Rebirth 99 to become a car giant.

Chapter 958: Breakthrough progress, official announcement of 7nm process technology
Changan Automobile wants to follow Nanshan Hongqi in increasing its overseas expansion efforts, and Cao Yang naturally supports this.

So Cao Yang gave a positive response to Yi Jia's call.

He also took this opportunity to promote to Yi Jia the roll-on/roll-off ship and transportation company that Wenchong Shipyard was building.

By then, all models of Changan Automobile will go out to sea on the ships of Nanshan Automobile Group, which is in the interests of Changan Automobile.

After all, Nanshan Automotive Group certainly has more experience in overseas markets.

It can also respond to various risks more flexibly.

The phone call between the two ended happily.

Another company that also felt threatened by Nanshan Hongqi's various actions is Great Wall Motors.

Compared with other domestic brands, Great Wall Motors started expanding into overseas markets very early.

They started exporting pickup trucks more than a decade ago and have now accumulated rich experience, with annual overseas sales exceeding 10 vehicles.

This is considered a very good result in China.

"Mr. Wang, Nanshan Automobile Group has been providing great support to Nanshan Hongqi in recent years. I heard that they have already set a sales target for next year, which is to exceed 100 million vehicles, and then exceed 2016 million vehicles in 120, reach 2017 million vehicles in 150, and reach a sales target of 2020 million vehicles before 200."

"In order to achieve these goals, they are now accelerating their efforts to expand overseas, and the first market they will focus on is the African market."

"We have good relations with many African countries and have organized several large-scale bilateral activities in recent years."

"As the first automobile company in China, Spring City Automobile Group has great influence in relevant departments."

"I heard that all official cars of overseas institutions will be replaced with Nanshan Hongqi products in the future."

"By then, various models of Nanshan Hongqi will most likely become official vehicles for many countries in Africa."

I have to say that Lian Furong's speculation makes a lot of sense.

Domestic joint venture car companies have fallen into a development dilemma, so Great Wall Motors has begun to focus more on domestic independent brand car companies such as Nanshan Hongqi, Chery, Geely, Changan and BYD.

The competition among everyone naturally became more intense.

Of course, due to the special existence of Nanshan Automobile Group, the competition between other independent brands has not been torn apart.

Everyone knows that Nanshan Automobile Group hopes to unite multiple forces to deal with international automobile giants. If any domestic brand takes the lead in making trouble, it may get less support from Nanshan Automobile Group.

This is obviously something that no car company can ignore.

"I have also seen some related reports. Several employees who recently resigned from the sales department also went to Nanshan Hongqi."

"I even heard that they poached salespeople from many other peers to expand the market."

"At the same time, the number of foreign language majors recruited by Nanshan Hongqi on campus has also increased a lot."

"We have recruited more than 500 students in English, French, Spanish, Portuguese and Arabic."

“This is also a relatively rare situation.”

Such an important thing happened in China's automobile industry, so Wang Ying naturally knew a lot of information without waiting for Lian Furong to come and report.

She was even thinking about how Great Wall Motors should deal with this situation.

Although Great Wall Motors has been increasing its efforts in automobile exports in the past few years, the growth rate is still relatively limited.

In order to change this situation, they are even considering building factories or CKD factories overseas.

Unexpectedly, some new situations emerged at this time.

Nanshan Hongqi has such a strong momentum, and with the support of two special shareholders, Chuncheng Automobile Group and Nanshan Automobile Group, it is really possible that it will emerge as a dark horse in the overseas market in the future.

In this case, Great Wall Motors must also consider following the footsteps of Nanshan Hongqi.

However, similar to Changan Automobile's idea, Wang Ying also did not want to offend Nanshan Hongqi because of this action.

When the time comes and the two companies compete in the African market, the result will be completely different.

"Yes, considering this information, it should be a fact that Nanshan Hongqi wants to make efforts in the African market and is optimistic about its performance in the African market."

"What we need to consider now is whether we should focus our overseas market expansion on the African market, just like Nanshan Hongqi."

"Of course, in this process, we must not offend the Nanshan Red Flag."

"After much thought, I think we can focus on marketing our pickup trucks and other products in the African market."

“The traffic situation there is quite bad, so pickup trucks are more suitable.”

"And there are wars in many places. If the pickup truck is slightly modified, a machine gun can be mounted on it and used as a combat vehicle."

"And Nanshan Hongqi has not yet shown any intention to produce pickup trucks. Our pickup truck models are launched overseas at the same pace as theirs, and they should not be dissatisfied with it."

"Even after everyone forms a group, it can have a better publicity effect and enrich everyone's choices."

When Lian Furong said this, Wang Ying's eyes immediately lit up.

Pickup trucks are what Great Wall is best at and are also the product with which they started out.

It is a good idea to make it a focus for expanding the African market.

Don’t say it’s too much. As long as she can sell 100,000 pickup trucks in Africa a year, she will think it’s very good.

"Please arrange for the International Business Department to come up with a specific plan for expanding the African market."

"Then arrange personnel to take action as quickly as possible."

Without much hesitation, Wang Ying made the decision.

Great Wall Motors already has various businesses overseas, including some in Africa.

Now we are just adjusting the development focus and there is no problem at all without reporting to the board of directors in advance.

……

As 2014 is coming to an end, all companies are working hard to achieve their annual sales targets.

At this time, Nanshan Semiconductor was preparing to launch another satellite for everyone.

"Mr. Cao, according to the results we have confirmed, the company already has the ability to develop and produce 7-nanometer process chips, and has already produced 7-nanometer chips in the laboratory."

"As long as we rebuild a 7-nanometer process factory, we can start mass production of 2016-nanometer chips in 7."

"By then, all Honor Technology products will be the first to use 7-nanometer process chips, and some of Nanshan Automobile Group's smart cockpit chips will also be produced using the most advanced technology."

As soon as Zhang Jing came in, he reported a big surprise to Cao Yang.

A chip with a 7-nanometer process, this is something that China had not yet developed when Cao Yang was reborn.

I didn’t expect that Nanshan Semiconductor would be the first to come up with it.

The 14nm process chip was first launched by Nanshan Semiconductor and Nanshan Equipment.

Although Intel, Samsung and TSMC soon followed suit, Nanshan Semiconductor's influence in the industry also increased significantly.

If it can once again be the first to launch 7-nanometer process chip technology, then Nanshan Semiconductor will have completely established its foothold in the international semiconductor industry and will firmly be a first-tier semiconductor company.

In the future, all people in the semiconductor industry will inevitably analyze and speculate on the situation of Nanshan Semiconductor when researching semiconductor-related technologies.

Whenever I make an important decision, I can't help but compare it with the products from Nanshan Semiconductor.

Industry benchmark!

After more than ten years of hard work, Nanshan Semiconductor has finally emerged from a situation that everyone was pessimistic about and has become a benchmark in the industry.

This is absolutely a remarkable existence.

"Are all the research projects on this technology ready?"

"Does Nanshan Equipment also need to upgrade its photolithography machines and other equipment?"

Although this is good news, Cao Yang also wants to confirm something.

Don't create any misunderstandings, that would be embarrassing.

With the development of chip technology, the investment scale of chip factories using new processes is getting bigger and bigger.

If the 7-nanometer chip technology is really mature, then Nanshan Semiconductor will definitely invest heavily in various chip factories starting next year.

This scale of investment is likely to be the largest in the development history of Nanshan Semiconductor.

After all, Cao Yang is well aware that after chip technology has evolved to the 7-nanometer process, it will be difficult to continue to improve.

The most critical thing is that the production cost of the chip will be much higher after further improvement, and the cost performance is not very high.

Except for a few special usage requirements, most chips do not actually need to use such advanced processes.

Therefore, in the future, 7-nanometer process chips will be developed as Nanshan Semiconductor's flagship products.

As for the future 3nm or 2nm chips, only one factory will be built to produce a small number of chips.

In other words, how much money Nanshan Semiconductor can make in the future will mainly depend on the performance of its 7-nanometer process factory.

In this case, it is certainly not wrong to be cautious.

"The overall structure of the lithography machine has not changed much, but many of its components need to be upgraded, and other products such as etching machines also need to be upgraded synchronously."

"Even the raw materials such as photoresist provided by Nanshan Chemical need to be upgraded synchronously."

"Although we are currently confirming the relevant technologies in the laboratory, we have also simulated the large-scale commercial application scenarios of these technologies."

"Although we dare not say that there are 100% no problems, we all agree that the 7-nanometer chip technology has been successfully developed and the conditions for investing in building a factory are in place."

Pan Jinxing gave a very affirmative answer.

They must have made various confirmations in advance about Cao Yang's concerns.

After all, a large chip factory involves an investment of tens of billions, or even two or three hundred billion yuan.

With such a huge investment, if anything goes wrong, no one can bear the responsibility.

As the most advanced chip factory of Nanshan Semiconductor, it will definitely attract a lot of attention. Even many leaders from relevant departments will come to visit.

"We also communicated and confirmed with chip equipment industry alliance manufacturers such as China Micro Semiconductor and Modou Microelectronics, and conducted some tests using their equipment, and ultimately they all met the requirements."

"So we are preparing to officially announce the successful development of the 7-nanometer process technology, so as to thoroughly establish our high-tech and advanced image in the international semiconductor industry."

Zhang Jing expressed his thoughts directly.

Although Nanshan Semiconductor was well-known before, it produced semiconductor components and did not directly come into contact with ordinary people.

Therefore, its popularity cannot be compared with Honor Technology, and there is even a big gap compared with Venus Technology.

Under such circumstances, Zhang Jing naturally wanted to use various methods to enhance the reputation of Nanshan Semiconductor.

“If everyone confirms that the technology has been mastered, then it will naturally be released as soon as possible.”

“And we need to start formally considering the planning and construction of our new factory.”

Now that we have mastered the technology and are about to announce it to the outside world, we must speed up the construction of the factory.

Otherwise, it would stimulate competitors and cause them to build factories with 7-nanometer process technology faster, which would be embarrassing.

"Mr. Cao, this is what we think."

"When 7-nanometer chips are put into production in the future, they will definitely be used in consumer electronics first."

"According to Honor Technology's current sales volume, we are only building one factory, so the production capacity may be a bit tight."

"Besides, our chips are also sold to the outside world, so if we want to build a new factory, it would be best to start construction of two factories at the same time."

Zhang Jing said this while looking at Cao Yang's reaction.

Chip factories require huge investments, and he was not sure how Cao Yang would react to building two factories at the same time.

“Will two factories be enough?”

"If we build four factories at the same time, will there be any problems with the personnel coordination at Nanshan Semiconductor?"

Since it has been determined that the 7nm process chip will be Nanshan Semiconductor's most core product in the next decade, the production capacity layout must be fully considered.

The market share of China's consumer electronics market has been gradually taken away by manufacturers of independent brands. To a certain extent, the market share of semiconductor components has also been taken away.

Therefore, China's demand for various chips will definitely increase in the future.

Cao Yang doesn't want to see customers ordering chips from Nanshan Semiconductor but being unable to deliver the goods due to insufficient production capacity.

That would be such a pity.

"Mr. Cao, if we build four factories at the same time, the investment amount may exceed 500 billion RMB."

Zhang Jing suppressed his inner excitement and gave a reminder from the side.

The more factories are built, the larger the scale of Nanshan Semiconductor will be.

This must be something he would be happy to see.

However, building four chip factories at the same time is a large-scale undertaking that no other chip company has ever done.

Zhang Jing was also worried about the risks.

Especially in terms of investment, the investment may be more than 500 billion yuan, or even more.

If there is any problem in the middle, it will be troublesome.

Since its establishment, Nanshan Semiconductor has not yet earned a profit of 500 billion yuan.

"Money is not a problem. The chip industry itself is a capital and technology intensive industry. As long as we seize the opportunity, the investment will be recovered in a few years."

"In order to reduce risks, we can directly amortize the various depreciations of the equipment on the products produced in the first three years after production."

"Then, no matter how the industry structure changes in the future, it will not be possible to suffer large losses."

Advanced products are definitely expensive.

If you sell it too cheaply, it will not reflect its advanced nature.

So even though the common practice in the industry is to amortize equipment investments over ten years, Cao Yang plans to have Nanshan Semiconductor amortize it over three years.

In this way, there will be much less pressure in the future.

In five years, Nanshan Semiconductor's annual profit may exceed 500 billion yuan.

"Indeed."

After hearing what Cao Yang said, Zhang Jing understood what was going on.

"If we build four factories at the same time, it will actually be cheaper from the perspective of construction costs."

"Whether it is Nanshan Equipment or other equipment manufacturers, they can prepare equipment for four factories at one time, which can greatly reduce production costs."

"During the construction process, we can also fully compare the progress of the four factories, find the differences, and discover problems in a timely manner."

"As for manpower, it's not a big problem."

"Then we can transfer a group of people from other factories and divide the entire factory construction project into several parts."

“The same team will be responsible for tracking the construction content of the same part.”

Zhang Jing quickly gave his own solution.

He was definitely very enthusiastic about building four factories at the same time.

As long as these four factories are completed, Nanshan Semiconductor will not only be the world's most technologically advanced semiconductor company, but also the semiconductor company with the largest production capacity.

At that time, it had extraordinary significance for both Nanshan Semiconductor and Huaxia.

"Okay, then you should proceed in this direction and act as soon as possible."

Along with this report, Nanshan Semiconductor quickly and officially announced that it had achieved a breakthrough in 7-nanometer process technology.

It also announced that it will soon build a new factory to produce 7-nanometer process chips.

Of course, the specific information of the factories has not yet been discussed, so it has not been announced how many factories will be built.

This will also make it easier to negotiate preferential terms with various places.

Soon after, Honor Technology also officially announced that its new products to be launched next year will use 7nm process chips.

As a result, the pressure was immediately passed on to other semiconductor companies.

"Pat, Nanshan Semiconductor announced that it has mastered the 7-nanometer chip technology. How true do you think this is?"

Otellini called CTO Pat to his office early in the morning to ask about the 7-nanometer process chip.

Intel has now mastered the 14nm chip technology and has built a dedicated chip factory.

At the same time, they are also arranging personnel to research and develop 7-nanometer process technology.

Don’t think that we are just evolving chip technology in accordance with Moore’s Law. In fact, the further we get, the more difficult it will be to achieve technological breakthroughs.

Otellini is also very clear about this.

That’s why Nanshan Semiconductor was able to launch the 7-nanometer chip technology so quickly and is starting to build a factory.

This made him feel a little unbelievable.

Although when Nanshan Semiconductor first launched the 14nm chip technology, Otellini had already witnessed the strength of this competitor.

In order to prevent the other party from continuing to expand its business in computer CPUs, there is even a gentleman's agreement between Intel and Nanshan Semiconductor.

I didn’t expect that the other party has made a breakthrough in the 7-nanometer process technology so quickly.

"Otellini, we currently have relatively little information on Nanshan Semiconductor's 7-nanometer process chip technology."

"But the other party successfully developed the 14-nanometer process chip technology two years ago, and now has also made a breakthrough in 7-nanometer. Theoretically, it is possible."

Although Pat hoped that the news released by Nanshan Semiconductor was false, he felt that the possibility was very low.

So it would be better to lower O'Donnell's expectations from the beginning, which would be beneficial to him.

"When will our 7-nanometer chip technology be available next year?"

Intel used to be the leader in the chip industry, but since the 14nm process chip technology, they have fallen behind a bit.

This is something that Otellini finds difficult to accept.

When will China become a world leader in industries like chips?

What kind of technological advantages can America maintain in the future?
"It depends on when ASML can produce a lithography machine capable of producing 7-nanometer chips."

“It is also closely related to the progress of other equipment manufacturers.”

"Based on the current situation, we will not be able to break through the 7-nanometer chip technology until the second half of next year at the earliest."

Pat knew that O'Donnell would definitely ask this question, so he was not surprised and answered it easily.

However, he knew that Otellini would definitely not be satisfied with this answer.

Sure enough, after hearing his words, Otellini immediately said: "I don't care what method you use, our 7-nanometer chip factory must be built in the second half of next year."

"Tell ASML that if they still can't get the lithography machine in the first half of the year, then we have to consider purchasing from Nanshan Equipment."

Although Otellini's words were spoken in anger, it is impossible for Intel to purchase lithography machines from Nanshan Equipment.

Even if they are willing, the relevant American departments will not agree.

After all, they have used various means to suppress Nanshan Equipment. If they are broken through by their own people, it will definitely be a very embarrassing thing.

But from these words, Pat knew that O'Donnell was really anxious.

Intel's stock price is expected to fall in the next six months.

(End of this chapter)