Chapter 454 HTC’s conditions to use PC CPU!(2/3)
Wang Hong calculated clearly. In early December, HTC received samples of Kunpeng 702 and carried out research and development and adaptation.
Kunpeng 702 SOC will be supplied in February, followed by mass production and distribution, and will be officially launched at the end of March or early April!
Until the large-scale launch of mobile phones equipped with Snapdragon 800 in October, it took half a year to sell out 5 million units of the new Kunpeng 702 SOC flagship, which was no problem.
This time, Wang Hong’s order volume is relatively conservative.
After all, HTC has fallen from the sky to the ground this year.
From fighting with Nokia, Samsung, and Apple last year, it has become others this year.
Wang Hong didn’t even dare to open her mouth and asked for 10 million pills.
Wang Yi nodded: "5 million, yes. The current Qualcomm APQ 8064+ baseband costs 250 yuan per set, and does not support all Netcom. Kunpeng 702 SOC has stronger performance, supports all Netcom, and the external price is also 250 yuan. Look.
In the name of our friendship, I’ll give you a discounted price of 240 yuan for a set!”
"240 yuan..." Wang Hong frowned slightly. One set is 10 yuan cheaper, and a 5 million set is 50 million yuan cheaper.
Although it is a lot, it has not yet reached expectations.
"Director Wang, let's purchase 5 million sets at one time, for 230 yuan."
"240 yuan is already a very good deal." Wang Yi wondered.
"In this case, we will order 6 million units for 235 yuan." Wang Hong took a step back.
"Okay." Wang Yifian said.
In the end, a set was sold for 235 yuan, and an order of 6 million units was placed.
In fact, Wang Yi’s psychological price is 235 yuan.
Kunpeng 702 SOC integrated baseband, the 40nm process is inherently low-cost, and it is self-developed and produced, with high output and a yield rate of 95%. Therefore, the cost of each Kunpeng 702 SOC has dropped from the previous 30 yuan.
The current price is 25 yuan.
Qualcomm APQ 8064 is a 28-nanometer process, which is more expensive than the 40-nanometer process. It is also a third-party OEM, so TSMC also has to make a profit. The cost of an APQ 8064 chip is 45 yuan.
You also need to plug in an external baseband.
For the 40-nanometer Wing Loong 3000, Xingyi Semiconductor’s self-production cost is only 15 yuan, but TSMC’s foundry costs 20 yuan each.
Qualcomm’s plug-in 28nm baseband is more expensive, at least 30 yuan each!
Therefore, the total cost of a set of Qualcomm APQ 8064 chip + baseband is 75 yuan, while the cost of Kunpeng 702 SOC is only 25 yuan.
Even if Wang Yi sells 15 yuan less than Qualcomm, he can still earn 35 yuan more.
More importantly, once sold at 250, many customers may choose Qualcomm.
On the contrary, the price of 235 can attract many customers.
Moreover, this price is 15 yuan cheaper than Qualcomm. Qualcomm does not dare to lower the price any more. If it drops to 235 yuan, Qualcomm will also feel uncomfortable.
In addition, Qualcomm is also worried that once they drop to 235, Wang Yi will continue to drop to 220!
Then there will be trouble.
After all, the cost of Kunpeng 702 is 50 yuan lower than that of Qualcomm APQ 8064, giving it more confidence to fight a price war.
So far, the negotiation has been successfully concluded.
Wang Yi fully acquired VIA, as well as all CPU divisions, technologies, patents, licensing, etc., for a total price of 100 million US dollars and 650 million yuan.
HTC purchased 6 million Kunpeng 702 SOCs from Xingyi Semiconductor. Starting from February next year, the delivery will be completed in three months, with 2 million units delivered per month.
The unit price is 235 yuan, the total price is 1.41 billion yuan, and the gross profit exceeds 1.25 billion yuan!
All I can say is that semiconductors are really profitable!
As for taxes?
For semiconductor companies, under various preferential policies, the tax rates in previous years have been basically exempted.
Even if the 650 million yuan spent on acquiring VIA is deducted, Wang Yi can still earn 600 million yuan.
Wang Yi is very satisfied with this cooperation.
It is equivalent to acquiring the entire VIA without spending a penny, acquiring X86 and VIA's chip technology and patents, as well as a lot of talents, and earning 600 million.
Simply delicious.
Later, Wang Yi approached Williams: "William, the X86 architecture has been won, just develop it."
"???" Williams looked confused: "Chairman, is this true? Intel shouldn't authorize it, right?"
Wang Yi smiled slightly: "Intel will not authorize it, but don't forget, VIA has the X86 authorization."
"Yes, VIA acquired Cyrix, and Cyrix has a permanent license for X86!"
Williams suddenly understood everything.
"Then I will fly to Taiwan immediately and take over VIA's business and technology!" Williams said with joy.
This time, X86 is stable.
Wang Yi waved his hand: "You don't have to go, you can just stay at the Xingyi Technology Headquarters. In this way, the people you recruit will take a big shot and go to Taiwan to take charge of VIA. Give VIA's technology, authorization, and willingness to come to the imperial capital
Bring all the talents here, and those who don’t want to come will stay in Taiwan.”
"In the future, our CPU department will be divided into two R&D centers. The headquarters is in the imperial capital, and VIA will continue to stay in Taiwan as a branch."
"Anyone from Weisheng who wants to come to the imperial capital can come. Those who don't want to come can stay on Taiwan Island."
"From now on, you will be responsible for the Imperial Capital. Another big guy will go to Taiwan and serve as the head of the Taiwan R&D center."
Wang Yi was also worried that something would happen if Williams went to Taiwan.
Williams is no longer what he used to be.
Since the Kunpeng 702 SOC became a god in the first battle, Williams has also become a top player in the semiconductor industry.
Once you go there, something might happen.
Wang Yi couldn't take any chances.
"Okay!" Williams understood Wang Yi's worries and continued:
"Let Nie Zheng go. He was originally the PC business director of Texas Instruments, but later Texas Instruments marginalized the PC business and he had to leave. Later, he went to Intel, but the development was not smooth."
Wang Yi understood: "Okay, let him go!"
This dual-center model can develop two CPUs a year.
The strong ones are high-end, and the weak ones are mid-range and low-end.
For example, Intel has i3, i5, i7, and in the future there will be i9.
Xingyi Technology's CPUs are at least divided into two grades: high-end and mid-range.
As for who is better, Williams or Nie Zheng, it depends on their abilities.
Later, Williams called Nie Zheng to explain everything.
Nie Zheng beamed with joy: "Thank you, Chairman, for trusting me. I will definitely live up to your trust and produce our self-developed CPU next year!"
"Very good!" Wang Yi nodded with satisfaction: "I will arrange a group of people to follow you to VIA. When you get there, if you need anything, just ask, Director William and I will give you our full support."
"Thank you." Nie Zheng was in a good mood and could not have imagined such a good thing.
He only joined Xingyi Technology two months ago, and now he can take charge of the job on his own.
Simply unbelievable.
It can only be said that Wang Yi trusts him too much.
Of course, this does not mean that Wang Yi does not leave any backup plan. On the contrary, Wang Yi has also made all-round preparations.
After all, the teams sent are all from the headquarters.
The financial director, human resources director, etc. are also Wang Yi's confidants.
Even as the head of the headquarters, Williams will always pay attention to and control Nie Zheng's research and development progress.
Once there is any problem, Wang Yi can find it immediately.
"You don't have to go to work in the afternoon. You go back and pack up. We will fly to Taiwan with the team tomorrow."
"Thank you, Chairman!" Nie Zheng beamed with joy.
Later, Wang Yi approached Jian Ziyan: "You have arranged the acquisition of VIA, and the team going to VIA are all ready, and we will fly there together tomorrow."
"Don't worry, Chairman." Jian Ziyan has long been familiar with it.
Every time she acquired a new company before, Jian Ziyan would arrange for someone to negotiate the contract, take over, deal with the aftermath, and carry out follow-up work, etc.
These matters involve finance, human resources, and other departments, and it is troublesome for others to handle them.
But Jian Ziyan got it right.
As Wang Yi's first secretary, Jian Ziyan is also the housekeeper of Xingyi Technology. No one dares to have an opinion on who she arranges to go.
After all, everything Jian Ziyan has to do is all given by Wang Yi, unless she doesn't want to mess around anymore.
To be continued...