Reborn in 2011, 985 missing from two copies

Chapter 437 Semiconductor strategy, expansion, and death!
"Nvidia chips and Pterosaur basebands are sold in bundles? Fighting Qualcomm together?"

Wang Yi instantly understood Lao Huang’s thoughts.

There are only a few companies in the mobile chip field at present, and their situations are not the same.

The previous chip giant, Texas Instruments, is now half dead.

Qualcomm, the new absolute king, is at the peak of its popularity and is unstoppable.

MediaTek's efforts are focused on the low-end market, but currently it is still exclusive to copycat phones and is not worth mentioning.

As for Apple, if it is just for personal use, it is also harmless.

The rest are just some scattered soldiers, and Nvidia doesn't even take them seriously.

The only ones who can have an impact on Qualcomm are Nvidia and the emerging Star Semiconductor.

But it is obvious that no matter whether it is Nvidia or Star Semiconductor, even if added together and multiplied by three, they are still no match for Qualcomm.

In this situation, if they fight alone, neither Xingyi Semiconductor nor NVIDIA will have any chance of winning.

After all, even a super giant like Texas Instruments was killed by Qualcomm, let alone Nvidia and Star Semiconductor?

On the contrary, only if both sides cooperate can there be some chance of winning.

This is what Lao Huang is planning.

Wang Yi would not refuse this.

In the field of chips, Qualcomm must not be allowed to continue to monopolize and grow.

It is for this reason that Wang Yin would rather support Nvidia than aid Qualcomm.

After all, Nvidia is not a concern, but Qualcomm makes Wang Yi very wary.

Now Nvidia chips and Xingyi Semiconductor's Pterosaur baseband are sold in a bundle, which is a strong combination and a good thing.

The enemy of the enemy is the friend.

As long as it can achieve Qualcomm’s strategy, it is a good strategy for Wang Yi!
As for Nvidia?
Wang Yi didn't care that they were not a rival to Xingyi Semiconductor at all.

After all, it is still a question of how long Nvidia's mobile chip business can survive.

To put it bluntly, if Wang Yi didn't do anything, Nvidia would probably be ruined in a year or two.

Qualcomm is the biggest enemy!
Thinking of this, Wang Yi said decisively: "This is a good suggestion, I think it's okay!"

Old Huang was overjoyed. He made the right bet. "Boss Wang, I'll go talk to the customer right away. The estimated delivery time is November. Is that feasible for you?"

"November? No problem at all! I will contact TSMC right now to manufacture the Wing Loong 11 baseband!" Wang Yi agreed decisively.

Xingyi wafer factory has limited production capacity and can only give priority to the production of Kunpeng 702. Kunpeng 700 may have to be manufactured by TSMC.

As for the baseband, it needs to be outsourced.

Produce 5 million pieces per month and sell them slowly.

Huawei needs it, and other domestic companies need it.

To put it bluntly, if you want to do mobile 3G and full network access, you cannot do without Xingyi Technology's Wing Loong 3000 baseband.

Add Nvidia's customers to the mix, and the sales will be even more impressive.

Not only can you make money, but you can also seize Qualcomm's market. Why not do it?

"That's great." Old Huang was in a good mood: "Director Wang, how do we calculate the price of the bundled sales?"

王逸想了想：“当下，高通APQ 8064对外售价20美金，3G基带15美金，一套35美金。4G版本37美金。”

"If we want to compete with Qualcomm, we can only rely on cost-effectiveness."

"Qualcomm's 3G baseband does not support telecommunications or mobile 3G, and it sells for $15."

"The Yilong 3000 baseband is also 3G, but it supports China Mobile 3G and China Telecom 3G. It is considered to be a full network 3G, and it also supports overseas 3G."

“So I plan to sell it at $13, which is $3 cheaper than Qualcomm’s 2G baseband!”

13 US dollars, about 85 RMB.

The diluted cost of the Wing Loong 3000 baseband chip is around 17 yuan, and even if it is outsourced to TSMC, it is only 20 yuan.

The cost is 20 yuan, and the selling price is 85, which is totally fine.

There is still room for price reduction.

"This is reasonably priced, more powerful than Qualcomm 3G, fully compatible, and $2 cheaper. It's very promising!" Huang agrees:

"Qualcomm APQ 8064 is priced at $20. Our Tegra 3 chip has a slightly inferior manufacturing process and performance, so we should just sell it for $13!"

"This bundled sale, Nvidia Tegra 3 + Xingyi Technology Pterosaur 3000 baseband, only costs $26, much lower than Qualcomm APQ 8064 + 3G baseband, which costs $35."

"The difference is only $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 dollars is not enough. If we buy it as a bundle, we can each give a discount of 0.5 dollars. It will be 25 dollars per set, which is 10 dollars cheaper than Qualcomm. Qualcomm's solution is 40% more expensive than ours!"

"Yes, if the cost of a mobile phone differs by 10 US dollars, the cost of 1 million mobile phones will differ by million US dollars. Those mobile phone manufacturers will consider this gap!" Lao Huang agreed.

We all know that Qualcomm's APQ 8064 is better, but the price difference is as much as $10, so it is not as good as Nvidia + Wing Loong 3000.

Especially in Xiaguo, you can enjoy China Telecom 3G and China Mobile 3G full network access at a lower cost!
This is a full network access problem that even Qualcomm's APQ 8064 solution cannot solve.

In Xia Country, mobile users are the largest, and there are also many telecom users.

Any brand has to consider these two major user groups. This is the confidence of Wing Loong 3000 to defeat Qualcomm baseband.

This is also the basis for Lao Huang to seek cooperation with Wang Yi.

More importantly, most domestic mobile phones are currently priced at only 1500-1800 yuan, and the total cost is only around 1000 yuan. The cost difference is 10 US dollars, or 65 yuan, which is very high.

For the same quad-core, between a full network solution for $25 and a non-full network solution for $35, most manufacturers will choose the former.

Not only can you save 40% of the cost, but you can also make it fully network-accessible 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 Yi said with a smile.

"Don't worry, Mr. Wang, I will!" said Old Huang.

Although Qualcomm APQ 8064 is good, it was launched half a year late, and most users were captured 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, Mr. Wang, are we going to stop purchasing Nvidia Tegra 3 next?"

Old Huang asked about his biggest concern.

The self-developed Kunpeng 702 has been completed, and its performance is not inferior to Tegra 3. It is natural that it will completely replace Tegra 3.

Wang Yi smiled slightly and said, "Don't worry, Mr. Huang, we will continue to purchase some Tegra 3."

"Really?" Old Huang was delighted. "If so, I'll give you a lower price, only 10 dollars, no, dollars!"

The cost of Nvidia Tegra 3 is about US$5, and it was sold to Wang Yi for US$8, which is a super low price.

There is no other way. If it is too expensive, Wang Yi will give up.

It is better to sell more at a lower profit margin and earn more.

"Eight US dollars!"

Cabbage price!

Wang Yi was very surprised.

The cost of Kunpeng 702 is nearly 5 US dollars, and Huang sells it for US dollars, which is indeed the lowest price.

You can continue to purchase some for use with Xingyi TV.

After all, Nvidia Tegra 3 is much cheaper than Qualcomm's APQ 8064.

Currently, the production capacity of Xingyi wafer factory is limited, and it can only produce 1440 million Kunpeng 702 chips a month, which is not enough.

Originally, Wang Yi planned to use Kunpeng 702 to replace Nvidia's Tegra 1 in xphone 3pro.

But now it seems that xphone 1pro will continue to use Tegra 3, and directly replace the Qualcomm APQ 2 of xphone 8064 with Kunpeng 702!

There is no other reason. It is difficult for Nvidia to become a big company, so there is no need to worry. The price is cheap, just $8.

As the production capacity of Kunpeng 702 is insufficient, xphone 1pro can continue to purchase Nvidia Tegra 3, and the original external Qualcomm baseband can also be replaced with its own Wing Loong 3000.

Qualcomm is the biggest enemy and sells at a higher price.

The APQ 8064 processor costs $12, and an external baseband costs $11, so the whole set costs $23, or 150 RMB.

If you change to Kunpeng 702, which has an integrated 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 access can be achieved. Moreover, a lot of space can be created without the need for an external baseband, and the weight, power consumption, and heat dissipation of the phone will become better.

Coupled with the self-developed 64-bit processor, it can be tuned better and has more powerful performance.

When our self-developed 64-bit system + 64-bit applications are launched next year, we will be able to take advantage of the 64% performance bonus of the 30-bit processor, and the performance will soar again!

All of these are things that APQ 8064 cannot do.

In the next two months, 3000 million Kunpeng 702s will be produced.

It will be used first in Xphone 2, completely replacing Qualcomm's APQ 8064 and Qualcomm baseband.

This resulted in the complete cancellation of Qualcomm's quad-core orders, dealing a heavy blow to Qualcomm.

The extra Kunpeng 702 will be used to replace the NVIDIA Tegra 1 in the Xingyi Tablet X3pro.

There is no other reason. The iPad 4th generation with A6X is coming in with great momentum and has powerful performance, which beats Nvidia Tegra 3. Wang Yi can only replace it with Kunpeng 702 to turn the game around.

Otherwise, it will be hard to rival the fourth generation iPad.

Once we take over SMIC's wafer fab, the production capacity of Kunpeng 702 will be doubled, and then the NVIDIA Tegra 1 in the xphone 3 pro will be replaced with Kunpeng 702.

First, we will attack our biggest rival, Qualcomm.

As for NVIDIA, there is competition in cooperation and cooperation in competition.

After ending the call with Lao Huang, Wang Yi immediately called Director Qin: "Director Qin, is it convenient for you to talk?"

Director Qin looked at Mr. Zhao across from him and said, "It's convenient, Director Wang, you can go ahead and say whatever you want."

Wang Yi sighed: "Director Qin, there are bad people among the people!"

"What do you mean?"

"I just received news that Qualcomm already knows about Kunpeng 702!"

"???"

"!!!"

Director Qin and Mr. Zhao looked at each other and their expressions changed drastically.

"What's going on? It's only been this morning and the news has leaked? Director Wang, do you have any suspects? Could it be the expert team we brought with us?"

Wang Yi nodded: "According to reliable information, Qualcomm bribed a professor to spy for Qualcomm and steal our semiconductor secrets." "I see, don't worry, Mr. Wang, I will investigate right away and will definitely give you an explanation."

Wang Yi said calmly: "Check which professor often goes to the United States, or even is supported by the United States, has unknown assets overseas, and has children in the United States, then you will know who it is."

"Okay! Once we find out, we will not tolerate it."

Wang Yi waved his hand and said meaningfully: "It's okay. We can use him to pass on false information to Qualcomm."

"Haha, it seems you have a plan. Okay, Mr. Wang, let's do it." Director Qin laughed.

Wang Yi's eyes turned cold. It turned out that there were spies every year.

This is a good opportunity to pass false information to Qualcomm.

For example, this time, Wang Yi only said that "the performance of Kunpeng 702 can catch up with NVIDIA Tegra 3", so Qualcomm and NVIDIA believed it and thought that Wang Yi would use Kunpeng 702 to replace NVIDIA's Tegra 3.

Qualcomm is in an even better mood and is looking forward to seeing Nvidia go bust.

Unexpectedly, the performance of Kunpeng 702 is not only comparable to Nvidia Tegra 3, but also Qualcomm APQ 8064.

It can not only replace the Tegra 1 of xphone 3pro, but also replace the Qualcomm APQ 2 of xphone 8064!

By then, Qualcomm Chairman Jacob will be completely confused.

There is also the 28nm Kunpeng 905 with eight-core A53 architecture in the second half of next year, which can also be falsely reported by spies as quad-core A57!

If Qualcomm believes this and uses the quad-core A805 in the Snapdragon 57, it will definitely fail.

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 a quad-core A57, the result is predictable. It will be the same as the Snapdragon 810, a complete failure, and Qualcomm will be completely ruined!

After the failure of Qualcomm Snapdragon 810 in the past, it could still use the previous generation Snapdragon 805 to save its reputation.

It would be interesting if two generations failed in a row. We can't use Snapdragon 801, right?
The performance is too poor.

However, the spy incident also reminded Wang Yi that he must pay attention to core secrets and only release half-true and half-false information to the outside world.

Like this time, they directly said that Kunpeng 702 can catch up with Nvidia Tegra 3, but did not mention that Kunpeng 702 is a 64-bit architecture with excellent performance, which can catch up with Qualcomm APQ 8064, which perfectly made Qualcomm complacent.

Otherwise, Qualcomm might end up in a desperate situation.

Inside the car, Mr. Zhao's face darkened. "Sure enough, there was something wrong with the expert team. Check them one by one."

"Don't worry, leader, we'll find them out soon." Director Qin had a complicated expression: "Alas! Those people have become professors at prestigious universities, but they are still doing this. Their reputation is ruined."

Elder Zhao snorted coldly, "I'm afraid they didn't do this after becoming professors at prestigious universities. They were already spies before they became professors at prestigious universities! They were even turned against him when he was studying abroad, and then they paved the way for him to rise to the top, becoming a professor at a prestigious university and a well-known expert, so that he would have the opportunity to access core secrets!"

Director Qin's face changed drastically: "Doesn't that mean that they are not just one person, but a group of people with common interests? They even support and protect each other?"

Mr. Zhao nodded. "The faster we develop, the more wary the foreigners will be, and the more ruthless their methods will be. Let's check it out."

"Yes!"

Xingyi wafer factory.

Seeing Wang Yi walk out of the office, Mr. Hu immediately came up to him and asked expectantly, "Mr. Wang, what does the leader say about the second wafer fab?"

"Done! The second wafer fab will be built by the Imperial Capital. The monthly production capacity is 10 12-inch wafers. It will be divided into two phases. The first phase will be delivered before the end of next year, with a monthly production capacity of 5 wafers. The second phase will be delivered the year after next, with a monthly production capacity of wafers."

"That's great!" Mr. Hu was in a good mood: "The lithography machines and other equipment we ordered will also arrive in succession."

Wang Yi nodded: "Keep placing orders and ask ASML to ship more. We will take as many as they have, as long as they can be shipped 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: "It is certain that he will take action, it is just a matter of time."

In the previous life, the investigation into zx began in 2016, after more than a year of negotiations.

In 2018, the hammering of zx began.

In the same year, the crackdown on HW began.

The hammer officially starts in 2019!
Now Xingyi Technology is developing faster.

That's more likely, and it may even happen earlier.

The only positive event is that the current team does not put technology suppression at the top of its priority list.

Instead, they consider other options.

Therefore, even if zx is investigated, there is room for mediation.

Until 2017, when people changed and everything changed completely.

So, zx was hammered.

HW was hammered.

All we can say is that each team has its own way of thinking.

The current team doesn’t like technology very much.

In this case, Xingyi Technology still has time.

It is not a fatal situation for now, and we can still mediate.

But if the players were replaced in 2017, it would be a fight to the death.

Wang Yi doesn't have much time left, so he can only develop quickly.

Stock up on photolithography machines and photoresists in advance.

The photolithography machine is easy to buy. Just buy some in advance and they 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 a year.

Fortunately, photoresists are distributed in multiple countries.

Unlike the lithography machine, which is not monopolized by ASML, it is mainly produced in Japan.

He has always been good at playing both sides among the major powers, and he will not really commit suicide.

Therefore, the problem of photoresist is not too serious.

Even more than ten years later in the previous life, there were no restrictions on our exports.

Including EUV photoresist.

What Xingyi Semiconductor needs now 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, we need to get the EUV lithography machine, but this is as difficult as climbing to the sky.

If you want strategic security, you can buy and stockpile lithography machines in advance.

But ARF photoresist doesn't work.

Wang Yi looked at Mr. Hu and said, "Mr. Hu, the shelf life of ARF photoresist is only half a year to a year. It is useless to buy more. Only self-production can ensure absolute safety."

Mr. Hu nodded and said, "Mr. Wang, the last time you mentioned this, I contacted several friends who are experts in photoresist in Japan. One of them is from Xia Country and is interested in returning to develop, but there are many difficulties."

Wang Yi's eyes lit up: "Mr. Hu, special matters will be handled specially. As long as he is willing to come back, the treatment and requirements are easy to negotiate. No matter how much the Neon Country gives him, I will give him 1.5 times, no, 2 times!"

"As long as we can come back and make our own ARF photoresist, my wife can work, my children can go to school, and I can have a house, a car, and money. These are not problems!"

"Okay!" Mr. Hu nodded: "Leave it to me."

"Thanks for your hard work."

Mr. Hu waved his hands and said, "It's all as it should be. Once there's no photoresist, Xingyi Wafer Factory will have to stop production. I can't accept that."

He has staked the rest of his life on Xingyi Wafer Factory. How far it can develop depends on what kind of glory Xingyi Wafer Factory can create!

How can it be destroyed because of photoresist?
Then, Mr. Hu changed the subject and said, "Mr. Wang, the 40nm power yield is 89%, which is considered a success. As our proficiency increases, it will soon reach 95%. Next, I plan to skip the 32nm process and directly develop the 28nm process."

"Okay, Mr. Hu, I plan to invest 300 billion in the second wafer fab that the capital will give us, and it will be based on 28 nanometers!"

"That's great!" Mr. Hu was delighted. "Although the 40-nanometer process is also very advanced, it is still behind. After all, TSMC has already mass-produced 28-nanometer technology, and at the latest, it will be able to mass-produce 2015-nanometer mobile phone chips in 20. If we don't hurry up and start the 28-nanometer process, we will only fall further behind."

"Yes, I think so too." Wang Yi agreed: "Mr. Hu, how confident are you that the second wafer fab will be delivered with 28-nanometer technology by the end of next year?"

Mr. Hu took a deep breath and said, "15 months, % sure!"

"Okay!" Wang Yi was a little surprised. He didn't expect it to be so high.

Hu said with a smile: "In fact, when developing the 40-nanometer process, I set up a small team to specialize in 28-nanometer. Now, after more than half a year of research and development, we have achieved a lot of results. In a year, we hope to mass-produce 28-nanometer technology."

"That couldn't be better. By then, the first phase of the second wafer fab will be delivered and the 28-nanometer wafer will be put into production, which will dazzle the eyes of European and American people!"

"Hahaha." Mr. Hu laughed out loud. "But the current 40-nanometer production capacity of Xingyi Foundry is not enough. It can only produce 1.7 million Kunpeng chips a year at most, which is not enough at all."

Wang Yi nodded and said, "Don't worry. I am considering acquiring SMIC's 12-inch wafer fab. If we acquire it, our production capacity will double."

"???" Mr. Hu was stunned: "Is this possible? Can SMIC's 12-inch wafer fab be sold directly to us?"

"This can be done. Someone will take action." Wang Yi said with a smile.

Qualcomm and Nvidia already know the news, so the people in Shanghai must have known the news as well, right?

If people knew that Xingyi Semiconductor can not only develop its own 40-nanometer chips, but also achieve self-production with 40-nanometer technology, I'm afraid even Shanghai would be unable to sit still.

This is Wang Yi's opportunity.

"That's great." Mr. Hu nodded, then took out his phone and opened a picture: "Mr. Wang, look, this is our wafer factory. There's vacant land over here!"

Wang Yi understood: "You want to take over this piece of land and expand the second phase?"

"Yes, Mr. Wang, the monthly production capacity of 2.5 pieces is too small. If we continue to expand and build the second phase, the monthly production capacity will reach 5 pieces! And it is next to the existing wafer fab, so many resources can be reused. We can just invest in building a new factory!"

Wang Yi suddenly remembered that SMIC's capital factory was originally built small, but later it was expanded to the second phase on the original site, doubling its production capacity!
Now Xingyi Wafer Factory can also do this.

Since Europe and the United States are going to impose sanctions, Xingyi Wafer Factory will expand its business!
Three wafer fabs are not enough, just invest more and build more!

A few years later, if the opponent dared to take action, Wang Yi would roll like crazy.

It doesn't matter if we make less money, or even no money at all, we will grab the orders at low prices, just to squeeze them to death!
The reason is simple. If you make my life miserable, then none of us can live well!

The cost of manpower and material resources in the mainland is low, making price wars invincible.

With the same ultra-low price, even if TSMC has zero profit, Samsung and Intel are losing money, Xingyi Wafer Factory can still make profits and continue to develop thanks to its low labor cost and low water and electricity cost!

But it’s different for our competitors. They spend more than they earn and make a profit by losing money.

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 would have died.

Even one of the three giants, TSMC, Intel, and Samsung, will die!
They are not doing it for the sake of making money, and they are doing OEM work at zero profit, but they still have to grab orders and crush the three giants.

This is Wang Yi’s personality. If you make life difficult for me, then you can leave me alone.

(End of this chapter)