Chapter 39 Pick-up?

The science and technology circle of the Western world, looking at many business ecosystems, is actually a process of big fish eating small fish, mergers and acquisitions devouring, and finally the strong will always be strong, and finally several large enterprises will be formed in the industry.

The growth of a company's R&D strength is often not the process of developing its own team to invest in R&D and technology and final breakthroughs, but often the process of the company starting to expand horizontally after it grows with huge profits, acquires and annexes a series of small companies, and incorporates them into its own system to continue to grow.

Because this method is more in line with the rules of business competition and more efficient.

And efficiency is the most unbreakable truth in the business battlefield where every minute is like a race for every inch of land.

Comparing the commercial competition of the West, it is clear why the gap between China and the West in this area comes from, precisely because there is no such technological ecosystem of mergers and acquisitions. There are no thousands of companies that have ever survived in this fish pond as small fish, and eventually you eat me, I eat you, and you eat into a few big fish that go to the world.

China's related fields, such as the semiconductor integrated circuit industry, are lacking such a food chain, resulting in only a few small fish fighting alone, and there is no horizontal fish to absorb and swallow, learn from each other's strengths, so the competitiveness is naturally lacking.

In the exchange between Cheng Ran and Li Taihang, such a point was also mentioned, which is also the concept of "fish pond".

If there are not enough fish ponds to hold fry, it will be difficult for such a large fish to compete with the relevant companies in the Western world. In order to form such a foundation, it is still necessary to guide the government and invest in "fish fry" on a large scale.

For Cheng Ran, who once came from another time and space, of course, there are enough references for the "blood and tears lessons" of this country, which is a road that is difficult to see clearly in the current domestic era, which is still in the era of discussion, research, and even ignorance and confusion.

Cheng Ran conveyed such a line of thought through Li Taihang, of course, how much Li Taihang can influence, and whether it can eventually make corresponding changes, is unknown. However, all Cheng Ran can do so far is this. Because there are some things that can not be changed by speaking out and speaking. For example, isn't there anyone who has come up with the outline of this concept now? It is believed that some people have seen this kind of drawback and found some way. But these voices, when certain mainstream ideas dominate, are also obscure.

Sometimes, even if you are too much in conflict with those mainstream ideas, you may even lead to unjustified disasters.

On the one hand, Cheng Ran can influence as much as he can through Li Taihang. On the other hand, they are also doing things in their own way.

The acquisition of the private design company and Allen Company is a matter of course, not that Cheng Ran once remembered what the role of these two companies was. Rather, it is a set of programs tailored to the ARM company to be sniped.

Private design companies are best at "SOC", that is, system-on-chip, system-on-chip integrated design, among the objects they have served before, ARM is also an important customer, and ARM has a chip bus project, as well as a series of project cooperation, which are intellectual property projects.

Allen Software's ASPEX technology enables DSP and ARM software developers to provide hybrid architecture debug support through a single debugger, increasing productivity and reducing time to market.

Therefore, ARM is knocking on the door of both companies, on the one hand, for the key SOC design, wireless, signal processing these technologies. On the other hand, it is to improve efficiency and reduce time to market.

If at other times, ARM can fight for better acquisition terms, it can grind slowly.

But since the other party came to the door, Cheng Ran knew that ARM's weakness was there.

In fact, in the current era, most people have never heard of this company that was born in England, or even if they have heard of it, it was a small company that people didn't care about before.

The predecessor of ARM, Acorn Computer Company, was born in 1978, when Acorn wanted to develop a new computer based on Intel's 80286, but Intel did not give samples, if Intel was more generous, ARM might not be born.

In this way, Acorn developed the ARM processor in a fit of rage, which was a temporary success, but basically in 1990, it was defeated by the Wintel ecosystem.

Through the screen, you can feel ARM's resentment towards Intel.

If Apple weren't optimistic about it at this time, perhaps ARM's fate would have twists and turns. After negotiations with Apple, ARM, which was spun off from Acorn in 1990, was first engaged in the development of ARM6 processors for Apple.

From one point of view, this company has a history, and after its official establishment in 90, it took almost ten years to find its own outlet, and the rise of the mobile phone market has finally allowed ARM to finally begin to meet the fast lane of development.

It is not without rivals, although Intel and AMD are mainly focused on the PC field, but at this time no one dares to confirm whether the two companies will fight on two fronts. These are always two swords hanging over the head. On the other hand, MIPS, an independent company of SGI, is also ARM's fierce rival in mobile processors.

At this moment, ARM needs more expansion in the field of technology, as well as the higher production efficiency required to occupy the market.

In these two fields, ARM needs to annex two companies to improve its competitiveness, and when he found it, he found that the two companies actually have the same boss.

After the Nasdaq technology stock bubble, he ran over and copied the bottom......

This makes ARM's M&A department hate it.

In fact, they have wanted to reach out for a long time, but it is precisely because of the technology stock bubble that this process is a step late. After stabilizing their position, they realized that they had been taken first.

If you are the first to go, you can also negotiate.

This time, in addition to his own team, Zhao Qing also seconded professionals in related fields to Fulong Company to obtain technical support during the negotiation.

The negotiation team, headed by Zhao Qing and led Cheng Ran's military order, was in Cambridge, England, across the sea, carrying out the comings and goings between the two sides.

The British side has already shown extreme impatience.

Because in Zhao Qing's request last time, it was proposed that if the two companies were merged, private design and Allen Software, in addition to a 5% stake in ARM, they also needed to have a seat on the board of directors.

This made the senior representatives of ARM at that time immediately reveal that this was too difficult to talk about, and they began to express their uneasiness about the two companies.

When the negotiator on the security side for a week said that this might be the last negotiation between the two sides, and hoped that Zhao Qing would cherish the opportunity and that they would never be able to take a seat at the decision-making level, Zhao Qing once again threw out the conditions of Tianxing Holdings.

Two companies, one is the SOC, wireless, and signal processing technologies that ARM now needs for development.

The second is to help ARM gain greater efficiency in seizing market shipments. Secondly, coupled with the experience of the two companies working with ARM for many years, they immediately turned to the idea of MIPS cooperation with ARM after it rejected the acquisition, and also saw that the IP licensing business was profitable, and also launched the idea of MIPS cooperation for licensing processor design.

This would require a 5% stake in ARM, board seats, and a proposal to obtain the most senior structure license in ARM's Level 3 Authority.

Just slapped it in front of the other party's table.

To pick up or not to answer?

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