Chapter 698: Phase 1: 140 Billion, First to Receive 200 Million in Project 01 Exclusive Funds! So I've Become the Horse's Bones?

Yanjing Conference Center, Room 305A.

Bottles of mineral water and neatly folded conference brochures lined the long table as attendees gathered in small groups, making conversation.

A large LED screen at the front of the room displayed a line of white text on a blue background: The First Integrated Circuit Industry Exchange and Promotion Conference.

Judging by the number of empty seats, half the attendees had yet to arrive.

“President Liu, it’s only been five days, and the Yaocheng X2 has already shipped over two million units globally. If Huaxin International could secure the manufacturing contract for the Celestial Craft A100 Chip, you’d surely solidify your position in the 28-nanometer process node space.”

He Boting of Hisilicon remarked to Liu Xunfeng of Huaxin International.

‘Solidify our position?’

‘With what?’

Liu Xunfeng fiddled awkwardly with his cuff. If the man speaking hadn’t been the president of Huawei HiSilicon, he would have lost his temper by now.

Although Huaxin International had publicly claimed to have mastered the 28-nanometer manufacturing process, their yield rate was less than 30%, making commercial mass production completely unfeasible.

A rate of at least 80% was needed to be considered viable, whereas Taiwan Semiconductor Manufacturing Company (TSMC) boasted a yield rate of 95%.

This highlighted the gap in process experience between Huaxin International and the top players in the industry.

One was merely functional; the other was excellent.

At Huaxin International’s current level, forget about vying for the Celestial Craft A100 Chip contract; even manufacturing the Celestial Craft T100 would be a struggle.

For instance, with the Hisilicon K3V2 and the upcoming Kirin 910, Huaxin International hadn’t been given so much as a scrap of business.

“The day President He is willing to entrust the manufacturing of the Kirin series chips to Huaxin International,” Liu Xunfeng said after a moment’s thought, his voice laced with meaning, “is the day we’ll be close to landing the contract for the Celestial Craft A100 Chip.”

“We’re always open to discussing cooperation,” He Boting replied with a smile. “Once President Liu improves the yield rate, Hisilicon will surely be the first to support Huaxin International.”

Their exchange perfectly reflected the relationship between Hua Country’s chip design and manufacturing sectors: they looked down on each other.

He Boting believed that Huaxin International lacked experience in material selection and equipment parameter calibration, and that its process technology was relatively primitive.

The very same Hisilicon K3V2 chip ran stably when manufactured by TSMC, but suffered from severe overheating issues when produced by Huaxin International.

It wasn’t that Huawei was unwilling to support Huaxin International; it was that the company was simply a lost cause.

Liu Xunfeng, on the other hand, felt that Hisilicon’s chip performance was nothing special. Its architecture was based on ARM’s technology, and it still required an external baseband chip. Yet, Huawei would rather line TSMC’s pockets than spare any business for Huaxin International.

This fragmented, uncooperative landscape was precisely why the government had organized this conference immediately after finalizing preparations for the first phase of the Big Fund.

A buzz of conversation filled the conference hall.

In the chip manufacturing sector, besides Huaxin International, other industry leaders like Huahong Hongli, Huaren Microelectronics, Jiangcheng Xinxin, and Silan Microelectronics were also in attendance.

On the chip design side, firms such as Zhanxun, Quanzhi, and Rockchip were also on the guest list.

The semiconductor equipment and materials sector was represented by companies like Beifang Hua Chuang, Hu City Microelectronics, Jiangfeng Electronics, and Hu Silicon Industry.

For the packaging and testing segment, representatives from Changdian Technology, Tongfu Microelectronics, Huatian Technology, and Jingfang Technology were all in attendance.

Overall, Hua Country’s semiconductor industry in 2013 was still playing catch-up.

The manufacturing sector was dependent on SMIC and Huahong, but its process technology was two to three generations behind. In design, companies like Hisilicon and Zhanxun led the way, yet high-end chips still had to be imported. The market for equipment and materials was monopolized by firms from Europe, America, Japan, and South Korea, while domestic enterprises like Beifang Hua Chuang and Zhongwei Company were only just getting started.

Only in the packaging and testing sector was the technology relatively mature, with companies like Changdian Technology and Tongfu Microelectronics already proving to be quite competitive.

But now, of course, there was Tiangong Technology!

First, it launched the Orange Z1 instruction set, followed by the release of the Celestial Craft T100 and Celestial Craft A100 chips. All three products had garnered impressive market reception in their respective fields.

Even the North American e-commerce giant Amazon, after extensive comparisons, had ultimately chosen to equip its Echo smart speaker with the specialized Celestial Craft T100 AI chip.

Many in the room were well aware that it was Tiangong Technology’s meteoric rise that had accelerated the rollout of policies related to the Big Fund, and everyone present stood to benefit from it.

CLACK CLACK CLACK—!

Just then, the distinct sound of footsteps echoed from the entrance.

Wang Chaixin, the chairman of Changdian Technology, was seated near the door and instinctively looked up.

He saw a young man with a tall, straight posture, dressed in a black suit, striding confidently into the room.

He was flanked by two people. On his left was a foreigner in his forties. On his right was a Chinese man in his thirties with a strong scholarly air, who was clearly a researcher, not a manager.

Chen Yansen!

The founder of Tiangong Technology!

In an instant, the conversations in the conference hall came to an abrupt halt.

All eyes in the room snapped towards Chen Yansen.

“President Chen!”

He Boting was the first to react, quickly rising to his feet and approaching with a beaming smile.

After a moment’s hesitation, Liu Xunfeng of Huaxin International also hurried over.

“President Chen, a pleasure!” Liu Xunfeng said, greeting him first. When Chen Yansen extended his right hand, Liu Xunfeng stepped forward to shake it.

“President He, President Liu!”

Chen Yansen smiled and briefly introduced Mike Keller and Wu Shengyu.

Liu Xunfeng and He Boting had each brought a top electronics engineer or chip R&D engineer of their own.

Chen Yansen’s eyes lit up. ‘I should try to poach them,’ he thought instantly.

Currently, Mike Keller was in charge of high-end market R&D for the Celestial Craft A-series, while Wu Shengyu handled the low- to mid-range market. Ultimately, however, their scope of work was still concentrated in the consumer electronics chip sector, primarily for devices like mobile phones and computers.