.Fan Wubing, the hand-lan, is now in conflict, and it is difficult to take whistles at the same time."

The chip industry is the focus of future development. This is not to be questioned. For the chip industry under Fan's Investment Group, Fan Wubing bets on it for a lot of time, energy and money to create the current huge industrial scale. It is impossible for him to be unwilling to worry about it.

However, Fan Wubing also saw another point, because of his sudden emergence, the mainland wafer industry was dominant, and Fan occupied a steady leading position, while other existing companies could only drink soup. This move has attracted many companies' jealousy.

After more than ten years of development, some large domestic enterprises have completed the original accumulation of capital, and have the funds and the ability to use spare money to enter the lucrative high-tech industries.

Entering the wafer manufacturing industry on a large scale is actually a way for these companies to make their own voices. Although it is not stated explicitly, the meaning of challenging Fan's Investment Group is self-evident.

In fact, mainland wafer fab practitioners have different views on production expansion. One is to advocate large-scale expansion of production capacity, and the other is to believe that excessive expansion will hinder industrial development.

Experience shows that many industries in the mainland are rushing to show their products. When the industry is quite optimistic about the market but blindly expands production, it will cause the industry to fall into a vicious cycle, and ultimately lead to no one making money.

For example, among the top 10 suppliers in mainland China, Samsung Electronics, Texas Instruments, etc., have included nearly 50% of the market, and even large design companies such as Qualcomm and Broadcom are not at the forefront. Therefore, whether these market opportunities can be successful and become business opportunities for mainland design operators and further support the production capacity of wafer factories needs to be carefully considered.

As for the future advantages and challenges that mainland wafer fabs will face, we can look at them from four aspects: market, capital, talent, and technology. From the market perspective, the demand for the mainland northern market is expected to reach US$120 billion by 210, but the supply capacity of mainland operators is only about US$13 billion, and there is a huge gap between them. This is obviously a very attractive opportunity. Three years later, 70% of the more than 3 million university graduates in the mainland have a background in science and engineering, which is enough to provide huge scientific and technological talent resources.

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

It is true that capital seeks profit, but capital also needs to consider the issue of risk.

Especially after the Internet market encountered a cold wave, international financial capital has become very sensitive. Therefore, Fan Wubing can basically guess that although local governments are currently very keen on introducing wafer manufacturing, neither Thailand's Charoenix Group nor TSMC will invest too much money in the mainland. This part of the funds are probably obtained more from mainland bank channels.

In fact, for some local government leaders in the mainland, they do not 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. They understand that although the chip industry looks beautiful, it is impossible to get a very definite answer to whether it can make profits, whether it can lead local companies out of the siege, build a local chip industry circle, and become the leader in leading the local economy and high-tech industry exhibitions;

The construction of such a large number of wafer manufacturers can continue to shorten the gap between Europe, America, Taiwan and mainland wafer factories? This is a question of location.

From a technical point of view, the current research amount of Taiwanese capital invested in the largest wafer fab in mainland China is one fifth of TSMC and one third of UMC. There is indeed a big gap in investment.

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

New practitioners find it difficult to compete with each other. This is the entry barrier that pioneers have set.

Even if mainland partners do not have to bear the cost of building a factory and only provide a new competition model of manpower management, who will pay for these factory construction costs is obviously the local government. Therefore, when it comes to the most fundamental problem, we must carefully consider the expansion plan, and find new special application fields to find OEM and reduce costs. Even TSMC must find ways to fill the production capacity so that we can be sure to invest in building a factory in the mainland?

The reason why local governments are eager to introduce wafer fab projects is nothing more than just thinking about their own political achievements, which is also closely related to the country's policy of encouraging the integrated circuit industry exhibition.

Because according to the industrial policies formulated by the central government, the profits paid by integrated circuit manufacturers, including packaging companies after paying corporate income tax are directly invested in the enterprise by the end of 2010. The two capitals, with a business period of five years, will be refunded at a ratio of 40%.

For the profits made by domestic and foreign economic organizations in the country, the income tax paid by them will be refunded at a proportion 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.

The general VAT taxpayer sells its own integrated circuit products, including monocrystalline silicon wafers. Before 2010, the actual tax burden was levied and refunded immediately, and the company used it to study and open new integrated circuits and expand reproduction.

The import and export goods of software companies with annual exports of over US$5 million and integrated circuit companies with annual exports of over US$50 million can be convenient import and export customs clearance procedures such as online customs declaration, quick transfer, door-to-door acceptance, expedited customs clearance, guarantee acceptance and other convenient import and export customs clearance procedures in accordance with relevant regulations.

At the same time, the import and export of goods of the above-mentioned enterprises can be handled according to special matters. The principle of urgent matters is to handle inspection and quarantine first, and convenient inspection and quarantine procedures are applied.

For integrated circuit manufacturers whose integrated circuit line width is less than 8 microns, they will enjoy the preferential policy of 2 exemption and 3 halving of income tax from the year of profit. They will be exempted from customs duties and value-added tax in the import link of their own productive raw materials and consumables that cannot be produced in China.

Such policies are obviously very attractive to overseas investors and local governments.

One of the main criteria for measuring the political achievements of officials nowadays is the ability to attract investment. Just imagine that any wafer factory is invested in the order of hundreds of millions or even billions of dollars. Coupled with other supporting construction investments, it will have a great pull on the local concave numbers.

And there is another point that the significance of high-tech development and large-scale construction and infrastructure construction is quite different. It adapts to the development direction of the country's overall policy and is easier to get the praise of superiors and be promoted.

Therefore, it is the greatest wish of many local officials to implement wafer manufacturing projects as soon as possible and during their term of office. As for the future development, will it cause unfinished projects? That is not something they can expect, nor is it something they should care about. There will naturally be a headache for successors in the future. At least their career will become bright due to the implementation of the project.

It is precisely because of this that Fan Xiubing has kept a low profile on this issue. Even though he has realized that after a swarm of developments in the wafer manufacturing industry, the domestic wafer industry will become a mess, and he is not inconvenient to express his opinion on this issue and raise objections, because this will offend a large number of people.

When a large group of officials who were eager to take this opportunity to achieve political achievements and gain the upper hand because of a basin of cold water from Fan Wubing, causing the senior management to respond correctly to the mainland wafer fab construction boom, Fan Wubing will obviously become the target of public criticism, which will lead to Fan Heng's position and influence in the senior management. This is a very unfavorable situation.

In a few months, the ** will be held. Some domestic situations will be adjusted, and a new leadership group will also arise. Next year, the government will change its term. At that time, there will definitely be great adjustments in personnel matters.

As Fan Heng, who is only 61 years old, he has reached the national level for several years. His age, physical condition and work ability are excellent choices among leaders of the same level. Moreover, the problem of state-owned enterprise reform that has taken over for several years has also come to an end successfully. It can be said that his reputation is rising.

Although neither Fan Heng himself nor Fan Wubing had considered that he could make Fan Heng the No. 1 person or take over Boss Zhu, it was natural to continue to serve as the executive vice premier. Even the new leadership group needed a country-level leader who was calm and could hold on to the scene as the key to the transitional period in the government. This was the most appropriate for Fan Heng;

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

You should know that if it goes well, Fan Heng can be the first to be a national-level leader for two more times. It is not too late to retire at the age of 70. If this goal can be achieved, the comprehensive benefits he has generated during his tenure will be much greater than the disorderly production of a number of wafer fabs now.
Chapter completed!