Reborn in 2011, 985 missing from two copies
Chapter 415: Billion-dollar chip orders, a decisive victory over Qualcomm
Not only mobile phones need power management chips, but chargers also need power management chips.
Even some brands’ original charging cables have chips.
Of course, this kind of charging cable is very expensive.
For example, Apple’s original charging cable used to cost more than one hundred yuan each.
Xiaomi's original charging cable also costs dozens of dollars.
Charging cables without chips are much cheaper.
At present, it is not a big problem for a 10-watt charging cable to not have a chip, but if the power is higher, a chip will be indispensable.
A 3G mobile phone requires two power management chips P1, one for the mobile phone and one for the original charger.
A fast charging chip C1, used for mobile phones.
Therefore, Wang Yi always sells three chips together.
If all charging cables are forced to carry chips, then there will be four chips.
But the cost of four chips is too high, and most manufacturers cannot afford it, especially domestic brands.
For example, the total cost of Xiaomi's flagship, including taxes and fees, is only 1500. If the four power chips can be reduced to 150, it is almost catching up with the mobile phone processor, which will put Xiaomi under pressure.
After much thought, Wang Yisi decided to give up the strategy of forcing charging cables to have built-in chips.
Once it is mandatory, not only will mobile phone manufacturers have to buy an extra chip, but upstream and downstream manufacturers of chargers and data cables will also have to buy an extra chip, which will inevitably cause boycotts.
After all, data cables are very cheap these days.
A power management chip costs only 40, so the charging cable must cost 100. This is unrealistic and not conducive to the promotion of the x-charge fast charging standard.
In the end, Wang Yi decided to quit while he was ahead and gave up the strategy of forcing charging cables to have built-in chips.
A mobile phone + charger and three chips are enough to make money.
Currently, the power management chips of Qualcomm, Texas Instruments, Broadcom and other friendly companies support up to 5 watts and do not support 10-watt fast charging.
It can be said that Xingyi Technology’s power management chip P1 and fast charging chip C1 are both in a monopoly position, and the only one in the world.
Not to mention selling it for thirty or forty per piece, even if it were sold for fifty or sixty per piece, it would still be twice as expensive as Qualcomm chips, and friendly competitors would still have to buy them.
This is the advantage of a monopoly position.
After all, ordinary mobile phones do not need 10W fast charging, but if flagship mobile phones want to sell at a high price, they have to use 10W, otherwise they will not be able to compete with their competitors.
Even if Wang Yi asked for a high price, they had to bite the bullet and buy it.
But Wang Yi did not ask for an exorbitant price. On the contrary, it is only about $5 more expensive than the 1-watt slow charging of Qualcomm and other friendly companies.
It is one generation ahead in terms of quality, but only about $1 more expensive. All major brands think that Wang Yi is a conscientious person.
Thanks to Wang Yi’s conscientious pricing, even with his monopoly advantage, he did not ask for an exorbitant price, and major brands placed orders one after another.
Not surprisingly, the sales of this wave of fast-charging chip sets alone made a lot of money.
Looking at the financial report of Xingyi Semiconductor Department, Wang Yi was in a good mood.
Customers with orders for 300 million sets: Meizu, Xiaomi, and BlackBerry.
Customers with orders for 500 million sets: HTC, VIVO, OPPO, Coolpad, and Motorola.
Customers with orders for 1000 million sets: Huawei, ZTE, Samsung, Lenovo, Sony, Nokia, and LG.
Looking at the order, Wang Yi's expression was a little complicated.
These days, many brands are still alive.
For example, Motorola is still one of the top ten sales giants these days, and has not yet been acquired by Lenovo.
Another example is BlackBerry, which is also doing well and has not yet been sold to TCL.
What surprised Wang Yi was that BlackBerry was also going to do fast charging?
Yes, although BlackBerry phones have always retained keyboards, they are also making smartphones, but with a different development path, and they seem to be resistant to touch screens.
So much so that the keyboard has become a highlight of BlackBerry.
Coupled with its unique security and global sales, BlackBerry phones are still selling well these days.
There is no pressure to sell millions of units of a flagship product a year, after all, BlackBerry is also a major international brand.
The President of the United States uses a BlackBerry phone!
There is also Coolpad, which placed an order of five million at one time.
These days, the four giants of China Cool Alliance are still as powerful as ever!
Xiaomi, Meizu and the like are emerging brands.
Wang Yi calculated that more than a dozen brands have ordered a total of 1.04 million sets of charging chips, a total of 3.12 million chips!
Even if we calculate it at 100 yuan per set, the total is 104 billion!
Gross profit exceeded 95 billion.
That’s a lot of money!
Wang Yi finally realized the happiness of Qualcomm.
Of course, Wang Yi will basically make all the money from major mobile phone manufacturers in the next year.
The only brands that can continue to place orders in the future are Samsung, LG and other brands.
Their flagship mobile phones are sold worldwide, with multiple models released each year, and there is hope that sales will exceed 20 to 30 million.
We will definitely have to place additional orders at that time.
But the possibility of other companies placing additional orders is not great.
Companies like Huawei and ZTE have impressive sales, but they are mainly low-end smartphones and feature phones.
On the contrary, sales of flagship smartphones were mediocre.
Wang Yi doesn't expect their low-end mobile phones to be equipped with 10W fast charging, which is unrealistic.
But it doesn’t matter. The money is made from the mobile phone manufacturers, and there is still money to be made from the accessories manufacturers.
Although the 10W charging cable does not use the power management chip P1, the charger does.
No matter which brand wants to make a 10W charger, it must adopt Xingyi Technology's X-charge fast charging standard, use the X interface, and purchase the power management chip P1.
If not, 10-watt fast charging cannot be achieved and the product will not sell well.
Those who sell power banks and want to follow suit with 10W fast charging also have to purchase the power management chip P1 and the fast charging chip C1.
You can’t avoid Xingyi Technology.
This is the advantage of setting standards. Once they are established, friendly competitors and upstream and downstream industry chains have to follow suit and purchase. There is no other choice.
Coupled with the monopoly advantage, the coming year will be smooth sailing.
By this time next year, when Qualcomm Quick Charge comes out, there may be some changes, but the changes will be limited.
By then, the whole world will use X interface, X-charge fast charging standard, C1 fast charging chip, and P1 power management chip.
Wang Yi took the opportunity to lower prices again and start a price war. It will not be so easy to promote Qualcomm's fast charging protocol.
Wang Yi had planned all this long ago.
This is the first-mover advantage and also a battle of standards.
It was also for the purpose of defeating Qualcomm that Wang Yi did not set a high price, but chose the strategy of small profits but quick turnover, using low prices to gain market share!
Afterwards, Wang Yi called TSMC’s Mr. Zhang again.
On the other end of the phone, Zhang smiled and said, "Congratulations, Mr. Wang. The mobile phone is selling well, and the chips are also selling well. It's amazing, really amazing!"
He was also very surprised that when Wang Yi was making fast-charging chips, Lao Zhang didn't think anything of it, and even thought that Wang Yi was stupid.
Is it necessary to develop a power management chip and a fast charging chip specifically?
Other brands directly purchase power management chips from Qualcomm, Texas Instruments, and MediaTek. How convenient is that?
Until this moment, when he saw Wang Yi easily win a 90 billion yuan order and make a profit of more than billion yuan, Lao Zhang suddenly realized.
High, it is high!
This wave of Wang Yi is in the atmosphere!
"It's just a small thing. They are just small chips. They can't compare with giants like Qualcomm." Wang Yi said modestly.
"Mr. Wang, you are too modest. Even Qualcomm is gritting its teeth with envy. Haha." Lao Zhang said with a smile.
"Really?" Wang Yi was speechless. This wave indeed snatched a large number of orders from Qualcomm.
"Of course." Lao Zhang said, and then changed the subject: "Mr. Wang sold more than 40 million chips at once. Don't worry, TSMC's -nanometer production capacity is sufficient, and we will give you priority in expedited production."
"Thank you." Wang Yi smiled and said, "In addition, we need another 1 million P2 power management chips and another 1 million C1 fast charging chips. The sooner the better. I'm waiting for delivery here."
"No problem, Mr. Wang, I have arranged for you to jump the queue, haha." Old Zhang's eyes were curved with smiles.
With this wave, Wang Yi has gone from being a small customer of TSMC to a major customer of TSMC.
It is also a high-quality customer of 40nm.
These days, major customers such as Apple are scrambling to grab TSMC's 28nm production capacity. In addition, 28nm is an advanced new process, so TSMC's 28nm production capacity is also running out.
However, the production capacity of 40 nanometers is already a mature process, and there are many production lines, but there are fewer customers.
The simplest thing is that last year Apple’s chips were all 40 nanometers, so TSMC built many 40-nanometer production lines.
But unfortunately, this year Apple switched to 28nm, and so many 40nm production lines were vacated. Zhang was anxious because he couldn’t find enough new customers.
Now it’s good, Wang Yi is here!
之前就下单了3亿颗电源管理芯片P1,2亿颗快充芯片C1,1亿颗路由器芯片R1。
A total of 6 million chips, all 40 nanometers!
But Mr. Zhang was very happy.
Now, another 2 million power management chips P1 and 1 million fast charging chips C1 have been added, which is another large order of 3 million chips. More orders may be needed in the future.
TSMC's idle 40nm production lines can be directly utilized to full capacity, which is simply amazing.
There is no way. The yield rate of Xingyi Wafer Factory's 40nm process is not yet mature. Even if it is mature, it will only produce mobile phone chips, not this kind of low-end power management chip.
Since SMIC had not yet mastered the 40nm process, Wang Yi had no choice but to choose TSMC's Mr. Zhang.
The simplest thing is that with this order, Taiwan Semiconductor can be considered a major customer of TSMC.
By then, TSMC will not besiege Xingyi Semiconductor as it did to SMIC.
After all, once TSMC makes a move on Xingyi Semiconductor, TSMC will have no chance of getting big orders for Xingyi Technology's 40nm chips.
TSMC can forget about any subsequent large orders for 28nm flagship mobile phones, as this will only benefit Intel and Samsung.
TSMC's CEO Zhang has to weigh the pros and cons here.
In addition, Xingyi Technology's wafer factory mainly produces its own chips, and its impact on TSMC is far smaller than that on SMIC, so Zhang will not lose sight of the big picture.
If Lao Zhang also took the patented technology and exported it to Xingyi Semiconductor like a mad dog like he did to SMIC, Wang Yi would also be in a headache.
As for patents, Xingyi Semiconductor can circumvent most of them, but it will still take some time to circumvent them 100%.
This is not only true in the semiconductor industry, but also in the mobile phone industry.
It is simply unrealistic to completely avoid all patents of competitors. At least the underlying basic patents cannot be avoided at all.
It is for this reason that the concept of cross-authorization came into being.
You have violated my patents so many times, and I have violated your patents so many times. Both parties went to court and sued each other. In the end, after calculating, we found that the infringement of each other's patents was almost the same, so we directly reached a patent cross-licensing agreement and reached a settlement.
If the difference is much greater, then you will have to pay a large sum of patent fees to reach a settlement.
Like HTC, the difference is too great, and they don’t want to pay the sky-high patent fees, so they have no choice but to ban sales.
The same is true for the semiconductor industry.
At that time, SMIC used some of TSMC's patented technologies, and TSMC filed crazy lawsuits, putting SMIC in danger.
Eventually, SMIC's founder, Mr. Zhang, was forced to withdraw and gave 10% of the shares to TSMC, and only then did Mr. Zhang of TSMC give up!
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