My rebirth is different

Chapter 833 Getting Ready
Since you want to buy, you must do your homework in advance.

Hu Jinchang also conducted a thorough investigation of MediaTek during this period, and now he has an in-depth understanding of this company.

Even though MediaTek was not well-known in the mainland before, in fact, this treasure island company has a lot of heritage.

In Taiwan's integrated circuit design industry, referred to as the IC industry, MediaTek and its founder Cai Mingjie have a pivotal position.

Cai Mingjie himself is honored as the "Godfather" of Taiwan's IC design industry!
Before, MediaTek's main business was DVD chip design, and its DVD chips once accounted for [-]% of the global DVD chip market share!
However, with the weakening of DVD sales and the saturation of the market, MediaTek is also seeking transformation, so it aims at the mobile phone industry that has been advancing by leaps and bounds in recent years.

Because of its deep background in chip design, MediaTek quickly produced its own chips.

Unfortunately, there were too many chips on the market at that time, and the major mobile phone companies basically had chips designed by themselves.

There are also veteran chip manufacturers such as Texas Instruments vying for the market. It is naturally difficult for MediaTek to fight against them, so it was very difficult for a while.

At the end of last year, after careful market research and full internal discussions, Cai Mingjie proposed a new idea.

That is to be a "one-stop mobile phone solution"!
The multimedia technology on which MediaTek started played a great role at this time.

Cai Mingjie and the others learned about the needs of mainland consumers and integrated their multimedia technologies, such as MP3 and FM radio, into mobile phones.Come up with a whole set of mobile phone solutions, instead of selling a single chip.

Moreover, the price of MediaTek's complete solution was not high, and its functions were much stronger than other products at that time, which made MediaTek's chip solution a hit in the mainland market.

Prior to this, international chip manufacturers such as Texas Instruments, Qualcomm, and Infineon only provided chip platforms to mobile phone manufacturers, that is, they only sold the most core chips, and ignored all other components. to go shopping.

However, the process from the mobile phone chip platform to the finished mobile phone needs to be solved by the mobile phone manufacturers themselves, either to develop by themselves, or to outsource a series of processes such as system integration, UI design, application software integration, and debugging to specialized mobile phone design companies. The threshold has led to an increase in the production cost of mobile phones, and the cycle has also been lengthened.

In the first few years, domestic mobile phone brands were basically launched by old-fashioned home appliances or electronics factories, and this is the reason.

Because ordinary individuals or companies do not have the strength to develop mobile phones at all. Even if all the components can be purchased, it is not a simple task to assemble these components together and make the mobile phone work normally. something happened.

MediaTek's one-stop mobile phone solution pre-integrates mobile phone chips and mobile software platforms together and then sells them to mobile phone manufacturers.

MediaTek's completion rate was very high at that time, exceeding 70.00%!

That is to say, adopting this solution can enable mobile phone manufacturers to obtain solutions including baseband chips, operating systems, and even mobile phone screens and cameras at one time, greatly reducing the threshold for producing mobile phones.

At that time, there was an exaggerated saying that as long as mobile phone manufacturers bought MediaTek's solutions and chips, they could start selling them with a shell!
Of course, the reality is not so simple. The mobile phone casing, keyboard, battery, external speakers, etc. still have to be purchased and assembled by ourselves.

But in any case, MediaTek's one-stop mobile phone solution allows all manufacturers who are interested in making mobile phones to save costs while shortening the mobile phone development cycle that usually takes more than half a year to within three months!

In addition, there is another point that cannot be ignored, that is, the reason why MediaTek became famous in 2004 is largely because of the legendary CQ1 mobile phone, which adopted their whole machine solution!
With the popularity of the legendary CQ1, MediaTek has also become widely known, especially in the domestic low-end mobile phone circle. Everyone knows that if you want to use the simplest and fastest way to make a mobile phone, then purchasing MediaTek’s complete phone solution is the best choice. .

In addition, it is not a simple matter to acquire MediaTek.

Because MediaTek has been listed on the Taiwan Stock Exchange, although the market value is not high, it is still a listed company anyway.

Legendary mobile phone company also has to go through cumbersome review procedures if it wants to acquire or invest in shares.

But now that he has made up his mind to win MediaTek, Hu Jinchang has also made full preparations, and the acquisition consultant hired Citibank recommended by Yu Wenfei.

There are also reasons for choosing Citigroup.

First of all, Citibank is a shareholder of Facebook, and also undertook the underwriting business of Facebook's NASDAQ listing. It has a very close relationship with Yu Wenfei, and the two parties have cooperated several times.

Regarding Citigroup's business capabilities, Yu Wenfei is quite trustworthy.

Secondly, don't ignore Citibank's American background. This background may not be a big deal on the mainland, but in Taiwan, it is another "talisman"!
If you hired a state-owned bank as an acquisition consultant to negotiate an acquisition with MediaTek, MediaTek would have nothing to do with it, but the authorities in Baodao probably would do something wrong.

And Citibank stepped forward, virtually helping Legend Mobile Company reduce a lot of trouble.

Those characters like bull head and horse face, who want to jump out and point fingers, have to weigh their own weight.

…………

No. 2, Hualian Road, Baobei City, the capital of Baodao Province, is the headquarters of MediaTek.

In a small science and technology park, there are several old office buildings standing in it, basically no more than five stories high.

Because it does not need to produce by itself, all chips are outsourced to TSMC for processing, so MediaTek does not need a factory, and is essentially a design company.

In the past two years, MediaTek's life has been difficult. The DVD market has shrunk sharply, and its leading DVD chip company has also been greatly impacted.

The company's market value has fallen from a peak of more than 2000 billion US dollars around 20 to only about [-] million US dollars now.

The chips that cost a lot of money to develop were also neglected when they were launched last year.

Both of the two core businesses suffered setbacks, causing MediaTek to almost collapse, and the company was once on the verge of bankruptcy.

Fortunately, Cai Mingjie is still very capable. He did not shrink back when faced with desperation. Instead, he faced the difficulties and led the team to carefully study the mobile phone chip market. They keenly discovered that the mainland market will be the most promising in the next ten years. market!

And targetedly launched a one-stop mobile phone solution. This set of solutions is not aimed at the European and American markets at all, because the mobile phone giants there will not adopt their design solutions.

Cai Mingjie and his team are targeting the mainland market, and it is a low-end market!
Sure enough, after the launch of this one-stop mobile phone solution, it first set off a small boom in the Huaqiangbei market in Pengcheng, which gave MediaTek a glimmer of hope.

Then a mobile phone company from Pengcheng came to seek cooperation.

The mobile phone company called Legend was quite loud at the time, saying that it would purchase more than 500 million sets of MTK systems within a year.

Cai Mingjie was both surprised and delighted at the time, and he still couldn't believe the strength of Legend Mobile Company, thinking they were bragging.

But it's not wrong to try it out, and it's not that they don't give money, they just want to use big purchases to lower the price.

A few months later, in 2004, the legendary mobile phone gave Cai Mingjie and MediaTek a huge surprise!

The legendary CQ1 mobile phone was launched on the market. With an ultra-low price of 998 yuan, it broke through the market of mainland brand mobile phones in one fell swoop, causing a great sensation.

In two months, 300 million mobile phones were sold!
According to this trend, let alone 500 million sets, maybe 2000 million sets may not be enough!

Legend Mobile has also become MediaTek's largest customer, accounting for [-]% of MediaTek's chip shipments!
Seeing that MediaTek is about to rise again...

…………

"Although the current situation is very good, everyone should not be proud. We must take advantage of this momentum and continue to work hard! In the mobile phone chip industry, we are just newcomers, and there is still a big gap compared with the old manufacturers such as Texas Instruments and Qualcomm. Fortunately Legend has helped us open up the mainland market, and all of our research and development goals are to closely integrate with the mainland market and cater to the needs of users there..."

At the company's high-level meeting, Cai Mingjie was talking endlessly to boost the morale of his subordinates, when his secretary hurried in.

After coming to Cai Mingjie, he approached him and said softly, "Mr. Cai, there is an emergency!"

Cai Mingjie was taken aback, and asked back, "What's going on?"

The secretary looked at the other people in the conference room, and seemed a bit uncomfortable to speak.

Cai Mingjie's heart sank suddenly, it seemed that something bad had happened.

He hurriedly pulled the secretary out of the conference room.

As soon as he went out, he asked urgently, "What happened!"

"Legendary just called and said... that they are not satisfied with our new quotation and are planning to cancel the future cooperation." The secretary lowered his head and said hesitantly.

Cai Mingjie turned pale with shock.

Legend Mobile Company is MediaTek's most important customer, and Legend's order can even be said to be related to the life and death of MediaTek!

If the cooperation is really cancelled, among other things, the stock price of MediaTek will be "dead" to him first.

The company's market value has plummeted, and shareholders will not let him go.

"Did the other party say what the reason is? Why did they suddenly cancel the cooperation? If it's just because of the price, it can be discussed." Cai Mingjie asked nervously.

"I didn't make it very clear on the phone. I just said that other chip companies have also come up with a solution, which is more advanced than ours and the price is lower." The secretary replied.

Cai Mingjie calmed down at this moment, as expected, there was a competitor playing tricks.

(End of this chapter)