Chapter 437 Semiconductor strategy, expansion, and death!
"Nvidia chips and Pterosaur basebands are bundled? Jointly fight against Qualcomm?"
Wang Yi instantly understood what Lao Huang was thinking.
In the current mobile chip field, there are only a few companies, and their situations are not all the same.
Texas Instruments, the previous chip overlord, is now half dead.
The new absolute king, Qualcomm, is at its peak and unstoppable.
MediaTek is focusing on the low-end, but right now it is exclusive to copycat phones and not worth mentioning.
As for the fact that Apple is only for personal use, it doesn't hurt either.
The rest are just some stragglers, and NVIDIA doesn't even notice.
The only ones that can have an impact on Qualcomm are Nvidia and the emerging Xingyi Semiconductor.
But it is obvious that neither Nvidia nor Xingyi Semiconductor, combined, multiplied by three, is no match for Qualcomm.
In this situation, both Xingyi Semiconductor and Nvidia have no chance of winning if they fight on their own.
After all, super overlords like Texas Instruments have been killed by Qualcomm, let alone Nvidia and Xingyi Semiconductor?
On the contrary, only if both parties cooperate can there be some chance of winning.
This is Lao Huang's plan.
Wang Yi would not refuse this either.
In the field of chips, Qualcomm must not be allowed to continue its monopoly and continue to grow.
It is precisely for this reason that Wang Yi would rather support Nvidia than antagonize Qualcomm.
After all, Nvidia is nothing to worry about, but Qualcomm makes Wang Yidu fearful.
Nowadays, Nvidia chips and Xingyi Semiconductor's Wing Loong baseband are bundled and sold together, which is also a good thing.
The enemy of my enemy is my friend.
As long as Qualcomm's strategy is followed, it is a good strategy for Wang Yi!
As for Nvidia?
Wang Yi didn't care that he was not a rival of Xingyi Semiconductor at all.
After all, how long NVIDIA's mobile chip business can survive is a question.
To put it bluntly, without Wang Yigan, Nvidia might be useless in a year or two.
Qualcomm is the enemy!
After reading this, Wang Yi said decisively: "This is a good suggestion, I think it will work!"
Lao Huang was overjoyed and his bet was right: "Director Wang, I will go to the customer to discuss it. The estimated delivery time is November. Is it feasible for you?"
"November? No problem at all! I will contact TSMC to OEM the Pterosaur 3000 baseband!" Wang Yi agreed decisively.
Xingyi wafer fab has limited production capacity and can only give priority to the production of Kunpeng 702. Kunpeng 700 may have to be found by TSMC.
As for the baseband, it requires OEM.
We will mass produce five million pieces every month and just sell them slowly.
Huawei needs it, and other domestic companies need it.
To put it bluntly, as long as you want to do mobile 3G or full Netcom, you can't do without Xingyi Technology's Wing Loong 3000 baseband.
Coupled with Nvidia's customers, the sales volume will be even more impressive.
Not only can you make money, but you can also seize Qualcomm's market, so why not do it.
"That couldn't be better." Lao Huang was in a good mood: "Dr. Wang, how do you calculate the price of our bundled sales?"
Wang Yi thought for a while: "Currently, the Qualcomm APQ 8064 is priced at US$20, the 3G baseband is US$15, a set is US$35, and the 4G version is US$37."
"If we want to compete with Qualcomm, we can only rely on cost-effectiveness."
"Qualcomm's 3G baseband does not support telecommunications and mobile 3G, and it sells for $15."
"The Wing Loong 3000 baseband is also 3G, but it supports mobile 3G and China Telecom 3G. It can be regarded as full Netcom 3G, and it also supports overseas 3G."
"So I plan to sell it for 13 US dollars, which is 2 US dollars cheaper than Qualcomm 3G baseband!"
13 US dollars, about 85 yuan.
The diluted cost of the Wing Loong 3000 baseband chip is about 17 yuan. Even if it is manufactured by TSMC, it will only be 20 yuan.
It costs 20 yuan and sells for 85, which is totally fine.
There is still room for price reduction.
"The price is reasonable. It's more powerful than Qualcomm 3G. It has full network connectivity and the price is $2 lower. It's very promising!" Lao Huang agreed very much:
"Qualcomm APQ 8064 sells for US$20, so our Tegra 3 chip has a slightly inferior manufacturing process and performance, so it should be sold for US$13!"
"In this bundled sale, Nvidia Tegra 3 + Xingyi Technology Wing Loong 3000 baseband only costs 26 US dollars, which is much lower than the 35 US dollars of Qualcomm APQ 8064 + 3G baseband."
"With a difference of only US$9, Qualcomm's solution is 36% more expensive than ours. I believe many users will be tempted and choose us."
Wang Yi spoke again: "9 US dollars is not enough, so if we buy them in a bundle, we will each give a discount of 0.5 US dollars, a set of 25 US dollars, which is 10 US dollars cheaper than Qualcomm, and Qualcomm's solution is 40% more expensive than ours!"
"Yes, the difference in cost of a mobile phone is 10 US dollars, and the difference in cost of 10 million mobile phones is 100 million US dollars. Those mobile phone manufacturers will consider this gap!" Lao Huang agreed very much.
Everyone knows that Qualcomm's APQ 8064 is better, but the difference is a full 10 US dollars, so it is not as good as NVIDIA + Pterosaur 3000.
Especially in Xia State, with lower costs, you can also enjoy Telecom 3G and Mobile 3G full Netcom!
This is a problem that cannot be solved by Qualcomm APQ 8064 solution.
In Xia State, there are the largest number of mobile users, and there are also many telecom users.
Any brand has to consider these two major user groups. This is the reason why the Wing Loong 3000 beats the Qualcomm baseband.
This was also the basis for Lao Huang to seek cooperation with Wang Yi.
More importantly, most domestic mobile phones currently sell for only 1500-1800, and the total cost is only about 1000. The difference is 10 US dollars, and the cost of 65 yuan is very high.
For the same four-core, full Netcom solution priced at US$25, and non-full Netcom solution priced at US$35, most manufacturers will choose the former.
Not only can it save 40% of costs, but it can also be fully networked and gain more customers!
All major manufacturers will consider the trade-offs here.
"I hope both the Pterosaur 3000 baseband and NVIDIA Tegra 3 will sell well!" Wang Yixiao said.
"Don't worry, Mr. Wang, I will definitely do it!" Old Huang said.
Although Qualcomm APQ 8064 is good, it was launched half a year late, and most users were won by Nvidia in advance.
Moreover, APQ 8064 is too expensive, and many manufacturers cannot afford it.
To put it bluntly, cost-effectiveness determines everything.
"By the way, Director Wang, are you going to stop purchasing NVIDIA Tegra 3 next?"
Lao Huang asked about his biggest worry.
The self-developed Kunpeng 702 is ready, its performance is not inferior to Tegra 3, and it is natural to completely replace Tegra 3.
Wang Yi smiled slightly: "Don't worry, Mr. Huang, we will continue to purchase some Tegra 3."
"Really?" Lao Huang said with joy: "If so, I will give you a lower price, only 10 US dollars, no, 8 US dollars!"
The cost of NVIDIA Tegra 3 is about US$5, and it was sold to Wang Yi for US$8, which is considered a super bargain price.
There is no other way, Wang Yi will give up on anything that is too expensive.
It is better to make small profits but quick turnover and earn more.
"Eight-Mei Knife!"
Cabbage price!
Wang Yi was very surprised.
The cost of Kunpeng 702 is nearly 5 US dollars, and Lao Huang sells it for 8 US dollars, which is indeed the lowest price.
You can continue to purchase some for Xingyi TV.
After all, Nvidia Tegra 3 is much cheaper than Qualcomm's APQ 8064.
Currently, the production capacity of Xingyi wafer fab is limited, and it can only produce 14.4 million Kunpeng 702 units in a month, which is simply not enough.
Originally, Wang Yi planned to use Kunpeng 702 to replace Nvidia's Tegra 3 in the xphone 1pro.
But now it seems that the only way to continue using Tegra 3 on xphone 1pro is to directly replace the Qualcomm APQ 8064 of xphone 2 with Kunpeng 702!
Without him, Nvidia would never be a big player. It’s not a big deal, and the price it offers is cheap, as low as $8.
At present, the Kunpeng 702 production capacity is insufficient, and the Xphone 1pro can continue to purchase Nvidia Tegra 3. The original external Qualcomm baseband can also be replaced by its own Pterosaur 3000.
Qualcomm is the biggest enemy and sells it more expensively.
The APQ 8064 processor costs 12 US dollars, and an external baseband costs 11 US dollars. A set is 23 US dollars, 150 yuan.
If you switch to Kunpeng 702, which integrates the baseband and is self-developed and produced, it only costs 30 yuan, saving 120 yuan at once!
The cost is greatly reduced!
More importantly, once the Xphone 2 is replaced with Kunpeng 702, the performance will not be reduced, and full network communication can be achieved. Moreover, a lot of space will be created without the need for external basebands. The weight, power consumption, and heat dissipation of the phone will all become better.
Coupled with the self-developed 64-bit processor, it can be tuned better and perform more powerfully.
When the self-developed 64-bit system + 64-bit applications are launched next year, the 30% performance bonus of 64-bit processors can be used, and the performance will soar again!
All of this is beyond the reach of APQ 8064.
In the next two months, 30 million Kunpeng 702 will be produced.
It will be used first for xphone 2, completely replacing Qualcomm's APQ 8064 and Qualcomm baseband.
As a result, Qualcomm's quad-core orders were completely cancelled, severely damaging Qualcomm.
The extra Kunpeng 702 will be used to replace Nvidia Tegra 3 in the Xingyi Tablet X1pro.
Without him, the iPad 4th generation with the A6X was so aggressive and powerful that it beat the Nvidia Tegra 3. Wang Yi could only replace it with the Kunpeng 702, thus regaining a tie.
Otherwise, it will be difficult to compete with the fourth generation iPad.
After taking over SMIC's wafer fab, the Kunpeng 702 production capacity will be doubled, and the Nvidia Tegra 3 of the xphone 1pro will also be replaced by the Kunpeng 702.
Let’s start with Qualcomm, our biggest rival.
As for Nvidia, there is competition within cooperation, and there is cooperation within competition.
After finishing the call with Lao Huang, Wang Yi immediately dialed Director Qin's phone number: "Director Qin, is it convenient for me to speak?"
Director Qin looked at Mr. Zhao across from him and said, "It's convenient, Director Wang, but it doesn't matter."
Wang Yi sighed: "Director Qin, there are bad people among the crowd!"
"What's the meaning?"
"I just received news that Qualcomm already knows about Kunpeng 702!"
"???"
"!!!"
Director Qin and Mr. Zhao looked at each other and their expressions changed sharply.
"What's going on? It's only been in the morning and the news has been leaked? Director Wang, do you have a target of suspicion? Could it be the expert team we brought?"
Wang Yi nodded: "According to reliable information, Qualcomm bribed a professor, and the professor acted as a spy for Qualcomm and stole our semiconductor secrets."
"I see, don't worry, Director Wang, I will investigate right away and I will definitely give you an explanation."
Wang Yi said calmly: "Check which professor often goes to the US empire, or is even supported by the US empire. He has unidentified assets overseas and his children are also in the US empire. Then you will know who it is."
"Okay! Once found out, we will never tolerate it."
Wang Yi waved his hand and said meaningfully: "It's okay. We can also use him to pass false news to Qualcomm when the time comes."
"Haha, it seems you have a plan. Okay, Director Wang, let's do it." Director Qin smiled.
Wang Yi's eyes became cold. Sure enough, there are spies every year.
Just take this opportunity to pass on false information to Qualcomm.
For example, this time, Wang Yi only said that "Kunpeng 702 performance is comparable to NVIDIA Tegra 3", so both Qualcomm and NVIDIA believed it and only thought that Wang Yi would use Kunpeng 702 to replace NVIDIA's Tegra 3.
Qualcomm is in a good mood and wants to watch Nvidia die.
Unexpectedly, the performance of Kunpeng 702 is not only comparable to NVIDIA Tegra 3, but also Qualcomm APQ 8064.
Not only can it replace the Tegra 3 of the xphone 1pro, but it can also replace the Qualcomm APQ 8064 of the xphone 2!
By then, Qualcomm Chairman Jacobs will be confused.
There is also the 28nm Kunpeng 905 in the second half of next year, which has an eight-core A53 architecture. Spies can also use spies to spread false news and say it is a quad-core A57!
If Qualcomm believes it is true and the Snapdragon 805 follows the quad-core A57, it will definitely overturn.
Even the 20nm process cannot suppress the quad-core A57, so Wang Yicai switched to the eight-core A53.
If the Snapdragon 805, 28nm, is forced to use the quad-core A57, the result can be imagined. It will be the same as the Snapdragon 810, and it will completely overturn, and Qualcomm will be completely useless!
After the failure of Qualcomm Snapdragon 810 in the previous life, it can still use the previous generation Snapdragon 805 to redeem itself.
It would be fun if two generations in a row overturned this time. You can’t use Snapdragon 801, right?
The performance difference is too big.
However, the espionage incident also reminded Wang Yi that core secrets should be taken seriously and only half-truths and half-false information should be disclosed to the outside world.
For example, this time, just saying that Kunpeng 702 can keep up with Nvidia Tegra 3, without mentioning that Kunpeng 702 is a 64-bit architecture, has excellent performance and can keep up with Qualcomm APQ 8064, will perfectly make Qualcomm careless.
Otherwise, Qualcomm may become desperate.
In the car, Mr. Zhao's face turned gloomy: "Sure enough, there is a problem with the expert team, and they are investigating one by one."
"Don't worry, leader, we will find out soon." Director Qin looked complicated: "Oh! Those people have become professors at famous universities, and they are still doing this. They will not be safe in the future."
Mr. Zhao snorted coldly: "I'm afraid they didn't do this after they became professors at famous schools. Before they became professors at famous schools, they had already become spies! Even when he was studying abroad, he was instigated to rebel, and then he was tricked all the way.
Pave the way for him to rise to the top and become a professor at a famous school and a well-known expert, so that he can have access to core secrets!"
Director Qin's expression changed drastically: "Doesn't that mean that they are not one person, but an interest team? They even support each other and cover each other?"
Mr. Zhao nodded: "The faster we develop, the more fearful the foreigners will be, and the more unlimited our methods will be. Let's check it out."
"yes!"
Xingyi Wafer Fab.
Seeing Wang Yi walking out of the office, Mr. Hu immediately greeted him and said expectantly: "Director Wang, what does the leader say about the second wafer fab?"
"It's done! Didu helped build the second wafer fab, with a monthly production capacity of 100,000 12-inch wafers. It is divided into two phases. The first phase will be delivered before the end of next year, with a monthly production of 50,000 wafers. The second phase will be delivered the year after that, with a monthly production capacity of 50,000 wafers.
Produce 50,000 pieces.”
"Great!" Mr. Hu was in a good mood: "The photolithography machines and other equipment we ordered will be in place one after another."
Wang Yi nodded: "Continue to place additional orders and let AL deliver more goods. We need as much goods as they have, as long as they can be delivered as soon as possible!"
Mr. Hu's expression changed slightly: "Director Wang, are you worried that the other party will take action?"
Wang Yi sighed: "I'm sure we'll take action, it's just a matter of time."
In a previous life, the investigation into zx began in 2016, after more than a year of negotiations.
Start hammering zx in 2018.
In the same year, the crackdown on HW began.
2019 officially begins!
Nowadays, Xingyi Technology is developing faster.
That's more likely, or even earlier.
The only positive thing is that the current team does not prioritize the suppression of technology.
Instead, they consider other ways.
Therefore, even if zx is investigated, it still leaves room for mediation.
It wasn't until 2017 that people were replaced and things completely changed.
So, zx was hammered.
HW was hammered.
All we can say is that a team has its own system of thinking.
The current team doesn’t like technology occupation very much.
In this way, Xingyi Technology still has time.
It's not a fatal situation for the time being, but we can still mediate.
But if we change people in 2017, we will never stop fighting.
There is not much time left for Wang Yi, so he can only develop rapidly.
Stock up on photolithography machines and photoresist in advance.
The photolithography machine is easy to say, buy it in advance and buy more, it will be enough.
It was not until five or six years later that domestic DUV lithography machines made a breakthrough.
But photoresist is troublesome.
The shelf life of this thing is only half a year to one year.
Fortunately photoresist is distributed in multiple countries.
Unlike photolithography machines, which are monopolized by AL, and dominated by Neon Country.
He has always been good at playing both sides of the aisle between great powers, and he is not really seeking death.
Therefore, the photoresist problem is not too serious.
In the previous life, even more than ten years later, there was no restriction on exports to us.
Includes EUV photoresist.
What Xingyi Semiconductor currently needs is Arf photoresist for chip production from 90 nanometers to 7 nanometers.
This will be the case for the next ten years.
As for EUV photoresist, you have to get an EUV photolithography machine, but this is difficult to achieve.
If you want strategic security, you can purchase and reserve photolithography machines in advance.
But ARF photoresist doesn't work.
In response, Wang Yi looked at Mr. Hu: "Mr. Hu, the shelf life of ARF photoresist is only half a year to one year. It is useless to buy more. Only self-production can be absolutely safe."
Mr. Hu nodded: "Director Wang, last time you mentioned this matter, I contacted several friends, all of whom are photoresist experts in Neon Country. One of them is from Xia Country and intends to come back for development, but it is difficult.
Quite a few.”
Wang Yi's eyes lit up: "Mr. Hu, we will handle special matters. As long as he is willing to come back, the treatment and requirements will be easy to negotiate. I will give him 1.5 times, no, 2 times the annual salary that Neon Country will give him!"
"As long as we can come back and produce our own ARF photoresist, my wife will have a job, my children will go to school, and we will have a house, a car, and money. It won't be a problem!"
"Okay!" Mr. Hu nodded: "Leave this matter to me."
"Thanks for your hard work."
Mr. Hu waved his hand: "It's all as it should be. Once the photoresist is gone, Xingyi Wafer Factory will have to stop production. I can't accept it."
He spent the rest of his life working at Xingyi Wafer Factory. How far he can develop depends on what kind of brilliance Xingyi Wafer Factory can create!
How can it be destroyed because of photoresist?
Then, Mr. Hu changed the subject: "Dr. Wang, the 40nm power yield rate is 89%, which is considered successful. With the upgrade of proficiency, it will soon reach 95%. Next, I plan to skip the 32nm process and directly develop 28nm.
Nanotechnology.”
"Okay, Mr. Hu, I plan to invest 30 billion in the second wafer fab that the Imperial Capital gave us, and it will be based on 28 nanometers!"
"This is great!" Mr. Hu said with joy: "Although the 40nm process is also very advanced, it is still lagging behind. After all, TSMC has already mass-produced 28nm, and at the latest, they will be able to produce 20nm mobile phones in 2015.
Chips. If we don’t hurry up and launch 28nm, we will only fall further behind.”
"Yes, I think so too." Wang Yi agreed: "Mr. Hu, how confident are you that the second fab will deliver the 28nm process before the end of next year?"
Mr. Hu took a deep breath: "In 15 months, we are 80% sure!"
"Okay!" Wang Yi was a little surprised, he didn't expect it to be so high.
Hu Laoxiao said: "Actually, when I was developing the 40nm process, I set up a small team to work on 28nm. Now it has been developed for more than half a year and a lot of results have been achieved. After a year, there is hope.
Mass production of 28nm.”
"That would be perfect. By then, the first phase of the second wafer fab will be delivered, and 28 nanometers will be put online directly, which will blind the eyes of Europe and the United States!"
"Hahaha." Mr. Hu laughed heartily: "But the current 40-nanometer production capacity of Xingyi Wafer Factory is not enough. It can only produce a maximum of 170 million Kunpeng chips a year, which is simply not enough."
Wang Yi nodded: "Don't worry, I am considering acquiring SMIC's 12-inch wafer fab. If I acquire it, the production capacity will be doubled."
"???" Mr. Hu was stunned: "Is this okay? Can SMIC's 12-inch wafer fab be sold directly to us?"
"This can be done, someone will take action." Wang Yixiao said.
Qualcomm and Nvidia already know the news, so the Magic City also knows the news, right?
If we knew that Xingyi Semiconductor could not only develop its own 40-nanometer chips, but also realize its own production of 40-nanometer processes, even the capital city would be upset.
This is Wang Yi's opportunity.
"That's perfect." Mr. Hu nodded, then took out his mobile phone and opened a picture: "Director Wang, look, this is our wafer fab, and there is open space here!"
Wang Yi understood: "Do you want to take over this land and expand the second phase?"
"Yes, Director Wang, the monthly production capacity of 25,000 pieces is too small. If we continue to expand and expand the second phase, the monthly production capacity will reach 50,000 pieces! And it is next to the existing wafer factory, and many resources can be reused.
Just invest in building a new factory!”
Wang Yi suddenly remembered that SMIC's Imperial Capital factory was originally built small at the beginning, but later it was expanded to the second phase on the same site, doubling its production capacity!
Now Xingyi Wafer Fab can do the same thing.
Since Europe and the United States want to impose sanctions, Xingyi Wafer Fab will go big!
Three wafer fabs are not enough, just invest more and build more!
A few years later, if the other party dared to take action, Wang Yi would go crazy.
It doesn’t matter if you make less money or even make no money at all, you have to grab orders at low prices just to trap them to death!
The reason is simple, if you make my life difficult, then everyone will not live it!
The mainland's labor and material costs are low, and the price war is unbeatable.
With the same ultra-low price, even TSMC has zero profits, Samsung, and Intel are all losing money. Xingyi Wafer Factory can still make money and continue to develop due to its low labor costs and low water and electricity costs!
But the situation is different for our friends and businessmen. They cannot make ends meet, and they are losing money and making a profit.
Xingyi Semiconductor grabbed a large number of orders at ultra-low prices and started a price war. Within two years, at least half of the world's top ten semiconductor giants were dead.
Even one of the three giants, TSMC, Intel, and Samsung, will die!
Not to make money, and to do OEM work with zero profit, but to grab orders and kill the three giants.
This is Wang Yi's character. If you make it difficult for me, don't let it go.
Chapter completed!