Can the rise of Samsung Semiconductors inspire Chinese Core?

[The rise of Samsung Semiconductor can give some inspiration to "China Core"? 】 Samsung's financial report in the late 1980s shows that Samsung Electronics lost nearly 300 million US dollars that year, the equity capital is all the deficit; in the outside world, Samsung than any of its competitors can not afford to lose, but also not continue to increase the capital . How did Samsung, who was trapped in such a dilemma, make it into today's business empire? Can I have some inspiration for "China Core"?

Recently, the U.S. government issued an export ban on ZTE, triggering public opinion on the independent innovation of China's cutting-edge industries and inspiring the Chinese people to think about the "China Core."

It can be said that the scope of this storm is not limited to the United States or China; as an important force in the global mass production chip industry, Korean companies have a certain say in the world market. In the course of the author's recent interview in South Korea, many South Koreans heard that the reporters came from China and actively talked about the topic of ZTE.

As we all know, although the products manufactured by the chip industry are not consumer-oriented terminal products, they are used in many high-value-added industries such as electronic products, digital products, and communications equipment. Whether they master the core technology of the chips is also considered as whether they master the high level. Key points in the lifeline of cutting-edge industries.

Samsung can start as a leader in the mass-produced chip industry. It is not just a one-off but a trilogy led by Samsung, government support, and market linkage. A staff member of the Korea Semiconductor Industry Association told the author.

Samsung dominates: from learning to independent research and development

Today, I believe that many people may already know that Samsung is not limited to electronic and mobile services. Samsung has 59 non-listed companies and 19 listed companies, all of which are companies listed on the Korean Stock Exchange in the first batch. The scope of business covers construction, finance, shipbuilding, semiconductors, home appliances, and even medical and aerospace. Therefore, Samsung's employees of nearly 500,000 are not false reports. Its companies are spread all over the world and have not been limited to South Korea long ago.

Another interesting fact that may not be known to everyone is that the Dubai Tower, the tallest building in the world, is being built by the construction department of Samsung Group.

The ambition of the Samsung Electronics Division began with black and white TV in 1970, and the mobile phone started with the 1986 car phone.

Samsung’s first electronic product was a black-and-white television set. The business continued to expand for more than a decade and began to enter the mobile telephony area in 1986. What's interesting is that Samsung's early televisions were highly appreciated and quite popular. On the contrary, the market feedback for the first car phone was extremely poor, and sales figures were hard to see.

Since the establishment of Samsung Electronics, the logo has only changed three times

Because Samsung is in contact with consumer products such as end products, smart phones, home appliances, and other consumer products, it is easily overlooked that Samsung has developed semiconductors and mass-produced chips compared to CE and IM businesses that use consumer products. The product's DS business is expected to have an operating profit of 11 trillion won in the first quarter of 2018, which will account for 70% of Samsung’s total profit for the quarter.

From a global point of view, Samsung Electronics has occupied the world's largest market share in the mass production chip market, and has surpassed competitors such as Intel in both sales and operating profits, and ranks the leading position in the chip industry.

Samsung Semiconductor finally topped the global semiconductor market in 2017. Intel finally fell from the throne that had monopolized 25 years, ranking second.

In 2017, the world's semiconductor industry grew by 22.2%, mainly due to the rapid expansion of market demand for memory products. At that time, production capacity had not been expanded and it was in the top three hands. As a result, the shortage of the market led to a surge in memory prices. Among them, NANDFlash prices increased by 17%, DRAM memory chips increased by 44%. As a result, memory manufacturers: Samsung Semiconductor increased 52.6%, SK hynix increased 79%, Micron increased 78.1%, Toshiba increased 29.2%.

South Korea's Samsung and Hynix have a total value of US$ 87.524 billion, accounting for 35.7% of the top ten companies and accounting for 21.0% of the global semiconductor value. The five US entrepreneurs (Intel, Micron, Qualcomm, Texas Instruments, and Western Digital) have a total value of US$120.824 billion, accounting for 49.3% (nearly half) of the top ten companies, and accounting for 28.8% of the global semiconductor value.

The semiconductor industry in South Korea has also developed from poverty and poverty, and it has now occupied a very large market share. The secret of development is also worth learning from.

Back in the 70s of the last century, when Samsung began to rely on low-tech appliances, Samsung founder Li Bingjun began to notice in the internal conference that the chip industry's “point to stone” advantage - the core of the impact of home appliance performance lies in Chips, from which they have repeatedly mentioned the development of chips, are determined to invest heavily.

At that time, although the global chip industry was still at a high-speed growth stage, the industry was firmly occupied by companies such as Micron America, Mitsubishi and Sharp. The United States relies on long-term system integration technology to accumulate advantages, and Japan relies on long-term accumulated application technologies. , has a clear first-mover advantage; while South Korea's economic status, while relying on Park Chung-hee government's new rural movement has achieved tremendous development, but it can only be said to solve food and clothing; so when Mitsubishi learned that Samsung will develop the chip industry At that time, the company’s CEO directly stated that “for the Republic of Korea, where the GDP level is lower, the semiconductor industry is not suitable” and publicly publicized “4 reasons why Samsung cannot develop chips”.

Afterwards, Li Bingyi once dispatched employees to Micron America and Sharp Japan to obtain the initial technology of the semiconductor industry. However, the process did not go smoothly: Mgguang once stated that it would provide design drawings for the relatively backward industrial chain with US$4 million, but later peeked The literature was an excuse to repent, and Samsung's personnel were expelled from the company; Sharp, though apparently accepting Samsung's request, was strictly guarded and did not even allow Samsung personnel to approach the latest production line.

“At that time, Samsung’s researchers, because Sharp had refused to provide basic data such as the size of the factory, so they could only remember certain details through their brains. For example, one researcher passed his own distance between fingers, height and number of steps. Record the approximate area of ​​the plant and other parameters. For example, the factory's production line width is 30 steps and the length is 222 steps. The informed person who worked at Samsung Semiconductor for many years recalled to the author. "However, these data are obviously not enough to build a high-tech factory."

Government Support: BK21 Strategy and Strong Property Rights Protection Mechanism

At this time, the South Korean government extended a helping hand to Samsung: On the one hand, the Korean students who went to study in developed countries in the 50s and 60s in the last century returned to South Korea to join the industrialization process under the Korean government’s attraction policy. The first round of Korean students' return to the country (interestingly, the second round of return to the country is also due to the development of the semiconductor industry); Samsung did not miss this opportunity, recruited nearly 140 talents and spent nearly two years with Samsung. The engineers and executives taught the experience and technology of the semiconductor industry; afterwards, Samsung was able to officially build the factory and put it into mass production.

In the process of industrialization, South Korea promoted the “government + large consortium” economic development model and promoted the efficient integration of “funds + technology + talents”; in this process, the Korean government has promoted a large-scale “national retreat”. The “advancement” process will privatize large-scale aviation and steel giants and distribute them to large consortia; at the same time, it will provide “concessional” measures to large consortia, and even use the Japanese and South Koreans to develop the chip industry. Japan’s War Reparations to Korea during the establishment of diplomatic relations.

The development model of South Korea’s large consortium has led to the common development of many upstream and downstream companies. It can be said that the current South Korean chip industry is dominated by companies such as Samsung, Hyundai (later renamed Hynix Semiconductor and acquired by the SK Group). Investment has driven the development and rise of the entire industry. This is also the most obvious feature of Korean economic development.

Since then, although there have been major political changes in South Korea and the regime has changed hands many times, the basic national policy of attracting science and technology talents and the economic development model of “government + large consortium” have not changed much.

In 1983, after years of hard work, Samsung's first chip factory was completed in the Gyeongsang district of Gyeonggi-do, and production of the 64-bit chip soon began after it was put into production. Soon, Samsung developed a 256-bit chip, 486-bit chip, and officially entered the global chip market competition; only 10 years later, Samsung's volume production chip market share almost equal to Japan.

In 1999, the Korean Ministry of Education established the BK21 (Brain Korea 21) plan for the construction of a research university and the creation of a research center university with a global competitiveness level and a professional with world characteristics. It cost 3.6 trillion won and 13 years. Accurate and special support is provided to 580 universities, specialties or institutes.

BK21 and its subsequent BK21+ plan followed the industrial policy of the “Government + Big Financial Group” that South Korea has been using for a long time. It encourages the integration of companies and universities on a large scale, and will choose whether or not to implement organic BK21 support targets and professions. Combine the core indicators included in the selection and evaluation. Under this influence, Korean universities have initiated a boom in semiconductors. Samsung's investment in Sungkyunkwan University and the founding of the Department of Semiconductor Engineering started at that time.

In 2005, Sungkyunkwan University cooperated with Samsung Electronics to establish the Department of Semiconductor Engineering. The department was designated as the "Innovation Profession" of the Ministry of Education of Korea. It also trains talents of the chip industry for Korean companies including Samsung each year.

In addition, the Korean government has designated the chip industry and technology as the core technology that affects the country’s competitiveness, and is committed to highly protecting technology and property rights.

In South Korea, semiconductor core technology has been incorporated into the state's key management technology. The prevention of leakage of semiconductor technology, the arrest of industrial espionage, and the maintenance of intellectual property rights are one of the most important tasks of South Korean intelligence agencies in recent years.

Market linkage: playing an entrepreneurial spirit

The chip industry is a typical technology-intensive and capital-intensive industry. It is difficult to skip a generation of chips and enter the next generation. However, entering the next generation of research and development requires very high human capital and R&D costs to trigger the advantages of volume. Latecomers have just developed a new generation of chips. As a result, start-up companies in developed countries directly cut prices and invest in new-generation chip R&D. Because of this series of turbulence, terminal companies have become more inclined to have stable, low-cost, preemptive corporate products. Under the pressure of insufficient use and heavy input, latecomers can only face the fate of being eliminated by the market.

Regardless of Samsung’s internal staff, industry players, and even competitors, it is acknowledged that Samsung’s chip industry and even South Korea’s chip industry could not reach today without the leading role of Samsung itself, especially entrepreneurs.

It can be said that behind the death of Samsung's chip industry, there are two generations of entrepreneurs Li Bingjun and Li Jianxi. In 1983, Samsung successfully developed a 64-bit chip that lags behind the most advanced Japanese technology at the time for nearly 5 years (even 1.5 years after the development of 1MDRAM). Although Samsung successfully mass-produced 64-bit chips a year later, it unexpectedly encountered an unprecedented plunge in semiconductor prices. The start-up companies relied on technology and cost advantages to significantly reduce prices. Each price fell from 4 to 5 US dollars to a minimum of 25. Cents, "At the time, the cost of Samsung's production of 64-bit chips was $1.3, which meant that for every chip produced, Samsung would need to put $1 down." Insiders told the author.

The author found that Samsung’s financial report in the late 1980’s found that Samsung’s loss was nearly 300 million U.S. dollars in the same year, and the equity capital was all in short. In the eyes of the outside world, Samsung could not afford to lose more than any of its competitors, and it did not continue to increase. capital.

In November 1987, the founder of Samsung Li Bingjun passed away; until he fell, he did not see the success of the Samsung semiconductor industry that he himself had achieved. Semiconductor, which is not only a father's unfulfilled wish, has also become the "heart suffering" of the new Samsung chief Lee Kun Hee. If you switch to a general business, you may choose to give up at the moment; Li Jianxi chooses to "gamble."

Li Jianxi's "gamble" is reflected in two points: First, the selection of talents. Li Jianxi once claimed that: "My life, 80% of my time is spent on educating people." Now, Samsung has built a Samsung Integrated Technology Institute (SAIT) covering dozens of countries and regions around the world, and visits each year. The country implements an expert system. While dispatching outstanding talents to go abroad, it also opens special recruitment programs for many well-known overseas universities, including Peking University in China.

Informed sources also gave an example to the author: In the early 90s of last century, Samsung faced the situation of being dumped by the United States; the result was Samsung’s chief executive Li Jianxi’s keen grasp of President Clinton’s attention to the characteristics of Silicon Valley and dispatched personnel to the United States. Large-scale lobbying, including those related to the US White House, the Parliament, the trade and science and technology sectors, and stated that “If Samsung cannot manufacture chips normally, the trend of Japanese companies occupying the market will become more apparent, and the reduction of competitors will further increase US companies’ purchases. The price of chips will be even more detrimental to US companies. Ultimately, the United States only nominally charged Samsung with anti-dumping tariffs of 0.74%. Samsung has finally weathered this crisis. Since then, Samsung has started to pay attention to publicity and established global PR. And promotional team.

“Samsung was among the first Korean companies to understand the necessity of having a global team in the process of internationalization. Today, Samsung has the most advanced set of global public relations teams. This team not only targets South Korea, but also Global audience," the source added.

At the 2002 International Symposium on Semiconductors (ISSCC), Samsung also proposed "every 12" on the basis of Moore's Law that "the number of transistors on the chip will double every 18 months and the cost will drop to half". The number of transistors on the chip will double in a month, and this series of changes in the chip industry will be accurately predicted to originate in non-PC areas such as mobile terminals and digital home appliances, and will be the president of Samsung Electronics Semiconductor at the time. Huang Changkui's surname, named "Hwang's Law", shocked the world.

This move also means that Samsung has made great achievements in the mass-produced chip industry: Successfully separated from the technical barriers set by US companies, jumped from the late-going enterprises to become pre-emptive enterprises, and began to guide the development of the industry.

Since 1993, Samsung has become a leader in memory markets and an industry leader in technology and continues to this day. When Japanese companies launched 4MDRAM, Samsung was only slightly behind. When Japanese companies launched 16MDRAM, Samsung could launch at the same time; when Japanese companies launched 64MDRAM, Samsung already surpassed rivals.

Samsung is working day and night to catch up with Japan and the United States in production and technology.

Samsung launched the newest production line at the fastest speed. Samsung's managers and engineers often stay at the construction site to shorten the progress of the project. Samsung's first semiconductor production line took only half a year to complete, while the international counterparty takes 2-3 years. Samsung's second production line directly launched wafers with a diameter of 6 inches, while Japanese and U.S. companies are only producing on the test line. In the early 1990s, Samsung repeated the same pattern to produce wafers with an 8-inch diameter; at the end of the 1990s, it produced 12-inch wafers. Samsung took the lead in rapidly changing memory technology and implemented a strategy to develop and reserve products. While producing a large number of existing products, the company has already started the research and development of next-generation products and accelerated the development speed of products.

Samsung Semiconductor's list of important events:

In July 1986, successfully developed 1MDRAM

In November 1990 successfully developed 16MDRAM

In September 1992, the world successfully developed 64MDRAM for the first time

In August 1994, the world successfully developed 256MDRAM for the first time

In October 1996 successfully developed 1GDRAM

In February 1998, the world's first successful development of 128MSDRAM

In April 1998, the world's first successful development of 256MSDRAM

In July 1998, 64MRambusDRAM was successfully developed.

The first successful development of 1GS DRAM in September 1998

In June 1999, the world took the lead in mass production of 256-MB SDRAM chips

In June 1999, the world successfully developed 1GbDDR SDRAM for the first time

Developed high-speed SDRAM for graphics cards in February 2000 and developed the world's smallest SRAM package in March

In April 2000, the world successfully developed 512MDRAM for the first time

February 2001 Developed 4GbDRAM Security Technology

May 2001 Developed 300MHz DDR SDRAM

Mass production of 512MB flash memory devices started in July 2001

In January 2002, the world's first successful development of 4GB DDR modules, Rambus DRAM's total sales exceeded 100 million yuan

Mass production of 256M DRAM for 12" wafers for the first time in February 2002

In March 2002, the world's first successful development of 512M DDRDRAM, the industry's first company certified by Intel Corporation

In September 2002, the world’s first 90nm memory commercialization

In November 2002, 1GHz Rambus DRAM achieved mass production for the first time in the industry

In January 2002, it first introduced the 4GB DDR module

July 2003 Developed PRAM technology for next-generation memory, becoming the first company in the industry to start volume production of 1GB DDRDRAM on 300mm wafers

September 2003 launch of the application of chip stack CCP technology prepared by the smallest 1GB DRAM chip

In April 2004, the industry began to produce large-scale graphics DDR3DRAM

August 2004 Developed the world's first 64MB PRAM

In September 2004, the first time in the world to start mass production of 90nm DRAM

In June 2005, 90nm process 1GBDDR2DRAM began mass production

In October 2005, the world developed 70nm DRAM for the first time and developed the world's fastest graphics DRAM (GDDR4).

Developed 50nm DDR in 2006 and mass production in April 2008

February 2009 Developed the world's first 40nm 1GB DDR2 memory

In July 2010, we successfully developed the world’s first 30nm 2GB DDR3 DRAM

The Enlightenment of Samsung Chip's Way to "China Core"

Previously, the author had talked with industry professionals working for South Korean telecommunications operators about the entry of Chinese enterprises into the overseas communications equipment market. The person stated that he “recognized that China’s communications equipment is close to the international level in performance,” but “from now The situation seems to be that companies that decide to use Chinese equipment should consider how to handle the relationship with the United States.

From Samsung's example, we can easily see that without Samsung's own industrial integration strategy and internal corporate decision-making, Samsung and South Korea's chip industry is also difficult to achieve.

"Although Samsung's semiconductor industry also has some problems, such as Samsung's non-volume chip industry such as system semiconductors, it is still in the stage of providing foundry services for the designed chips. Obviously, the foundry does not enable Samsung to master the core technology. However, no one can deny the development of recent decades, it can be said that if Samsung does not have continuous investment, then Samsung’s semiconductor industry can not come to this day, and behind the investment, it reflects the confidence of Samsung’s senior management; The important thing is: The focus of investment is on lasting rather than one-off investment; after all, innovation should be based on sufficient confidence, and investment is the best way to reflect confidence,” concluded the source.

In addition, Samsung’s global sales of consumer products have risen in recent years, providing an important basis for Samsung’s continued investment in the chip industry, rather than investment from venture capital and funds.

It can be said that Samsung's counterattack is behind the success of market forces. It is also Samsung's success in building and building key support and long-term plans with Samsung as the core and upstream and downstream Korean companies. In this process, Samsung and the government Colleges and universities, as well as many frontline engineers and researchers, are indispensable.

Of course, the ZTE incident is a painful lesson for the Chinese chip industry and even the history of China’s science and technology development. But we should not be too pessimistic. After all, we have seen the serious consequences of being controlled by people, and we have learned from this. "China's core" should improve and should improve.

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