Chapter 906: Flowers Should Be Flowered
The compromise of 3DFX really surprised the industry.
To the outside world, 3DFX has always been a very proud company.
After all, entrepreneurs, until now, all three of them are under the age of 30. Not only that, but the company is only less than four years old, a really young company, and at the same time, very successful.
In four years of the world, it has almost reached the pinnacle of the industry.
This arrogance is also understandable.
But because of this, I offended the entire peer.
After all, as a display chip manufacturer, it is too unkind for you to manufacture boards and compete with downstream board manufacturers. Therefore, it has been resisted by all board manufacturers in the entire industry. These board manufacturers have switched to the camp of Nvidia or ATI.
They don't make voodoo graphics cards and let you play them yourself.
In this case, the industry is generally not optimistic. Even if you are at the peak now, but in the IT industry, the replacement is too fast. If you are not careful, you fall off the altar, that is a common thing.
As a result, who would have expected that it would suddenly announce that it would abandon board manufacturers and focus on display chips, which is really admirable that it is really a young company that can bend and stretch.
As a result, board manufacturers such as ASUS, MSI, and Gigabyte have also returned. After all, voodoo is just popular and can make money, who doesn't want to make money.
At this moment, Lei Jun was stunned.
"We bought a board manufacturer?" Lei Jun was directly stunned.
Qin Feng smiled.
"Yes, I bought STB, an old board manufacturer, you arrange for someone to accept it and then relocate it to China. Qin Feng said, "By the way, this acquisition cost $200 million. In terms of the company's capital flow, if it is insufficient, wait for me to come back and sign another agreement with the bank!"
Before that, 10 billion were borrowed. But it's already been spent.
For a CPU farm, 10 billion sounds like a lot. In fact, all kinds of equipment, production lines, employees, R&D and other funds are simply not enough to spend.
What's more, now Huaxia Loongson is not making money at all. In China, only the manufacturing cost of Loongson is flat, and it doesn't make a penny. As for the millions of pieces exported, the average loss for each piece is around $5. And with the increase in international logistics costs, this loss will continue. Moreover, the number of Loongson's exports is also increasing.
Counting the staggering R&D funds, 10 billion yuan, it really doesn't cost much.
That's why Cyrix sold the company so cleanly, even if there was a new technology that didn't come out, it didn't hesitate to sell.
The reason is that the CPU factory is too cheap.
Intel invests $10 billion in R&D every year. Otherwise, how could it be possible to maintain such a strong technical advantage. That's why Intel has to sell at a high price.
R&D costs are too high.
This is also why Intel hates Qin Feng's price war so much. Let them lose a lot of money out of thin air, and it is difficult to fill the gap in R&D funds.
Therefore, there used to be some newspapers in China that said that 50 billion yuan could smash out chips, which was pure nonsense.
The annual R&D cost is more than 50 billion!
Of course, if you have to get a chip casually and say that you developed it yourself, then you can do it. However, if you want to truly develop independently, it is impossible to develop it without a long-term investment of several years, or even more than ten years.
"Well, it's not like there's a shortage of money. Lei Jun said.
Now the company just doesn't make money, no, Lei Jun also admits losing money.
Because this is related to the great cause of China. But Qin Feng got a graphics card manufacturer over, what is this for?
"This, what are we doing?" asked Lei Jun, puzzled.
Qin Feng smiled.
"Produce graphics cards. Qin Feng smiled and said, "And this time I cooperated with voodoo, and in the future, I will launch a CPU with integrated display chips." But before we can do that, we have to integrate the memory chip into the motherboard. ”
Lei Jun exclaimed when he heard this.
This kind of integration is unprecedented. But if you think about it, you know how big the market is.
After all, computers are expensive. For many families, buying a computer is a high cost. It costs money on all sides.
If you can save a piece of graphics card money, it is naturally good.
In this way, the cost of purchasing the machine can be reduced a lot.
After all, no matter how you say it, a graphics card, no matter how garbage it is, now costs one or two hundred yuan. In these years, one or two hundred yuan less is a big deal.
"Can this really be integrated?" asked Lei Jun.
"Yes, this is also the only chance we can overtake in the corner!" Qin Feng affirmed, "By the way, how much money is still in the company's account?"
"Well, at present, there are 7.6 billion left on the books!" Lei Jun said.
Qin Feng calculated, 200 million US dollars to buy STB, and the current exchange rate is about 1.6 billion. Then I bought a stake in 3DFX, which was only 15%, which was not expensive. This is $45 million. Converted, that's about 350 million.
That adds up, that's 2 billion. There is still plenty of money left.
Of course, this is also the time when Qin Feng borrowed 3 billion to get the CPU factory up, and then when he saw that the situation was not right, he took the opportunity to build a U shield with the four major banks, and borrowed another 7 billion, making up 10 billion.
Otherwise, there is a real lack of funds.
In particular, it will cost a lot of money to relocate the STB.
"Well, you apply for a foreign exchange and send the money to the company's overseas account. Well, you can just exchange it for 5 billion. Qin Feng said, "I'm also going to talk to ATI about acquiring their CPU technology!"
"They also developed CPUs?" Lei Jun was surprised.
"Well, inside news from voodoo, they have also developed CPUs, and the performance is good, but the cost performance is not high, and the cost is too great, so they gave up. Qin Fengdian said.
After all, as far as inter-bank is concerned, the risks taken are very large, and it is often easy to provoke industry resistance. ATI was originally dealing with Intel's cross-line, and they had to cross-line.
If Intel gives up, they will naturally give up.
"By the way, Qin Feng, I have a sentence, I don't know whether to say it or not!" Lei Jun hesitated.
"What's that?" Qin Feng asked curiously.
"That is, you spend money like this, but you borrow it. What if the bank doesn't borrow?" Mr. Lei said worriedly.
Now on his side, it is completely a loan operation.
Although the cameras and microphones produced make money, they all make "small money" and cannot make up for the cost of the CPU.
Qin Feng's side is spending money lavishly, although in the long run, it is all money that should be spent. However, it is too scary to spend so much money.
"Alas, there is no way, who let us have no technical reserves! So, all the money that should be spent should be spent!" Qin Feng was categorical.
Lei Jun sighed.
He always felt that spending money like this, spending the bank's money, would be troublesome if someone intercepted the capital chain.
At this moment, Qin Feng had already arrived in Canada.