As for whether something unexpected would happen?
Would the 4G international standard no longer be LTE?
That wouldn't happen!
For no other reason, LTE is currently dominated by the Empire, which has invested massive capital and holds the largest share of patents.
If LTE failed, the Empire wouldn't agree!
The LTE patents Wang Yi acquired, while few compared to a country, are considerable for a mobile phone company.
Moreover, last year Wang Yi recruited a large number of communication experts and specialists to continuously research and develop new LTE patents, ensuring a steady stream of 4G patent output in the future to build Xingyi Technology's patent moat.
Coupled with other related patents that Wang Yi has strategically developed and acquired, Xingyi Technology's moat will only grow stronger.
Global sales like Huawei are just a matter of time.
However, before that, Wang Yi's goal is still to defeat Apple and seize the domestic market!
As for x buds and Xingyi tablets, they can go overseas directly to compete!
Goer's production capacity continues to increase, with daily output reaching 150,000 units, totaling 4.5 million units a month, which is more than enough for sales.
After all, the domestic market won't consistently sell three million units every month; it will later drop to around two million.
The excess capacity will need to be absorbed by the European and American markets.
The internationalization of x buds must be accelerated; once counterfeited, it will be a huge problem.
Although major European and American brands fear patent lawsuits and won't counterfeit, some small countries are not afraid at all.
It's better to push forward quickly and capture the global market as soon as possible.
At worst, Goer can continue to increase orders!
That evening, Wang Yi and Lao Huang finalized a ten million unit order increase and drank heartily.
He didn't return to the hotel until after ten o'clock.
The next morning, he set off again, heading straight for California.
Currently, Hu Lao is working as a teacher in California.
In fact, Hu Lao has always been a teacher, a true technological giant, and Liang Lao is Hu Lao's student, his most proud protégé.
The technological path Liang Lao follows is also the FinFET architecture innovated by Hu Lao.
As for how powerful the FinFET architecture is?
Breaking the 20nm process limit, it went all the way to 16nm, 14nm, 12nm, 10nm, 7nm, 5nm, 4nm!
It can be said that without Hu Lao's FinFET architecture, the global semiconductor industry's breakthrough of the 20nm process would have been delayed for many years.
If Xingyi Semiconductor had Hu Lao, its future would undoubtedly be boundless!
This is also why Wang Yi traveled thousands of miles to the Empire to meet Hu Lao in person.
For now, it's fine; it hasn't attracted the Empire's attention, and the containment of the East isn't as hysterical.
A few years from now, Wang Yi might not even dare to come to the Empire.
It's better to take advantage of the current stable market: buy what needs to be bought in advance, secure what can be secured in advance, and recruit who needs to be recruited in advance.
In the future, no matter what, Wang Yi does not plan to leave Xia Guo.
The enemy has no integrity, no bottom line; safety first.
In the afternoon, Wang Yi arrived in California, met Hu Lao, and extended his hand with a smile:
"Hu Lao, I've heard much about you for a long time, and today I finally get to meet you!"
Wang Yi held deep respect for such a technological giant who pioneered a semiconductor era.
Hu Lao is not only a technological giant but also an honorary professor and adjunct professor at Qingbei.
In 1990, he established graduate scholarships and called for overseas Chinese students to return to China to develop the semiconductor industry.
He also once established the Hu Family Scholarship and Aid Fund in Su Province with his father and younger brother, to reward outstanding but financially struggling graduates to attend university.
Wang Yi greatly admired such a person.
"Chairman Wang, you're too kind. Your name is also like thunder to my ears!"
Hu Lao laughed.
Hu Lao laughed:
"Even in the Empire, in California, there's a group of people discussing you. They talk about the xphone 1, stating directly that it's a mobile phone comparable to the iPhone 4s, or even more excellent than the iPhone 4s. It's a pity it's not listed in the Empire; otherwise, I would have to buy one myself!"
Wang Yi sighed:
"The xphone 1 also considered listing overseas, but insufficient patents made us hesitant."
Hu Lao nodded solemnly, also helpless:
"Patents are a big problem. HTC has been continuously sued and repeatedly banned from sales, suffering heavy losses. It's a wise move for Xingyi Phone not to list overseas, but it's a shame!"
Wang Yi, however, didn't care at all:
"It's fine, difficulties are only temporary, and one day, everything will be resolved easily."
"Oh? Chairman Wang is already working on patent strategy?"
Hu Lao became interested.
With just a few words, he saw that Wang Yi was not simple.
If it were someone else, not only would they not have been so successful in making phones, but they also wouldn't have thought about patent strategy!
But what about Wang Yi?
His first phone was an epoch-making phone of the year, crushing the iPhone 4s. And he planned patent strategy in advance!
It can be said that what HTC failed to achieve for many years, Wang Yi accomplished from the start!
Even a giant like Hu Lao was full of admiration.
Wang Yi nodded:
"Indeed, it's already in progress. We've established a 4G research institute, recruited a large number of communication experts, specialists, and even academicians, to strategically develop 4G patents in advance. We've also acquired some core LTE patents."
"Acquired core LTE patents?"
Hu Lao became interested:
"The 4G international patents haven't been finalized yet, and various parties are still competing. How does Chairman Wang determine that LTE will be the international 4G patent?"
Wang Yi smiled slightly:
"It's a gamble, but I feel I have a very high chance of winning."
Hu Lao was noncommittal:
"If you bet correctly, Xingyi Phone's patent moat will have a foundation. If you're wrong, you'll lose everything."
Wang Yi, however, was full of confidence:
"We will definitely win."
"Let's hope so."
Hu Lao changed the subject:
"Chairman Wang, you've come from thousands of miles away, is there something specific you need?"
Wang Yi spoke frankly:
"To be honest, Xingyi Technology is preparing to heavily invest in chip manufacturing. Our first 12-inch wafer fab is under construction and will be delivered before the end of the year."
Hu Lao was shocked: "..."
He never expected Wang Yi to not only make phones but also engage in chip manufacturing!
Truly impressive!
"I deeply admire Hu Lao, so I specifically came to California to invite Hu Lao to join Xingyi Semiconductor, serving as President and Chief Technology Officer of Xingyi Semiconductor!"
"As long as you join, you will decide how Xingyi Semiconductor develops! I will give you absolute freedom! Of course, all benefits will be provided at industry-leading standards, and there will also be certain stock options!"
For such a magnate, Wang Yi had to offer shares!
Hu Lao fell silent: "..."
For a moment, he didn't know what to say.
He never imagined that Wang Yi had come to him specifically to invite him to join Xingyi Semiconductor!
Hu Lao took a deep breath and solemnly said:
"Chairman Wang, are you serious? Do you really want to make semiconductors? Do you know how complex wafer fabs are? A single 12-inch wafer fab requires an investment of 20 billion!"
Wang Yi nodded:
"I know. Currently, over ten billion in dedicated funds have been prepared to purchase lithography machines and other equipment. Later, I will divest a portion of BYD's shares, cashing out several billion, to serve as subsequent funding, ensuring the 12-inch wafer fab is delivered this year, equipment enters early next year, and production starts by mid-year or the second half of next year!"
If Hu Lao didn't join, Wang Yi could take his time investing the twenty billion for the wafer fab equipment.
But with the addition of a giant like Hu Lao, let alone 55nm process, even the 45nm process would be easily handled.
Hu Lao's research focuses on directions within 20 nanometers; 40 nanometers and 28 nanometers would be a dimensionality reduction attack for him.
For instance, when Liang Lao joined Samsung, in just three to four years, Samsung achieved a breakthrough from 45nm to 14nm, surpassing TSMC and snatching Apple's large orders.
The power of such a technological giant is truly terrifying.
Hu Lao, as Liang Lao's mentor, is even more powerful.
There's hope of achieving 16nm in three years, let alone 28nm.
Thus, all equipment, such as lithography machines and etching machines, must be brought in as soon as possible, or production will be delayed.
Investing 20 billion within a year creates immense financial pressure; selling off BYD shares is essential.
"Chairman Wang, you actually prepared 20 billion? This... this..."
Hu Lao was very surprised, momentarily at a loss for words.
Wang Yi had to reveal these details; without this capital, Hu Lao wouldn't have decisively joined Xingyi Semiconductor.
Only by seeing sufficient strength would Hu Lao be swayed.
Indeed, Hu Lao's expression changed repeatedly:
"Chairman Wang, are you serious?"
"Of course! Whether it's Meiyou Apparel and Beauty, which started the business, or the later pillar industry Xingyi Phone, and the future semiconductor industry, all are core industries of Xingyi Technology."
"But this path is not easy, it burns countless money!"
Hu Lao said solemnly.
Wang Yi nodded:
"I know, this path is very difficult, extremely difficult, but someone has to walk it. If I don't do high-end semiconductors, who will? If we can't break through, we can only rely on external forces everywhere, constantly being choked and sanctioned."
"Yes, what you said makes sense."
Hu Lao's mind was greatly shaken, seeing Wang Yi's determination.
"As for SMIC, I originally intended to invest directly in it, but you're somewhat aware of the situation there: severe power struggles make achievements difficult. Out of necessity, I can only do it myself, lead it myself!"
Word by word, Wang Yi spoke with sincere words.
Hu Lao sighed:
"After Lao Zhang left, SMIC... sigh, let's not talk about it. Your decision is correct; the mainland needs high-end semiconductors! It needs Xingyi Semiconductor!"
"And it needs you, Hu Lao!"
Wang Yi said with a smile:
"Hu Lao, without your participation, Xingyi Semiconductor's future would be dim. Please don't decline; some things need to be done. I will solve the funding issues, but the technical challenges will depend on you! Please join Xingyi Semiconductor!"
"This... sigh!"
After a period of contemplation, Hu Lao sighed:
"To be honest, ever since I left TSMC, I had no intention of being involved again. You know, I only like researching technology, not power struggles, but wherever you go, internal conflicts are inevitable. I can just leave, but others..."
Wang Yi understood Hu Lao's words.
Back then at TSMC, Liang Lao went first, and later Jiang Lao also went.
Finally, TSMC invited Hu Lao to preside as Chief Technology Officer, and Liang Lao, as Hu Lao's beloved disciple, naturally sought out his mentor immediately.
Thus, TSMC became divided into the Hu Lao faction and the Jiang Lao faction.
It was also due to Hu Lao's presence and Liang Lao's outstanding contributions that TSMC's process technology achieved rapid breakthroughs.
But Hu Lao, like Liang Lao, preferred to diligently research technology and genuinely disliked power struggles.
Even if Hu Lao was tempted by Xingyi Semiconductor, he was still worried about this issue.
Wherever there are people, there are rivalries.
Wang Yi smiled slightly:
"Hu Lao, don't worry, I can entrust Xingyi Semiconductor to your management. I'll just be named Chairman; you'll make all other decisions. You'll decide the senior management and core team of Xingyi Semiconductor, who to recruit, and who to employ! As long as the process technology advances, I won't interfere excessively with anything else."
The meaning was simple: as long as you join Xingyi Semiconductor, you will be in charge of everything.
There would be no parachuting in a senior executive to suppress you or balance power with you.
"This..."
Hu Lao was greatly invigorated; such treatment was incredible.
Wang Yi continued:
"I don't have many thoughts about other semiconductor magnates. The only one I value, Liang Lao, is also your proud protégé. Later, if the time is right, he can be recruited to be your right-hand man. As for Jiang Lao, I don't like that person!"
There are only so many people in the semiconductor industry, and relationships are very clear.
Whether now or in the future, the various factions are clearly distinct.
One faction is led by Hu Lao and Liang Lao.
The other faction is led by Jiang Lao.
In his previous life, SMIC was too greedy.
Liang Lao made so many outstanding contributions to SMIC, yet they still wanted to bring in his arch-rival Jiang Lao, wanting to have their cake and eat it too, which was too greedy.
Wang Yi would not be like that; he firmly chose Hu Lao and Liang Lao from the start.
This way, Xingyi Semiconductor would have Hu Lao at the helm in its early stages, and a few years later when Hu Lao is old and wants to retire, his beloved disciple Liang Lao can take over, ensuring a smooth transition without major upheavals.
There's no alternative; Hu Lao was born in 1947 and is now 65.
In five years, at the age of 70, he will likely retire to a secondary role.
At that time, his beloved disciple Liang Lao would take over, and everyone would be happy.
Hu Lao understood Wang Yi's meaning and was in high spirits:
"As the saying goes, an old steed in the stable still yearns to gallop a thousand li. Since Chairman Wang values me so highly, then I, this old man, will fight once more!"
"Welcome Hu Lao to Xingyi Semiconductor!"
Wang Yi smiled.
The negotiation was very smooth!
Primarily, his attitude was sincere, immediately committing 20 billion, not like Hongxin's empty promises.
He also showed enough respect for Hu Lao, offering both shares and high salary; Hu Lao couldn't refuse.
"Thank you for your trust, Chairman Wang. I will definitely get Xingyi Semiconductor up and running as soon as possible!"
Hu Lao said confidently.
"As the founder of the FinFET architecture, Hu Lao, I absolutely trust your capabilities!"
Wang Yi said, taking out two contracts:
"As for compensation, I offer you two options."
"One is a high salary alone, benchmarked against Samsung, with an annual salary of 30 million RMB."
In the semiconductor industry, annual salaries are quite transparent.
For example, Liang Lao's previous annual salary at TSMC was only around ten million RMB.
Samsung, to poach Liang Lao, directly offered three times that amount: 30 million!
Xingyi Semiconductor, still in its nascent stage, benchmarked against Samsung and offered three times TSMC's compensation, which greatly tempted Hu Lao.
Wang Yi continued:
"The other option has an annual salary of only ten million, but also includes equity incentives, granting you 8 million shares of restricted stock in Xingyi Semiconductor at a price of five yuan per share!"
Hu Lao was overjoyed; both options offered incredibly generous compensation.
At present, TSMC's annual salary is only ten million, so Wang Yi offering thirty million can only be described as extremely generous.
As for option two, the annual salary is only ten million, but there are still eight million shares of stock!
Based on current valuation, that's 40 million, meaning Wang Yi is essentially giving him 40 million for free.
Both options seemed very good, but the second one was clearly more appealing.
For no other reason, Xingyi Semiconductor is just starting, and 8 million shares are currently worth only 40 million.
But once Xingyi Semiconductor starts production, its valuation will skyrocket, and it won't just be 40 million then; it could be 400 million!
If it successfully lists, and the stock price soars, 4 billion is even possible!
This is the benefit of equity incentives!
"Chairman Wang, I choose option two!"
"Good!"
Wang Yi pushed the contract over.
Both parties reviewed it, found no issues, and signed.
Thus, Hu Lao officially joined Xingyi Semiconductor, becoming its President and also Research Director!
After signing, Hu Lao decisively asked:
"Chairman Wang, I heard you say just now that Xingyi Semiconductor's 12-inch wafer fab is under construction and will be delivered before the end of the year."
"Yes, it will be delivered by the end of the year."
"Then equipment must also be ordered in advance. Once the wafer fab is delivered, equipment can be moved in directly for debugging, so that trial production of some lower-end processes can begin by mid-next year."
Wang Yi nodded:
"Equipment must be ordered now. Especially the core lithography machines, it's best to get the 1960 model, but if not, only the 1950i. To prevent blockades by the Empire, we'll buy 20 units at once! Other core materials like photoresist should also be stockpiled in advance."
Hu Lao strongly agreed:
"Chairman Wang's concern is very necessary. As Xingyi Technology develops, it can easily be targeted by the Empire."
Wang Yi sighed:
"Indeed! We still need to prepare multiple contingencies. However, ASML is quite arrogant, ordering so many lithography machines at once, I estimate..."
Hu Lao smiled slightly:
"Chairman Wang, leave this to me. I have some connections at ASML."
"That's wonderful."
Wang Yi smiled, that was exactly what he was waiting to hear:
"As for other equipment, too; what equipment to bring in and how much is needed, all must be personally decided by Hu Lao. As for funding, the parent company Xingyi Technology will directly allocate it!"
Hu Lao's mouth twitched: "..."
Why did he feel like he had gotten onto a pirate ship?
He had to decide everything himself?
Could it be that they haven't even recruited staff yet?
Sure enough, what he feared came to pass.
Wang Yi continued:
"Hu Lao, Xingyi Semiconductor is just starting, and the wafer fab side is in dire need of everything. What talents are needed, which talents specifically, you make a list, and I'll have the HR department poach them! Your assistant team, if you find them useful, can also be signed as a whole!"
Hu Lao was overwhelmed: "..."
Indeed, Xingyi Wafer Fab was just an empty shell.
Only a wafer fab under construction and over ten billion in funds!
But he was already on the pirate ship; there was nothing he could do.
Who made Wang Yi offer so much money, shares, and so much autonomy!
Hu Lao, instead, found it very challenging!
"Chairman Wang, fine, I'll recruit the people, and I'll decide on the equipment. But we need to discuss the process technology issues, as well as the chip order issues."
Hu Lao got straight to the point:
"Xingyi Technology's main product is Xingyi Phone. Current phone chips are still 45nm, but NVIDIA's upcoming quad-core is 40nm, and Qualcomm's quad-core launching mid-year is 28nm!"
"Our wafer fab will start production at the earliest by mid-next year. Achieving 28nm directly in a short time is simply unrealistic!"
Wang Yi nodded:
"Hu Lao, your concern is valid. It's indeed unrealistic to achieve 28nm in the first year of production. But we can try 55nm, step by step."
"Xingyi Semiconductor has recruited many chip designers from Texas Instruments and is currently developing mobile phone chips and basebands, as well as smart home chips."
"Mobile phone chips start at 28nm, which cannot be mass-produced next year. However, smart home chips have lower process requirements; 55nm or 45nm would suffice. We can try to produce them next year."
Hu Lao suddenly realized:
"I see, so there are also smart home chips. It seems smart home chips are also one of Chairman Wang's important strategies."
"Exactly. Semiconductors are very capital-intensive, and wafer fabs even more so. We can't wait until the process breaks through to 28nm to start making profits. We must simultaneously advance processes and produce lower-end chips to generate profit. Wafer fabs absolutely cannot have idle capacity."
"Yes, this approach is the most stable."
Hu Lao strongly agreed:
"However, I suggest modifying the R&D roadmap. We started late, and proceeding step by step would put us at a disadvantage. It's better to skip the 55nm node and start R&D directly from 45nm, completing 45nm in one year, and striving for 45nm production in the second half of 2013!"
"Can this be done?"
Wang Yi became interested.
Hu Lao pondered:
"I've been a teacher for so many years and have cultivated many semiconductor talents, so there's no pressure on R&D. Especially with a backward process like 45nm, there's no difficulty. I'll recruit staff as soon as possible and start R&D; 45nm production in the second half of next year will not be a problem."
"Good! Hu Lao, we'll do as you say!"
Wang Yi beamed with joy.
A powerful magnate speaks with confidence.
45nm smart home chips will be sufficient for many years and won't become obsolete at all!
Hu Lao continued:
"After breaking through 45nm, we'll skip the 40nm node and directly develop 32nm! We'll strive for 32nm production by the end of 2014, and 28nm production by the end of 2015!"
Wang Yi pondered slightly:
"First, research 45nm. After 45nm is achieved, we can see if we can skip 40nm and 32nm entirely and go straight to 28nm!"
Hu Lao smiled:
"Chairman Wang, you are even more aggressive than I am! This is very challenging, but not necessarily impossible!"
Wang Yi nodded:
"Yes, TSMC mass-produced 28nm chips in 2011. If Xingyi Semiconductor only mass-produces 28nm in 2015, it's too slow; Xingyi phones won't be able to use it at all. By 2015, TSMC and Samsung will probably have mass-produced 14nm chips! Us only mass-producing 28nm is too slow."
Most importantly, Wang Yi worried that Xingyi Technology would be suppressed by 2015.
If they couldn't catch up to Samsung and TSMC, having a wafer fab but no high-end process would also be a drag.
It would be safest to catch up to Samsung and TSMC in three to four years.
As for the unnecessary processes like 55nm, 40nm, and 32nm, they should all be skipped.
Like Samsung in his previous life, when 20nm progress was not smooth, they skipped it entirely, even skipping 16nm, and went directly for 14nm!
And they actually succeeded, even overtaking TSMC with a curve appeal!
Hu Lao nodded:
"Chairman Wang, I understand what you mean. We'll proceed at this pace. Skipping those intermediate nodes, directly 45nm-28nm-14nm!"
"Exactly. We started late, so only by focusing our efforts on developing core nodes and abandoning transitional nodes can we catch up, and even overtake others by taking a different path!"
As a reborn person, Wang Yi was well aware that the so-called 55nm, 40nm, 32nm, 20nm, 16nm, 12nm, and 10nm were all transitional process nodes!
Only 65nm, 45nm, 28nm, 14nm, 7nm, and 5nm are core nodes.
Simply put, as TSMC breaks through 28nm, it will soon completely abandon its 32nm and 40nm production lines, retaining only 45nm.
In the future, low-end products will use the 45nm process, while high-end products will directly use the 28nm process.
The other 32nm and 40nm processes are neither high nor low, quite useless, and there's no need to occupy production lines with them.
This is even more true for Xingyi Semiconductor; it's best to develop in a leapfrog manner directly from 45nm to 28nm to 14nm.
Afterwards, both parties communicated on some other matters and details.
Finally, Hu Lao said:
"Chairman Wang, I need a few days in California to complete resignation procedures. At the same time, I will recruit some strong R&D engineers, and then head to Didu."
"Alright, Hu Lao, I'll wait for you in Didu!"
"Oh, right, I'll contact ASML and let's order 20 lithography machines first; they're the most troublesome."
"Okay!"
With Hu Lao on board, Wang Yi felt completely at ease; otherwise, the whole wafer fab operation would have been a headache for him.
It was too specialized.
Even recruiting people was very troublesome.
But with Hu Lao, with a wave of his arm, a host of core semiconductor talents would flock to join.
When Hu Lao goes to Didu in a few days, he definitely won't be alone; instead, he will bring a dozen engineers.
Liang Lao was also like this before; when he joined Samsung, he directly brought some TSMC engineers!
These magnates all have their own teams.
Williams was like this, and so was Hu Lao.
And for the lithography machines, with just a word from Hu Lao, ASML's so-called inspection would become a mere formality.
In this way, funding becomes an issue.
The tens of billions from shorting Baidu can last for a while, but another tens of billions will be needed later.
BYD shares need to be reduced, but slowly.
Wait until the mid-month disclosure of the reduction plan, then reduce next month.
Wang Yi remembered that BYD's positive news was in February, with the stock price peaking, followed by a black swan event.
In the evening, Wang Yi returned to the hotel and received a call from Song Sining:
"Chairman, our xphone 1 sales have exploded again, with single-day sales once again surpassing 500,000!"
"???"
Wang Yi was stunned:
"Why so many again?"
After the New Year's Day press conference, Wang Yi arrogantly announced that xphone 1 production capacity was ramping up, achieving in-stock availability, ready for purchase at any time.
As a result, on that day, xphone 1 sales soared to over 500,000, and for the next few days, they were also three to four hundred thousand, directly depleting stock and turning immediate availability into two-day shipping.
With BYD's production capacity soaring, coupled with the Xingyi factory, current daily production exceeds 180,000 units.
Now that they had finally recovered, daily sales once again surged to over 500,000!
"What's going on?"
Wang Yi was bewildered.
"Chairman, the first episode of 'Happy Camp' in 2012 aired, and our xphone 1 was the exclusive title sponsor, so sales exploded!"
Wang Yi couldn't help but laugh.
The xphone 1's extremely high aesthetic appeal, the excellent experience of watching shows on its high-resolution large screen, clearer 5-megapixel front camera selfies, and the Xiaoe AI voice assistant that surpasses Siri, plus two-year memberships for Xingyi Video and Xingyi Music...
These selling points were irresistible to viewers who enjoyed "Happy Camp"; it would be unrealistic if sales didn't explode.
This kind of effect, however, truly convinced Wang Yi.
No wonder big companies spend so much money, rushing to title sponsor popular variety shows.
The effect was simply too good!
(End of chapter)