Rebirth 99 to become a car giant.

Chapter 783: Internal strife among American giants, unprecedented breakthrough of Nanshan Equipment
"Do you think Nanshan Semiconductor will be willing to cooperate with us?"

"They have mastered the equipment and technology for producing chips and have the supply of relevant raw materials. They are not afraid of our threats at all."

Otellini looked at Pat a little uncertainly.

If he were the person in charge of Nanshan Semiconductor, he would definitely be unwilling to make peace with Intel.

At least in the Chinese market, they are absolutely unwilling to give Intel a piece of the pie.

"Nanshan Semiconductor's chips are currently mainly used in parts of Nanshan Automobile Group and products of Honor Technology Group."

"The number of external sales is actually very limited."

"In this case, the conflict between us is not particularly deep, and there is every chance of reconciliation."

"We can even discuss with them, agree on our market scope, and work together to make money."

Pat feels that Intel's biggest enemy is AMD, and there is no need to waste so much time dealing with Nanshan Semiconductor.

Especially now that Nanshan Semiconductor is so difficult to deal with. If you spend too much energy on the other party, the gains will outweigh the losses.

At that time, you can legitimately earn high US dollar profits.

Therefore, the performance of Intel, which everyone is familiar with, in the field of mobile phone chips is indeed very poor.

"If we give up the mobile phone chip market to Nanshan Semiconductor, then it will be possible."

Moreover, Intel's chips are based on the x86 architecture, which is characterized by high performance but high power consumption and heat generation, which makes them difficult to adapt to the needs of portable mobile devices.

But being able to make them uncomfortable and make them change from making money while lying down to making money while standing up can be regarded as the result of a lot of hard work.

After all, Intel is a big name in the semiconductor industry that no one can ignore.

The baseband is not what Intel is good at.

Although the computer chip market has never been the focus of Nanshan Semiconductor's efforts, if it is to be completely abandoned, that is another topic.

For him, if the situation can really be stabilized, then it is acceptable not to bother Nanshan Semiconductor.

The charter still attaches great importance to the connection with Intel.

"But asking us to give up the computer chip market means giving up a huge market."

"Purchasing equipment is an investment they need to make. Although choosing Nanshan equipment can be regarded as an olive branch extended by them, it is not enough to make us give up the computer chip market."

"You ask the Huaxia branch to contact Nanshan Semiconductor first to see if the other party is willing to cooperate."

Cao Yang obviously would not agree to Intel's proposal so easily.

That would directly shake Intel's foundation and is unacceptable.

If we can make an agreement with Nanshan Semiconductor, Nanshan Semiconductor will only supply computer chips to Honor Technology in the future and will not compete with Intel for the market.

These actions of Intel quickly reached Cao Yang's ears.

When Zhang Jing said this, Cao Yang became interested immediately.

"Intel itself has little market share in mobile phone chips and car-grade chips. For them, if they don't compete with Nanshan Semiconductor in these two fields, there is absolutely no pressure to give up."

Otellini asked further.

"Intel's 14nm chip technology should be able to achieve a breakthrough soon. I don't think they lied to us about this."

Although he knows that no matter how Nanshan Semiconductor develops, it is impossible for chip giants such as Intel to go bankrupt.

It is acceptable for everyone to focus on a part of the market.

Otellini is now most worried about Nanshan Semiconductor starting to use 14-nanometer chip technology to compete with Intel for the computer chip market.

This condition is entirely possible to achieve.

"Mr. Cao, Intel said that as long as I don't enter the computer chip business outside the group in the future, they will not compete with us in mobile phone chips and car-grade chips."

"If possible, then when I go to China for inspection in a while, I will take the time to meet Cao Yang."

But after all, there are differences between smartphone mobile processors and computer CPUs. Smartphone processors not only have CPUs, but also GPUs, basebands, etc.

There is no doubt that in the chip field, Intel has been established for a long time and is also a very powerful company. It is the industry leader on the PC side.

When Pat said this, Otellini fell silent.

Although companies in the chip industry alliance such as Nanshan Equipment will not lack orders in the past two years, China's semiconductor industry is only a part of the global semiconductor industry.

Furthermore, Intel is worried that selling CPUs as independent IP cores will lead to the outflow of technology. It is also worried that it will risk losing the entire server market in order to compete for the mobile market.

If the equipment cannot be sold overseas, the upper limit of development will still be affected to a certain extent.

In addition, x86 architecture processors need to be translated when running applications of the ARM instruction set, which will lead to a significant decrease in performance.

Nanshan Semiconductor will just work hard in the fields of automotive-grade chips and mobile phone chips in the future.

"Do you think Nanshan Semiconductor can give up the telecommunications chip market?"

Cao Yang also hopes that Nanshan Equipment’s photolithography machines can be sold around the world like ASML.

"Our most important market is the computer chip market, which is also the largest market in the chip field."

"Indeed, that's why Intel said they plan to invest in building a dedicated wafer fab and related packaging and testing factories in China. The factory's equipment can be purchased from Nanshan Equipment."

After thinking about this clearly, Otellini was no longer entangled.

"They want to work with us to suppress TSMC, Samsung, AMD and other companies."

"In addition, Intel also stated that they are willing to purchase our equipment at the same purchase price as from other international equipment manufacturers."

"In the future, any factory built in China will give priority to purchasing relevant equipment from Nanshan Equipment."

“We will even consider using Nanshan Equipment’s products in some overseas factories in the future.”

Zhang Jing further listed Intel's conditions.

I have to say that this condition is not very bad.

It was even considered acceptable to Cao Yang.

Cao Yang is not only concerned about the development of Nanshan semiconductors, but also the development of Nanshan equipment.

There are some changes in the current international situation, which are very unfavorable for the development of Nanshan Semiconductor and Nanshan Equipment.

In this case, if Intel can take the lead in cooperating with Nanshan equipment, it will be very meaningful for breaking the blockade of Nanshan enterprises in the United States.

The most important thing is that there are a bunch of big guys behind Intel, and these people have enough strength to rewrite some rules.

However, Cao Yang felt that he still needed to confirm.

"The United States has relevant sanctions against Nanshan equipment. Does Intel have the guts to violate these?"

"They probably wouldn't dare to use Nanshan Equipment's products in factories in the United States."

Zhang Jing has no interest in Intel, so his answers to questions are based on the actual situation.

Intel is the world's largest semiconductor company and a leader in chip design and manufacturing.

However, in the past few years, Intel has faced unprecedented challenges and pressure. Its technological advantages have been gradually reduced or even surpassed by competitors, its market share has been eroded, and its profitability has been affected.

As the world's largest chip market and the most potential growth area, China is naturally a country where Intel focuses its development.

Under this situation, Intel itself has plans to build a local chip factory in China.

In particular, relevant departments in China are now increasing their control measures on imported chips.

If Intel can build a factory in China to produce chips, it will not be restricted by various measures.

Some places even provide some preferential conditions in order for Intel to be located in their own jurisdictions.

In addition to supporting local companies to develop semiconductors, China is actually supportive of international chip giants coming to China for development.

"Since Intel has taken the initiative to put forward conditions, then you should have a good talk with them."

"The computer market has never been the focus of our development. Compared with Intel, we do not have many advantages in this field."

"So in addition to providing chips for Honor Technology's computers, we can consider giving up expanding other computer customers."

It is an acceptable exchange to give up further development of the computer chip market in exchange for Nanshan Equipment's products going to the factories of international chip giants.

Cao Yang also knows that no matter how hard Nanshan Semiconductor works, it is impossible to monopolize the huge chip market.

That would strangle oneself to death.

……

Intel moves quickly!

After Nanshan Semiconductor had preliminary communication with them, the bosses of both parties immediately met in Yangcheng.

Then Intel officially announced plans to build a new factory in China to expand its business in the Chinese market.

What's even more critical is that in line with the policy requirements of relevant Chinese departments, most of the equipment in Intel's Chinese factories will be purchased locally to further enhance Intel's competitiveness.

As soon as this news was announced, it immediately caused a huge sensation.

"Otellini, what does Intel mean?"

"Didn't we agree to deal with Nanshan Semiconductor and Nanshan Equipment and encircle and suppress them?"

"Why do you want to purchase photolithography machines and other equipment from Nanshan Equipment?"

Apple CEO Kukah called Otellini directly and was met with accusations.

Apple refused to use Intel x1993 around 86, and it wasn't until 2005 that Apple was ready to agree to move its Mac platform to Intel's x86.

However, while it publicly celebrated the decision, Apple was also working internally on other plans that didn't involve Intel.

Apple originally hoped to use Intel's built-in XScale chip to provide computing power for the iPhone.

Intel CEO Otellini turned down Apple, fearing that its phone project wouldn't be successful enough to repay Intel's investment.

Facts have proved that Intel's judgment at the time was wrong.

In just a few years, Apple's success with the iPhone was so obvious that Intel was eager to work with Apple on future mobile products.

Especially for its upcoming tablets, Intel wants Apple to choose its upcoming x86 Silverthorne mobile chip.

But this time Apple rejected Intel and instead launched the development of a new custom ARM "system-on-chip" project.

This project will provide the computing power of iPad and iPhone 4, which will lead to the subsequent A4 series of chips.

Over the next few years, Apple aggressively invested in the development of its own A-series chips, while at the same time planning to wean itself off its continued reliance on Intel chips in Macs.

This is certainly something Intel has a problem with.

"Kuka, wake up and recognize the reality." "Back then you told me to join forces with ASML to deal with Nanshan Semiconductor and not sell them lithography machines."

"In the end, Nanshan Equipment built the lithography machine by itself."

"Then you took the initiative and asked everyone to join forces to encircle Nanshan Semiconductor on the photoresist, hoping to kill it."

"You also know what the result will be."

"Photoresist manufacturers such as JSR and DuPont probably don't have a big opinion on us, right?"

"After that, we tried hard to find a way to deal with Nanshan Semiconductor in terms of inert gases, but before we took any formal action, Nanshan Semiconductor's brother companies began to produce various electronic special gases themselves."

"If the encirclement and suppression continues like this, maybe Nanshan's equipment will be encircled and suppressed and become the number one in the world!"

Otellini was very rude and criticized Kuka.

Although he previously supported the encirclement and suppression of Nanshan Semiconductor and Nanshan Equipment, he wanted to use these measures to prevent the rise of a new rival.

But these measures failed.

For Intel's own benefit, he began to change his mind.

Apple is already looking for ways to use its own chips in its Macintosh computers to break away from Intel.

Nanshan Semiconductor has also begun to provide CPUs for Honor Technology computers. In the future, this market will have nothing to do with Intel.

If this situation is allowed to develop, it will definitely be very bad news for Intel.

Obviously, Otellini does not want the situation to continue to develop like this.

"Otellini, you should know that it is in the interest of the entire United States to encircle Nanshan Semiconductor, block Nanshan equipment, and suppress China's semiconductor companies."

"It won't do any good if you interfere with it like this."

Kuka was a little angry. He really didn't expect Intel to jump out and backstab everyone first.

Among American semiconductor companies, Qualcomm, Apple, and Nanshan Semiconductor have the deepest teeth.

But Intel definitely has no friendship with Nanshan Semiconductor.

Now he doesn't understand what happened behind this.

"Kuka, if Apple's computer business abandons the use of self-developed chips in the future, we at Intel are willing to stand with Apple."

"Do you want to?"

Otellini felt unhappy after hearing what Kuka said.

So he killed Kuka with just one sentence.

If you want to get rid of Intel but don't let Intel find a way out on its own, do you want Intel to fall?
Given Nanshan Semiconductor's influence in China, if they fully enter the computer chip market in the future, 80% of China's market may be snatched away by them.

This is something Intel absolutely cannot accept.

Regarding Otellini's rebuttal, Kuka opened his mouth, not knowing how to answer.

Naturally, it is impossible for Apple to continue to use Intel chips on a large scale in computers. This is related to their company's development strategy.

Not only do we not want Intel chips in computers, but all other Apple products will slowly no longer use Intel chips.

Kuka knows this very well.

Now that Otellini has put the issue directly on the table, he doesn't know how to refute it.

So in the end he had no choice but to hang up the phone and watched helplessly as Nanshan Equipment made an unprecedented breakthrough and began to provide lithography machines and other equipment to Intel's China factory.

Also shocked by this news in Africa was ASML.

ASML has always regarded Nanshan Equipment as its main competitor in the world.

That's why they are busy trying to encircle Nanshan Equipment and Nanshan Semiconductor, so that the entire world's semiconductor industry can return to the development rhythm they want to see.

But all these efforts obviously failed.

"Pete, Intel is going to start using Nanshan equipment's lithography machines. What should we do?"

Christopher is panicking now.

Intel is one of the shareholders of ASML, and now it doesn’t use ASML’s lithography machines.

That is why ah?

Why did the world suddenly become like this?

"Christopher, Intel only uses photolithography machines from Nanshan Equipment in newly built factories in China. Not all new factories in the future will use their products."

"I think this is mainly because Intel wants to expand the Chinese market, so it is a compromise made in accordance with the requirements of the relevant departments in China."

Peter wasn't so flustered now.

When the relevant departments of China introduced policies some time ago, they already brought huge pressure and blow to ASML.

The company is basically mentally prepared to lose the Chinese market.

The current cooperation between Intel and Nanshan Equipment is itself a manifestation of lost orders in the Chinese market.

That's why Peter felt there was no need to be so panicked.

But Christopher didn't see it that way.

"Intel, as the world's most influential chip company, takes the lead in using Nanshan Equipment's lithography machines, which will set a very bad example for the entire semiconductor industry."

"In the future, it will be a bit untenable if we continue to use Nanshan Equipment's lithography machine technology as an excuse."

"I'm worried that companies such as TSMC and Samsung may use Nanshan equipment's lithography machines in factories in China in the next step."

"Even in markets outside China, they will use Nanshan Equipment's lithography machines."

"If this happens, the future of our company is over."

Christopher felt that his worries were definitely not unfounded.

How could Nanshan Equipment give up such good conditions and not explore the market?

However, it was useless for him to worry.

After losing its technological advantage, it is no longer realistic for ASML to go back to the past.

Of course, ASML will definitely not go bankrupt.

It's just that I can't live the comfortable life I used to.

After all, the world can still accommodate the two lithography giants from the East and the West.

In particular, some changes in the United States in the future will give ASML further development opportunities in markets outside China.

"The competition between Intel and Nanshan Semiconductor is not that fierce. It is estimated that this time they chose to negotiate in order to prevent Nanshan Semiconductor from considering itself the main competitor."

"I think whether it is Apple, Samsung, or manufacturers such as TI and TSMC, they will not easily follow Intel's path."

Peter once again gave a definite guess.

This calmed Christopher down a bit.

But the anxiety in my heart can't be overcome no matter what.

Also as anxious as Christopher is Samsung’s Lee Jae-lin.

"Chai Hang, Intel is now proactively cooperating with Nanshan Equipment, which means that the international chip giants' joint suppression of Nanshan Semiconductor has caused internal strife and huge cracks."

"This is a very bad thing for our company."

"Is there anything you can do to change this situation?"

As the general manager of Samsung China, Li Zailin can see the threat to Samsung from this incident.

The better Nanshan equipment develops, the better Nanshan Semiconductor will develop.

As Nanshan Semiconductor develops well, Samsung will be under greater pressure.

"I think Intel's change is ultimately a choice of interests."

"They found that there seemed to be no way to block the development of Nanshan Semiconductor and Nanshan Equipment, so it was better to simply change the direction proactively, otherwise blindly blocking it would be counterproductive."

When Chai Hang said this, Li Zailin was a little confused.

“How come the lockdown is counterproductive?”

"Mr. Li, companies in the Nanshan Group are very different from other Chinese companies. They have mastered many core technologies."

Chai Hang clarified his thoughts and prepared to have a good exchange of his views with Li Zailin.

"Judging from the cases over the past many years, as long as they set their minds to do anything, they have succeeded in everything."

"The more everyone suppresses them, the more they have to innovate independently and break through everyone's blockade."

"Without this kind of suppression, in the face of a booming market, their technological breakthroughs might not have been so fast."

"This should be what Intel wants to see happen."

Chaihang’s statement is quite similar to Intel’s internal view to some extent.

However, Li Zailin found it difficult to accept it.

When did Chinese companies actually have such influence?

This will prevent Samsung from living a good life in the future.

"If Intel does this, other chip companies will also have strong opinions on it, right?"

"Asmai's side must also have opinions."

Li Zailin knew that Intel, Apple and other companies had joined forces to deal with Nanshan Equipment and Nanshan Semiconductor. Now that the situation suddenly turned into the current situation, he felt that other companies must have the same opinions as him and would have great opinions.

"There are definitely opinions. After all, in addition to Intel, many other chip companies have relatively strong competition with Nanshan Semiconductor."

“But what if I have an opinion?”

"This is Intel's own choice."

"Mr. Li, I actually think that since Nanshan Equipment's lithography machines have technical advantages and huge cost advantages, we should adjust our strategy in a timely manner and purchase lithography machines from Nanshan Equipment, which should also be included in the agenda. ”

Chai Hang boldly proposed an unprecedented proposal.

This made Li Zailin's face suddenly look ugly.

He would never have the guts to propose such a plan to the headquarters.

(End of this chapter)