Wang Yi became interested:
"Is it really cheaper than NVIDIA Tegra 3?"
"That's right, the price of Qualcomm's quad-core flagship processor will not be higher than the price NVIDIA gives you during the same period next year!"
Jacob guaranteed.
With NVIDIA causing trouble, Qualcomm doesn't dare to sell at a high price!
"Happy cooperation!"
Wang Yi readily agreed.
"Happy cooperation!"
Subsequently, both parties finalized other cooperation details and signed the contract again.
Both parties agreed:
In early February, early March, early August, and early September next year, Qualcomm will deliver 2.5 million flagship baseband chips to Xingyi Technology at a unit price of $13 each, totaling 10 million chips!
In August and September next year, Qualcomm will deliver 2.5 million APQ8064 chips to Xingyi Technology at a price no higher than that of NVIDIA Tegra 3, totaling 5 million chips.
For each batch of goods, Xingyi Technology needs to pay the full amount half a month in advance.
If either party breaches the contract, they must pay a penalty equal to 10% of the breached order!
This transaction, totaling 5 million quad-core chips and 10 million basebands, has a total value of approximately $200 million.
The penalty alone is $20 million, nearly 130 million yuan.
Neither party wants to pay this penalty, so this contract will only proceed smoothly.
Of course, there is another clause in the contract: the aforementioned purchase prices include all patent licensing fees from Qualcomm to Xingyi Technology, and no other taxes or fees shall be collected!
Even if Qualcomm does not collect "Qualcomm tax" from Chinese mobile phone companies at this stage, Wang Yi still has to be cautious.
In case Qualcomm sees that Wang Yi's phones sell well and make a lot of profit, gets jealous, and wants to collect the Qualcomm tax early, Wang Yi would have nowhere to complain.
He can only be prepared.
Furthermore, Qualcomm must also ensure that the first batch of APQ8064 chips is supplied to Xingyi Technology with priority!
That's right, Wang Yi directly snatched the first launch of the Qualcomm quad-core chip for Xiaomi 2!
If he also snatched the global quad-core processor debut from HTC, it would be even more perfect.
This cooperation concluded successfully.
Even the basebands that NVIDIA quad-core chips will lack in the first half of next year have been secured, and at a good price!
Wang Yi was very satisfied with the harvest.
As for the specific price of Qualcomm quad-core chips in the second half of next year, Wang Yi is not worried, and even expects a surprise.
For any commodity, those who get in early eat the meat, while those who come later only get the soup!
As the world's first quad-core processor, NVIDIA Tegra 3 could sell for $30 per chip for small-batch purchases in February next year.
Wang Yi's large-scale purchase of five million chips would be $25 per chip.
After that, prices will only continue to fall.
By August next year, the Tegra 3 price is expected to drop to $20-25 per chip.
Even if Qualcomm APQ8064 has stronger performance and won't be launched until August next year, its price won't be high.
It's estimated to be similar to NVIDIA Tegra 3's August price, $20-25.
If it's sold too expensively, everyone will buy NVIDIA, so who would want Qualcomm?
Besides, both parties agreed that the price Qualcomm gives to Wang Yi will not be higher than NVIDIA's, which creates anticipation!
Based on Wang Yi's understanding of Old Huang, Old Huang might engage in a price war to spite Qualcomm!
Before Qualcomm's quad-core launches, NVIDIA might directly initiate a big price cut!
For large-volume purchases, Tegra 3 could go straight down to $15!
If that happens, Qualcomm would be in a difficult position, unable to sell at a good price, and would also have to sell for $15-20!
It's just that Tegra 3 was sold expensively before, money was made, and costs had already decreased, so even with a price cut, there's still profit.
But if Qualcomm's quad-core sells cheaply right after launch, that would be truly difficult.
One step behind, always behind!
But then Wang Yi would benefit!
According to the contract, Qualcomm's price must not be higher than NVIDIA's, so the price given to Wang Yi can only be $15, or even lower.
If Qualcomm sells at a high price, that would be a breach of contract!
Wang Yi could not only earn a hefty breach penalty but also turn around and order more of the cheaper NVIDIA Tegra 3!
For quad-core processors, even if Qualcomm APQ8064 is slightly stronger, the difference is not significant, and cost comes first!
To compete with Qualcomm, Old Huang didn't use many "knife tricks" on Tegra 3, making it one of NVIDIA's most conscientious chips.
However, when it came to Tegra 4, Old Huang's "knife tricks" became powerful.
He not only "knifed to death" Xiaomi and HTC who used Tegra 4, but also "knifed to death" NVIDIA's mobile chip business!
Since Tegra 4, no phone manufacturer dared to use NVIDIA chips again...
One can only say that Old Huang's "knife tricks" are truly fierce; when he gets serious, he doesn't even spare himself.
Wang Yi decided that he must find a time to have a good talk with Old Huang about Tegra 4's research and development issues, to use fewer "knife tricks," and to cherish the present!
Don't end up "knifing himself to death" like in his previous life...
Once NVIDIA's suppression is gone, Texas Instruments also withdraws, Intel is not competitive, and MediaTek is still doing mid-to-low-end, then Qualcomm could truly monopolize the market and become lawless!
At that time, let alone suppressing prices, Qualcomm chips would continuously increase in price, and the Qualcomm tax would be implemented!
Wang Yi thought about it and still believed that NVIDIA's mobile chips needed to survive to suppress Qualcomm!
Of course, the most reliable solution is to achieve independent chip research and development!
Otherwise, if NVIDIA dies out in the future, a single Qualcomm chip could sell for over a thousand, and the Qualcomm tax would be several hundred more...
Then all the profits from Xingyi phones would be taken by Qualcomm, and Wang Yi would become a worker for Qualcomm!
The mobile phone industry in his previous life was like this: Xiaomi, OV sold a phone for 3000-4000, Xiaomi, OV couldn't earn a few hundred, while Qualcomm made a massive 1500!
Nowhere to reason!
Domestic mobile phone brands work hard, but in the end, they are all working for Qualcomm!
Wang Yi didn't want this.
Still, like Huawei, achieving independent chip research and development is the way out.
Of course, with independent chip R&D and contract manufacturing, chip costs are lower, but R&D investment is also significant, so they can't be sold at low prices.
Instead, they have to continue selling high-end products, which is inevitable.
Like HiSilicon Semiconductor, annual R&D investment of tens of billions is also money that must be spread across each chip!
It seems that chip research and development is imminent!
Wang Yi made a plan in his mind: he would go to Texas Instruments tomorrow to poach people!
In the evening, Old Huang invited Wang Yi to dinner again.
Learning that Wang Yi had ordered Qualcomm dual-core chips, Old Huang sighed endlessly.
But remembering that he also secured a large order for five million quad-core chips, Old Huang became excited again.
During the meal, the two discussed many technical issues related to processors.
To make Wang Yi continue purchasing the next-generation Tegra 4, Old Huang began to brag:
"Chairman Wang, our Tegra 4 is a performance beast. Expected to be launched in the first half of the year after next, it will still crush Qualcomm's flagship of the same generation, so you must support it!"
Wang Yi couldn't help but laugh, 'If I weren't a reborn person, I would really believe your nonsense!'
Tegra 4, the year after next, won't even be fit to carry Qualcomm 800's shoes!
Completely unworthy!
On the contrary, it was the most disastrous one.
Wang Yi decided to give Old Huang a hand, otherwise, if Tegra 4 crashed and NVIDIA withdrew from the mobile chip market, no one would be able to suppress Qualcomm!
At that time, price increases and Qualcomm tax would all come!
Wang Yi smiled and said,
"How powerful is Tegra 4? I'm a bit curious."
Tegra 4 was launched in 2013, its R&D project started this year, tape-out next year, trial production...
If Wang Yi didn't persuade him now, it was doomed to fail.
Seeing Wang Yi interested, Old Huang was overjoyed:
"Our Tegra 4, in terms of CPU, uses a 4+1 configuration, with a total of 5 A15 cores, making it a five-core processor, with a single-core full frequency of 1.8GHz. Even the smallest core is an A15! It's absolutely a performance beast, an invincible existence."
Wang Yi sighed in his heart:
"Sure enough, NVIDIA is courting death!"
"Performance beast? I think it's a fire dragon beast, isn't it?"
Wang Yi was not polite in the slightest.
For a master of "knife tricks" like Old Huang, he needed to be "knifed" hard, "knifed to death," and "knifed awake" to be saved!
"What do you mean?"
Old Huang's mouth twitched, his smile rigid.
Wang Yi sighed:
"A15, 1.8GHz, powerful, yes, but the power consumption is also terrifying. You don't even have a single A7 small core; just browsing a webpage would require the A15 big core, and it would generate heat!"
Old Huang was silent: "..."
It seems so!
"Five A15 cores, quite powerful, but once all are running, how severe would the heat generation be? Burning hot! Old Huang, are you making an NVIDIA processor or an NVIDIA hand warmer?"
Old Huang continued to be silent: "..."
"As for battery life, don't even mention it. Once your Tegra 4 is used, I'm afraid it would need charging three times a day!"
Old Huang opened his mouth, not knowing what to say: "..."
Wang Yi's words were piercing, yet all reasonable, impossible to refute!
Tegra 4's design really seems to have these bugs!
"Old Huang, listen to my advice. Four A15 cores, the CPU performance is already overkill. Change the small core to A7. Less heat, less power consumption, right?"
Old Huang nodded, understanding in his heart that Wang Yi was right.
He was only focused on pursuing CPU performance but ignored heat and power consumption.
In fact, all failed processors had this reason.
"Chairman Wang, thank you. I will go back and change A15 to A7!"
"Very good, you are someone who listens to advice."
Wang Yi nodded with satisfaction.
It's difficult for Xingyi Technology to independently develop high-end chips in a short time, so NVIDIA is still needed to restrict Qualcomm!
"However, Tegra 4's GPU is very good, 72 cores..."
Old Huang changed the subject, strongly highlighting the GPU's power, hoping to save face.
After listening to Old Huang's bragging, Wang Yi smiled:
"72-core GPU sounds really impressive. But the problem is that you're using a separate rendering architecture from the Geforce 6 era, which is too outdated. Mobile phone engineers probably won't even optimize it. Moreover, its performance isn't strong, not even supporting OpenGL ES 3.0! But Qualcomm supports it, and their GPU is even more powerful than yours!"
"This..."
Old Huang's mouth twitched:
"I'm a graphics card maker, and my GPU is not as good as Qualcomm's?"
"Nonsense, who told you to be so ruthless with your 'knife tricks'? You insist on using an outdated architecture, while Qualcomm uses the most advanced architecture, what are you comparing with?"
Wang Yi was unceremonious.
Old Huang sighed, suddenly realizing that his "knife tricks" really seemed to have gone too far, and his GPU was surpassed by Qualcomm!
Wang Yi said unceremoniously:
"To be blunt, based on the data you've given, your Tegra 4 is an inefficient, high-power consumption, high-heat garbage! No matter how cheap it is, I wouldn't dare to use it!"
Old Huang: "..."
Wang Yi continued:
"In terms of actual experience, let alone comparing it with Qualcomm's flagship of the same generation two years from now, I'm afraid Qualcomm's 8064 next year could even outperform your Tegra 4 two years from now!"
Old Huang: "..."
"Of course, your benchmark scores might be high, but it's unusable, burning hot, good for boiling eggs. The GPU is too weak. No chance."
Wang Yi patted Old Huang's shoulder:
"If the GPU is changed to the latest architecture, there's still a chance."
"Okay, I'll change it to the Kepler architecture!"
Old Huang woke up as if from a dream, only then realizing that his "knife tricks" had truly gone too far.
"That would be worth seeing, but there's one last point: Qualcomm will start integrating basebands the year after next."
This was Wang Yi's final reminder.
As for whether Old Huang listens to advice and whether NVIDIA Tegra 4 succeeds or fails, it's up to Old Huang's choice!
He had done what he needed to do.
If it weren't for the strategy of using barbarians to control barbarians, using NVIDIA to check Qualcomm, Wang Yi wouldn't bother to persuade!
"Integrated baseband means better signal, lower heat..."
Old Huang nodded:
"Thank you, Chairman Wang. Listening to your words is better than ten years of reading. I will go back and overturn Tegra 4's design, starting from scratch!"
"This cup, I toast to you!"
Old Huang raised his glass, his back drenched in cold sweat.
If Wang Yi hadn't spoken, he wouldn't have realized how utterly a failure his seemingly satisfactory Tegra 4 was.
If it had been mass-produced and launched blindly, it would likely have failed immediately, with unimaginable consequences.
Fortunately, with Wang Yi's reminder, he could still pull back from the brink!
Wang Yi also raised his glass:
"I look forward to a truly powerful Tegra 4, and let's continue our cooperation!"
"No problem, I've noted your guidance today! If there's anything you need in the future, I will surely repay it!"
Old Huang said sincerely, feeling that Wang Yi had too much foresight in strategic planning and deployment.
Problems he couldn't see, Wang Yi pinpointed.
Truly remarkable!
"Easy to say, we'll have many more opportunities for cooperation in the future!"
Wang Yi said with a smile.
NVIDIA chips must remain alive to contend with Qualcomm and prevent Qualcomm's monopoly.
This way, Wang Yi's Xingyi Semiconductor can bide its time and develop secretly.
Once NVIDIA is gone, with Qualcomm monopolizing the chip market, it might immediately target Wang Yi.
Like in his previous life, OPPO established Zeku, planning to invest 50 billion over three years to research chips, but it eventually came to nothing, and the entire department was completely disbanded.
A large part of the reason was Qualcomm's suppression!
As long as OPPO dared to continue R&D, OPPO would not get any Qualcomm flagship chips.
In this day and age, without Qualcomm chips, how could OPPO's flagship phones be sold?
They could only fail!
After much thought, OPPO could only disband Zeku and abandon chip R&D, prioritizing survival.
But with NVIDIA's restraint, Qualcomm wouldn't monopolize and wouldn't be so arrogant.
To put it plainly, the reason Wang Yi supported NVIDIA and guided it to survive was to use barbarians to control barbarians!
To let NVIDIA compete with Qualcomm and break Qualcomm's monopoly.
To let NVIDIA serve as a shield, attracting and bearing Qualcomm's attention and firepower!
This way, Wang Yi's Xingyi Semiconductor would have a chance to survive and grow.
Huawei's HiSilicon Semiconductor was able to rise because from 2011-2014, there was competition from Texas Instruments, NVIDIA, and Intel, so Qualcomm couldn't dominate completely.
Once Qualcomm dominated, no one could grow big; they would all end up like OPPO's Zeku!
As for dismissing Tegra 4 as useless tonight and scolding Old Huang so severely?
Wang Yi didn't mind at all.
In his previous life, Old Huang "knifed" so many people; now Wang Yi "knifing" back is just collecting some interest on behalf of all his brothers!
Old Huang returned to the hotel, and the more he thought about it, the more scared he became.
That night, he held a video conference, relaying all the issues Wang Yi mentioned to his subordinates and scolding the R&D team.
As unceremonious as Wang Yi was to him, he retaliated tenfold against his subordinates!
That's right, Old Huang vented all his pent-up anger on his subordinates.
Finally, Old Huang said angrily:
"You idiots, according to your Tegra 4 design, our entire NVIDIA mobile division will be finished! Quickly, redesign it as I said!"
"Yes!"
Everyone was silent and dared not speak, but felt extremely wronged in their hearts:
'Didn't you tell us to use the "knife tricks" for Tegra 4?'
'Now it's all our fault? Are we not even human?'
...
Morning of October 8th, the third day in the Empire.
Wang Yi went downstairs, about to contact a chip R&D expert from Texas Instruments, but received a call from Steve:
"Boss, are you still in the Empire?"
"Still here, probably returning tomorrow or the day after!"
"That's great!" Steve was overjoyed:
"I found the former R&D director of Estée Lauder, but he lacks confidence in us, so I'm afraid I'll have to trouble you to come in person!"
(End of chapter)