I can become stronger by paying salaries. I have one billion employees!

Chapter 584 A $22 Billion Dog Bone! Magnetic Confinement Discharge Excitation Method, Bypassing LPP Technology!
The next morning, the sky was cloudless and clear.

MediaTek Greater China President Zhang Weili appeared at the Orange Technology headquarters reception desk with his assistant shortly after 9 a.m.

"Hello Mr. Zhang, I am Guo Shenyi, Mr. Chen's assistant. Please come with me."

Upon seeing Zhang Weili and his group, Guo Shenyi immediately greeted them with a smile.

"Thank you for your help, Assistant Guo."

Zhang Weili nodded in agreement.

This was his second time visiting Virtual City, both times to promote MediaTek's mobile processors.

He knew that a supply gap would inevitably emerge after Orange Technology and Qualcomm canceled their cooperation.

This is a once-in-a-lifetime opportunity for MediaTek.

It's worth noting that Orange Technology and its subsidiaries purchase as many as 2 million chips throughout the year. Apart from a small number of Tiangong A100 chips, the rest are mainly Snapdragon 800, MT6599 and Tegra 4H.

Now that Qualcomm is out of the game, whoever can secure the orders first will be able to increase their market share in China and even Asia.

This is also the main reason why he rushed to Xucheng day and night!
They were afraid that if they were a step behind, Nvidia would beat them to it.

Guo Shenyi led Zhang Weili and the others to the top floor by elevator, then walked to an office and knocked on the door.

"Enter!"

A deep, steady voice came from inside the door.

"Creak" sound!
Guo Shenyi slowly pushed the door open and then said to Chen Yansen, who was sitting next to the sofa, "Boss, Mr. Zhang has arrived."

Zhang Weili stepped inside with a smile on his face. Just as he was about to greet someone, he saw the man in the leather jacket opposite Chen Yansen—Nvidia's Huang Renxun.

"That old dog is fast!"

Zhang Weili snorted coldly, cursing inwardly. He then stepped forward, grasped Chen Yansen's right hand, and said eagerly, "Mr. Chen, I apologize for bothering you! After hearing about Qualcomm's shameless behavior, I immediately condemned this monopolistic practice. Please rest assured, MediaTek will absolutely stand with Orange Technology. We will fully support you in terms of subsequent chip supply and technology adaptation!"

Chen Yansen shook the other person's hand gently, his gaze sweeping over him and Huang Renxun on the sofa, and said casually, "Please sit down. Mr. Huang just talked to me about the new supply plan for the Tegra series."

Huang Renxun then stood up, raised his teacup to Zhang Weili, and said with a half-smile, "Mr. Zhang, you've come at the perfect time. Let's listen together and see whose proposal suits Mr. Chen's taste better."

Old Huang's words were brimming with provocation.

Because he knew the true nature of the MT6599; its performance was at best on par with the Snapdragon 800.

Does MediaTek even deserve to compete with Nvidia?
Let's go back and build a processor that can rival the Tegra 4H first!
Zhang Weili frowned slightly. MediaTek is naturally not afraid of Nvidia in the low-to-mid-range market, but in the high-end market, the MT6599 is really no match for the Tegra 4H, at least in terms of multitasking and graphics processing performance.

"The Tegra 4H has good performance, but what about its price-performance ratio?"

Zhang Weili countered with a question.

If you can't compete on performance, then compete on price!

How did MediaTek establish itself in the mobile processor industry?

Of course, it's about high-quality, low-priced goods and stable production capacity!

Upon hearing this, Huang Renxun immediately understood Zhang Weili's intentions.

"There's no reason to discuss business while standing up."

Chen Yansen took the lead and sat down, addressing the two men.

A cold glint flashed in Huang Renxun's eyes, then he smiled faintly and sat down.

Zhang Weili then took a seat.

"Mr. Zhang, please try this new tea."

Chen Yansen poured a cup of hot tea and then pushed it in front of Zhang Weili's table.

"Thank you, Mr. Chen," Zhang Weili said politely.

"I have communicated with Xiaomi, 360, NetEase, Meitu, and LeEco. They will completely abandon Snapdragon processors in the next year, so there will be a procurement gap of 20 billion US dollars."

Chen Yansen picked up his cup, took a small sip, and said.

"Mr. Chen, your estimate is inaccurate. I think it should be 19 billion US dollars."

Huang Renxun's leather jacket was open, revealing a printed short-sleeved T-shirt underneath, and he retorted with a smile.

The implication is that if Nvidia were to place this order, he would be willing to offer a further 5% discount on the supply price.

Chen Yansen understood immediately.

Zhang Weili, who was standing to the side, also realized what was going on and said without backing down, "18 billion US dollars."

When you're trying to seize market share, you can't be afraid of losing money!
If 40% of smartphones in China use MediaTek processors, the potential impact will be immeasurable.

Other mobile phone manufacturers will likely follow suit and purchase it.

The higher the market share, the easier it is to leave users with the impression that MediaTek's products have better performance!

Chen Yansen remained silent, focusing on drinking his tea, letting Zhang Weili and Huang Renxun lower the price on their own initiative.

He has the Tiangong B100 and Tiangong C100 chips in hand, so he is not afraid that Nvidia and MediaTek will take the opportunity to raise prices.

Even if Orange Technology does not cooperate with Qualcomm, does not use Snapdragon processors, and does not purchase MT6599 or Tegra 4H, it will still have chips available.

Conversely, Zhang Weili and Huang Renxun might even join forces to raise prices.

When Huang Renxun heard Zhang Weili announce the figure of "18 billion US dollars", his right hand holding the teacup paused, and the smile in his eyes faded a little.

He guessed Zhang Weili's plan: he was determined to seize the market, even at the cost of short-term concessions, just to keep the market share in his hands.

Although the Tiangong B100 and Tiangong C100 are about to be released, it will take time to make photomasks, fabricate wafers and achieve mass production, and the production capacity of TSMC, GlobalFoundries and UMC must be coordinated.

But Nvidia can't back down either!
If MediaTek wins this huge order, the chip landscape of China's smartphone market will likely change dramatically, making it much harder for Nvidia to enter the market.

Having finally obtained a Tegra 4H, he saw hope for Nvidia's rise in the mobile processor market. He couldn't possibly let the opportunity slip away to MediaTek, could he?

After all, if the other person eats one more bite, you have to eat one less bite.

“17.5 billion US dollars.” Huang Renxun put down his teacup and said firmly, “Moreover, Nvidia can guarantee that the mobile phone manufacturers surrounding Orange Technology will not lack chips.”

He paused and then said, "The Tegra 3L far surpasses the MediaTek MT6592 and MT6572 in performance. As for the price, I can make an even bigger concession and offer it to be five percentage points lower than MediaTek."

Tegra 3L? Zhang Weili was stunned, his face darkened, and he couldn't help but curse inwardly: "Nvidia not only wants to grab the high-end market, but also the low-end market. Aren't they afraid of overextending themselves?"

His heart tightened, but he didn't panic.

He took a deep breath, looked up at Chen Yansen, and said firmly, "17 billion! MediaTek can also ensure a stable supply and provide free chip debugging services to mobile phone manufacturers. If there are any new technical needs in the future, we can also give priority to adapting to them!"

Upon hearing this, Huang Renxun's expression turned cold.

MediaTek squeezed its profits to the bare minimum for this deal.

He can't lower the price any further; if he does, he'll really lose money.

In an instant, all three fell silent.

The office was so quiet that only the occasional sound of the wind blowing through the window could be heard. Zhang Weili and Huang Renxun stared at Chen Yansen, waiting for his final statement.

Chen Yansen sipped his tea slowly, seemingly unaware of the two men's expressions. After a while, he said unhurriedly, "I have seen your sincerity."

Ultimately, the choice will depend on whose solution best meets Orange Technology's procurement needs; price, production capacity, and technical support are all indispensable.

Upon hearing this, Huang Renxun frowned. He gritted his teeth and added reluctantly, "President Chen, although Nvidia can't lower the total price any further, we can promise to reduce the delivery cycle from 60 days to 45 days. If there is a need for chip iteration in the future, our R&D team can work in sync with Orange Technology to strive for leading product performance."

This is the maximum sincerity he can offer, because shortening the delivery cycle means coordinating with contract manufacturers to prioritize production and investing additional manpower to monitor the production progress.

Upon hearing this, Zhang Weili's lips curled up slightly. He knew that Nvidia had no room to lower prices, so he pressed on while the iron was hot and said, "President Chen, MediaTek can also deliver in 45 days. If there is a delay in delivery, we will compensate you 0.1% of the total order amount for each day of delay."

I grass!

We're all from Taiwan, is it really necessary to be so ruthless?

Huang Renxun glared fiercely at Zhang Weili, almost cursing out loud.

Chen Yansen remained silent for more than ten seconds. Seeing that Huang Renxun refused to lower the price, he smiled and said, "Orange Technology has always maintained a good cooperative relationship with MediaTek and Nvidia. There is really no need to hurt our relationship over a mere order worth a few billion."

How about we split the order and each get half?

“Mr. Chen, 17 billion US dollars, Nvidia is no problem either.” After thinking for a moment, Huang Renxun raised the stake again.

He wants both the high-end and mid-to-low-end markets.

He even wanted to use the Tegra 3L to kick MediaTek processors out of Orange Technology's supply chain.

At that time, we'll catch both big and small fish!

"Tegra 4H is responsible for high-end models, while Tegra 3L is suitable for mid-to-low-end models. It can meet the needs of Orange Technology and its partners across all price ranges at once, so you don't have to worry about coordinating the supply chains of two companies anymore, which can also improve efficiency a lot."

Huang Renxun continued.

"Mr. Huang, don't bite off more than you can chew. The Tegra 3L should have just been taped out, right? Has it undergone extensive performance testing? What if there are some minor issues like overheating or insufficient computing power? Wouldn't that just cause trouble for Mr. Chen?"

Zhang Weili asked in a sinister tone.

His words were a reminder to Chen Yansen that the market-proven MT6592 and MT6572 were more reliable than the Tegra 3L.

Take the Snapdragon 810 as an example. Wasn't it tested before production?

The problem is actually a disconnect between the testing scenario and actual use!
Qualcomm's initial testing is usually conducted in a temperature-controlled laboratory, using test motherboards without chassis limitations, and the test scenarios are mostly single high-load tasks, such as continuous benchmarking and single video decoding.

Instead of the mixed load state that users actually experience, such as "game + background download + location + 4G network" running simultaneously, some potential heat generation issues are masked.

“Mr. Zhang is right,” Chen Yansen nodded.

Upon hearing this, Huang Renxun became anxious and quickly explained, "President Chen, NVIDIA has conducted comprehensive performance tests on the Tegra 3L and simulated a large number of heavy usage scenarios. The supply price is comparable to the Snapdragon 600 series, but the performance is improved by 15%."

"That's why I said I would split the orders. I will purchase Tegra 3L, and I will also purchase MT 6599. Including MT6592 and MT6572, these will remain important electronic components for the Green Orange series in 2014."

Chen Yansen leaned back and spoke slowly and deliberately.

Now that the price has been negotiated, we must ensure a good user experience with the Orange phone.

Both the Tegra 4H and MT 6599 can be used in the Orange series, while the Tegra 3L and MT6592 can be used in the Green Orange series.

Once the Tiangong B100 and Tiangong C100 are mass-produced and put into use, different processors can be installed for different regions.

In China and Southeast Asia, the main chips used are from Tiangong and MediaTek, while in Europe and the United States, the main chips used are from Nvidia, with Tiangong chips as a secondary option.

It's not too late to gradually increase market share once users have gradually accepted Tiangong's products.

When Huang Renxun saw that Chen Yansen clearly wanted to split the purchase order, but the other party was also willing to buy Tegra 3L, the urgency on his face lessened a little, but he still couldn't help but ask: "Mr. Chen, Tegra 3L has advantages in both performance and price. How much can you order for the Qingcheng series? If the quantity is too small, it will be inconvenient for us to coordinate the production schedule of the contract manufacturer."

He still held a sliver of hope, wanting to gradually squeeze MediaTek's space in the low-to-mid-end market through sufficient procurement.

"The Green Orange series will produce 2000 million units each of Tegra 3L and MT6592. This will not only verify the market performance of Tegra 3L, but also protect MediaTek's interests, ensuring that neither party suffers a loss."

"For the Orange series, there will be 1000 million units each of Tegra 4H and MT6599. Among them, the Orange models in the European and American markets will prioritize the use of Tegra 4H, while the Chinese and Southeast Asian markets will mainly use MT6599. The ratio will be adjusted later based on user feedback."

"In addition, I will also include the procurement needs of Xiaomi, 360, NetEase, Meitu and LeEco mobile phones in the contract, ensuring that each company will generate no less than 10 billion US dollars in revenue."

Chen Yansen picked up his teacup, took a sip, then started cutting the cake and proactively increased the quantity he purchased.

The previous claim of $20 billion was nothing more than a dog bone he threw out to force Huang Renxun and Zhang Weili to make concessions.

To obtain the most accurate figures for specific procurement contracts, it is necessary to coordinate the estimated annual shipment volumes of all parties involved.

After the three reached a preliminary agreement, the next issues were easier to discuss, mainly involving demand assessment, product testing, and confirming the purchase quantity of each processor.

At 3 p.m. that day, witnessed by the media, Orange Technology, Nvidia and MediaTek signed a letter of intent for procurement cooperation, with the publicly announced contract amount being US$22 billion.

Chen Yansen's move serves two purposes: first, to demonstrate to the market the diversification and stability of Orange Technology's supply chain layout; and second, to definitively declare the end of the Qualcomm era.

Paul Jacobs received the message quickly. He didn't expect that his suppression would provoke the other party's ferocity. Without hesitation, the other party decisively kicked Qualcomm out of the game.

"We'll see! I want to see if Orange phones can still break 1 million units in sales like they did in 2013!"

Paul squinted, looking like he was ready to watch a good show.

the other side.

Just as Chen Yansen finished dealing with Huang Renxun and Zhang Weili, Lin Nan, the chief scientist of the Optical Research Laboratory of Xingyuan Technology, called to say simultaneously: "Boss, we've figured out the magnetic confinement discharge excitation method you proposed last time!"

His seemingly calm tone betrayed an indescribable excitement!
This means that StarSource Technology can bypass the mainstream laser-excited plasma source (LPP) method and obtain a brand-new EUV source excitation method.

(End of this chapter)