Tech giants start by disassembling systems

Chapter 130 National Attention

2020 8 Month 17 Day.

The news of Hongyuan's acquisition of Qixin Microsystems finally reached the media's ears.

Although Su Chen deliberately kept a low profile—not holding a press conference or proactively informing the media—QiXin Microsystems was, after all, a technology transfer project of the Chinese Academy of Sciences, and the acquisition involved the transfer of 12% of the shares of the Institute of Microelectronics of the Chinese Academy of Sciences.

Such transactions cannot be kept completely secret.

36Kr was the first to sniff out the news.

Their reporters discovered Hongyuan's full acquisition of Qixin Microsystems through business registration changes and published an in-depth report that afternoon.

Hongyuan acquires Kunshan Qixin Microsystems, officially launching its MEMS self-sufficiency strategy.

The report detailed Hongyuan's recent series of actions:

Bosch alternative solution agreement signed → Microchip Sensing receives 30% strategic investment → Qixin Microsystems acquires the company in its entirety → Special support from Shenzhen Science and Technology Innovation Commission → Special symposium held by the Ministry of Industry and Information Technology…

"This is not an impulsive acquisition, but a carefully planned strategy," a 36Kr reporter wrote in an article. "From the design end (Microchip Sensing) to the manufacturing end (Qichip Microsystems), and then to the policy end (Special Fund of the Science and Technology Innovation Commission), Hongyuan is building a complete closed loop for the independent development of MEMS."

According to sources, Hongyuan's total investment in MEMS self-sufficiency has exceeded 1 million yuan, with government subsidies accounting for nearly half. This means that Hongyuan's MEMS strategy has not only gained market recognition but also government endorsement.

This report garnered over 50 views on 36Kr within two hours.

Following closely, Huxiu, CBN, and Xinhua News Agency's technology channel all reported on the story.

The headlines of various media outlets differed in style, but their core messages were remarkably consistent—

Hongyuan invests 1 million yuan in MEMS, accelerating the localization of core components for low-altitude economic development!

——Huxiu

From Flight Control to Chips: Hongyuan Intelligent Technology's Ambitions for MEMS Autonomy

——CBN

"Shenzhen company acquires MEMS production line from Chinese Academy of Sciences, potentially breaking the bottleneck in the low-altitude economy."

——Xinhua News Agency Technology Channel

"A 100 Million Yuan Bet: A 26-Year-Old Entrepreneur Challenges an International MEMS Giant"

—The Paper

That evening, CCTV's financial channel also featured the news in its "Economic Information Broadcast" for 45 seconds.

The footage showed the exterior of Hongyuan's headquarters, product photos of the Feiniao S1, and news footage of Su Chen saying "Your blockade will only make us stronger" at a media briefing.

The host's narration reads: "Shenzhen Hongyuan Intelligent Technology recently acquired Kunshan Qixin Microsystems, officially entering the MEMS sensor manufacturing field. It is understood that Hongyuan's total investment in MEMS self-sufficiency has exceeded 100 million yuan, with the goal of achieving independent design and manufacturing of MEMS gyroscopes within two years."

It can be said that with the CCTV Finance report, Hongyuan's MEMS self-reliance strategy has officially risen from industry news in the technology circle to a national public topic.

Countless people across the country, on streets and alleys, and on internet forums, are discussing this matter.

They were discussing why a 26-year-old dared to gamble over 100 million on the self-sufficiency of MEMS.

They were discussing what MEMS sensors actually are and why they are so important.

They were discussing where China stands in the field of MEMS.

Major media outlets and tech-focused social media platforms naturally catered to people's curiosity.

The following day, a deluge of popular science articles appeared on various platforms—

What is MEMS? Why does it determine the limits of drone technology?

Global MEMS Market Landscape: Bosch, STMicroelectronics, and Murata Dominate, China Almost Absent

From Supply Disruption to Self-Development: How Difficult is Hongyuan's MEMS Journey?

The Birth of a MEMS Gyroscope: 200 Steps from Silicon Wafer to Finished Product

Through these popular science articles, people finally learned a shocking fact—

China's self-sufficiency rate in the field of MEMS sensors is less than 5%.

[5%.

In other words, Chinese companies rely on imports for more than 95% of the MEMS sensors they use.

In the field of high-precision MEMS gyroscopes, this figure is even more alarming—the self-sufficiency rate is almost zero.

zero.

The global high-precision MEMS gyroscope market is almost entirely dominated by four international giants: Bosch, STMicroelectronics, Murata, and Analog Devices.

There isn't a single company in China that can mass-produce commercial-grade high-precision MEMS gyroscopes.

Faced with this reality, countless people fell silent.

It turns out that China is so far behind in the field of MEMS.

It turns out that Murata's decision to cut off supplies can put an industry leader like Hongyuan in trouble.

It turns out that having core components in the hands of others is such a danger.

At this moment, people were filled with a burning anger—

They were eagerly anticipating that Su Chen would fulfill his promise and actually create China's own high-precision MEMS gyroscope within two years.

……

Just as the whole country was discussing Hongyuan MEMS's self-reliance strategy, a voice from overseas poured cold water on the discussion.

When interviewed by Reuters in Geneva, Mathieu Collin, Vice President of the MEMS Business Unit at STMicroelectronics, was asked about his views on Hongyuan's self-sufficiency in MEMS.

Colin's answer carried an undisguised arrogance:

"I noticed this news. A Chinese drone company acquired a 4-inch MEMS production line and then claimed it would catch up with international giants within two years."

"This reminds me of a joke—a person who has just learned to ride a bicycle announces that he will participate in the Tour de France in two years."

At this point, Colin's lips curled into a disdainful smile:

"MEMS is not something that flight control software developers can handle. The manufacturing of MEMS sensors involves more than a dozen interdisciplinary fields, including materials science, micro-nano fabrication, precision packaging, and signal processing."

"STMicroelectronics has been deeply involved in the MEMS field for over 25 years, with more than 2000 dedicated engineers and scientists. We invest over €3 million annually in MEMS R&D."

"And what does this Chinese company have? An old 4-inch production line that has been losing money for three consecutive years? 63 people? 100 million yuan?"

Colin shook his head:

"One hundred million yuan—that's about 1200 million euros. This amount wouldn't even cover a quarter's worth of materials in STMicroelectronics' MEMS R&D budget."

"I respect their courage. But courage cannot replace technological accumulation. The core barrier to entry in MEMS is not funding, but over twenty years of process know-how."

"So my view is—catching up with international giants within two years? Impossible. It might not even take ten years."

After Reuters published Colin's remarks in full, they were quickly reprinted by major domestic media outlets.

This interview immediately sparked huge controversy on Weibo, Zhihu, and drone forums.

Some people were furious: "Another arrogant foreigner who looks down on Chinese companies!"

Some people worry: "What he said actually makes sense; the technological barriers of MEMS cannot be overcome simply by throwing money at it."

Some rationally analyzed: "1 million RMB vs. 3 million euros, the difference is indeed too great. Was Su Chen too impulsive this time?"

Others firmly stood by Su Chen: "Back when Hongyuan was making flight controllers, DJI was invincible. And what happened?"

The public opinion was in an uproar.

In this debate, many reporters naturally wanted to hear Su Chen's response.

So the reporters flocked to Longhua, Shenzhen once again.

In just two days, more than 150 reporters gathered outside Hongyuan's headquarters.

In this situation, Su Chen had no choice but to step in again.

However, this time, he did not hold a formal media briefing.

He simply stood at the company entrance, facing the microphones and cameras of the reporters, and briefly answered a few questions.

"Mr. Su, STMicroelectronics' Vice President Colin said it's impossible for you to catch up with the international giants within two years. What's your opinion?"

Upon hearing this question, Su Chen did not answer immediately.

He paused for a few seconds, then said something that surprised all the reporters present:

"Mr. Colin is right."

The scene fell silent instantly, and all the reporters were stunned—they hadn't expected Su Chen to agree with his opponent's taunts.

"If we simply compare funding, team size, and technological accumulation—we are indeed several orders of magnitude behind STMicroelectronics."

"Their MEMS team has 2000 people, while ours has only 63. They invest 300 million euros in R&D annually, while we invest 100 million RMB. They have 25 years of accumulated expertise, while our production line has been losing money for three consecutive years."

"If we follow their logic, it's indeed impossible."

Su Chen paused, then changed his tone:

"But what they don't understand is—we've never acted according to their logic."

"Four years ago, Hongyuan only had 28 employees and annual revenue of less than two million. Everyone said we couldn't possibly challenge DJI in the flight control field."

"Two years ago, when we launched the F4, everyone said that it was impossible for Chinese companies to make a flight control module with RTK positioning and visual obstacle avoidance."

"When we launched the Feiniao platform three months ago, everyone said it was impossible to sign 370 partners within a month."

"Every time someone said it was impossible, we did it."

"so--"

Su Chen looked at the cameras, his gaze calm and resolute:

"Mr. Colin can continue to think it's impossible. But two years from now, I'll show him the answer with my product."

"Crack, crack, crack, crack, crack..."

Countless cameras started flashing.

Reporters frantically pressed their shutters—they captured Su Chen's expression as he said those words.

That wasn't bravado or empty boasting.

Rather, it is a calm confidence that has been proven countless times.

Immediately afterwards, another reporter followed up with:

"Mr. Su, Vice President Colin also mentioned that the core barrier to entry in MEMS is over twenty years of process know-how, which cannot be solved by simply throwing money at it. Do you agree?"

Su Chen thought for a moment:

"I partially agree. MEMS solutions cannot be solved simply by throwing money at them—a point on which Mr. Colin and I share the same view."

"But he overlooked one fact."

"The core carrier of craft know-how is people, not time."

STMicroelectronics' 25 years of experience are essentially the 25 years of expertise of 2000 people. But what if there were a more efficient learning path, a more precise technical direction, and stronger execution—

"A journey that takes twenty years doesn't necessarily have to take twenty years to complete."

At this point, Su Chen smiled slightly:

"Of course, what I'm saying isn't convincing at the moment. A thousand words are no substitute for a product."

"So please give us some time. We'll see in two years."

An older reporter followed up with one last question:

"Mr. Su, what if we don't achieve this in two years?"

Su Chen paused for a moment, then broke into a hearty smile:

If you can't do it—

"Then I, Su Chen, will travel from Shenzhen to Geneva to personally invite Mr. Colin for a cup of tea and apologize to him."

"But I bet Mr. Colin will be the one treating."

"Hahaha--"

The reporters at the scene all laughed.

But after the laughter subsided, they were all touched by Su Chen's composure and confidence.

"Crack, crack, crack, crack, crack..."

Amidst the camera flashes, Su Chen smiled and waved, "Alright, I still have a lot to do. Thank you everyone."

After saying that, he turned around and went back to the company.

The reporters, naturally, left as if they had struck gold—they knew that Su Chen and Colin's verbal exchange would once again become today's headlines.

……

really.

That evening, news of Su Chen's response to Colin flooded the internet—

Hongyuan CEO Responds to STMicroelectronics' Ridicule: Let Our Products Speak for Themselves in Two Years

——36Kr

"Every time others said it was impossible, we did it"—Su Chen responds to MEMS criticisms.

——Huxiu

"26-year-old CEO challenges MEMS giant from afar: Please give me two years."

—The Paper

Su Chen: The core carrier of craft know-how is people, not time.

——CBN

In particular, the statement "The core carrier of craft know-how is people, not time" was discussed separately on Zhihu and received more than 8000 likes.

The most upvoted answer came from a user with the ID "MEMS Veteran"—the same person who wrote the long article reflecting on the industry last time:

"Su Chen's statement hit the nail on the head regarding the most critical pain point in the MEMS industry."

Why has China, after decades of MEMS research and countless publications, failed to achieve significant commercialization?

"It's not because of a lack of money—the country allocates billions of yuan to MEMS research every year."

"It's not because of a lack of technology—the Institute of Microelectronics of the Chinese Academy of Sciences, the Institute of Micro-Nano Technology of Tsinghua University, and the Shanghai Institute of Microsystem and Information Technology—aren't they all top-notch teams?"

"It's because—no one is willing to bridge the gap between the lab and mass production."

"Academics are unwilling to go to the factory to adjust process parameters, while those in industry lack sufficient technical expertise."

"What Su Chen did—bringing together a production line team from the Chinese Academy of Sciences, Dr. Li Wei with MEMS design experience, and Zhao Jiancheng with an industrialization perspective—was actually bridging that gap."

"I don't know if it will succeed. But the direction is right."

"As for Colin from Italiano – he's not wrong either; technological accumulation is indeed a barrier."

"But history has repeatedly proven that when a latecomer is fast enough and determined enough, a twenty-year gap can be narrowed to a competitive level within five years."

How long did it take Japan to catch up with the US in the semiconductor industry in the 1960s? How long did it take South Korea's Samsung to catch up with Japan's DRAM? How long did it take TSMC to go from a small foundry to the world's number one?

"So I choose to believe in Su Chen. Not because he's guaranteed to succeed, but because—if even he can't do it, then there's truly no hope for China's self-sufficiency in MEMS."

This answer received over 20,000 likes on Zhihu.

At this point, it can be said that Su Chen and Hongyuan's efforts were no longer merely a company's MEMS autonomy initiative—

They have become a symbol and a beacon of hope for the entire Chinese MEMS industry.

This attention is both a driving force and a pressure.

But Su Chen didn't have time to think about these things.

Because he still has too much to do.

……

2020 8 Month 19 Day.

As news of Hongyuan's acquisition of Qixin spread throughout the country, Su Chen did not stop.

On this day, he did two things.

The first item – Zhang Lei's Flying Bird S1 "Six-Star Edition" second round of full-scenario test report has been officially released.

The result is good news.

The "six-star version" achieved 94% of the attitude stability of the original version in complex environments, and even reached 98% in normal flight scenarios.

Although there is still a 1.2-degree deviation under extreme conditions (such as high-speed dives followed by sudden stops), this performance is perfectly acceptable for most consumer and industrial applications.

"Mr. Su, the data for the 'six-chip version' is significantly better than the first round," Zhang Lei said on the phone, his voice brimming with barely concealed excitement. "In particular, the third version of the EIS electronic attitude compensation algorithm has shown remarkable optimization. The deviation in extreme scenarios has decreased from 2.1 degrees in the first round to 1.2 degrees."

"Have the first batch of Bosch BMI270s arrived yet?" Su Chen asked.

"They arrived the day before yesterday. 3000 units. We're currently conducting incoming inspections," Zhang Lei said. "If the inspections go smoothly, we can switch to the 'six-unit version' mass production plan this week."

"Okay. Coordinate the switch plan with the production line. When will the first batch of 'six-cell version' Asuka S1s be ready to ship?"

"If all goes well, it could be as early as the end of August."

"Okay, hurry up. Many of our 47 partners who are supporting us are waiting for the resumption of Asuka S1 supplies. We can't keep them waiting too long."

"clear."

After hanging up Zhang Lei's call, Su Chen did the second thing—

He personally flew to Suzhou and met with Dr. Li Wei of Microchip Sensing.

The sole purpose of this meeting was to finalize Microchip Sensing's technology roadmap.

While Qixin Microsystems (now Hongyuan Microsystems) is responsible for the manufacturing end, Microchip Sensing is equally crucial as the design end.

Su Chen has the design blueprints for a MEMS inertial navigation chip that has been unlocked by the system—but he can't use those blueprints directly.

He needs a suitable "shell" to package these technologies, and a team with sufficient academic prestige and industry experience to turn the designs on paper into manufactured products.

Dr. Li Wei and his team from Microchip Sensing are that shell.

"Dr. Li, the production line upgrade for Qixin—now called Hongyuan Microsystems—has commenced. General Manager Zhao Jiancheng has already moved into Kunshan."

Su Chen and Li Wei sat in the conference room of Microchip Sensing, with a technical parameter table of MEMS gyroscope spread out on the table.

"The production line upgrade is expected to be completed in three to four months, after which we will need the design drawings and process parameters."

Li Wei adjusted his glasses: "President Su, I have an idea regarding the design direction."

"explain."

"I suggest we take a two-step approach," Li Wei said, drawing a simple roadmap on the whiteboard. "The first step—based on our existing design capabilities, is to develop a MEMS gyroscope whose performance rivals the Bosch BMI270. The goal of this product is to be 'good enough,' replacing Bosch's application in the Flybird S1."

"Expected timeline?"

"If the production line upgrade goes smoothly, it will take about four to five months from design freeze to tape-out verification. That means we can get the first batch of samples next spring."

"And the second step?"

"The second step—to create a completely new, high-precision MEMS gyroscope." A glint flashed in Li Wei's eyes. "The goal is to surpass the precision of the Murata SCR1100."

"This second step is the real challenge. It requires breakthroughs in three dimensions simultaneously: materials, structure, and signal processing."

"What about the timeline?"

"Optimistically, it will take about a year and a half, which is early 2022."

Su Chen remained silent for a few seconds.

He knew perfectly well that the MEMS design blueprints unlocked by the system were designed to achieve the precision level of the Murata SCR1100. With those blueprints as a foundation, Li Wei's team would be able to complete the second step much faster than they had anticipated.

But Su Chen cannot reveal this trump card, at least not now.

He needs to wait for the right time—after the production line upgrade is completed, after the team is well-integrated, and after Li Wei's team has accumulated enough process experience in the first step—before gradually "injecting" the key parameters from the system drawings into the R&D process under the name of "new generation design scheme".

"Let's do it the first step as you said." Su Chen nodded. "Let's make a usable one first. We'll discuss the second step in detail after the first step is completed."

"Okay." Li Wei smiled. "By the way, Mr. Su, what did Qiming Venture Partners say? Does Wang Minghui still have reservations about the 67% controlling stake plan?"

"We're still in talks," Su Chen said. "But the situation is currently in our favor. Hongyuan has secured special support from the Science and Technology Innovation Committee and completed the acquisition of Qixin. The valuation logic for Microchip Sensing has changed."

"Previously, Wang Minghui felt that a 67% controlling stake was too high because he considered Hongyuan merely a financial investor. Now it's different—Hongyuan is a core player in the MEMS industry chain, with investments in both design and manufacturing."

"In this situation, a 67% controlling stake isn't about encroaching on their interests, but rather about ensuring the synergistic efficiency of the entire MEMS industry chain. Wang Minghui should be able to understand this logic."

Li Wei nodded: "Hopefully it can be finalized as soon as possible. Our team is in high spirits and ready to make a big splash."

"Soon," Su Chen said.