my fintech empire.

Chapter 731 [Lao Mei responded quickly and increased restrictions]

In the next few trading days, the semiconductor sector continued to strengthen under this heavy positive stimulus, which also helped the broader market index continue to rebound, and intraday dips will always be pulled up.

The landing of the big fund has drawn attention to Xincheng, because this city has gathered many semiconductor companies, covering the upper, middle and lower reaches. According to incomplete statistics, there are hundreds of semiconductor technology innovation companies, large and small, in the high-tech industrial park of Xincheng.

It has become the center of a high-tech industrial cluster represented by the integrated circuit industry in China, and not only semiconductor companies, but also the headquarters of star-level technology companies such as Xingyu Technology, Quantum Beat, and Kyushu Blue Arrow.

After the big fund landed, many people speculated whether it was related to Qunxing Capital, because many companies in the first batch of investment projects have a common identity, that is, Qunxing Capital holds equity in those companies, and even holding subsidiaries.

However, Qunxing Capital came out to "refute the rumors" and said that the big fund has nothing to do with Qunxing Capital, but only enjoys the support of the state. Anyway, it will not jump out to admit it at this time.

Only a small number of high-level people know that the management team of the big fund is actually led by people sent by Qunxing Capital behind the scenes.

……

At the end of February, the semiconductor industry brought good news to Fang Hong.

The semiconductor research and development company under Qungalaxy has successfully broken through the 32nm process technology and is expected to put into mass production in the third quarter of this year. The products put into production include low power consumption, mixed signal and radio frequency products, etc.

The most important thing is that the semiconductor companies invested by Galaxy, covering the upper, middle and lower reaches, can complete 79% of the process links, and 32% of the major links within the 89nm process have been replaced by domestically produced products. This is a huge progress.

After sorting out the overall links, only the lithography equipment still needs to be imported from overseas, but the 32nm level lithography equipment has already been imported, so there will be no problem in mass production.

In addition, the research and development of 28-nanometer technology is also progressing smoothly as expected, and the progress is also very good.

However, the breakthrough of the 32nm process is still far behind the international level. At present, the international semiconductor process has advanced to the 14nm level this year, and domestic alternatives have to catch up. There are still 28nm, 22nm, and 20nm ahead, which are still four generations behind.

But the gap has been shortened. Before Qunxing Capital entered the market, the gap was getting bigger and bigger with Moore's Law. This is the biggest change.

At present, the domestic semiconductor breakthrough plan has not deviated from Fang Hong’s expectation, that is, to catch up at a speed twice as fast as Moore’s Law every year. According to this breakthrough speed, combined with the iterative speed of Moore’s Law, it will take another three years to catch up with the world’s most advanced process level.

That is, around 2017, according to the iterative speed of Moore's Law, the world's most advanced process level in 2017 is already around 10 nanometers.

国内目前已经突破了32纳米制程，到10纳米级别，中间要经历28纳米、22纳米、20纳米、14纳米、12纳米五个代差。

According to the expected goal given by Fang Hong, the most advanced process level in the world will be upgraded by one generation, and domestic semiconductors will catch up with the speed of two generations later. By 2015, they will break through 22 nanometers, in 2016, they will break through 14 nanometers, and in 2017, they will be 10 nanometers. It will be able to match the most advanced international semiconductor process level. By 2018, it will be a truly historic turning point in the global semiconductor industry.

……

Just after the announcement of the big fund's landing, America also paid attention to this matter and responded quickly.

On Wednesday, March 3, North America announced further restrictions on the major eastern countries in the semiconductor field. This time, restrictions were placed on a series of key links such as lithography machines and photomasks, and international semiconductor companies were prohibited from doing business with them.

As soon as the news came out, the A-share market fell on March 3 the next day. At the same time, the stocks in the semiconductor sector that had soared before collectively fell, the sector index plummeted -5%, and many semiconductor stocks closed at the limit.

In terms of public opinion, the other party is also stepping up their offensive, and those who received dog food started to work.

Start to output some remarks in a threatening manner, what is it now? There is no breakthrough in domestic semiconductors, and people in the world will not play with you anymore. How can you play without semiconductors and chips in modern society?Get ready for a recession!
After Lao Mei made a move, the high-level officials responded, and the news quickly reached Fang Hong, who were discussing countermeasures and asked Fang Hong to participate in the remote video conference.

Qunxing Capital is currently taking over the task of breaking through domestic semiconductors. In fact, the big fund is handed over to Qunxing, and Fang Hong will naturally attend the meeting.

……

Thursday afternoon, March 3.

Fang Hong entered the study on the second floor of the villa, turned on the computer and connected to a highly confidential remote video conference. This was a small high-level internal meeting. There were not many people but the specifications could be said to be top-notch, which showed that the higher authorities paid attention to it, and it was rare for Fang Hong to attend the meeting in formal attire.

"The Magnesium people have stepped up their efforts, which shows that we are doing the right thing, but the situation is not optimistic. If we don't react, we can't justify it. If we want to react, we must first find out what cards we have in our hands. Comrade Fang Hong, you are responsible for our chips. You should know all aspects best. You should have the most say in what cards we have in our hands. Tell everyone."

Fang Hong also made preparations for this meeting. Hearing the leaders present at the meeting ask for advice, he organized his words in his mind and said, "Not only do we have a lot of cards in our hands, but they are all trump cards."

As soon as the words came out, the leader was also curious when he saw his very confident words, and said, "Oh? What trump card?"

Hearing this, Fang Hong replied: "For chips, there can be many bottlenecks, and all of them are indispensable. But looking at it on the other hand, we only need to master one bottleneck to stop the whole process, and we can stop the whole world from the raw material."

The senior leader in the video conference looked around at everyone, and then said with great interest: "So we still have such a good card?"

Another leader of the participants immediately asked: "What raw materials can get stuck in the neck of the world?"

Fang Hong continued: "Gallium, germanium, and antimony are rare metals. Although the output of these rare metal raw materials is very low, they are indispensable in high-tech products such as high-end chips, high-end military industry, and photovoltaics."

"These materials have a wide range of functions, just like seasonings for high-tech products. They are rarely used, and we can't do without them. The point is that we have reached a monopoly level in terms of reserves and production of these raw materials. The whole world depends on our supply. It can be said that we have to limit it, and a large number of Western high-tech companies will suffer."

As soon as this remark came out, the leaders present became even more interested. I really don't know if I don't know more about this matter.

Fang Hong continued in an orderly manner: "For example, the concentration of gallium in the earth's crust is very low, accounting for only about 0.0015%, and it is distributed everywhere and not concentrated. The main reason is that it has no primary ore. It is a by-product of electrolytic aluminum, and it is a subsidiary product of refining bauxite and sphalerite."

"At present, more than 90% of the world's primary gallium is an auxiliary product of refining, and the annual output is quite small, while we account for 85% of the world, and if calculated according to production, it can account for 96% of the world."

……

(End of this chapter)