New friends ↑ click the blue text to follow the public account, old friends click the “…” in the upper right corner to shareFocusing on solving the risks faced by enterprises and employers in business operations, risk identification and management, risk transfer and solutions, family enterprise risk isolation, etc. If you have any questions, please consult me. Phone and WeChat same number: 13348869766;1. How does the money in chip factories “evaporate”?High asset concentrationA 12-inch wafer fab, with a 28nm production line costing 50 billion yuan, of which 70% is imported equipment. An EUV lithography machine costs 300 million yuan, and a fire in a clean room can destroy the entire building.Extremely fragile process chainLithography machines are sensitive to vibrations, etching machines are sensitive to smoke, and developing machines are sensitive to water. A voltage drop of just 0.5 seconds can render 100,000 wafers in production scrap, resulting in a direct loss of 300 million yuan, not counting subsequent order penalties.Many hazardous chemicalsSilane, phosphine, hydrofluoric acid, acetone… A single bottle of silane leaking and igniting upon contact with air can create flames at 2000℃, turning the clean room into an oven.Long recovery periodA 10-day shutdown requires 12 months to fully restore supply. Customer transfers and engineer turnover mean hidden costs are three times greater than the apparent losses.In summary: When a chip factory has an incident, it’s not just a “small loss”; it’s a “total loss”.2. The first rule of financial planning: First protect against major risks, then talk about making moneyThe most common mistakes made by owners:Considering insurance as a cost rather than as “financing”;Only looking at premiums, not coverage amounts;Waiting until after the IPO to discuss it.The correct order:Risk identification → Risk quantification → Risk transfer (insurance) → Risk retention (cash reserves) → Risk utilization (leverage expansion).Insurance is a “high-leverage betting agreement”; using 1 yuan in premium to lock in 1000 yuan in risk is much faster than borrowing money from a bank.3. The first policy: Property insurance for enterprises—”locking the factory, equipment, and inventory in a safe”What to insureBuildings and renovations (including layers of FFU in the clean room, raised flooring);Machinery and equipment (including installation and debugging costs, import duties);Inventory (wafers, photoresist, target materials, work-in-progress);Business interruption losses (gross profit + fixed costs).What not to insureWar, nuclear radiation, intentional acts, normal wear and tear, inventory losses.Real caseCase 1: Fire at an 8-inch factory in KunshanFire source: Short circuit in the FFU circuit of the clean room ceiling;Losses: 200 million yuan for the factory, 600 million yuan for equipment, 150 million yuan for inventory;Insurance: Property insurance coverage of 1 billion yuan, business interruption insurance gross profit for 12 months of 400 million yuan;Claim settlement: The insurance company closed the case in 45 days, paying 920 million yuan in cash, and the enterprise resumed production after 4 months. The owner later said: “If it weren’t for this compensation, I would have had to sell my shell on the New Third Board.”Operational key pointsCoverage must be at “replacement cost”; do not calculate based on book depreciation;Hazardous chemical warehouses must be listed separately with addresses and limits;Business interruption insurance should cover at least 12 months of gross profit, preferably 18 months;Deductibles can be negotiated; a deductible of 10 million for fire is reasonable.4. The second policy: Safety production liability insurance—government-mandated, commercially supplementary, covering “three types of people” with one policyBackgroundThe 2021 revision of the “Safety Production Law”: Eight high-risk industries must be insured; although chip manufacturing is not included, any use of hazardous chemicals can lead the emergency management bureau to require you to “make up the ticket”.Who to insureEmployees: staff, contractors, interns;Third parties: neighboring factories, passersby;Rescue costs: If the fire department damages equipment while extinguishing a fire, compensation is also required.Insurance responsibilities (memorize these four sentences)Compensation for death and injury, medical expenses, rescue costs, and legal fees covered.Real caseCase 2: Silane leak explosion at a testing factory in ChengduProcess: A technician operated improperly, leaving the silane bottle valve not fully closed, causing gas to diffuse into the return air duct and ignite due to static electricity;Consequences: 3 deaths, 7 serious injuries, and the factory roof was blown off;Compensation: 1.2 million for each death, up to 800,000 for serious injuries, 2.4 million for medical expenses, and 3 million for third-party property damage;Result: Safety production liability insurance paid 11 million in one settlement, keeping the enterprise’s cash flow intact, and the owner did not go to jail.Operational key pointsInsurance amount: Compensation for each death starts at 1 million, calculated as “number of registered employees × 1 million” for the total limit;Include contractors and interns in the “insured persons” list; don’t skimp on this few hundred yuan in premiums;Accidents occurring within 100 meters outside the factory are also covered; remember to provide the insurance company with a site plan of the factory.5. The third policy: Employer liability insurance—adding an extra safety net for “permanent employees”Difference from work injury insuranceWork injury:Mandatory by the state, only compensates for items listed in the “Work Injury Insurance Regulations”;Employer liability insurance:Commercially supplementary, continues to compensate for items not listed, such as one-time disability employment assistance, family care costs, and mental distress.Real caseCase 3: Technician slips at a wafer factory in ShanghaiCase details: Deionized water remained on the clean room floor, causing an engineer to slip and suffer a comminuted fracture of the right wrist, assessed as 9th degree disability;The work injury fund compensated 80,000 yuan;Employer liability insurance compensated an additional 150,000 yuan (including one-time disability employment assistance of 100,000 yuan, lost work compensation of 30,000 yuan, and mental distress compensation of 20,000 yuan);The enterprise HR said: “Without this 150,000 yuan, the person would definitely go to labor arbitration, which would take at least a year.”Operational key pointsExpand coverage to include “during commutes”;Include overseas dispatched employees in the policy;Start with coverage of 500,000 per person, with executives able to add an additional 1 million.6. The fourth policy: Group accident insurance—the cheapest yet most heartwarming “talent retention tool”Function24-hour global accident coverage, with options for additional death benefits and hospitalization allowances.Real caseCase 4: Drowning during a team-building event at a factory in WuxiDuring a weekend rafting trip, 3 people from the process department unfortunately drowned;Group accident insurance provided 500,000 per person, with payment received within 3 days;Families expressed gratitude to the company on Weibo, and the stock price surged the next day (although it was coincidental, employee morale did indeed soar).Operational key pointsCost: 300 yuan per person per year for 500,000 coverage;Can add “sudden death coverage”; this is very practical for chip factories with long working hours;Families only need a death certificate and proof of relationship for claims, making the process extremely simple.7. A complete plan: How a 12-inch factory with an annual revenue of 3 billion yuan should operate(Figures have been desensitized, implementation in August 2024)Case 5Employees: 1200 permanent, 800 outsourced;Assets: Factory worth 2.5 billion, equipment worth 8 billion, inventory worth 1 billion;Annual gross profit: 1.2 billion;Hazardous chemicals: Silane, phosphine, hydrofluoric acid, acetone.Insurance combinationProperty insurance: Main coverage of 12 billion (replacement cost), business interruption insurance for 24 months gross profit of 2.4 billion; fire deductible of 10 million, others 2 million; premium 24 million/year.Safety production liability insurance: 1.5 million per death, cumulative limit of 200 million; premium 1.8 million/year.Employer liability insurance: 800,000 per permanent employee, 2 million for executives; premium 950,000/year.Group accident insurance: 2000 employees, 1 million per person + sudden death 500,000 + hospitalization allowance of 200 yuan/day; premium 600,000/year.Total premium 27.35 million, accounting for 0.91% of revenue, 2.3% of gross profit. The owner said: “It’s half the cost of my annual bank loan interest, and no collateral is needed.”EffectIn May 2024, a fault in the factory’s substation caused a 6-hour power outage, resulting in 50 million yuan in scrap;Business interruption insurance was activated, with a pre-compensation of 40 million within 7 days, ensuring cash flow remained intact;Zero employee turnover, zero customer complaints.8. Common questions answered at onceWhat if the premiums are too high?Split into two layers: the first layer is national reinsurance + co-insurance, the second layer is international excess. Transfer large risks out and retain small risks, reducing premiums by 30%.Is it safe once insurance is purchased?No! Insurance is just the last line of defense. Daily must-dos include: dual-locking hazardous chemicals, quarterly infrared thermal imaging inspections of clean rooms, and monthly power outage drills.Will claims be contentious?Take photos of the “pre-insurance risk survey report” for records, and at the first sign of an incident, take photos, seal the scene, report to 119 + the insurance company, and submit preliminary materials within 48 hours to reduce the probability of disputes by 90%.9. Don’t let “burning heart” turn into “burning out”Chip manufacturing is a rapidly advancing field, but also a battlefield where risks are high. Insurance cannot prevent disasters, but it can prevent disasters from destroying your ten years of hard work.Remember three phrases:Insurance is using other people’s money to protect your life;First calculate risks, then calculate returns;The premium saved today may turn into a hefty fine tomorrow.May all chip professionals be able to make wafers thinner and profits thicker.That’s all for today, thank you for your continued attention and reading. If you find it valuable or rewarding, please like, share, and recommend; if you have questions, you can also ask below the screen, and I will reply as soon as possible.If you have needs for property insurance, corporate group insurance, employer liability insurance, group accident insurance, group medical insurance, and other corporate property, group insurance, family financial planning needs, cash planning, consumption expenditure planning, risk management, education fund planning, retirement planning, investment planning, tax planning, wealth management, and wealth inheritance, please consult the QR code below or call: 13348869766