The vice president of TSMC was suspicious: 'I seriously suspect that Wang Yi's giving so many orders is just sugar-coated bullets, deliberately paralyzing TSMC and secretly strengthening himself!'

After all, in the field of wafer foundry, TSMC has the most patents and the strongest foundation.

They want to fight a patent war, and Samsung Semiconductor has lost many times!

Xingyi Semiconductor’s 40nm process cannot 100% bypass TSMC’s patents in a short period of time.

Lao Zhang saw through his subordinate's thoughts: "Are you laughing at me because I am too old to see that this is Wang Yi's sugar-coated bullet?"

"I don't dare..." the vice president quickly retorted.

Lao Zhang waved his hand and said with a smile: "So what about sugar-coated bullets? What TSMC needs most is orders. Even if they are sugar-coated bullets, we have to bite the bullet and take them."

"We are different from Samsung Semiconductor and Intel Semiconductor."

"Samsung Semiconductor has chip orders for Samsung mobile phones. Even if there are no other big customers, it can still produce its own chips and avoid starvation."

"Intel Semiconductor has Intel's PC chips and can live well without relying on third-party orders."

"But we, TSMC, are different!"

"We are a pure wafer foundry. We have no orders for our own brands and are completely dependent on orders from third-party customers."

"If we win enough big orders, we can have a good year."

"If you can't take it, you have to drink the northwest wind."

"Although Wang Yi's order is a sugar-coated bullet, it is not small in size and is a piece of fat."

"We at TSMC live off this kind of fat. We can't live without eating it!"

"Once we sue Xingyi Semiconductor, we will completely offend Wang Yi. We will not be able to get any subsequent chip orders from Xingyi Technology, which will be a heavy loss for us."

"To put it bluntly, this is a conspiracy! Wang Yi's conspiracy!"

"Wang Yi is using these orders to tell us, TSMC, take the orders, make good money, and don't cause trouble. This way you are good, I am good, and everyone is good."

"If we want to cause trouble, there is no need to discuss it."

The vice president frowned: "I see, but our majestic TSMC has to follow Wang Yi's framework?"

Lao Zhang sighed: "It's easy to talk about Xingyi Technology, but the problem is that behind them is the mainland market!"

"The mainland is one of our main markets. Once we sue Xingyi Semiconductor, we can guarantee that other mainland semiconductor companies such as Huawei, HiSilicon, and Spreadtrum will refuse to let us OEM. The loss will be too great."

"You have to know that Xingyi Semiconductor represents the strongest semiconductor giant in the mainland and is by no means as simple as an ordinary private company."

"In a certain sense, if we offend Xingyi Technology, we are guaranteed to lose the entire mainland market."

"Will the consequences be so serious?" The vice president's expression changed sharply, and he suddenly felt frightened.

Lao Zhang sighed, looked to the east, and said meaningfully:

"Now, the mainland has begun to pay attention to semiconductors and has elevated them to a strategic position for development. Xingyi Semiconductor is the leader in the mainland market."

"At this time, we are suing Xingyi Semiconductor and launching a patent war. It seems that we are suppressing Xingyi Semiconductor, but in fact we are suppressing the mainland leader. Do you think there will be any consequences?"

"This..." The vice president's face turned pale, and he completely understood the logic behind it.

This seems to be a commercial competition between enterprises, but in fact it is a fairy fight between the forces behind it.

Lao Zhang said quietly: "If we, TSMC, want to have both sides and survive in the cracks, we must stay absolutely awake and turn a blind eye. Unless we are forced to do so, we must not commit suicide."

"After all, Wang Yi is Wang Yi, he is not Chairman Zhang, the founder of SMIC."

"Director Zhang is determined to develop wafer foundry. He is targeting our TSMC. He is also my old enemy. I will feel uneasy if I don't bring him down."

"Wang Yi's main focus is still on Xingyi Mobile. The foundry is more self-sufficient and has little impact on us. On the contrary, it can send us a lot of orders."

"It is much better to value peace. There is no need to jump out and be used as a gun."

"I have learned a lesson. I will expedite the production of Xingyi Technology's monthly 10 million Kunpeng 700 SOC." The vice president quickly expressed his position.

"Well, that's right." Lao Zhang nodded with satisfaction.

But he had other plans in mind.

If TSMC wins the current orders from Apple and Qualcomm, it won’t matter if there are no orders from Xingyi Technology.

But the problem is, Apple’s orders were taken away by Samsung!

The A6 and A6X are both produced using Samsung's 32nm process.

Even next year's A7 chip, Apple plans to use Samsung's 28nm production.

As for Qualcomm?

Android has just started to take off these days, and Qualcomm can't cover the sky with one hand. Its size is not as terrifying as it will be many years ago, and it is far inferior to Apple.

As a result, TSMC cannot give up orders from Xingyi Technology.

With TSMC foundry, the output of Kunpeng 700 began to soar.

Some production lines of Xingyi M1 wafer fab have also begun producing Kunpeng 702, fully meeting the demand for the next flagship chip.

After a few months, the sales of our own mobile phones and tablets dropped, and we still had some extra chips that could be sold externally.

As for when Kunpeng 700 and Kunpeng 702 are sold externally, will it affect Xingyi Technology’s own sales?

This is not a big problem.

After all, large-scale sales of Kunpeng 702 and 700 will not be until April next year at the earliest.

After other manufacturers buy it, they will add R&D, training, production, and distribution, and it will be launched in August or September at the earliest.

At that time, the xphone 2pro equipped with Kunpeng 902 SOC had been on the market for four or five months.

The next generation Xphone 3 equipped with Kunpeng 906 is about to be launched.

By then, the Xphone 2 equipped with Kunpeng 702 will also be on the market for nearly a year and will start price reduction promotions.

As for the Xphone 1pro equipped with Kunpeng 700, it has been on the market for a year and a half and will basically be discontinued.

As for the Xphone 1 equipped with Kunpeng 506, I am afraid it has been discontinued long ago.

To put it bluntly, by the time friend Kunpeng 702 was launched, Xingyi Technology’s Kunpeng 902 model had already been on sale for several months.

The Kunpeng 702 will be delegated to sub-flagships, the Kunpeng 700 will be delegated to the mid-range, the Kunpeng 506 will be delegated to the new generation of unbounded thousand-yuan phones, and the Kunpeng 500 will be directly discontinued...

Chip replacement is so fast, one year from now and it will be completely different.

By then, Kunpeng 700 and 702 will be sold externally and will not affect its own sales.

More importantly, the brand power of other competitors is insufficient.

Even if Xingyi Technology sells the same configuration for 2,000 more, many people will buy it.

This is the brand effect.

What's more, by then Xingyi mobile phone will already be equipped with a self-developed system, which will be on a different track from its competitors.

However, companies such as Xiaomi are small in size, have low sales volume, and have low bargaining power in purchasing components, resulting in high costs.

The same thousand-yuan phone, Unbounded Mobile Phone, has a large purchase volume, tens of millions of dollars per month, and the material cost can be reduced to 550. Adding sales, taxes, etc., it costs 999 to sell it, and still earns 300.

If you switch to Xiaomi, which is small in size and purchases hundreds of thousands of units every month, the purchase price will be much more expensive.

Moreover, the Kunpeng 500 SOC of Unbounded Mobile Phone can be manufactured by TSMC for only 27 yuan.

The chip + baseband purchased by Xiaomi costs 150 yuan.

The difference in the chip alone is more than 100, and the prices of other components are also different.

Therefore, for the same configuration, Xiaomi's material cost is 750 or even 800. Plus taxes, sales expenses, etc., if it is sold for 999, there is no profit at all, and it can only be sold more expensively.

After all, the Xiaomi in this life cannot keep up with one-twentieth of the Xiaomi in the previous life.

Similarly, the four giants of China Cool Alliance have not risen. They are still mainly functional phones, and they are still the four kings who give away mobile phones by charging phone bills.

As for O V, it is even more difficult to describe.

Many of their variety show sponsorships have been taken away by Xingyi Mobile. Coupled with the popular science posts on Meiyou, female users also know that when buying a mobile phone, look at the parameters first.

As a result, the high-priced and low-profile models launched by O V this year were completely wiped out and did not rise like they did in previous generations.

A whale falls and everything comes alive.

In the same way, one general's success can make thousands of bones dry up.

The annual sales of Xingyi mobile phones exceed 100 million, which means that it has overwhelmed all the competitors in the Xiaguo market and taken away their market share.

Including Apple, Samsung, Nokia, HTC, and also China Cool Link Mei Mi OV.

Therefore, even if Xingyi Technology sells Kunpeng 700 and 702 to a friend, the cost to the friend will be higher and it will not have much impact on Xingyi mobile phone.

Instead, you can only earn more.

After all, you only make 300 by selling an Unbounded machine worth 1,000 yuan.

And selling a Kunpeng 702 SOC, the cost is 25, the selling price is 235, and you directly earn 210...

This is also the essential reason why Qualcomm does not make mobile phones, but makes more money than all major mobile phone manufacturers!

Later, Wang Yi called Zhu Changlin again.
To be continued...