1993 Glamour at a Glance

Chapter 173 Who wins and who loses?

Sun Yan was stunned for a moment and then laughed: "Boss Song is joking, right? We have worked so hard to research this product, and the life cycle of this product is only a few years. This is not equivalent to selling it to you for a total of 150 million US dollars. Yet?"

After finishing speaking, he shook his hands and said disdainfully: "As for the situation in Huaguo, you said that you only use it for your own use but not sell it. It's not that I don't believe you, but that even if you secretly sell it to others, it will be troublesome for us to pursue it. Let's settle the score a little bit. From next year onwards, the production capacity will be increased. It can sell at least 100 million pieces a year, and there will be more in the next year. Mr. Song is also a businessman. In calculating the profit, we can license out 50 US dollars a year, which is a good deal for us. ?"

"Mr. Sun, the 50 US dollars does not require you to purchase raw materials, organize production, store and sell. This is an additional net profit from the direct realization of research and development costs."

"That's not what I said. We've lost a piece of sales since the authorization was given to you, didn't we?" Sun Yan was convinced of his appearance, and said with a smile, "Mr. Song, just wait a little bit. It is said that the delivery can only be made in June, which is based on the current production capacity scale, and we are also trying our best to find ways to increase production capacity."

He has this confidence.

At this moment, Skoop is the only supplier of mpeg1 standard decoding chips in the world.

It was not until Aiduo VCD supported another small manufacturer ESS that Scooper's monopoly was interrupted.

During this process, the price of the Scooper decoding chip, which cost $5, first soared to $75 a piece, and then fell to $10 a piece due to competition.

This price is also the core reason why the price of VCD players has fallen to a low price.

Song Yang now also feels the difficulty of entering the game at the beginning.

Rao waited for Wanyan to spend money to educate the market on what VCD is before entering the market, but he still had to face the problem of core spare parts supply.

Even if there is someone like Wang Yuan, it will not be a short period of time for him to come up with a commercially viable chip with competitive performance and cost.

The time and money people spend in advance always have their short-term competitive advantage. .

Of course, the current situation is mainly due to the entry of Lesong Investment, which has released a big move that is very accurate for Sanyou Electronics.

Calmly let Sanyou Electronics start production, and after Sanyou Electronics asked the market for front-line endorsements and bought a large number of copyrights to prepare for a big deal, it suddenly cut off the supply of decoding chips for you temporarily.

By throwing money at it.

Just as Wan Yan herself didn't order so many chips at the beginning, no one will spend tens of millions of funds to stock up a large number of chips before seeing the real sales data feedback.

Although Song Yang had this vision, Li Ping and Li Ru did not.Li Ru is the one who pays the most, let him sell the car and sell the chip first?Isn't that a mess?

Now, the General is here.

Song Yang did the math.

According to the original idea, Sanyou Electronics plans to produce about 2000 million VCDs in the entire life cycle of VCDs, and then it will transfer to DVD products.

2000 million decoding chips, according to the average price in this cycle, need 5 to 10 billion US dollars.

The $5-10, the profit margin for Skooper is terribly high.

Of course, now that Sun Yan said that 50 a year is too little, it is impossible for him to imagine that this broken chip will have a shipment volume of [-] million.

In his concept, this thing is a million-level production scale a year, and it reached tens of millions of pieces at its peak, and it is likely to be only one year.

Song Yang looked at him, and said after a long time: "If 50 US dollars a year is too little, how many pieces will we produce in this year, and each piece will pay another 2 US dollars in patent fees?"

Sun Yan's heart skipped a beat.

Such a model is very reasonable.

There is a guaranteed income and a net income of $2 per tablet.

Jiang Wan said that Sanyou Electronics had an extraordinary background, and he really had to be cautious.Relying on the friendship of cooperating in the research and development of VCD players, Sun Yancai told him that Sanyou Electronics had ordered [-] pieces.

In the first year, there were 1 pieces, and now Wanyan has ordered 10 pieces. As their big competitor, Sanyou Electronics, their plan for next year should also be at this level.

That is, there is no need to do anything, and a net income of 70 pieces is collected a year.

Sun Yan shook her head after pondering: "$2 a piece is too little. Mr. Song knows the price of our current chips. Although there is a guaranteed license fee of 50 US dollars, if it is a scale of 10 pieces, the net profit we can earn Profit, more than $7 per piece."

Song Yang looked at him deeply.

For the $5 thing, their agent in the Asia-Pacific region now sells it for more than $30, and he sells it for at least $20, and it is true that the net profit per piece is more than $7.

Sun Yan said nonchalantly: "Besides, it's on the market as you go. Naturally, the authorization time cannot be signed for three years at the same price. Mr. Song, if you can't wait, then sign for one year first. The authorization fee of 70 US dollars, in addition Pay a patent fee of $5 for each piece produced."

……

Time waits for no one. If Professor Wang Yuan and the others take this chip to analyze and restore the integrated circuit design diagram, then modify and optimize the design, and then find a foundry to tape out the sample to test the performance and evaluate the cost. It will be officially put into production and shipped, and if everything goes well, it will take a year to pass.

Later, you also have to face legal risks.

In Sun Yan's eyes, Song Yang was in a very unhappy mood during the negotiation with him.

In the end, the two sides negotiated a one-time payment of 70 US dollars in licensing fees, and another 2.5 US dollars in patent fees for each piece produced.

Calculated on a scale of 10 pieces, the price is 95 US dollars.

The more they produce, the less cost-effective it will be for Skopper.

But judging from what he has learned so far, Jiang Wan is well prepared, and this Sanyou Electronics may not be able to survive next year.

So it's okay to increase the authorization fee a little bit.

What Sun Yan thinks is that the licensing fee is 100 million, and each film can be 2 US dollars.

In the end, it was a compromise between both parties.

It's just that Song Yang's compromise was very reluctant in Sun Yan's eyes, and he specifically proposed the confidentiality clause in the cooperation agreement.

Sun Yan agreed with a smile.

In any case, there is no need to do anything, and based on the scale of 10 pieces, the net profit of one piece is 9.5 US dollars.

He doesn't care about the competition among these complete machine manufacturers.

On the contrary, it now appears that this Sanyou Electronics has entered the poker table and has to continue playing.

A complete machine manufacturer is now going to find a chip foundry to worry about chip production.The time period, quality, and not being able to directly use the name of Skopper will become their disadvantages in the competition with Wanyan.

For Sun Yan, the most ideal situation is that they paid the $70 for nothing, and they have to queue up to buy chips from Skopp later.

Then you have to admit it.

How can chips be so fun?
Sun Yan really wanted to say something to Jiang Wan, he was too nervous about Sanyou Electronics.

What's the big deal?It's completely out of order!
Song Yang, who negotiated to leave from Skober, was very satisfied.

One year is enough.

He proposed to sign for three years and asked for a licensing fee of 50 US dollars, all of which were just negotiating tricks to get Sun Yan to counter the price.

It will be much faster to get the original chip design file and directly combine this technology with our own products to optimize, upgrade and modify.

After all, Professor Wang Yuan's team already has accumulated research on the mpeg2 standard.

Damn, for a year, not to mention the mpeg1 decoding chip, on the basis of mpeg2 that has not yet fully determined all standards, Sanyou Electronics can try to make the so-called super VCD between VCD and DVD in advance, as The main model of the next year will go on sale.

70 US dollars is not a small amount of money, which is less than 500 million based on the exchange rate.After that, for every piece produced, you have to pay the foundry, and you have to pay $2.5 to Skopp.

However, compared with the licensing fees of millions of dollars or even tens of millions of dollars for later high-grade chips plus the patent fee per chip, it is acceptable.

The main reason is that the foundries at the moment are extremely thirsty for business. They have the ability and enthusiasm to control the cost price of qualified products to a level that is not much higher than that of a factory like Skoop, and may even be lower.

It only depends on the maturity of the process and the scale of production.

What 10 pieces... If the first batch of products sell well, the production capacity of Sanyou Electronics next year can be planned to reach one million.

Even if Wanyan hadn't snapped up 10 chips, the Scoopers might not be able to supply Sanyou Electronics at their original pace.

If the scale of hundreds of thousands or even millions of pieces is used, the licensing fee of 70 US dollars is less than 1 US dollar per piece.

That way, he should eventually be able to get chips for less than $10 each.

What is the cost of Wan Yan?The price of this spare part is definitely twice that of Sanyou Electronics.

While Song Yang was still in the United States, he didn't bother much.

First, I told Professor Wang Yuan that I have purchased the chip authorization and that there will be original design technical documents, and then asked him about his confidence in optimizing and improving to make his own new model.

In the new year, Li Ping invested another 200 million in scientific research funds.

And Wang Yuan received some cold reception at this meeting, and he also took a deep breath.

Obviously there are advantages and uniqueness in some specific algorithms, but it is still only listed as an alternative.

The next step is to announce the preliminary standard and technical route next month, and then wait for the two-year market application test.

Although Wang Yuan's achievements are also included, if they are not adopted by mainstream products in the future, then of course there will be no so-called patent fees.

He has already rallied and wants to go back and do this matter thoroughly and thoroughly.

As for the continued supply of Sanyou Electronics' chips after they run out, there are still a few months in the middle, and Song Yang also asked him to do some small optimizations for the error correction technology at the chip level.

There are two hands ready.

One is to directly take the existing design plan and go to the foundry for tape-out, and look at the performance, yield, cost, and production capacity.If it's OK, put a card on it.

The second is to communicate with small optimizations at the same time, and then tape out, which will take a lot of time, and there is no guarantee that it will be continued when the time comes.

Song Yang didn't bother too much. Since he was looking for someone to be a chip foundry, of course he contacted Bay Semiconductor directly.

Let’s not talk about right and wrong in the future. At this time, the biggest customer of Gulf Semiconductors is Intel, and some of them have been squatting here in the United States for a long time.

After asking around, I asked about the phone number of the person in charge of GSMC here. After Song Yang called, the other party heard that it was a company from Huaguo, so he spoke English euphemistically, expressing how advanced their current process is, implying that With the cost and so on.Especially if the scale is small, it is even more difficult to verify the tape-out of the lithography machine.

Song Yang said to him very calmly: "If you can do it, I have a plan of 2000 million pieces within three years. The total scale of new designs that follow may reach hundreds of millions of pieces. It's not low-end products, the latest audio and video standards decoding chip."

He's not bragging. In the future, DVDs will indeed be sold worldwide, and the mpeg2 standard decoding chip will not only be used in the field of home appliances.

There are application scenarios in the fields of broadcasting and cable TV, and even in the fields of video conferencing and video surveillance.

The voice on the phone immediately changed to a very locomotive voice: "Mr. Song, please tell me, I am listening!"

(End of this chapter)