Chapter 29 Lack of Money (Ch 825031960)

By cutting the wafers accordingly, each wafer can produce nearly 1,780 touch chips.
The chip naturally has a certain yield rate during the production process. Through calculation, the yield rate of this tape-out production reached 90%.
This means that a wafer can produce approximately 1,600 good quality chips.
Now the cost of each wafer and the subsequent foundry costs total 110,000 yuan, and the average cost price of each chip is about 69 yuan.
Of course, this cost of 69 yuan does not include the 10 million yuan cost the company spent on reserved film production.
This means that the more orders the company places for touch chips, the lower the cost will be.
If 10 million chips are produced, the average cost will be only 70 yuan.
Considering that the company’s current order base is nearly 50 million orders.
Considering that the touch screen chip designed by the company will not be outdated in the next three years, the temporary order volume can reach 150 million.
After all, the touch chip currently designed by the company can meet the basic operations of the full screen, but it still has certain defects relatively speaking.
For example, this touch chip cannot achieve a higher level and lower latency touch sampling rate.
After 2020, high touch sampling rates will become the norm in the field of screen panels.
This means that the touch chips produced by the company are currently only suitable for use until 2020.
The company started producing touch chips and screens in 2016. If other manufacturers want to use them in their products, they will have to wait until the end of 2016 to see them appear in their products.
This means that the company’s actual production period is only from 2016 to 2018.
The chips and screens produced in 2018 are just right for the products released in 2019.
By 2019, the company will need to prepare screens and touch chips with higher touch sampling rates to prepare for the arrival of 2020.
Chen Tong carefully calculated that this period of time was about two and a half years!
Taking into account the future cooperation with Huateng Microelectronics, the company will need at least 200 million touch chips.
Then the company needs at least 125,000 wafers for foundry production, and the cost of the production orders will reach 13.75 billion.
13.75 billion is not a small amount, and the company cannot come up with this money for the time being.
In the end, Chen Tong and Tian Hongbo negotiated with Huaxin International for almost a week and finally came up with a major cooperation plan.
First, Huateng Microelectronics and Huaxin International signed a cooperation order with a total term of 30 months.
By signing a large number of orders, the two companies also saved the original total order costs from 13.75 billion yuan to 13 billion yuan.
During these 30 months, HuaXin International made a total of 6 deliveries, one every 5 months, with each delivery of 25,000 wafers.
Huateng Microelectronics needs to pay 1 billion yuan directly for the first time and 2 billion yuan after each delivery. Huaxin International will only start the OEM production of the next batch of goods after receiving the payment for the previous batch of goods.
In addition, Huateng Microelectronics can save the waiting time and cost of foundry production by signing this contract.
After all, Huaxin International is a large chip foundry manufacturer, and there are countless companies cooperating with it.
If you want to have a small order of chips outsourced, you will have to wait in line for a while.
Since Huateng Microelectronics signed such a large order, it naturally became a major customer of Huaxin International.
Chip foundry production orders will naturally be put in front, thus saving Huateng Microelectronics a lot of time.
“Don’t worry, Mr. Chen. We will be able to carry out large-scale chip wafer foundry production in another week. We expect to be able to complete chip cutting and packaging within two months!”
After signing the contract, Xu Zhou, head of SMIC’s marketing department, gave the company’s next production plan.
This means that Huateng Microelectronics will officially receive the touch chips produced by Huaxin International in May.
Chen Tong now feels very painful about this.
One billion yuan has been spent now, and another 2 billion yuan will be needed for the first batch of chips.
The liquidity I have now is very insufficient.
He had finally obtained 5 billion yuan in funds from the three manufacturers, the Chrysanthemum Factory, the Green Factory, and the Blue Factory, but now he only has a small amount left.
The first is chip foundry, which requires at least 2 billion as the first batch of payment.
At the same time, the company also needs to spend a lot of money to purchase land and build factories.
Chen Tong also roughly estimated that his factory expansion would require the construction of at least five Lv3 factory buildings.
It costs nearly 60 million to successfully build each factory building, plus the production lines required by the factory.
Thirty production lines require construction, which costs 18 million gold coins.
Taking into account the investment in land, it costs nearly 100 million yuan to build a factory.
This means that the construction of the factory will cost more than 500 million yuan.
At the same time, I spent hundreds of millions during the Chinese New Year, including the company’s annual meeting prizes and year-end bonuses, as well as New Year’s special offers I bought in the mall.
Although the company received nearly 10 million orders last year, most of the orders were only partially paid, with some balances still to be paid.
At the same time, the expansion of our company’s buildings, including subsequent investment in the construction of special laboratories and technology research and development at the China University of Science and Technology, will also require money.
Chen Tong suddenly found that the liquid funds he had available seemed to be getting less and less.
“Now I only have 3.2 billion in my hand!”
“Except for the first 2 billion for chip foundry, at least 800 million will be reserved for factory construction, and 200 million will be reserved for Huaguo University of Science and Technology later!”
Chen Tong calculated carefully and found that the amount of liquid funds he had available was only 200 million.
If the company’s screen panel technology is upgraded in the future, the production line may need to be upgraded again, and the cost will not be a small amount by then.
Money! It seems like I’m short of a lot of it!
Chen Tong thought about it carefully. The company would soon develop a new display chip. If it continued production at that time, it would cost a lot of money.
Especially now I have screen fingerprint unlocking. This new technology still needs to be designed and produced, but it seems that it will be postponed for the time being.
Chen Tong decided to hold on for the time being. At least he didn’t need to spend 2 billion for now.
If the company really needs a large sum of money after two months, then I might need to apply for a loan from the bank.
At present, Huateng Microelectronics has a good reputation and name in the industry, and its own company is also considered a high-tech company in Xingcheng, Hu Province.
At that time, you may be able to use your connections to get a loan of a considerable amount.