Chapter 771 Cut off the supply of photoresist?
Mayer would never have imagined that Qin Tao would actually come to receive him in person!
For him, this is a great honor!
If Sanders comes, Mr. Qin may come. Mayer's status is not high enough, but he can be personally received by Qin Tao, which makes him feel flattered.
"I'm very happy to hear that AMD is seeking cooperation." Qin Tao said: "Now, everyone is full of hostility towards us, thinking that we Easterners should not develop high technology, let alone be worse than the West. In addition to being jealous and Apart from slander, there is no other action. Even if we from the East are full of sincerity, they just pretend not to see it. However, your AMD company has bravely taken the first step and personally came to the East to seek cooperation. We are very happy. , welcome, Mr. Mayer."
Qin Tao’s words were even more sincere. When the two parties’ hands were held together, Mayer’s heart became inexplicably excited.
“Mr. Qin, technology knows no borders. We are all high-tech companies, so we naturally hope to cooperate more closely with each other,” Mayer said.
"Yes, we have long felt that the chip design unit and the production unit should be separated." Zhang Rujin said from the side: "The design unit is only responsible for design, and the production unit is responsible for production. In this way, each performs his or her duties, and all kinds of problems encountered in production are solved." Technical problems can also be solved very well, and low costs can be spread through mass production. Professional things must be left to professional people."
This is actually the reason for the rise of foundries. If each chip factory works behind closed doors, it may stumble on a certain technical issue and hand it over to a unified production unit. Due to the huge production capacity and the recruitment of heroes, of course, it can be completed in the shortest time. Problem solved.
However, in this way, the chip design unit will be controlled by others.
"We solemnly promise that the products we OEM for various chip design units will be kept strictly confidential and will never be leaked." Qin Tao said: "Please rest assured that we, SMIC, are a professional foundry and will take every aspect into consideration." .”
“Mr. Qin, we trust you very much, otherwise we wouldn’t come here to seek cooperation. Next, let’s talk about the details.”
"good."
"First of all, in terms of production, we estimate that the production demand is one million pieces per quarter." Mayer said: "All are built using a 0.13 micron process."
“Okay, no problem.” Zhang Rujin nodded. They can still eat this order.
Mayer was still afraid that the other party would not agree, one million yuan! Giving them one million units produced by AMD means that Loongson will produce one million units less! Even if the other party counteroffers to 100,000 yuan, it is understandable.
Now, the other party actually accepted everything according to the order?
Seeing the strange expression on the other side, Qin Tao smiled: "This is the time for us to show our sincerity. Since you have come with sincerity, of course we must also show our sincerity. We sincerely want to break into the United States." In the market, although our Loongson is advanced, many of you are wearing colored glasses and are unwilling to accept the fact that we are more powerful. Therefore, we are more optimistic about AMD's prospects in the US market and can build a million-dollar AMD product for you. , which means that your AMD company will become the leader in the US chip market. Through cooperation, we have achieved a win-win situation."
The other party actually knows what one thinks! Mayer was shocked, but he was even more impressed by the other party's broadmindedness. Mr. Qin was able to bring Mingzhou Group to its current scale, and it was certainly not luck.
“Then let’s talk about the foundry cost of the chip. Let’s negotiate the price directly on a scale of one million yuan. I wonder how much you plan to charge?”
“How much are you willing to pay?”
This was the first time I heard someone ask about the price. Mayer thought for a while and said, "Fifty dollars per dollar is the highest price we can offer. However, if you can't ship the goods to us within the stipulated time, , we demand triple compensation.”
The chip business is profitable. The retail price of the K7 processor is around US$150 to US$200. They now need OEMs and only offer a price of US$50. After deducting the design cost, one unit can earn at least US$50. , one million yuan, that is fifty million US dollars! And they are only responsible for design and sales, and no longer have to worry about production.
"This price is acceptable to us. It is an FOB price and we are not responsible for transportation." Zhang Rujin nodded: "However, we cannot accept three times the compensation."
"This is a common practice in our industry. If we cannot make it within the stipulated time, it will affect our sales. By then, our market will be taken away by our competitors. Since you have the ability to place orders , then you should be able to complete it on time. As long as it can be completed on time, the compensation does not matter." Mayer spread his hands.
"We will only accept double the compensation at most." Qin Tao said: "This is our rule. If you want to hire us to do the work, but we can't complete it in time, we can give you double the compensation. "
“This, I need to ask the company for instructions. How about we talk about the next item first?”
The detailed negotiations lasted for more than two hours, and Qin Tao did not interrupt again because he did not understand those techniques.
Chips are indeed high-tech.
When talking about the rest, Mayer kept nodding his head and shouting OK, OK. He was already impressed by Zhang Rujin's professionalism.
It was already noon after the conversation, and several people went to the restaurant to have dinner together. The entire restaurant was very tidy, almost like a chip production workshop, which impressed Mayer very much.
“No wonder you can mass-produce 0.13 micron technology first. With your meticulous attitude towards life and work, you will succeed in anything you do.”
“Thank you for the compliment. When the order is officially signed, you will have the opportunity to see our production line with your own eyes.” Zhang Rujin said.
"That's great." Mayer nodded: "It's a pity that we can't get this level of photolithography machine, otherwise we can produce it in our own factory!"
“Our lithography machine output is still very low and we are currently unable to supply it to you. When our production capacity increases in the future, we will give priority to supplying it to you.”
When AMD was unable to solve the chip process problem, it went to the East to seek cooperation. This incident quickly spread internationally, and this incident finally became the last straw for BHP.
“What are the Americans going to do? They asked us to challenge the Orientals, which resulted in a significant drop in our company’s orders, while they themselves were flirting with the Orientals.”
“That’s right, we were betrayed!”
“If we don’t want the company’s turnover to drop by more than half, then we have to resume cooperation with Easterners!”
The guys really can’t hold it any longer.
Originally I thought I had the lifeblood of the Eastern people in my hands, but what happened? Without the iron ore from the Kangaroo Kingdom, the people in the East still live a very prosperous life. They took the lead to reserve a large amount of iron ore, and they expanded other cooperation channels. The share of the Kangaroo Kingdom's iron ore was given to other countries. Filled!
Ander's face was gloomy: "Now, the China Iron and Steel Association is conducting a long-term agreement bidding for iron ore. We can't just sit back and wait, we must participate!"
“But they will definitely lower the price.”
"We have to invite bids to lower the price. We must occupy a certain share of the iron ore imports from the East, otherwise we will get nothing! We have to export a large amount of low-priced iron ore to make the Orientals give up fighting with Damao and Grassland. We want the country's cooperation and let them be treacherous villains. When we have the opportunity in the future, we will raise the price!"
If we don’t take advantage of this opportunity to win Dongfang’s share of iron ore exports, it will not be easy to break in once the gap is filled by other iron ore suppliers. Moreover, they have an imminent threat: if they don’t cooperate, they will have to lay off employees! The business will go downhill!
Since American companies can go to Mingzhou Group for cooperation, what choice does BHP need to make?
In the shopping mall, even enemies can sit down and discuss interests, not to mention that they only have some minor frictions.
On January 5, in the capital of the East, at the iron ore long-term agreement meeting organized by the China Iron and Steel Association, the Kangaroo Country BHP Company appeared.
"Mr. Ander, welcome to Dongfang. It's really a great honor for us that you can come to our meeting." The leader of the China Iron and Steel Association warmly welcomed the group of people from BHP Company, which made Ander feel much better. .
“We have always attached great importance to the eastern market and hope we can have better cooperative relations.”
"Of course, we also attach great importance to you. We hope that during this meeting, we can reach an agreement on long-term cooperative mining." The leader said: "Only through cooperation can we achieve a win-win situation!"
“In this meeting, we are discussing a total of 100 million tons of iron ore imports, which is a huge quantity. Please provide us with the best price.” The leader began to preside over the meeting.
One hundred million tons! This amount shocked everyone present. Dongfang’s appetite was too big, right?
Can they eat it?
“Excuse me, is this a year’s demand?”
“That’s right, it’s the demand for one year. We compiled it based on the demand of domestic steel companies. When this data came out, we were shocked.”
“Our BHP company can meet your needs, and the price is the same as before!”
“Our company, Vale, quoted us $50 per ton, and we want the entire order!”
“Our crude metal investment company quotes a price of US$40 per ton!”
When the price of iron ore was at its lowest, it was only more than ten U.S. dollars per ton. However, that is all in the past. Now the price of iron ore remains at seventy or eighty U.S. dollars per ton. The price can be reduced to such an extent at this meeting. It was absolutely impossible before. It's unthinkable.
The representatives of the steel companies who attended the meeting were all shocked. If they had known this would happen, why would they have hesitated? If they united as soon as possible, they would have been able to obtain low-priced iron ore as soon as possible!
The meeting went smoothly. Vale obtained a long-term mining agreement for 40 million tons of iron ore at a price of US$48 per ton, and BHP obtained a contract for 50 million tons of iron ore at a price of US$45 per ton. In the long-term iron ore mine agreement, Damao Metal Investment Company paid US$40 per ton to obtain the remaining 10 million tons of the agreement.
This is not only the price, but also the grade of the iron ore.
At the end of the meeting, Ander walked out of the conference room and looked at the sky above his head. For some reason, he felt very aggrieved. If he had known better, he would not have done this. Wouldn't it be better to just stick to the original way?
However, what can they do? If they hadn't seen AMD looking for Easterners to cooperate in the production of processors, they would still have to wait and see. Now, they are confident.
However, when they returned with the order, they were scolded by Wayne.
"What are you doing? You are exporting your own iron ore at a low price. This behavior is simply helping the Orientals!"
“You yourself can find cooperation with Easterners, why can’t we?”
"We are looking for cooperation with the Orientals. That is to deceive the Orientals, you **** idiots!" Wayne was speechless. He has not been in Kangaroo Country these days and has been busy with AMD's plans. He heard about the China Steel Association After the meeting, I hurried back, but it was too late.
The agreement has been signed. If iron ore cannot be supplied by then, we will have to compensate for the losses.
“Trick the Easterners? How? Don’t trick the Easterners when the time comes, and instead cheat yourselves!” Ander also got tough.
Huating.
Sanders, the head of AMD, came in person and signed an foundry agreement with SMIC in SMIC's office building. When he wrote his name, Sanders let out a long breath: "We believe that this is a new beginning for us. We are looking forward to the first tape-out of your production line. We are looking forward to the performance of the K7 processor built using 0.13 micron technology. Maybe how powerful it will be. It is comparable to your Loongson-3."
“Of course, we are also full of expectations. Now, you can go and take a look at our production line.” Zhang Rujin said.
“Well, we are honored to visit the most advanced chip factory in the world.”
The group of people changed into dust-proof clothing, passed the dust-proof workshop, and visited the factory. They were full of praise for the advanced equipment. Zhang Rujin was fooled by all the questions raised about various processes. After the visit, the next step is time to eat.
However, just as everyone left the workshop, the manager of the purchasing department hurried to find Zhang Rujin.
“Mr. Zhang, something happened!”
"What's up?"
“JSR Company sent us a telex saying that due to adjustments to their production lines, they will stop exporting photoresist to us in the near future. They asked us to find a substitute as soon as possible to avoid delaying our production.”
Zhang Rujin was shocked. Sure enough, it was exactly the same as Mr. Qin had guessed!
Before accepting the order from the Americans, Mr. Qin said that this may be a trap. They will find ways to prevent their own production after receiving the order, so that they can get high compensation.
They are not cooperating sincerely at all, they are here to dig holes!
“Mr. Zhang, what happened?” Sanders saw Zhang Rujin’s expression change and immediately asked with concern.
This is just a polite inquiry, and he doesn't expect to get any answer. In a big company, there will always be all kinds of unsatisfactory things. He would never have thought that this matter would actually be related to him.
"Mr. Sanders, a very strange thing happened." Zhang Rujin said: "You just signed the agreement with us, and the JSR company that provided us with photoresist stopped supplying us with products. You are also engaged in chip manufacturing. Yes, you should know how important the role of photoresist is. Without it, we would not be able to produce chips."
Photoresist is not a glue, it is not sticky, and it is not used for bonding. It is just a viscous substance, so it is called photoresist.
In the chip manufacturing process, one of the important steps is to transfer the circuit pattern on the template to the silicon wafer. This process uses photoresist. The photoresist is pasted on the silicon wafer and enters the photolithography machine. The layer will be exposed and developed, and then a part of it will be left and a part of it will be dissolved, so that the chip circuit is made.
With the continuous development of chip manufacturing technology, photoresist technology is also developing. Especially when entering the 0.18 micron production process, a new photoresist is needed. The photoresist used in the previous 0.25 micron process contains benzene rings. Structure, after the wavelength of the photolithography machine is shortened, the absorption is too high and cannot provide sufficient resistance in the etching process after photolithography.
Therefore, it is necessary to introduce a new photoresist. Generally speaking, adamantane, polycyclic lactone and other groups are introduced as protective groups into the acrylate system or fused ring olefins are introduced into the polymer chain as copolymer units to improve its resistance. Erosion ability.
At present, only JSR Company in the island country provides this level of photoresist. They ask SMIC to find other substitutes, which is nonsense.
Saunders' expression changed, and he shook his head repeatedly: "Mr. Zhang, please believe in our sincerity. We have not done any tricks. We really want to find you to do the work."
No wonder he went to the White House to lobby. He originally thought it would take a lot of effort, but unexpectedly everyone there gave the green light. It turned out that he wanted to trick SMIC, so just try to trick him, don’t trap yourself in it. ah!
BHP Company played a disgraceful role, what is the result? Now it is not just a matter of going to the East to invite bids, continue to export iron ore, and also significantly reduce the export price.
In the future, will you be targeted by the Mingzhou Group?
"Of course I am willing to believe you, but this happened so suddenly that it is easy for people to associate it with each other."
Sanders' face darkened. He had been fooled, by those politicians! He gritted his teeth and said: "When I say we are not tampering, that means we are not tampering. If we really want to tamper, then we will never agree to the double compensation plan. We will definitely insist on triple the compensation. plan!"
If it was just to get compensation, then they would definitely try their best to ask for three times the compensation when they signed the agreement. The agreement they signed now is only one time the compensation.
“Mr. Sanders, we believe in your sincerity. Now, faced with this situation, can you come up with some solutions for us?” Zhang Rujin continued.
solution?
Sanders thought for a while: "Our chip factory has a batch of photoresist in stock, which can produce 0.18 micron chips. If it can adapt to your 0.13 micron chips, we can send it to you. In the future , we can also purchase it in our own name and deliver it to you, isn’t this enough to show our sincerity?”
JSR will cut off the supply of photoresist to SMIC, but it will not cut off the supply to other factories, especially factories in the United States. Therefore, changing hands through AMD is the most appropriate way.
For American businessmen, this is nothing. During World War II, even if they knew that they would go to war with island countries, American businessmen would still sell various strategic materials such as steel and oil to island countries. During the Cold War, even if Even if they broke up with Parthia, there would still be businessmen selling Tomcat fighter parts to Parthia.
This attitude of the other party can be regarded as whitewashing them. They were indeed unaware of this matter.
In fact, even if the contract cannot be completed in the end, SMIC will never lose money. According to Mr. Qin’s arrangement, a force majeure factor has been added to the contract terms, such as earthquakes, floods, fires and other disasters. Although It is not said that the interruption of supply by our friends is force majeure, but at worst it will cause a fire. Our factory will catch fire and we will be unable to produce. This is force majeure!
Of course, that is only the worst possibility. Now, it is just a problem of photoresist, which we can still solve.
"Mr. Sanders, I'm very sorry. I was just too preoccupied." Zhang Rujin said: "The fact that you can support us like this shows your sincerity. Please rest assured that we will definitely complete production on time. It's just photoresist. , cannot stop our production. Also, given that your cooperation with us is very sincere, we also sincerely inform you that if you want to purchase a 0.18 micron photolithography machine so that the entire As for the production line, we are willing to provide related products, and we will also send people to help you master the 0.18 micron process."
"Really? That's great!" Sanders nodded repeatedly: "It's a pity that it's not 0.13 micron. I wonder when you can provide us with 0.13 micron production equipment?"
“This level of production equipment is too advanced, so it is difficult to produce. It has just met our needs. We will increase production capacity as soon as possible.” Zhang Rujin said.
This is also the plan arranged by Qin Tao. Since AMD is the first customer to come to cooperate, of course we must give them enough benefits. The entire 0.18 micron production line can also be exported to them. Anyway, if they don’t export, they themselves Yes, it's just that the technology is immature. The only one in the United States that has matured the technology is Intel.
In this way, more chip factories will come to SMIC for cooperation, and the path for foundry will be broader. More importantly, their production lines are exported in large quantities. How can Nikon and ASML sell lithography machines? Without selling lithography machines, they will have no money to continue research and development, and they will have no choice but to lose in this competition. If only SMIC can produce these equipment, then other chip factories will have to listen to SMIC!
This idea is naive, but you have to work hard step by step.
(End of this chapter)