I ask you to build tractors, but you build rockets?.

Chapter 753 Chip Crisis
Nasdaq, the U.S. stock market is experiencing another unprecedented crisis.

Intel's surge is just a tiny exception in the market and a completely unexpected result.

After all, Intel itself has always wanted to get rid of its physical business and focus only on IC design.

Chip factories are indeed high-tech, but sometimes they do not necessarily mean high profits. Success stories like TSMC are inevitably accidental. For Intel, working in the real industry is solid and hard work. In the last few years of the original world line, they kept selling their chip factories.

However, no one expected that due to the changes in TSMC, Intel would temporarily become the only high-end process supplier. Even though the overall market was pessimistic and downward, Intel still managed to rise against the trend.

However, other companies are not so lucky. Whether due to practical factors or external influences, TSMC may not be able to supply goods normally in a short period of time, which almost means that they have no goods to sell.

No matter how good the product is, you have to sell it!
And now, Cook is facing this vexing problem.

The iPhone X was released last year, and the next generation is scheduled to be released next year, so there is no need to rush for new products for the time being.

However, the iPhone X is still the flagship product and is selling well. If the chip supply is cut off, it means that the financial report will not meet expectations for at least one quarter, which will have a huge impact.

There is also the iPad Pro 2018 which will be released next month. Mainland China's motherboard, casing and other foundries have already entered the stockpiling period at full capacity, but the chip inventory is only hundreds of thousands, and they will be gone as soon as they are thrown out.

As long as Apple does not want to ruin its reputation, Cook cannot hold a press conference under such circumstances.

"Ternus, how's the situation over there?"

Cook looked at Chief Hardware Engineer Ternus, who was also very depressed:
"Not good. Although the factory was not damaged, the unrest caused production to basically come to a halt. Even if the chips continue to be produced, I'm afraid we won't be able to get them and install them in our products."

Ternus's tone was rather tactful, but Cook could immediately tell what he was worried about, and it was not without reason.

There is almost no hope of expecting continued delivery in the short term, and this is a problem that must be recognized.

"What about Intel? Can Intel find a solution?"

Ternus still shook his head:
“A12X is a 7nm process, and Intel’s 10nm process has just been successfully developed. The theoretical transistor density is equivalent to TSMC’s 7nm, but it is basically not universal, and its reliability has not yet been verified.

But the biggest problem is that they don't have the production capacity. I have already asked about it, and Pat said that they are preparing to fully expand the 9th generation Core production capacity in the second half of the year. The 10nm process is for the 10th generation Core to be released next year, and there are no available production lines at all.

If we need to, we can start production as early as April 2019.”

"Six months later? Make us wait six months and use their shitty technology?"

Cook was a little annoyed, but Ternus continued to make up for it:

"And it's a high-priced, shitty process. Pat told me that Intel plans to re-enter the mobile market and hopes to invest in us or acquire some of our patents..."

"Let these sons of bitches dream!"

Cook certainly knows what those people are thinking. Since the emergence of smartphones, Blue Factory has always wanted to enter the mobile sector and has successively released mobile processors and communication basebands. Later, it was unable to compete with Qualcomm and had to reduce its investment in disappointment.

Note that it has not stopped. Intel always has its eyes on the mobile market. Now major mobile phone chip manufacturers are about to face an unprecedented chip shortage. It would be a shame not to take advantage of this God-given opportunity.

Intel does have some problems with production capacity and process, but they are not fatal. The next generation of Core uses the newly launched 10nm process, and there is still a lot of capacity available if the production capacity is lower than this process.

Moreover, the 10nm production capacity is temporarily idle for seven or eight months. According to Intel's own thinking, their 10nm process is completely comparable to TSMC's 7nm, and there is no problem. It happens that these seven months will be the weakest time for several major mobile terminal manufacturers. Intel has already started to operate under the encouragement of old Morgan and is ready to make a big move.

"No, we can't just sit there and wait for death."

Cook stood up and walked around behind his desk. After a while, he made up his mind:

"Prepare the plane immediately. We must not give up Tai MC's production capacity. Without Tai MC, we will have nothing to sell!"

Ternus: "But what if..."

Cook: "Do investors want to see a technology company with a market value of more than $1 trillion shut down, with a large number of designs that cannot be applied?

Even if we find another supplier, it will take at least several months from receiving the order to putting it into production, and we simply don’t have that much inventory on hand!”

Just half a month ago (one and a half months later than the original world line), Apple's market value just exceeded one trillion, making it the most valuable technology company and it was the talk of the town for a while.

Of course, its market value has now fallen again, and all executives are trying to find ways to reverse the decline.

Cook believes that those people know what to choose. Even though many people have clamored to blow up TSMC in the past, isn’t it doing well now?
And if it were to blow up, a few major technology companies alone would hunt it down to the ends of the earth.

In the free world, nothing is more important than the US dollar!
No matter what the rules are, you have to make concessions when it comes to making money!
……

Capital International Airport.

Steve Mollenkopf hurried off the plane, looking like an ordinary tourist in a hurry.

As the leader of Qualcomm, his trip had no spectacular entourage, no welcoming officials, no reporters or cameras, nothing.

He, several senior executives and their corresponding assistants hurriedly booked the fastest flight and flew to Beijing with the most anxious attitude.

Steve walked in front and saw several officials wandering around the tarmac, several of whom looked familiar.

A smile instantly appeared on his face, and he said to the secretary:

"Although we came in a hurry, we still received the due courtesy. That's great. This is really good news. However, they seem to be standing in the wrong place, but it doesn't matter. We have to get there quickly."

However, the secretary was obviously not so optimistic. He frowned and looked over there for a few times, then saw several figures in work clothes.

Printed on the work uniform is: Intel (Hua).

He quickly stopped the president's actions and told him that he was here to welcome Lan Chang. Steve's face suddenly became somewhat unbelievable.

"Why are they here? The bulky X86 does not require high-end production capacity. They can produce it in their own small workshops."

The secretary thought for a moment and said uncertainly:
"Maybe... they want Tai Jichuang to not return to normal so quickly?"

"Oh! Shit! Come with me!"

(End of this chapter)