Technology: Start by selling mobile phones

Just when "Yellow River Storage" is facing a huge crisis, on the other side, several other memory chip giants led by SanDisk are gradually seeing the situation clearly.

There is no airtight wall in the world. After more than a month, senior executives of Samsung, Toshiba, and Hynix finally knew the reason why SanDisk took the initiative to cut prices this time when the market for flash memory chips was so good.

That is - Yanguo chip company "Yellow River Memory" actually broke through the "3D-NAND" flash memory particle technology and put it into mass production on the market!

This news shocked Samsung, Toshiba, and Hynix.

Magic City, headquarters of SanDisk Yan Kingdom.

As the initiator of this round of "flash memory particle" price cuts, since everyone knows it now, there is no need to hide it.

June 29th.

SanDisk took the initiative to invite several storage giants such as Samsung, Micron, and Hynix to come for discussions.

At six o'clock that evening,

In the luxurious conference room, the presidents of Micron, Samsung, Hynix, and Toshiba Yanguo District were all present. Although everyone was very unhappy that Porter had concealed the news for more than a month, at this moment, no one would talk nonsense about this matter. .

They all know in their hearts that the most important enemy now is-Yellow River Storage!

"I won't go into too much nonsense. As everyone knows about the current situation, Yanguo Enterprise 'Huanghe Storage' has successfully produced '3D-NAND' flash memory particles."

"There is no doubt that they have posed a huge threat to our core interests. Therefore, the most important thing to call everyone together today is to discuss how we should respond to the threat of the 'Yellow River Storage' next."

"Or...how to limit the 'Yellow River Storage'? There is no objection to this matter, right?"

It was Potter who spoke.

After the presidents of the other four companies were seated, he dismissed the other irrelevant people in the conference room, went straight to the topic without any politeness or pleasantries.

After a while, Micron President Frick knocked on the table.

"I have no problem!"

"Countless lessons have told us that Yanguo enterprises must not be allowed to develop."

"Once they develop and expand, they will soon break our monopoly and pose a huge threat to our core interests. I don't want our flash memory particles to become cabbage prices by then."

As he spoke, he paused and said:

"Potter, stop talking nonsense and tell me your plan."

Potter smiled slightly and didn't care about Frick's urging.

He looked at the presidents of Samsung, Hynix, and Toshiba who were sitting on the other side of the conference table and had yet to express their opinions. Before he could speak, Samsung President Lee Moon-hyun nodded seriously.

"We have no problem and agree to limit the 'Yellow River Storage'."

"We agree."

"No problem, it must be limited."

Samsung, Hynix, and Toshiba expressed their opinions one after another. Upon seeing this, Porter nodded, then turned on the screen projection in the conference room, and continued:

“SanDisk should be the only company here that has a head-to-head confrontation with Yellow River Storage.”

"According to our analysis and understanding over the past month, the first large-scale use of their '3D-NAND' flash memory particles should have been in the order of 'Xiaomi TF Memory Card' three months ago."

"We checked the price of flash memory chips at that time and it was 135 yuan!"

"It happened to be at this time that they took the last batch of 1 million flash memory particles from Hynix, priced at 130 yuan. Since then, they have used almost all '3D-NAND' flash memory particles produced by themselves."

"So we infer that the production cost of 'Huanghe Storage' 3D-NAND flash memory particles is about 130-135 yuan. When the market price is higher than this price, they use their own particles."

"Using the production cost price of 32-layer '3D-NAND' to calculate the yield rate, their yield rate should be between 40% and 43%!"

Speaking of this, Potter's eyes couldn't help flashing.

"I have to say that they are really courageous. They dare to mass produce with a yield rate of 40%! Their boss is an extremely adventurous person."

While everyone listened to Porter's interpretation, they stared at the various data displayed on the conference room screen.

The data is very detailed, and everyone is a professional. With a simple participation, many previous questions were quickly solved.

But after a moment, Samsung President Lee Moon-hyun, who was sitting in the corner, frowned slightly and whispered:

"President Potter, your inference makes sense."

"But, is there a possibility that they suddenly improved their yield rate three months ago and used it to mass-produce?"

Everyone present nodded, it was indeed possible.

Potter also nodded and said seriously:

"Yes, it is possible."

"But... I don't need to say more about how difficult it is to improve the 32-layer '3D-NAND' process in a short time? Besides, you forgot one thing."

"If their yield rate really reaches the point where it can be put into production, it doesn't have to be 80%, even if it is only 60%, why don't they just disclose it?"

"You can make a lot more money by selling 'flash memory particles' directly than secretly using them for Xiaomi's orders!"

"Don't they want to make money? Obviously not! It's because they don't dare to make it public. They themselves also know that their technology is not mature enough and is far from being able to achieve large-scale mass production!"

"Once it becomes known to us publicly, it is likely to pose a huge threat to them! Just like it is now."

Li Wenxuan was silent.

Porter is right. Now that the Huawei incident has broken out in the Yanguo market, the public opinion environment for domestic brands has greatly improved.

"Yellow River Storage" can undoubtedly win a lot of orders by selling "flash memory particles" at normal prices, but in such a good environment they dare not sell it publicly. The high probability is that their production costs are very high and there is really no competition in price. force.

Thinking of this, he pushed up the black-rimmed glasses on the bridge of his nose.

"President Potter, please continue."

"good."

Potter nodded slightly, looked around at everyone, and then said:

“Actually, it can be seen from this that the ‘Yellow River Storage’ funds are not very sufficient.”

"They are too anxious. They dare to mass produce with a yield rate of more than 40%. At least any of the companies here will not take such risks to mass produce immature processes on a large scale. They probably just want to take advantage of the good market of flash memory particles. Make some money!”

"So, what we have to do now is to seize their huge weaknesses of low yield rate and high production cost, and quickly reduce the ex-factory price of 'flash memory particles' to less than 110 yuan!"

"Their production cost is 135 yuan. As a result, they will lose every product they produce. They will no longer be able to increase production capacity in a short period of time, and they will no longer be able to accept external orders!"

"And we... will also completely strangle their '3D-NAND' development business and greatly delay their technology research and development!"

After the words fell, everyone present looked at each other.

Everyone knows the production price of traditional 2D-NAND particles, and almost all manufacturers are around 100 yuan.

The price is 110 yuan, and there is a 10% profit.

After a moment, Lee Moon-hyun, the serious-faced president of Samsung, took the lead in nodding.

"I agree."

As he spoke, he paused and looked at President Hynix aside.

"And, I add."

"Didn't President Porter just say that Yellow River Storage has orders for 20 million units from Xiaomi and Jingdong?"

"I estimate that once the 'flash memory particles' fall below their production cost price, they will most likely come back to you to purchase traditional '2D flash memory particles'."

"But refuse to sell to them!"

"In fact, all of us should refuse to sell them flash memory chips anymore."

Everyone's eyes shrank, and they immediately understood the meaning of Li Wenxuan's words.

"Yellow River Storage" currently has unfinished orders from Xiaomi and Jingdong. If it cannot buy cheap flash memory particles on the market, based on the production cost of 135 yuan, it will cost at least 20 yuan to produce one.

If "Yellow River Storage" wants to deliver the remaining orders, it will have to lose at least 5.6 billion yuan for 20 million flash memory particles!

I have to say, this trick really sucked the fire out of the situation.

"sure, no problem."

The president of Hynix is ​​also a South Korean. When he heard the proposal from the president of Samsung, he accepted it without any hesitation.

"I will notify our sales department immediately about this matter and will not sell any more flash memory particles to it!"

"We also agreed not to provide any flash memory particles to Yellow River Storage." Toshiba's president continued.

All eyes fell on Flick, CEO of Micron.

Frick spread his hands and said:

"Don't worry, they won't buy any products from Micron."

The resolution was passed without any obstruction. On the matter of restricting "Yellow River storage", everyone was surprisingly unanimous and there was no objection.

Soon, the general direction of the meeting was determined and the details began to be discussed.

At 7 p.m., the five giants agreed on the details:

Within half a month, five major manufacturers joined forces to reduce the ex-factory price of "flash memory particles" to 115 yuan for 128GB capacity;

230 yuan for 256GB capacity;

512GB capacity 460 yuan.

This translates into an ex-factory price of 0.9 yuan per GB.

At the same time, the five giants promised not to sell any products to "Yellow River Storage". At the same time, all orders that "Yellow River Storage" participates in will be bid without a bottom line, and all storage business of "Yellow River Storage" will be cut off to the maximum extent.

…

The efficiency of the five giants is very fast.

Early the next morning, June 30,

Five giants, led by SanDisk and Samsung, jointly updated the latest factory price of "flash memory particles".

The ex-factory price of 128GB flash memory particles has been adjusted from 140 yuan to 125 yuan, a price reduction of 15 yuan!

"So determined! I still underestimated the determination of these international giants..."

Mo Ran looked at the latest ex-factory price in his hand and took a deep breath.

He knew that the tide was over at this time. In just a few days, the price of flash memory particles had fallen below the ex-factory price three months ago, and also fell below the production cost price of "Yellow River Storage".

"Yellow River Storage" must reduce production!

Although he felt a little unwilling, Mo Ran still picked up the phone and prepared to call Li Zhi. The production reduction should be done sooner rather than later, and the follow-up work must be arranged as soon as possible.

But just when he was about to dial the number, Li Zhi's call message lit up on the screen of his phone.

Mo Ran was stunned for a moment and picked up.

"Mr. Mo, I'm sorry to bother you. I have something to report to you."

"Um?"

"Jingjing Tokyo Manufacturing came to us early this morning. It means that the price of 'flash memory particles' has dropped too much. They hope that we will lower the purchase price of the next batch according to the OEM agreement we signed before."

When Mo Ran heard this, it was normal.

Most OEM agreements determine the purchase price batch by batch based on market price fluctuations, so that neither party suffers any loss.

"no problem."

"Mr. Mo, there is indeed no problem, but..."

"I just contacted Hynix, and they rejected all our purchase requests. Not only Hynix, but also Micron and Toshiba all rejected our purchase orders!"

“We can’t buy ‘flash particles’ on the market now!”

As soon as he finished speaking, Mo Ran was startled, and a trace of cold sweat instantly broke out on his forehead!

"Oops! I forgot about this!"

"Banned!"

This time, it’s really difficult!

…

Heavy dark clouds hang over the head of "Yellow River Storage", and an unprecedented crisis quietly emerges.

but.

Compared to the anxiety and depression felt by Mo Ran and Li Zhi, the atmosphere in the flash memory particle production department of "Yellow River Storage" is relatively relaxed.

Wang Wenbo, male, graduated from Zhejiang University, majoring in microelectronics science and engineering.

Like most of his colleagues, he also noticed the sharp fluctuations in the market price of flash memory particles that day.

But how to say it?

As the most ordinary production employee of "Yellow River Storage", he just sighed. After all, if the sky falls, the team leader Liu, the department head Mr. Gao and the big boss Mr. Li will still be carrying it, so it is not his turn to worry.

but.

When he went to work that day, he was both nervous and a little excited.

His position is the etching link, which is a relatively important part of the chip production process.

Simply put, producing a chip starts with a wafer, which requires "deposition", that is, coating the wafer with a thin layer of non-conductive silicon dioxide.

Immediately following the second step, before wafer photolithography, a layer of photoresist must be applied.

After completing these processes, the wafer can be placed into the photolithography machine for photolithography and exposure.

After the photolithography is completed and it is confirmed that the photolithographic circuit is correct, the wafer will be taken out of the photolithography machine, baked and developed to fix the pattern on the wafer.

Next, it's time for his production step - etching.

Although it sounds easy, in fact, by the time he reaches this stage, each wafer has gone through dozens of processes, large and small, and only less than 75% of the qualified wafers are.

In his case, he needs to use active chemicals to etch away the thin silicon layer that was previously applied, and then very carefully use chemicals to remove the excess photoresist, and finally ensure the formation of a complete "3D Circuit pattern”!

This is a very important step in the chip production process. Similarly, because it involves corrosion processes and chemicals, this is also the link that damages the wafer circuit and has the highest elimination rate.

Just two days ago, he realized that he seemed to have discovered an amazing secret.

Two days ago, perhaps because he was too busy with overtime work recently, when adding chemical active agents in the etching process, he accidentally changed the concentration of the corrosive agent from the prescribed 9.72% to 2.97%.

By the time he reacted, this concentration of active agent had already completed the day's wafer etching task.

Wang Wenbo wants to cry but has no tears!

As a professional, he knows very well that any data in the production process is the best data summarized after hundreds or thousands of tests!

Let alone an error of 7%, even a concentration error of 0.01% may have an irreversible impact on this batch of wafers.

To be serious, all the wafers that have gone through the etching process today will be scrapped!

But just when he was hesitant and uneasy, he didn't expect that the final test found...

Damn it.

The wafers etched with a 2.97% concentration corrosion solution not only had no problems with patterns and circuits, but the wafers were not scrapped either!

On the contrary, according to past experience, at least 30% of the wafers must be eliminated in this link. This time, the elimination rate is not even 10%!

this!

After the concentration of the corrosive agent is reduced, the chemically active agent seems to have a better etching effect on the wafer, and the circuit pattern is better protected? !

This discovery simply surprised and delighted him.

However, he soon fell into anxiety and hesitation again!

It stands to reason that this is a "production accident". Once he tells it, he will most likely be punished.

Moreover, whether it was a fluke or not because of the "concentration" issue is not certain!

In the past, Wang Wenbo would have kept it in his heart and would study it slowly when he had time.

But this time, he thought that in the past two months, the head of the department, Gao Qiang, would keep emphasizing in every meeting that anyone who could improve the yield rate, as long as it was effective, even 1% would get 500,000 in cash. award!

If it is a major breakthrough, you can also apply directly to the company for a bonus apartment!

This is a suite in Chengdu!

Don’t say two to three million!

Thinking of this, Wang Wenbo held his breath. Today he will test again to see if the concentration is the cause.

At two o'clock in the afternoon, he had prepared the chemically active potion according to the last dosage.

However, this time he did not dare to use all the wafers for testing. He only selected five qualified wafers and started the experiment.

Apply chemicals, remove photoresist, clean, dry...

Wang Wenbo handled each process carefully, his heart rising to his throat.

Soon, the etching process was completed one after another. He held his breath and placed the etched wafers on the inspection instrument one by one with slightly trembling hands.

First piece.

qualified.

Second piece.

Unqualified.

The third piece.

qualified.

The fourth piece.

qualified.

The fifth piece.

qualified!

Damn it!

Wang Wenbo’s eyes widened, 5 yuan passed, 4 yuan!

This, this, this!

Did I really improve the etching potion formula? ! ! !

Wang Wenbo was in disbelief. After ten minutes, he took off his work clothes, walked out of the production workshop, tremblingly walked to the door of the office of department head Lao Liu, and opened the door.

"Old Liu...I, I seem to have figured out a new formula."

"New recipe?!"

Department head Lao Liu was stunned for a moment, and Wang Wenbo stopped talking nonsense and immediately pulled Lao Liu into the production workshop.

Just a few minutes later, looking at the five wafers that were etched separately in front of him, Old Liu jumped up excitedly, wishing that Prince Wenbo could take a bite!

"Damn it, you little boy!"

"Don't go, wait, wait, I'll tell Mr. Gao right now! Don't move!"

"Mr. Gao... I have something to report to you!"

"..."

five minutes later.

Gao Qiang, the head of the department, rushed over and took a look.

"Fuck!"

After a while, he just took out the phone and put it back.

Gao Qiang looked at Wang Wenbo and Lao Liu and said anxiously:

"Don't go, you two, just wait here, I'll go find Mr. Li myself!"

Three minutes later, Li Zhi ran over with a shocked face. Behind him was Gao Qiang, who was panting!

“Where is the wafer?!”

A minute later, Li Zhi's eyes flashed, he clapped his hands together and said excitedly.

"Live!"