Rebirth 99 to become a car giant

In the past two years, Nanshan Group has been sanctioned one after another.

Nanshan carbon fiber, Nanshan equipment, Nanshan semiconductor, Nanshan special steel...

Although these sanctions have not reached the point where Nanshan Group cannot survive, the impact is very obvious.

In response to the various sanctions imposed by the United States, it is naturally impossible for China to have no reaction at all.

You must know that Nanshan Group is the enterprise that has won the most national science and technology progress awards in China, and it is also the best in the country in many core technologies.

Such a key enterprise related to China's future technological development will definitely not let others bully it.

Just when Cao Yang didn't hear anything, the ministry suddenly announced an export control policy.

[In order to safeguard..., with the approval of..., the "Announcement on the Implementation of Export Controls on Gallium and Germanium Related Items" was issued, and it was decided to implement export controls on gallium and germanium related items. ]

[According to the announcement, gallium-related items include 8 metal gallium, gallium nitride, gallium oxide, etc., and germanium-related items include 6 metal germanium, zone melted germanium ingots, phosphorus germanium zinc, etc.... will be released on December 1, 2011 Effective date. 】

As soon as this announcement was announced, ordinary people may not have reacted yet, but the semiconductor industry immediately exploded.

"Mr. Cao, according to this announcement, starting from December 1, a large number of products such as metal gallium, gallium nitride, metal germanium, germanium epitaxial growth substrates, etc., if you want to sell them overseas, you must apply for permission from the ministry and commission. certificate."

"When applying, companies must proactively report who the buyer is, what they do, and what they will do after buying it."

"This has a huge impact on international semiconductor companies, and it is also very important and good news for our company."

Zhang Jing came to Cao Yang's office in a very excited mood and reported on the latest policies.

First, Nanshan Group quickly added a bank, and now it has implemented export controls in the field of semiconductor materials.

It can be said that the support of the ministries and commissions to Nanshan Group has always been in action.

"How about the application of these two materials, gallium and germanium, in the semiconductor industry?"

Although Cao Yang probably has an impression of the impact of this export control, professionals like Zhang Jing must know the professional content best.

"Metal gallium is mainly used in the semiconductor industry. About 98% of metal gallium is used in this industry, and the remaining 2% of metal gallium is also used in alloy manufacturing, biomedicine and other industries."

"High-purity germanium is a semiconductor material that can be extracted from high-purity germanium oxide by reducing it and then smelting it."

"Germanium single crystals doped with trace amounts of specific impurities can be used to make various transistors, rectifiers and other devices."

"It can be said that as long as we engage in semiconductors, we cannot do without these two rare metals and their compounds."

After Zhang Jing explained this, Cao Yang immediately asked: "What is the proportion of our production capacity for these two materials? Can we really restrict international semiconductor companies?"

If you want to restrict others through export control, you must be able to block others.

If others don't lack anything from you, then there will definitely be no point in regulating them.

"Mr. Cao, because the concentration of gallium in the earth's crust is very low, although it is widely distributed, it does not exist in a pure metal state, but in the form of gallium gallium copper ore. Therefore, it is generally a rare element. It is sphalerite, sphalerite, By-products from the industrial processing of pyrite, alumina, and germanium.”

"China's gallium supply accounts for more than 95% of the world's total."

"The situation with germanium is somewhat similar. Our supply accounts for more than 90% of the world's supply."

When Zhang Jing said this, Cao Yang probably understood why the ministries and commissions had chosen these two materials as targets for counterattack.

China is the main supplier of this material. As long as I don't export it to you, it will definitely have an impact on international semiconductor companies in a short time.

However, Cao Yang quickly thought of another question and said: "Although our production now accounts for a high proportion of the world's production, do other countries have similar mineral deposits?"

Production capacity is only one aspect of export control. If others also have the resources but do not produce due to environmental or price reasons, then the effectiveness of this counterattack will be greatly reduced.

“The world’s total reserves of gallium are approximately 230,000 tons, and China’s reserves account for more than 80% of the world’s total reserves.”

“The world’s proven germanium resource reserves amount to 8,600 tons, and China’s reserves account for more than 40% of the world’s reserves.”

“So we are also very rich in reserves.”

"Of course, America is not bad either."

"Especially for germanium, the number one one is actually the United States."

Hearing what Zhang Jing said, Cao Yang's expression changed.

The reserves are so abundant, which means that the export control measures of the ministries and commissions have limited effect.

It can only have an effect in the short term, but in the long run it will force others to increase the production capacity of related materials.

This doesn’t seem to be a good thing!

As if sensing the doubt in Cao Yang's heart, Zhang Jing immediately added something.

"Mr. Cao, these two materials are actually not mainly based on reserves, but more on production techniques."

"For example, germanium, most of the mines in the United States are lead and zinc associated mines. If you want to produce germanium, you have to rely on lead and zinc mining."

"But the lead and zinc industry in the United States is very small, so the mining volume of germanium cannot naturally increase."

"As for gallium, there are basically no production lines dedicated to producing gallium in the world, because with the current production demand, setting up a dedicated production line will not have any cost competitiveness at all, and you will not be able to survive. Why bother?"

"Because the vast majority of gallium is a by-product of the production of alumina, and we are the world's largest alumina producer."

"It can be said that for these two materials, in theory, whether it is the United States or Europe, there is no shortage of resources and no shortage of technology."

"But because of the production techniques, it's actually impossible for them to meet their needs and they have to import it from China."

When Zhang Jing said this, he couldn't help but smile on his face.

Nanshan Group has been sanctioned so many times, and this time the ministries and commissions finally came out with a sigh of relief.

If you continue to impose restrictions on China in terms of semiconductor equipment and raw materials in the future, I can impose restrictions on rare metals.

And this is just the beginning. In the future, more similar rare metals will also be subject to export restrictions.

This is definitely a very impactful method for international semiconductor companies.

And export control does not mean denying exports, but rather deciding whether to export after applying based on the situation.

If you have a good relationship with me, then I will allow you to export it.

For example, if Europe and other markets currently do nothing specifically against Nanshan Group, they can continue to export.

But on the American side, I'll block you first.

Even if you can obtain some materials through special means, the cost will be much higher.

"I see, that's great."

"Now those chip companies in the United States are probably feeling guilty."

"You can also sort out which materials in the semiconductor industry we can restrict international giants from, and we can propose them to the ministries and commissions at an appropriate time later."

"We cannot just respond passively, we can become more proactive in the future."

Since the ministries and commissions are not worried about stalemate relations with the United States, Cao Yang feels that he does not need to worry so much.

In particular, it is said that the United States will soon formally rule on the case of banning the sale of Honor mobile phones. By then, Apple mobile phones will no longer be available in China.

At least the iPhone4 and iPhone4S, which clearly infringe on the appearance of HONOR 2 and HONOR 3G, don’t even think about making money in China.

…

"Mr. Li, China has begun to fight back."

After Chai Hang saw the announcement from the ministry, he immediately reported it to Li Zailin.

Samsung is an important driving force behind the various actions taken by the United States against the Nanshan Group.

So they are naturally very concerned about the subsequent reactions of all parties.

Originally, Samsung thought that China was unlikely to make any big moves. After all, China's economy at this time was still very dependent on international trade.

If various counterattacks are made, it is likely to have unpredictable effects on other aspects.

Unexpectedly, the situation this time was a little different from what they imagined.

"I have just received feedback from the public relations department. The two metals germanium and tungsten are subject to export control."

"Although it is not a direct ban on exports, the effect is actually similar."

"This is very detrimental to the development of the international semiconductor industry. I am going to make a special report to the headquarters and bring major chip companies together to protest against this behavior."

"This is undermining free trade."

Li Zailin's face was very ugly.

Samsung also needs to import these two types of materials from China every year. Even the two materials used by Samsung all come from the Chinese market.

In the future, if every import needs to be approved by Chinese ministries and commissions, the impact will be huge.

No one knows when or if the application will be approved.

If this is done, prices will rise, and supply will become unstable.

This is definitely very bad news for Samsung.

"China rarely uses similar counterattacks. Did the United States use too much force this time, so China had counterattacks so quickly?"

It is normal for Chai Hang to think so.

After all, Nvidia, a subsidiary of Nanshan Semiconductor in the United States, has been forced to sell it at a low price.

Then Qualcomm is suing Honor Mobile again, demanding more than one billion US dollars in compensation.

At the same time, they are still pushing for a ban on the sale of Honor mobile phones, which is basically about to happen.

Using so many methods together, it is obvious that they are all targeting the Nanshan Group.

It makes people feel aggrieved, but the impact is real.

No wonder China will fight back.

However, Li Zailin did not agree with Chai Hang's view.

He felt that it was natural for the United States to deal with the Nanshan Group.

I can hit you, but you shouldn't fight back.

In the past, they have enjoyed too many preferential treatment in the international market, but now they are a little bit unbearable when they receive a little blow.

"Not only do I not feel that the actions taken by the United States are too drastic, but I feel that the actions taken by the United States are not strong enough."

"Only when China fully understands that counterattack is not a good idea, will they honestly abide by the rules we set in the future."

"Otherwise, once China gets a taste of the sweetness, their right to speak will become greater in the future."

Li Zailin said through gritted teeth.

The usually gentle rabbit began to bite, which he couldn't accept.

Soon, under his promotion, Samsung also began to take action.

After seeing this announcement from China, ASML also reacted greatly.

"Christopher, China's export controls on germanium and germanium-related materials are likely to make some semiconductor companies wary of dealing with Nanshan Semiconductor easily."

"I think the company cannot allow this situation to arise, otherwise it will be even more troublesome in the future."

Pete has recently been busy working on a new generation of photolithography machine technology, and he is still under a lot of pressure.

Originally, the photolithography machines they produced that could handle 28-nanometer chip processing were the most technologically advanced in the world, so there was no need to rush to develop next-generation products.

But because Nanshan Group has also mastered similar technology, and has begun to invest heavily in chip factories.

In order to continue to seize the advantage, ASML needs to launch lithography machines that can produce 14nm or even 10nm chip processes as soon as possible.

Otherwise, if there is no technological advantage for Nanshan Group, life will be difficult in the future.

But it is not that easy to form a technological advantage that creates generational differences.

In the past, there was no need to work overtime, just research and development slowly, but now I have to work overtime every day.

Many R\u0026D personnel are very angry.

Peter felt that these grievances were all caused by the Nanshan Group.

"This countermeasure is more in response to various actions taken by the United States."

"We need to see the reaction from the United States before we can take the next step."

"Otherwise it would be a little bit insufficient to rely on our own strength alone."

Christopher naturally knows the impact of China's counterattack on material export controls.

Originally, they were blocking the neck of Huaxia Enterprises, but now they are being blocked by Huaxia Enterprises.

It will definitely be difficult for them to accept the occurrence of this situation.

But the final counterattack will definitely depend on the reaction of large companies in the United States.

"We can make some further push behind the scenes, and we cannot be intimidated by China's export controls."

"A large number of rare metal elements used in semiconductor processing are purchased in large quantities from China."

"At that time, there will no longer be export restrictions on the two types of materials: tungsten and germanium."

When Peter said this, Christopher couldn't help but nodded.

This is indeed the truth.

We cannot let China get the benefit of the doubt, otherwise more measures will be taken against them in the future.

Once the international semiconductor industry compromises on China's export restrictions, it will be very difficult to continue to have exclusive say in the future.

…

If Samsung and ASML are still a little worried, then Apple China is a bit like an ant on a hot pot.

"Mr. Wang, the market share of Honor mobile phones in the United States is actually very low. On the contrary, our sales in China far exceed their sales in the United States."

"If Honor mobile phones are really banned from being sold in the American market, then I think it is very likely that we will also be banned from selling them in China."

"It's not a good deal for us."

Although Lin Rong was very worried about such a situation before.

However, based on the judgment of internal research, I feel that China will not make such a move.

After all, Apple is a very important foreign investment, and its processing is also done in China. If sales are banned, it will also damage the interests of some places in China.

But when she saw the export restrictions announced by Chinese ministries and commissions, she realized that the situation was different.

Wang Ziming's reaction this time was also a little different from before.

"China's response was a bit quick. I thought they would have to endure it for a few more years before taking any action."

"I didn't expect that export controls would be directly imposed on materials like germanium and germanium."

"This should be targeting American semiconductor companies, right?"

These days, many international giants have different views on China than later generations.

Wang Ziming would find it strange, and many other international companies would have the same reaction.

"Nanshan Group's influence in China is quite large, especially in the semiconductor industry. They are now considered the most advanced presence in China."

"China spent hundreds of billions of dollars importing semiconductors from the world last year. Now it hopes to save this part of the import amount. It will definitely take care of Nanshan Group in every possible way."

"Honor Mobile is now second only to Xingchen Motors under Nanshan Group, and may even become the largest company under Nanshan Group in the future."

“In this case, if Honor mobile phones are banned from sale in the United States, then I think China is likely to respond to Honor Mobile phones’ demands and ban the sale of Apple mobile phones through a patent infringement case.”

When Lin Rong said this, she immediately silenced Wang Ziming.

This situation is definitely not what Wang Ziming wants to see.

After all, he is the head of the Huaxia branch. If the performance here is not good, it means that his career future is in doubt.

So even though he was originally very supportive of the ban on the sale of Honor phones in the United States, he even did a lot of work.

Now it's starting to waver.

"Let's take a look at the reactions from all parties before talking."

"For such a big thing, I think there should be some follow-up actions."

Wang Ziming didn't want to slap himself in the face.

He was the one who previously pushed Apple headquarters to participate in banning the sale of Honor phones.

It is he who now proposes not to ban the sale of Honor phones in the US market.

What would Apple President Cooka think of him?

…

"Paul, have you seen the export restriction announcement from China?"

Otellini, the president of Intel, made a direct call to the president of Qualcomm.

Although China's announcement did not specify the specific background of the introduction of export control measures for germanium and gallium, Otellini is very clear about the reason for this matter.

Although Intel is also an important opponent, Qualcomm is at the forefront.

At this time, Otellini naturally wanted to have a good discussion with Paul to see how to deal with this situation.

"As you can see, the prices of these two series of materials on the market have doubled in one day, and they are likely to rise exponentially in the future."

"Although these material costs have increased, we have the strength to absorb this price impact through final chip price changes."

"But this is a very bad start and has a very bad impact on the stability of subsequent chip production."

"I think we cannot compromise on this matter easily."

Intel has been involved in numerous lawsuits and conflicts with various companies over the years.

Naturally, we will not compromise easily with China at this time.

In his view, although these two materials currently mainly rely on China, they do not have other options.

"I also think we cannot compromise on this matter."

"This approach obviously violates relevant WTO regulations. We can resort to the WTO and ask China to immediately lift export controls."

As the president of Qualcomm, Paul will never choose to compromise.

Among all technology companies in the United States, Qualcomm has the highest proportion of internal legal personnel.

Even the two core tasks within Qualcomm are research and development and litigation.

This is an important guarantee for Qualcomm’s main source of patent fee income.

There is a special "tax" on mobile phones, which is called "Qualcomm tax" by many companies.

This is actually the patent fee paid by various companies after using Qualcomm's patents.

The amount of this patent fee is not low at all.

Even the profit margins of many companies are not much higher than this patent fee.

It is conceivable that not every company is willing to pay such a fee.

In order to maintain such a high royalty income, various lawsuits are inevitable.

No matter what happens, Qualcomm's first reaction is definitely not to compromise, but to fight back and file a lawsuit.

This time is no exception.

"Of the various materials used on the chip, not only germanium and germanium need to be imported from China. If our counterattack is relatively large, will it lead to more intense counterattack measures from China?"

Although Otellini also hopes to make some counterattacks against China's announcement.

But to say that he has no worries at all would be false.

After all, China is the world's second largest economy and cannot be manipulated by others.

"This is a game process, and no one knows where the other party's bottom line is."

"At this time, we can only keep testing."

"If we don't test it this time, it will be even harder in the future."

Following the conversation between Paul and Otellini, the first thing the United States took action was Qualcomm suing Honor mobile phones for patent infringement and banning the sale of Honor mobile phones.

But this time, neither China nor the Nanshan Group were prepared to compromise easily.

Companies and personnel throughout the semiconductor industry are paying close attention to the arm-wrestling at both ends of the Pacific Ocean.

Where the new balance point between the two sides will be is a matter of great concern to many people.

It is also something that will have a profound impact on many things in the future.

But this result came sooner than many people imagined.

"Mr. Cao, the case in the United States has the latest results."

A phone call from Xiang Wei, the head of the legal department of Nanshan Group, who was in the United States, conveyed a piece of news that had not yet been officially announced to the public.