Rebirth 2010: I'll be a big shot

Chapter 256: Apple chip foundry business, Tim is in a dilemma!

Author: The bright moon once shone on the ancient river

Chapter 256: Apple chip foundry business, Tim is in a dilemma!

Pudong, Century Building.

"boss!"

"Mr. Chen!"

When Chen Heyu arrived, He Tingbo, Wang Maosong and their financial, marketing and legal staff had been waiting in the east of the building for a long time, looking up from time to time.

"Have you brought the test reports on chip stability and yield?"

Chen Heyu nodded and asked He Tingbo.

"There."

He Tingbo took out a document from her bag and handed it to him.

Chen Heyu took it, glanced at ten lines, and quickly flipped through it. After just a few tens of seconds, he remembered all the contents and said with a smile: "The members of the closed and beta test team have made great contributions. The bonus levels for that quarter have all been adjusted to A."

Don’t underestimate the 3% yield difference. Compared with the OEM processing price of more than 10,000 US dollars for a single wafer, there is a difference of 900 million US dollars in one year!

A mere quarterly bonus is not enough to reward employees for their improvements and optimizations in manufacturing processes. Opportunities for promotions and salary increases are likely to be waiting for them later.

The group had just walked a few dozen steps when Lu Lei came over with Dong Zhi.

"Mr. Chen, we meet again! I heard that you like drinking coffee, don't you know if his collection suits your taste?"

Lu Lei said with a sharp voice.

"Mr. Lu is very polite. He is here, of course, with sincerity. The quality of the taste depends on how well the apples are cooked."

Chen Heyu had some pointers.

The two smiled at each other and walked into Apple's Greater China headquarters side by side.

We arrived at an exquisite and luxurious conference room. The decoration style was mainly beige, and the colors were simple yet high-end.

"Mr. Chen, you might as well try the quality of those beans."

Lu Lei beckoned, and there was indeed a female assistant holding the coffee and gently placing it in front of Chen Heyu.

Chen Heyu smiled and signaled He Tingbo to hand the test report to Lu Lei, while he slowly tasted the coffee.

"Coming!"

Lu Lei secretly thought, straightened his back immediately, picked up the report and looked at it carefully. When he saw "94% yield rate", he couldn't help but ask: "Mr. Chen, is that data reliable?"

What he is confused about is that the leading chip foundry like Bay Semiconductor Manufacturing Co., Ltd. has a yield rate of 90%. Why should Shanhai Microelectronics do this?

"He understands what Mr. Hong Lu is thinking, but I want to know whether Shanhai Microelectronics' photolithography machine is the most advanced DUV equipment in the world. It can minimize process variability by accurately controlling the conditions and parameters of each process step. and the generation of defects, thereby improving the quality of the chip."

Chen Heyu explained.

"Precision ion implanters and electron beam exposure machines can also help improve the yield rate, right?"

Lu Lei followed the narrow road.

This shows that Apple knew that Shanhai Microelectronics had circumvented the ban on Bay Semiconductor through non-compliant means.

"Of course, the accuracy and stability of the equipment are critical in improving quality products."

Chen Heyu smiled softly, narrowed his eyes slightly, and said indifferently.

"Mr. Chen, what is the purpose of your visit tomorrow?"

Lu Lei paused again mid-sentence, pretending to be confused.

"Old fox!"

Chen Heyu snorted coldly and cursed in his heart.

"Shanhai Microelectronics is looking for chip processing business for iPhone 6s and iPhone 6s Plus. If I have any conditions, he will consider it."

He leaned back in his chair and said lightly.

"Or, if I don't have the authority to make the decision, he can talk to Diem in person."

Chen Heyu teased, wondering if he could respond to Lu Lei's arrogance.

“Apple needs global authorization for Moss’s third-generation smart voice system!”

Lu Lei pondered for a moment and got straight to the point.

Third generation?

"Mr. Lu, did I remember it wrong? Where did Moss get the third-generation Zhike voice product?"

Chen Heyu asked back, still noncommittal.

"He thinks there must be!"

Lu Lei leaned forward, cut through the thorns and cut the railway track, and looked at Chen Heyu with burning eyes.

Two years ago, the second-generation Moss voice system began to be commercialized. It has been so long, but the research has been stagnant!

Unreasonable!

There are not three generations, but there are at least version 2.5 products!

The idea of ​​​​Apple's top executives is very simple: take part of the chip orders and replace them with the latest smart voice system.

In particular, the second-generation licensing cooperation signed by Future Technology and five promising manufacturers including Lianxiang, Zhongxin, HOC, Huayao and Kupai is about to take effect.

If the problem of software shortcomings cannot be solved, Apple will have to face the encirclement and suppression of six promising brands in China, and it is very likely that it will gradually lose its market share in the Greater China region.

Isn’t that what Apple CEO Diem doesn’t want to see?

"Did someone leak the company's R&D progress?"

Chen Heyu said secretly suspiciously.

"There is a second generation. Tan Hong said that the third generation is under development. If the technology matures, Future Technology will hold a new product launch conference as soon as possible."

His heart moved, his face remained as usual, and he calmly spoke in an official tone.

He didn’t even give Rebus the third-generation Moss voice system, so how could he give it to Apple? The wrong party was just trying to get away with it!

The atmosphere in the conference room suddenly fell silent, and no one spoke again for a long time.

"The second generation is also fine. If Apple accepts the replacement conditions, starting from 2016, they will entrust the chip processing business in Greater China to Shanhai Microelectronics."

After Lu Lei thought about it for a few minutes, he took the initiative and said.

"Wait! Business in Greater China? Sorry, then Apple can also get the Moss Voice license in Greater China."

Chen Heyu said coldly.

"Mr. Chen, Apple's annual shipments in Greater China are as high as 40 million units. That's quite an order."

Lu Lei persuaded him kindly, but his head felt a little swollen.

"Then there is no other way. Apple wants to use only 20% of its chip foundry orders in exchange for Moss's global authorization. That is really unacceptable to him."

Chen Heyu shook his head and refused directly.

In 2015, Apple boasted annual global sales of 200 million units. Taking the mainstream A9 chip as an example, it costs US$25 per unit. A rough calculation shows that the annual foundry revenue will exceed US$5 billion.

Accounting for 20% of Bay Semiconductor Manufacturing Co., Ltd.'s sales, Zhang Zhimou will feel the pain if he goes to the east!

40 million chips cost US$1 billion, which is less than 4% of sales for Semiconductor Manufacturing Company.

What about sending beggars away?

"Mr. Chen, not only is the company unwilling, but the major shareholder of Bay Semiconductor Manufacturing Co., Ltd., which is also Apple's core investment institution, can transfer 20% of the order share. This is the best effort that DM can make."

Seeing that Chen Heyu had lost interest in negotiating, Lu Lei said in a sincere tone.

"Pioneer? Bedele?"

Chen Heyu asked.

"I hope Mr. Chen can understand that Apple is a company with an extremely dispersed shareholding structure, and the truly influential major shareholders are behind the scenes."

Lu Lei nodded, confirmed Chen Heyu's question, and then said slowly.

"Those Big Macs are really pervasive."

Chen Heyu's first words made him realize the huge potential of those two fund companies during his ten days in the beautiful country. They invested in almost all the technological innovation companies in Turtle Valley, including Intel, Gugou, Weisoft, etc. Many overlords in the computer field.

Even Musk’s Space M has their presence.

"If Apple wants to ask for global authorization, that's no problem."

Chen Heyu shrugged and said with a smile.

"Mr. Chen, please tell me not to continue cutting off Bay Semiconductor's chip business. He is willing to make concessions in other aspects."

Lu Lei breathed a sigh of relief and said with a happy face.

“Gotta pay more!”

Chen Heyu said simply and roughly.

"As far as he knows, the licensing fee for the Moss second-generation Chico voice system is 140 Chinese dollars per unit. What price does Mr. Chen want to ask for?"

Lu Lei asked.

Taking advantage of the situation, he pointed out the authorized price for rice, secretly reminding Chen Heyu not to go too far.

"It's normal for Mifu Future Technology, a subsidiary of Qidong, to give certain discounts. Apple can't get that treatment, so just 400 yuan per unit."

Chen Heyu wrote lightly.

"Mr. Chen, the net profit margin of an Apple is 20%. Just open your mouth and ask for 7%. Is that okay?"

Lu Lei laughed angrily, his body shook unconsciously, and he almost turned around and left.

400 yuan?

Does Chen Heyu regard himself as Apple’s major shareholder?

"We are all smart people. How big is the gross profit and net profit of Boutique Apple? We just add the cost to it, and the interests of shareholders will not be reduced by a penny."

Chen Heyu replied calmly.

“But that would change Apple’s global pricing strategy!”

Lu Lei said in a muffled voice, with a wry smile on his face. He seemed to have realized that he had communicated with Chen Heyu about the foundry business of the A8X chip, but he did not see the true face of the wrong party at all.

"Is it possible that Apple is unwilling to pay any price and just wants to obtain the global license for Moss II? Where in the world can anything be so cheap?"

Chen Heyu curled his lips and said disdainfully.

"Please ask the headquarters for price requirements. Mr. Chen will take a short break. I'll excuse you for a while."

Lu Lei exhaled a heavy breath. He was stunned and his lungs ached. As the person in charge of Apple's Greater China Region, he had not experienced that kind of cowardice for a long time.

The negotiation process was crushed all the way, with no room for negotiation.

"Please!"

Chen Heyu grinned, picked up the coffee cup, and took a sip.

Asking for prices all over the place, it’s a lot of money to buy!

He never thought that Apple would accept the unreasonable sky-high price of 400 yuan, nor did he think that with the advantages of its software alone, it could dominate the global market and defeat its rivals!

If rice wants to compete with multinational giants like Apple and Sanxing, it has a long way to go.

Top-notch photography system!

Top level industrial design!

Powerful chip processor!

Smooth and memory-saving demonstration system!

…

These are not the directions that rice technology needs to strive to optimize!

He knew that Rebus was working hard to develop his own chips, but it was difficult to see results in a short period of time, which was why he decided to open the license.

The two-year development window period has allowed rice to gain a firm foothold in the Chinese market and achieve certain results in the international market.

Come to the east!

Rice's future depends on his own ability. If he is always an unsteady child, how long will he be able to support him?

When the time comes, rice equipped with Moss's latest smart system and hardware advantages will be qualified to compete in the international market.

"Mr. Lu, he doesn't have much time. If Apple is not interested, he can choose Sanxing."

Chen Heyu said slowly the moment he stepped out of the room.

After Lu Lei heard this, his expression changed drastically!

Although the Greater China display market has unlimited potential, compared with the global market, it only accounts for 20%. If Sanxing was not allowed to get the authorization first, he could not imagine the situation.

Immediately, he left in a hurry.

"Boss, do you think Apple will agree?"

He Tingbo asked in a low voice.

"It's not a big problem. The difference in price depends on Tim's courage."

Chen Heyu said with a smile.

…

"Boss, the wrong party is very powerful and has set the licensing price at 400 yuan per unit. They currently have two options.

First, transfer an additional part of chip foundry orders to Shanhai Microelectronics;

Second, agree to the licensing fee increase plan, try to reduce the cooperation price, and speed up the upgrade of Siri."

Lu Lei was alone, making a report outside an office.

He has a cautious and reserved personality, and even though he mentioned two options, he did not say anything. Both paths need to be determined according to specific proportions, and Diem has the authority.

"In terms of orders, there is really no way to continue to increase the number. Let's communicate with him about the authorization price. We can agree to it if it is less than 200 yuan per unit."

Dim was silent for a while before replying.

Optimizing Siri is easier said than done?

Gugou, Wesoft and Amazon invested huge amounts of R&D funds and recruited a large number of computer engineers. After two years of building the Zhike voice assistant, it has 30% of the effectiveness of Moss.

He had given up on that path long ago, otherwise he would not have authorized Lu Lei to start negotiations.

"I'm afraid Chen Heyu won't agree to that price."

Lu Lei hesitated.

"Then according to the original plan, we will first get the authorization from East China District."

Tim replied.

"But Cuo Fangming said that if Apple did not agree to his conditions, it would go to Sanxing to negotiate for overseas market authorization."

Lu Lei added.

"Fuck! Greedy Chinese, let him die!"

Tim was furious.

Sanxing is Apple's strongest competitor. If Sanxing gets the overseas market authorization first, it will be a huge disaster for him.

For a moment, Tim was in trouble.

(End of chapter)