr. Wang, the market share of Honor mobile phones in the United States is actually very low, but our sales in Huaxia far exceed their sales in the United States."

"If Honor mobile phones are really banned from being sold in the American market, then I think it is likely that we will also be banned from sale on the Huaxia side."

"It's not a good deal for us."

Although Lin Rong was also worried about such a situation before.

However, according to the judgment of internal discussions, I think Huaxia should not make such a move.

After all, apples are very important foreign investment, and their processing is also placed in China, and if it is banned, it will also damage the interests of some places in China.

But when she saw the export restrictions announced by the Chinese ministry, she realized that the situation was different.

Wang Ziming's reaction this time was also a little different from before.

"Huaxia's reaction is a bit fast, I thought they would endure it for a few more years before they made some moves."

"I didn't expect to carry out export controls directly on germanium and grafting materials."

"This is supposed to be targeting semiconductor companies in the United States, right?"

In this year, many international giants have a different view of China than later generations.

Wang Ziming will find it strange, and many other international companies will have the same reaction.

"Nanshan Group's influence in Huaxia is still quite large, especially in the semiconductor industry, and they are now the most advanced existence in Huaxia."

"Huaxia spent hundreds of billions of dollars to import semiconductors from the world last year, and now it is hoped that this part of the import amount will be saved, and it will definitely take care of Nanshan Group in every way."

"Honor mobile phone is now the existence of Nanshan Group second only to Xingchen Automobile, and it is even likely to become the largest enterprise under Nanshan Group in the future."

"In this case, if Honor mobile phones are banned in the United States, then I think Huaxia is likely to respond to Honor mobile phones' demands and ban the sale of Apple mobile phones through patent infringement cases."

As soon as Lin Rong said this, she directly silenced Wang Ziming.

This situation is definitely not what Wang Ziming wants to see.

After all, he is the person in charge of the Huaxia branch, and if the performance here is not good, it means that his career future is worrying.

So even if he was originally very supportive of the United States' ban on the sale of Honor mobile phones, he even did a lot of work.

Now it's starting to shake too.

"Let's see how they react."

"For such a big thing, I think there should be some follow-up actions."

Wang Ziming didn't want to slap himself in the face.

He was the one who pushed Apple's headquarters to participate in the ban on Honor phones.

Now he is the one who has taken the initiative not to ban the sale of Honor phones in the American market.

What will Apple President Kuka think of him?

……

"Paul, you've seen the export restriction announcement over there in Huaxia, right?"

Intel's president, Rodne, called Qualcomm's president directly.

Although Huaxia's announcement did not specify the specific background of the introduction of export control measures for germanium and gallium, Otellan is well aware of the reasons for this incident.

Although Intel is also an important opponent, it is Qualcomm that rushes to the forefront.

At this time, Otellening naturally wanted to discuss with Paul to see how to deal with this situation.

"I saw that the price of these two series of materials on the market has doubled in one day, and it is likely to rise exponentially in the future."

"Although the cost of these materials has risen, we have the strength to absorb this part of the price impact through the final chip price change."

"But this is a very bad start, and it also has a very bad impact on the stability of subsequent chip production."

"I don't think we can compromise on this matter easily."

Over the years, Intel has not been involved in lawsuits and conflicts with various companies.

At this time, it is natural that it will not be easy to compromise with Huaxia.

In his opinion, although these two materials are mainly dependent on Huaxia at present, they are not without other solutions.

"I also don't think we can compromise on this matter."

"This practice is obviously in violation of the relevant WTO regulations, and we can resort to the WTO to demand that Huaxia immediately cancel export controls."

As the president of Qualcomm, Paul will not choose to compromise.

Among the technology companies in the United States, Qualcomm has the highest proportion of in-house legal personnel.

Even the two core tasks within Qualcomm are R&D and litigation.

This is an important guarantee for Qualcomm's main source of patent fee income.

There is a special "tax" on mobile phones, which is called "Qualcomm Tax" by many companies.

This is actually the patent fee paid by various companies after using Qualcomm's patents.

The amount of this patent fee is not low at all.

Even the profit margins of many companies are not much higher than this patent fee.

As you can imagine, not every business is willing to pay such a fee.

In order to maintain such a high royalty income, various lawsuits are inevitable.

No matter what happens, Qualcomm's first reaction is definitely not to compromise, but to fight back and fight a lawsuit.

This time is no exception.

"The various materials used on the chip, not only marrying and germanium need to be imported from Huaxia, if our counterattack action is relatively large, then will it lead to more fierce counterattack measures on the Huaxia side?"

Although Ou Dening also hopes to make some counter-actions against Huaxia's announcement.

But to say that he has no concerns at all is certainly false.

After all, China is the world's second-largest economy, and it is not to be kneaded.

"This is a gambling process, and no one knows where the other party's bottom line is."

"At this time, you can only keep trying."

"If we don't test it this time, it will be even more difficult in the future."

With this conversation between Paul and O'Tellane, the first action on the American side is Qualcomm's lawsuit against Honor for patent infringement and ban on the sale of Honor phones.

And this time, whether it is Huaxia's side or Nanshan Group's side, they are obviously not prepared to compromise easily.

Companies and people throughout the semiconductor industry are paying close attention to the wrist-wrestling on both sides of the Pacific Ocean.

What the new balance between the two sides will be is something that many people are very concerned about.

It is also something that will have a profound impact on many things in the future.

And this result came faster than many people thought.

"Mr. Cao, there is an update on the case from the United States."

A phone call from Xiang Wei, the head of the legal department of Nanshan Group in the United States, conveyed a message that had not yet been officially announced to the public.

(End of chapter)