Chapter 234 Hua Yao Joined the Xing Hai Alliance (1/2)
On the morning of the 12th, at the Chip factory of OEM Zhongxin International, Gaoxin District, an ordinary domestic sedan was parked by the entrance to the factory. An old man alighted from the car with the support of his secretary. The old man was wearing a western-style business suit. His gaze was spirited and sharp. However, he looked very frail and old, as he was nearly 80. His hair was white at the temples and there were deep lines at the corners of his eyes. Beside him was the short-haired and bespectacled middle-aged man who was supporting him. He would look familiar to many if they took a closer look at him. Was he not the Executive Chairman of Hua Yao, Zhao Ming?
Looking at his highly respectful gaze as he helped the old man, the identity of the old man became clear in an instant. He was the founder of Hua Yao, Old Master Ren. The old master made a special trip to Shang Hai after getting wind of Zhongxin International's success in the production techniques of the 7-nanometer. He wanted to visit the OEM factory production site of Zhongxin International.
Zhang Wei Jin agreed to the old master's request. He was waiting at the door in an anti-dust suit and brought them into the factory for an observation.
Old Master Ren asked many questions that he was concerned about during the site visit. ”How's the production capabilities of this line? How many wafers can be processed and how many chips can be produced in a day?
”Under non-stop production, we can process 800 twelve-inch wafers every day. Theoretically, about 330 chips can be cut from each wafer. With this, we can produce 264,000 chips every day.”
His eyes brightened and he sighed in appreciation. ”Chips are still the most profitable. Nowadays, the manufacturing cost of a twelve-inch wafer is less than $1,000, yet more than 300 chips can be cut from it, and each chip is worth hundreds. The profit margin is ten times or even a hundred times more than the production costs. Had I known that this industry was so profitable, Hua Yai would have entered into the OEM industry for wafer and chip production. We should have occupied a share of this industry. But it's too late now.”
Zhang Wei Jin smiled. ”It's not too late even now. With Hua Yao's capabilities, it would have made something of itself in the wafer OEM industry within 10 years at most. It can become a large OEM brand and dominate the market.”
The old man said with a wave of his hand, ”Forget it. I'm almost 80. I would be dead after 10 years. We've already lost the advantage of being the first player on the scene. It would take a lot of money if we wanted to build ourselves in this industry to a level that is comparable to Zhongxin International. 50 billion might not even be enough… We won't be joining this industry. One company like Zhongxin International is enough. ”
Zhang Wei Jin said humbly, ”Chip production does not require complicated technologies. Chip designing is the most essential technology. The purpose of Zhongxin International is to provide OEM service to the various design companies. We're merely earning a small fee for our hard work.”
The old man shook his head. ”Ok, ok. President Zhang, there are hundreds of chip design companies, but only a few chip OEM companies. What's easy to do and what's difficult; I'll stop talking about that now.” He was suddenly reminded of something and asked with concern, ”President Zhang, what's the yield of the 7-nanometer chip production of your company? If the production capacities are satisfactory, I will entrust a portion of Hua Yao's Kirin chips to you. I hope that you won't charge us a high price for the OEM fees. We can accept a price of up to 30% higher than Mossy Electrics'... Your breakthroughs are amazing, but we can only provide limited support.”
As he heard this, Zhang Wei Jin felt moisture at the corners of his eyes. ”President Ren, please there is no need for that! We'll accept the same price that you pay to Mossy Electrics. You don't have to pay us a higher price. The only thing we need are orders. The more the better! Our second 7-nanometer chip production line is currently under construction. The yield of this production line has reached 86.4%. It can produce 228,000 high-quality chips every day. This production capacity is able to meet the OEM needs of all the high-end chips required by Hua Yao.”
After all, Hua Yao sold about 30 to 40 million high-end phones every year. It would be easy to meet the orders for a similar amount of high-quality chips.
The old man nodded. Suddenly, his eyes grew wide and he asked, ”What did you say? An 80% yield? Didn't you mention that it was not even 20% in that declaration of apology? Why are the numbers different now?” He asked with a serious gaze, ”Did I mishear, or did you misspeak?”Find authorized novels in Webnovel，faster updates, better experience，Please click for visiting.
”There was no misunderstanding. The yield that we announced to the public was merely a smokescreen. The actual yield is 86.4%. We've achieved the same yield as our competitors.”
”How is this possible?” The old master and Zhao Ming yelled at the same time.
Zhang Wei Jin began to explain the causes and the results in detail.
...
More than 2 hours later, Old Master Ren and Zhao Ming finally came out of their stupor. The virtual factory. The time needed for development could be shortened by 90% or more. Development costs could be reduced by 90% or more. With this kind of god-like equipment, it was not a fantasy to conquer the production techniques of the 7-nanometer chip in 8 months! With the possession of this gold-like equipment, it was no longer a mere dream to reduce the technological gap between Z country and other nations within 2 years when it would typically have taken them more than 20 years. The technological prowess of Xing Hai Technologies was stupefying.
”The software technologies of Xing Hai Technologies has progressed to such a shocking extent?”