To develop EDA industrial software for chips, you can simply pay for the license.
It will be used for a few years first, and after a few years Xingyi Technology will develop one by itself.
Or cooperate with Huawei on research and development, both are possible.
There is no fear of foreign blockade at all.
But the ARM architecture is the foundation, so it would be better to take advantage of the low price in 2011 and buy it out directly.
ARM is headquartered in England and has branches in the Empire and other countries.
President Norbert Bellomo met with Wang Yi in person:
"It turns out that the mysterious Eastern giant who caused a sensation in the empire is Mr. Wang!"
"Excuse me. Ordering so many chips at once puts me under a lot of pressure."
"Yes, it will be enough for you to use for the next year, hahaha." Norbert said with a smile: "But Director Wang came to us because he wanted to develop his own chip?"
"Yes, you have to dream, although it is difficult."
"Director Wang will definitely succeed!"
Norbert was so happy that he couldn't wait to develop chips so that ARM could sell more licenses and make more money!
"Whether it works or not, you have to try. I wonder how the licensing fee for the ARM V8 architecture is calculated?" Wang Yi asked.
The V8, 64-bit chip architecture just released this year is much more powerful than V7, 32-bit.
Wang Yi naturally chose the most advanced architecture and directly developed a quad-core 64-bit processor.
NVIDIA Tegra 3 and Qualcomm's quad-core processor 8064 are still based on V7, 32-bit architecture, which lags behind.
Wang Yi entered chip research and development in 2011 and directly took over the V8 architecture, which can be regarded as a head start.
Norbert smiled slightly: "The V8 architecture has just been launched, there are few customers buying it, and the price is still very favorable."
Not long after V8 was released, chip manufacturers are waiting to see how its performance will be.
In addition to Apple buying it directly, other companies such as Qualcomm, NVIDIA, Texas Instruments, MediaTek, HiSilicon, etc. are continuing to use V7 and wait and see V8.
If V8 is good, they will follow up.
If the V8 overturns, the V7 is more cost-effective.
Norbert explained: "With the V8 architecture, the initial one-time cost is US$2 million. Later, you will pay a royalty fee of 30 cents for each chip. It is very cost-effective."
All I can say is that ARM counts clearly.
Regardless of whether the chip development succeeds or fails, US$2 million will be paid first.
If successful, a royalty fee of 30 cents per chip will be paid based on chip production.
Of course, the initial $2 million is small money.
In the later period, there will be a steady flow of royalties, and the royalties calculated on a per-unit basis are the bulk of it!
But the current royalties are very cheap, the same price as Apple.
Wang Yi murmured: "The royalty fee is 30 cents per chip. Then I will only do research and development in the next two years. If it is tape-out, it will only be a thousand chips at most, which is enough. A total of 300 US dollars in royalties?"
"..." Norbert was a little disappointed: "Theoretically, that's the case."
He thought he could make tens of millions of dollars in royalties when big clients came to visit him and spent huge sums of money.
As a result, the operation was as fierce as a tiger, and the two-year royalties were only US$300...
Send away the beggar!
Wang Yi looked at the other party's ugly face and said quietly:
"It's okay. There is a high probability that we will be able to produce chips in the third year. It is estimated that we will produce five million chips a year, which is 1.5 million dollars in royalties. Of course, if the research and development fails, then forget it."
Norbert continued to be silent: "..."
With a royalty fee of 1.5 million U.S. dollars in three years, do you really think that we, ARM, are beggars?
But for an emerging semiconductor company to be able to successfully develop and produce five million chips in three years is pretty good...
It is even possible that Xingyi Technology will go bankrupt before it lasts for three years, and by then, they will not be able to earn a penny in royalties.
This is not possible!
Norbert was thinking a lot and changed the subject:
"Director Wang, in addition to this volume-based calculation method, our royalties also have a buyout system. For example, a one-time buyout of ten years only costs... 20 million dollars!"
Well, no matter how many years it takes for your chip to be successfully developed, I will earn the $20 million in royalties in one go.
Even if three years later, Xingyi Technology's chip development failed and went bankrupt, with $20 million in pocket, ARM would not retreat a cent!
Compared with earning 1.5 million U.S. dollars in royalties in three years, it is more cost-effective to earn 20 million U.S. dollars in one go.
In Norbert's view, Wang Yi's self-developed chip has a high probability of failure.
If you charge royalties on a per-pixel basis, I'm afraid you won't be able to earn back 20 million U.S. dollars in 20 years.
How can such an advanced thing like a chip be so easy to study?
Especially Xia Guo Enterprise, which can’t even make mobile phones, but still makes chips? What a joke.
It is as powerful as Huawei HiSilicon. After researching for so long, K3V1 was finally developed and tape-out was successful. However, the performance was too poor to be mass-produced, so it was considered a complete failure.
Whether it will continue to invest in the development of a second chip is a question.
Texas Instruments, the stronger chip overlord, is also about to give up its mobile chip business, and Nvidia may not be able to hold on for long.
None of these giants can handle chip research and development, let alone making clothes by yourself?
Norbert even thinks that whether the Xingyi mobile phone can be made is still a problem.
And Wang Yi’s chip research and development will fail 99% of the time!
It is more reliable to make a large sum of money in one go and buy out the royalties.
Wang Yi shook his head: "Who can predict the future? If it really fails, it will cost 20 million dollars. It is more cost-effective to charge based on volume."
"..." Norbert's heart skipped a beat, this guy couldn't be fooled!
"Let's do this, Director Wang. The ten-year royalty buyout only costs 10 million knives, or 10 million!"
Can the fat sheep delivered to your door allow you to go back unscathed?
joke!
Leave at least 10 million dollars!
Even if the research and development of Wang Yi's chip failed, ARM still earned 10 million U.S. dollars in royalties!
Wang Yi was secretly happy, the price was very beautiful, but he could still use another cut.
ARM never imagined that Wang Yi would continue to invest in chip research and development until it succeeds!
What’s more, many years later, Xingyi Semiconductor’s annual output is not 5 million chips, but 50 million chips, or even more!
At 30 cents a piece, the annual licensing fee is more than $15 million.
The development of the smartphone market is so terrifying that Norbert could not have expected it, and neither could ARM!
Otherwise, I would not have given Apple the 30 cent unit price, and I would regret it until my intestines turned green.
But at this price, we can still negotiate!
Wang Yi frowned: "Ten-year buyout, ten million dollars in royalties? If I succeed in research and development in three years, it will be equivalent to a total of ten million dollars in royalties in the next seven years, an average of 1.43 million dollars a year. That is different from the current situation.
It makes no difference to pay royalties as much as you want, 1.5 million dollars a year! It’s not cost-effective.”
Norbert was stunned. It seemed that this was true. It was indeed not cost-effective. So what should we do?
Just when Norbert was thinking about how to continue to trick Wang Yi into spending more money to buy out, Wang Yi spoke:
"Unless you give me the V8 architecture and buy out the license permanently!"
Permanent buyout mandate? Does that make sense?
Norbert was confused. This architecture will be constantly updated.
The V8 architecture has been used for ten years, and will be used directly until October 2021, when the V9 architecture will be released!
By then everyone will be using the V9 architecture, who will still use the outdated V8?
Therefore, there is not much difference between the ten-year buyout license, the 20-year buyout license and the permanent buyout license of the V8 architecture!
After ten years, you will have to replace the V9 and buy it again. There will be no difference.
This doesn't matter to ARM, as long as Wang Yi is willing to buy it, it doesn't matter if it's ten years, 20 years, or even a permanent license, he can still make more money!
Norbert smiled slightly: "I can give you a permanent buyout license, but you have to pay more, 15 million dollars to buy it out!"
Wang Yi frowned: "It's too expensive, 11 million dollars!"
"Fourteen million dollars, no more!"
"12 million dollars!" Wang Yi continued to bargain.
Norbert sighed: "Forget it, let's make a compromise, 13 million dollars, and give you a permanent buyout license for the V8 architecture. Plus the one-time fee, the total is 15 million dollars!"
Wang Yi thought for a while: "Okay, let me lose a little. But your permanent buyout license must include subsequent upgrades 1 and 2... After all, a permanent license cannot become obsolete after three years, right?"
"
"That's for sure, no problem!" Norbert readily agreed: "But with the new V9 architecture, you will have to buy it again!"
"Okay, let me take a gamble!"
Wang Yi sighed. It seemed that he had taken a big risk and was even fooled, but he felt happy in his heart!
Norbert was even more in a good mood: 'These two fools finally fell into the trap. 90% of the chip development failed, but they first spent 15 million dollars to buy out the permanent license of the V8 architecture. I have never seen such a fool. Hahaha!'
Norbert didn't know that a few years later, Wang Yi's annual royalties would exceed 15 million knives.
But now, the permanent buyout only cost 15 million dollars, and there is no need to spend any money later.
Norbert, Norbert, you are such a kind man.
Thinking about it this way, ARM is quite miserable, and Wang Yi was filled with emotion.
First, Apple set a unit price of 30 cents, signed a long-term agreement, and could not increase the price for decades to come.
Then there is Wang Yi, who directly paid 15 million U.S. dollars to buy out the permanent license for V8, 1, 2 and other architectures, and there is no need to pay anymore in the future.
More moisturizing than apples!
Norbert immediately drew up an agreement and pulled Wang Yi to sign the contract quickly, as if he was afraid that Wang Yi would regret it.
After all, there are very few people who dare to directly buy out the permanent license of the architecture before the research and development of this kind of chip has begun.
Subsequently, the two parties formally signed a contract and bought out the permanent license of V8 for 15 million.
Both parties felt that this was a good deal and both felt that they had made a lot of money.
At this point, the foundation for self-research of chips is ready.
Bought EDA industrial software, ARM V8 64-bit architecture, permanent license buyout.
The chip R&D expert is also poached.
Even R&D elites are constantly being recruited.
The rest is a matter of time.
Norbert smiled and stretched out his hand: "Dr. Wang, you will always be my friend of ARM and my friend of Norbert."
Well, with this big deal, 15 million dollars, he can get a promotion and a salary increase.
ARM does not produce chips, it only develops the underlying architecture of the chip and earns licensing fees and royalties.
In 2011, when smartphones were just starting out, ARM’s annual revenue was only US$100 million.
Now Wang Yi has contributed 15 million knives all at once, which is definitely a brilliant achievement. It is not a problem for Norbert to get promoted and get a salary increase.
But in a few years, it may be a different situation.
Looking at Xingyi Semiconductor's output of tens of millions of chips a year, ARM cannot make a penny.
The ARM board of directors may have the intention to kill him.
Wang Yi smiled slightly: "Norbert, you are also a friend of our Xingyi Technology."
Well, for Xingyi Semiconductor, I might as well put my own future on the line, is that okay?
During Wang Yida's trip to the empire, he met two good people.
Tool man, Lao Huang!
Nice guy, Norbert!
It's all good!
Back at the hotel, Wang Yi asked Wu Shuang to book a flight back to China in the evening.
This trip to the empire has been fruitful and it is time to return home.
And he opened his laptop and started processing work emails.
During this time, Wang Yi was also paying attention to domestic business.
The pure lust style dresses in the north are completely unsaleable, and the revenue of Meiyou and Zhenyou are both declining.
On October 11, the daily revenue of Meiyou Mall fell to 500 million, and the revenue of offline flagship stores fell below 50 million.
Even Meiyou International’s revenue fell below 15 million knives.
After its previous glory, Meiyou Group's daily profit has also dropped from the previous 300 million to 200 million.
Although it dropped by 33%, it is still very impressive.
Of course, these profits are only profits from the clothing business. Once the financial statements are included, all employee wages, mergers and acquisitions, investments, research and development, etc., and all expenses are deducted, and the book profits become very low.
All companies operate this way.
Some companies have annual revenue of 200 billion, but their final book profits are only 30 billion. This is how they do it...
It seems that in a few days, Meiyu Beauty Cosmetics will have to be released as soon as possible.
Otherwise, it won't work if it keeps falling like this. It's too expensive to make a mobile phone.
When Wang Yi was handling the company's emails, he also saw Du Tianhua's email:
[Director Wang, the box office of "Thirty-day Love" exceeded 500 million! 】
"Hey, is this postponed?"
Wang Yi was a little surprised. Logically speaking, it would be released on the 8th.
Today is October 11th, and it is still being released. It can only be postponed.
Wang Yi searched the news and found that it was indeed the case.
For popular movies, they will be released for a longer period of time, even a month.
In addition, the entire National Day schedule is full of bad movies, and none of them are good.
The theater chain was suffering from losses, all thanks to "Love Is Not Blind".
Even though it's been more than a month since Love Lost was released, it still ranks in the top three at the single-day box office.
Theaters are still counting on "Broken Love" to carry the banner and make big money, so they are reluctant to release it.
If it is broadcast for another month like this, the box office of "Thirty-day Love" will be even better.
It sold more than 600 million in the first month. In the second month, it shouldn’t be a big problem if it sells for 100 million.
It has a total box office of 800 million, which is great.
Wang Yi can also divide more.
After packing up their things in the afternoon, Wang Yi and his party went straight to the airport to return home.
This trip to the empire ended successfully and gained a lot.
Not only did NVIDIA win the world premiere of its quad-core chip, but it also won the launch of Qualcomm's quad-core flagship in the second half of next year. The baseband chip was also negotiated and the price was beautiful.
It also acquired Xiya and hired Estee Lauder's former R&D director and R&D team to prepare for Zhenyou's impact on the high-end.
Even Texas Instruments’ R&D experts and related talents have poached a lot.
Many of these people have already landed in Xia Guo and joined Xingyi Semiconductor.
15 million dollars bought out the permanent license of ARM V8, 1, 2..., it was a huge win.
Although this trip to the empire cost a lot of money, it also gained a lot!
In addition, he also earned a lot of international fame.
These days, many international media are rushing to report on the mysterious tycoon who bought 30 million chips and the emerging mobile phone giant.
It caused an uproar in the empire and even around the world.
And Wang Yi's identity and Xingyi's mobile phone could no longer be hidden, and were gradually dug out!
The world is in shock again!
Asking for a monthly pass.
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Chapter completed!