Chapter 1108: Secrets That Cannot Be Told to Others

Fan Wubing, who is on the hand orchid, is quite conflicted in his heart right now, and it is difficult to tell the whistle at any time."

The chip industry is the focus of future development. There is no need to question this. As far as the chip industry under Fan's Investment Group is concerned, Fan Wubing invested a lot of time, energy and money in it to create the huge scale of the industry today. To say that he is right If you don't care about it, it's impossible.

However, Fan Wubing also saw another point, that is, due to his sudden rise, the mainland's wafer industry production has become the dominant one. Fan's company has firmly occupied the leading position, while other existing companies can only eat soup. This move has aroused the jealousy of many companies.

After more than ten years of rapid development. Some large domestic enterprises have completed the primitive accumulation of capital. They have the funds and the ability to use their spare money to enter lucrative high-tech industries.

Large-scale entry into the wafer manufacturing industry is actually a way for these companies to make their voices heard. Although it is not explicitly stated, the meaning of challenging Fan Investment Group is self-evident.

In fact, mainland fab practitioners now have different views on production expansion. One is that they advocate massive expansion of production capacity, and the other is that excessive expansion will hinder industrial development.

Experience shows that many industries in mainland China develop in a rush. When the industry is quite optimistic about the market but blindly expands production, the industry will fall into a vicious cycle, and ultimately no one will make money.

For example, among the top ten suppliers in mainland China, including Samsung Electronics and Texas Instruments, they account for nearly 50% of the market. Even major design companies such as Qualcomm and Broadcom are not ranked at the top. Therefore, what are the market opportunities? Whether it will be successful and turn it into a business opportunity for mainland design companies to further support the production capacity of wafer fabs still requires careful consideration.

As for the future development advantages and challenges of mainland wafer fabs, they can be divided into four categories: market, capital, talent, and technology. Viewed from this perspective. From a market perspective, the demand in the northern mainland market is expected to reach US$120 billion by 2010, but the supply capacity of mainland enterprises is only about US$13 billion. There is a huge gap. It is obviously a very attractive opportunity, and in three years' time, 70% of the more than three million university graduates in mainland China will have a science and engineering background, which will be enough to provide a huge resource of scientific and technological talents.

However, from a financial perspective, today’s semiconductor market is also facing saturation. When technology enters advanced processes, the investment amount is high and recovery is more difficult. Therefore, although many wafer manufacturers have expressed their intention to enter the mainland market, , but it is not easy for them to obtain international financial support.

It is true that capital seeks profits, but capital must also consider risks.

Especially after the Internet market suffered a cold wave, international financial capital has become very sensitive. Therefore, Fan Wubing can basically guess that although governments around the world are currently very keen on introducing wafer manufacturing, whether it is Thailand’s Charoen Pokphand Group Neither TSMC nor TSMC will invest too much money in the mainland. This part of the funds is probably obtained from mainland banking channels.

In fact, for some local government leaders in the mainland, it is not that they cannot see these unfavorable situations, and they are also very clear about the channels from which these funds will be obtained after the project is implemented. We also understand that although the chip industry looks beautiful, it is not certain whether it can be profitable, whether it can lead local companies out of the tight siege, build a local chip industry circle, and become a leader in the development of the local economy and high-tech industries. s answer;

Can the construction of such a large number of wafer manufacturing plants continue to shorten the gap between wafer factories in Europe, the United States, Taiwan and mainland China? It's a matter of location.

From a technical perspective, the R&D amount of Taiwan-funded investment in the largest wafer fab in mainland China currently under construction is

It is one-fifth of TSMC and one-third of UMC. There is indeed a huge gap in investment.

Another figure is that based on the current investment amount of US$2.5 billion in 12-inch wafer fabs, with a monthly production capacity of 30,000 pieces, at least one piece must be sold for US$2,500 to make a profit.

It is difficult for new practitioners to compete. This is the barrier to entry that the first movers have set up.

Even if mainland partners do not have to bear the cost of factory construction and only come up with a new competition model of human resources management, who will pay for these factory construction costs is obviously the local government. Therefore, returning to the most fundamental issue, we must carefully consider the production expansion plan. At the same time, we are looking for OEMs in new special application fields and reducing costs. Even TSMC has to find ways to fill up its production capacity before it can confidently invest in building factories in mainland China?

The reason why local governments are eager to introduce wafer fab projects. It's nothing more than thinking about their own political achievements, which also has a lot to do with the country's policy of encouraging the development of the integrated circuit industry.

Because according to the industrial policy formulated by the central government, before the end of 2010, the profits after paying corporate income tax to integrated circuit manufacturing enterprises, including packaging enterprises, are directly invested in the enterprise, increasing the capital by two cents, and the operating period is not less than five years. year, the income tax paid on the investment part will be refunded at a rate of 40%.

For the profits made by domestic and foreign economic organizations within the country and reinvested in integrated circuit or software manufacturing enterprises in the western region, the income tax paid will be refunded at a rate of 80%.

In order to encourage the development of the software industry and integrated circuit industry, the central government agreed to establish a venture capital fund and actively attract domestic and foreign capital.

For general VAT taxpayers selling self-produced integrated circuit products, including monocrystalline silicon wafers, before 2010, the portion of the actual tax burden exceeding 3% will be refunded upon collection and used by the enterprise to research and develop new products. of integrated circuits and expanded reproduction.

The goods imported and exported by software companies with an annual export volume of more than 5 million U.S. dollars and integrated circuit companies with an annual export volume of more than 50 million U.S. dollars can be cleared in advance, online customs declaration, rapid customs transfer, door-to-door acceptance, and expedited customs clearance in accordance with relevant regulations. Convenient import and export customs clearance procedures such as guarantee acceptance.

At the same time, the import and export of goods by the above-mentioned enterprises can be prioritized for inspection and quarantine according to the principle of special cases and urgent matters, and convenient inspection and quarantine procedures are applied.

For integrated circuit manufacturing enterprises whose integrated circuit line width is less than 0.8 microns, they will enjoy the preferential policy of two exemptions and three half reductions in income tax starting from the profit-making year. Their own production raw materials and consumables that cannot be produced domestically are exempt from tariffs and imports. VAT.

Such a policy is obviously very attractive to overseas investors, and it is also very attractive to local governments.

Nowadays, one of the main criteria for measuring the performance of officials is their ability to attract investment. Just imagine, for any wafer fab established, its investment will be measured in the order of hundreds of millions or even billions of dollars, plus other supporting directions. Construction investment has a very large impact on local concave figures.

And there is another point. The significance of developing high technology is quite different from that of large-scale construction and infrastructure construction. It adapts to the development direction of the country's overall policy and is more likely to be praised and promoted by superior leaders.

Therefore, it is the biggest wish of many local officials to implement the wafer manufacturing project as soon as possible and within their own terms. As for the future development, will it lead to unfinished projects? That is not something that I can expect, nor is it something that I should care about. The successors will naturally have a headache in the future. At least their career will become brighter because of the implementation of the project.

Because of this, Fan Xiubing has kept a low profile on this issue. Even though he has realized that after the swarm development of the wafer manufacturing industry, the domestic wafer industry will become a mess, he still Not comfortable with this. Take a stand on the issue and raise objections, because this will offend a large number of people.

When a large group of officials eager to seize this opportunity to achieve political success poured cold water on Fan Wubing, causing the top management to respond correctly to the mainland's fab construction boom, Fan Wubing will obviously become The public criticism caused Fan Heng's position and influence at the top to be shaken, which was a very unfavorable situation.

A few more. In September, the 16th National Congress will be held. Some domestic situations will need to be adjusted, and a new leadership group will be formed. And next year will be a change of government, and there will definitely be great adjustments in personnel matters.

Fan Heng, who is only sixty-one years old, has already been in a national-level position for several years. His age, physical condition and work ability are among the best choices among leaders at the same level, and he has taken over Several years of state-owned enterprise reform issues have also been successfully concluded, and it can be said that its reputation is booming.

Although Fan Heng himself and Fan Wubing have not considered making Fan Heng the number one person or taking over the position of Boss Zhu, it is logical to continue to serve as the Executive Deputy Prime Minister. Even a new leadership group needs a It is most suitable for Fan Heng to have a Zhengguo-level leader with a calm mind and the ability to control situations as a stabilizing force in the government during the transitional period;

Although Fan Wubing has a sense of justice and a high sense of responsibility for the country and the people, considering the overall situation and the overall interests, it is really not suitable for him to offend too many people now, so as not to affect the overall situation.

You must know that if everything goes well, Fan Heng can serve as a national leader for two more terms, and it will not be too late to retire at the age of seventy. If this goal can be achieved, the comprehensive benefits he will produce during his tenure will be But it is much bigger than stopping the disorderly start-up of a number of fabs now.

With this. After weighing it, it was difficult for Fan Wubing to clearly state his position on this issue.