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The development process of Samsung Semiconductor and Its Inspiration to China‘s IC development

Time:2018-05-02 Views:854
Speaking of semiconductors, many people feel far away and strange. In fact, the semiconductor industry is very close to our lives. For example, the chips of computers and mobile phones we use are part of the semiconductor industry.
The semiconductor industry is known for its high added value. Its products are various. It is mainly divided into integrated circuits, discrete devices, optoelectronic devices and micro sensors. Among them, integrated circuit (IC) is the core of semiconductor industry.
Semiconductor is known as "industrial grain", which directly reflects the comprehensive national strength of a country. In fact, whether it is a civilian electronic product or a highly sophisticated military weapon, its performance is entirely dependent on the quality of semiconductor products. The recent popular new concepts, AI, block chain and unmanned, wearable equipment, Internet of things and so on, need the support of the semiconductor industry behind.
According to the data of the famous analysis company Gartner, the global semiconductor industry revenue in 2017 was $419 billion 700 million, up 22% from 2016, and Samsung Electronics has exceeded Intel‘s 13.8% by 14.6% of its market share, ending Intel‘s position as the world‘s largest chip manufacturer since 1992. In 2017, Samsung Semiconductor earned $61 billion 215 million, an increase of 52.6% over 2016, and Intel grew 6.7%, earning 57 billion 712 million dollars.
Samsung has a strong advantage in the field of memory chips. In 2017, the overall price of storage chips rose all the way. In the future, the price of storage chips is likely to go down because production capacity will increase significantly, especially the Yangtze River storage in Wuhan, China, which is expected to achieve mass production by the end of 2018 to 2019. However, Samsung‘s position as a semiconductor giant will be hard to shake for a long time, and its experience is worth learning from.

In 1938, Li Bingzhe founded Samsung Group as the predecessor of "Samsung chamber of Commerce". In 1969, Samsung Electronics was established. In the first half of 70s, it mainly produces refrigerators, washing machines and black and white TV sets. Samsung Electronics had no technology at that time. Japanese companies with technology are reluctant to transfer color TV technology, so they can only start with black and white TV sets. The specific practice is: from Japanese SONY imported black and white TV sets and basic assembly technology, production of low-grade products, and then posted on the Japanese SANYO brand sold to the overseas market, the first batch of 12 inch black and white TV sets are sold to Panama. Samsung also invested in the joint venture with SANYO and Sumitomo trading company to set up Samsung SANYO electric appliances.
However, it is not satisfied with this, but is trying to acquire foreign technology through various channels, digesting and absorbing key technologies internally, and making technical improvements based on the characteristics of Korean nationals, and developing an economic 12 inch black and white TV set in 1975. Although the parts are still imported, Samsung has mastered the necessary technology, developed a 14 inch color TV in 1976, developed a microwave oven in 1979, developed a video recorder in 1984, and developed a portable video recording machine in 1989.
In December 1974, Samsung entered the semiconductor industry by acquiring half of Korea Semiconductor Co‘s shares. The semiconductor industry in Korea originated in the mid 60s. It began with the use of foreign capital for transistor encapsulation. In 1979, Samsung acquired the remaining shares of Korea Semiconductor Co, renamed Samsung Semiconductor and merged with Samsung Electronics in 1980.
Samsung‘s entry into semiconductors is the recommendation of Li Jianxi, the youngest son of group chairman Li Bingzhe. At that time, the Group executives were opposed, and Li Bingzhe was hesitant. But Li Jianxi, who had studied in the United States, believed that South Korea‘s resources were scarce and the future would be a world of information technology. It should develop sophisticated industries with high value-added. He even bought the shares of Korea Semiconductor Co with his own funds.
At the very beginning, the situation of Samsung Semiconductor and the earliest time spent on TV were few, without technology and quality. In 1977, we started producing transistors through "reverse engineering", but the group companies were reluctant to use it. (Note: reverse engineering is the reverse analysis and study of the target product, deduce its processing flow, structure, functional characteristics and technical specifications and other design elements to produce similar, but not exactly the same products.)
In order to make a breakthrough in technology, Samsung hired Japanese semiconductor engineers to use the weekend to teach technology in South Korea. In the early 1980s, Li Bingzhe was determined to enter the DRAM (dynamic random access memory) market, and in 1983 he published the Tokyo declaration, saying, "I want to push the semiconductor industry on the basis of our nation‘s unique and strong spirit and creativity". Samsung first entered the DRAM market, grabbed the opportunity to encounter financial difficulties in American light technology, bought 64K DRAM technology from Mei Guang, and hired Koreans working at American semiconductor company with high salary, and gave them several times higher wages than the Samsung Electronics President. Later, we set up research centers in the United States, equipped with the same production equipment, and trained technicians to train engineers from the Korean country. They returned to South Korea after technical training and fought day and night.
Let the bicycle factory make a Boeing plane?
In May 1983, Samsung began to develop the first product product 64K DRAM. Later, members of the development group later recalled that, with Samsung‘s technical and equipment conditions at the time, the difficulty was "like requiring a bicycle manufacturer to make a supersonic aircraft", and was rejected by the US and Japan half conductor company, and the engineering development process was also filled. It‘s full of difficulties. But in November 1983, Samsung successfully developed 64K DRAM‘s full line engineering technology, such as engineering, inspection, assembly and so on, and became the third producer of VLSI semiconductor (large scale integrated circuit) in the world.
Rice must be eaten with one mouthful, but if you dare to bite your teeth and bite the hard bone, it will accelerate the growth greatly. Samsung started from 64K DRAM and passed the process of 4K, 16K and 32K in the developed countries in the past, so that the German and France, which was not able to develop in the development of DRAM, was also greatly exclaimed.
In 1989, Samsung ranked only fourth after Toshiba, NEC and TI in the DRAM market in the world. Since then, Samsung has increased its investment. In 1992, Toshiba became the first DRAM market, and Samsung‘s technology was at the forefront of the world. In September 25, 1992, it was the first to announce the successful development of 64MB DRAM.
After that, Samsung became the world‘s first in all areas of memory in 1993, in the field of SRAM (static random access memory) in 1995, in the field of NAND Flash (flash memory) after 2000 and in the non storage domain, such as the display Driver IC. When Samsung entered flash memory from DRAM, the first Japanese enterprises in the world issued an invitation to cooperate, but Samsung finally chose to develop itself. Samsung believes that flash memory plays a core role in the age of mobile phones, which is not subject to others.
When Samsung began to start at the end of 1974, it has been behind American and Japanese enterprises for decades. With the success of storage chips, South Korea has become a powerful semiconductor, relying on the competitiveness of the design and micro electric machinery and dominating the storage market. In 2013, Samsung took the lead in producing three yuan V NAND in the world, produced 20 nanometer DRAM in 2014, and began to produce 10 nanometer level DRAM in 2016.
In the Foundry (integrated circuit manufacturing), Samsung Semiconductor is also very powerful, the first to develop a 10 nano FinFet project, not only to reduce energy consumption and improve performance, but also to reduce the area, very suitable for carrying mobile devices.

Where is the driving force of success?
Li Jianxi and his father Li Bingzhe‘s vision and firm belief are the first driving force for the rise of Samsung Semiconductor. They have beliefs and goals and can make decisions quickly and decisively. The semiconductor industry is a race against time. Big gamble dare to make a big decision. Li Jianxi is the first to buy from the Korea Semiconductor Co, even if the executives are opposed, that is to see the opportunity to be resolute, rather than fail to miss.
Second, we believe in the power of technology and strive for technological development. Samsung‘s philosophy of technology is "building a country by technology and establishing a country by science". Li Jianxi said: "the early stage of semiconductor industry is the war of technological expansion. Japan‘s relatively rich experience, I was basically a weekly return to Japan, with the vast majority of Japanese semiconductor technicians to exchange, only to find a trace of the development of Samsung semiconductors. At the start, Li Bingzhe had sent people to study SHARP in Japan, but the basic data of SHARP, such as the area of the factory, refused to provide, and the Samsung researchers recorded the approximate area of the factory through their own finger distance, height and step number. Such experience has made Samsung aware of the passivity of technology. A part of the technology can be obtained through cooperation, but it can not be advanced technology; buying other people‘s technology is useful for a moment, but others will not always give it to you; after developing technology dependence, with the development of technology itself, the gap between others is not getting smaller and bigger, but it may become bigger and bigger. So Samsung has long invested in technology and talent, and in order to dig the best people to spare the blood, finally set up its own system in the core technology, and then on the basis of equal cooperation with Intel, apple and so on.
Third, the courage to counter cyclical investment under precise calculation. In 1984, the cyclical fluctuations in DRAM prices, coupled with factors such as the payment of patent royalties, had a cumulative loss of $300 million in 1986 and nearly lost capital. But Samsung did not adopt a conservative strategy, when the 2 line was just completed and the market was sluggish. Li Bingzhe instructed the 3 line to move quickly, adding additional investment and marching into the higher technology of 1M DRAM. In 1988, the DRAM market blowout, and profits completely offset all accumulated losses. "The storage industry is such an industry," said Samsung Semiconductor executives. "If you can‘t invest properly in the past, you can‘t make money when the next industry thrived."
Fourth, pursue the ultimate efficiency and take the initiative to challenge yourself. Samsung‘s first semiconductor production line has only been completed for half a year, and the international counterparts need two or three years. In order to shorten the construction period, Samsung management and engineers live on the construction site. In order to gain competitive advantage, Samsung insists on "R & D strategy for reserve products", that is, to produce the existing products, and to start the next generation product development. Samsung believes that "the pursuit of comfort will lag behind", so always put forward higher standards to force themselves to jump.
Of course, in the development of Samsung Semiconductor, the government‘s support and intellectual property protection mechanism can not be ignored. The start of Samsung semiconductors is the time of the Korean government to attract the people from Europe and the United States to return to industrialization through the policy of 50s and 60s. It recruited nearly 140 people and taught them the experience and technology of semiconductor knowledge for nearly 2 years. The Korean government has also spared no effort in supporting the consortium in terms of funds, so as to develop the chips and use Japan‘s compensation to Korea in the process of establishing diplomatic relations between Japan and South Korea.
In Wang Anshi‘s book of swimming and praise, it is said that the "view of the world" is often in the far away. Li Bingzhe, Li Jianxi and his sons are enterprisers with ambition and ambition. When he studied at Waseda University in Japan when he was young, he was determined to say, "if we want to compete for survival in the gap between the developed countries, the resource deficient China will have to study the first class country and learn from the first class country, so it is necessary to cope with all the advanced things in Japan."
In the history of Samsung, there have been many "teachers", consumer electronics SONY, logistics management MaryKay, stock management FedEx, but the ultimate goal of learning is Li Bingzhe‘s "want to do the first, or quit" ambition. The goal is long, full of fighting, never to defeat, good at learning, no fear of reform, love to win. When this spirit and culture become the habit of every day, which company ahead of the company does not fear the following three stars tightly followed?
Samsung beat Intel to win the championship, China is eager to overtake corners.
It is precisely because of the importance of the semiconductor industry, for a long time, the company that stands at the top of the industry has made a full bowl, and the famous Intel company is undoubtedly one of the most successful. But in the last second quarters of the second quarter, South Korea‘s Samsung Corp‘s semiconductor Department has exceeded Intel‘s revenue, and the world semiconductor market has topped the top of the world‘s semiconductor market for 24 years.

Samsung exceeds Intel
According to the Nikkei Chinese network, in July 27th, the United States Intel announced that in the 4~6 month of 2017, the combined operating revenue increased by 9% year on year, lower than the 47% growth of Samsung Electronics‘s semiconductor sector.
Intel‘s consolidated operating income amounted to about 14 billion 800 million US dollars (about 1 trillion and 660 billion yen). Samsung‘s semiconductor sector is about 1 trillion and 750 billion yen. In terms of operating profit, Samsung has surpassed Intel in 1~3 months, but it is the first time that it has surpassed its operating income.
Intel, which is known for its "built in Intel (IntelInside)", is slow to rely on the CPU (central processing unit) business model. In addition to smart phone DRAM and flash memory, Samsung has also increased its orders for server semiconductors due to the demand for big data. In order to further increase production, Samsung implemented about 1 trillion and 250 billion yen in 1~6 months, and reached 3 times the investment in the same period last year. More importantly, Samsung has a strong performance in semiconductor for server storage medium, and it is also possible to maintain its first advantage in 2017.
China is eager to overtake the curve
In fact, this is a problem that Chinese enterprises and consumers have to face.
CCTV has reported that more than 50% of color TV in the world, more than 70% of smartphones and tablets are made from mainland China, but more than 90% of the chips used in these electronic products depend on imports.
Titanium media quoted customs statistics, which showed that in 2016, 342 billion 550 million IC imports increased by 9.1% compared with the same period last year, and the import value was $227 billion 70 million, down 1.2% from the same period last year. In the same period, China‘s crude oil imports were only 607 billion 800 million. China spends nearly two times as much on semiconductor chip imports as crude oil.
However, such a situation is improving, in recent years in the field of semiconductor major investment and the double impact of China‘s huge market, Chinese enterprises are taking a rise.
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