Chapter 241: Concessions
Hu Yiting said firmly: "Unless our company's R&D lags behind Intel or other companies, we will not come up with core technology to share with others! As a fabless IC design company that relies on technology to eat, losing technology is equivalent to losing a job." Mr. Friedman, I hope you understand our struggle!"
Hu Yiting's explanation is reasonable, and Friedman certainly understands this truth, but he still can't hide his disappointment.
"I know your concerns, Hu Yiting, I can understand that. ”
After speaking, Friedman changed his words: "But, don't you think that our Cyrix can help you improve the technology? You must know that your Cyrix processor was originally designed based on the 1 micron process, and it was successfully transplanted to the 0.35 micron process by relying on the hard work and hard work of our Cyrix engineers!"
Hu Yiting thought to himself, the design of the multimedia instruction coprocessor was originally tailored by me for the poor level of the domestic process, and the origin of it is that I refer to the design of the MMX instruction coprocessor chip carried on the graphics card of later generations, and the high-end IC engineers like myself in later generations have no trouble implanting the MMX instruction coprocessor into the ARM platform of Android mobile phones, and it is not difficult to amplify the coprocessor process of a graphics card! I zoom in and you zoom out, and the basic design process is still the 0.35 micron design of the original chip, and I don't see where your efforts are.
Thinking of this, Hu Yiting shook his head unhappily and said, "I think it's thanks to the fact that our Chongguang design is good enough! You got the perfect product after two tape-outs, didn't you? The combination design of the Youying Overlord coprocessor and the 6X86 processor took less than two months, didn't it? The reason is that our products are carefully designed for the X86 platform, and the design was designed with future process upgrades in mind, and of course, at least 90% of this The credit is due to our careful consideration in the early stage of design. ”
Friedman was refuted by Hu Yiting and said depressedly: "In any case, your current technology licensing fee is too high, and we really hope to gain a certain share of the new instruction set design by contributing and sharing our R&D capabilities." Hu Yiting, you can't be too greedy, the 20% patent licensing fee paid to you by Cyrix is too high!"
Hu Yiting said coldly: "When you signed the contract, you didn't think the price was high. ”
Friedman's face flushed: "That's because we weren't sure if the product would be a success!"
And now we will soon find a foundry to put the film, and after the product is put into production in large quantities, in order to expand sales, the price must be lowered!
After all, the market for high-end customers is so big! Once saturated, we will cut prices in time to occupy the mid-end market, and in the future, we will continue to reduce prices to occupy the low-end market! Your patent fees are so high, how can we reduce prices to fight for the low-end market?
From what I know about Intel, they will keep cutting prices and fighting a price war with us before the launch of new products! Now they have slashed prices on the Pentium, which has attracted a large number of users with low budgets!
And, once Intel's multimedia instruction set comes out, their new products will surely take advantage of the brand advantage and price advantage to re-threaten our hard-won market share!
If you continue to charge such high royalties, we will only be forced to reduce the price. You know, the short-sighted shareholders on the board of directors will not agree to such a thing as taking the initiative to reduce profits! We will miss out on market opportunities!
I remember when you were in China, you used to say that Intel had to die. Your wish is unrealistic, but I know that your desire to defeat Intel is the same as our Cyrix!"
Hu Yiting knew that Friedman's words made sense, and couldn't help but fall into deep thought.
Finally, after he silently swallowed the steak in his mouth, Hu Yiting said: "First of all, Mr. Friedman, it is your job and your chairman's job to convince shareholders of such a thing.
Secondly, I understand your concern, what you said is indeed reasonable, the window to monopolize the market is precious but short, and we should ship as much as possible.
Finally, as a global strategic partner of Cyrix, we are very sincere, so we are willing to fine-tune the previous royalty rate.
Yes, you convinced me. Hu Yiting's stiff face finally smiled.
Friedman was pleasantly surprised, greatly relieved, and said, "This is very fair! Hu Yiting! I know that you are a reasonable person! You are a gentleman!"
After putting on a high hat for Hu Yiting, Friedman opened his mouth and said: "I think the patent rate should be adjusted to about 5%, after all, the normal technology licensing rate in Silicon Valley is generally about 2% to 5% of the selling price, but considering our good cooperative relationship, I think we can adjust it to 10% first." ”
Hu Yiting said with a straight face: "This is impossible, but I can promise you that the next patent rate can be adjusted according to Cyrix's shipments." ”
Of course, Friedman knew that Hu Yiting would not agree to such a big concession, so he planned to open his mouth first, open his expectations as much as possible, and let Hu Yiting make the biggest concession possible.
"What kind of ladder adjustment?"
"After your company ships two million pieces, it can be reduced by one percentage point per 1 million pieces, and the minimum price can be reduced to 10%"
"That's a little bit less! I recommend a reduction every 50 pills, with a minimum of 5%. ”
Even so, I have to bear the tremendous pressure that President Wang Lili has given me. ”
"Oh, don't mention Wang Lili, I've already inquired clearly, Chongguang has the final say, if my information is correct, Hu Yiting, you are Chongguang's boss!"
Hu Yiting was a little weak after being exposed in person, and after calming down a little, he asked, "Who did you listen to?"
"We have a branch in China, and they assured me that the actual controller of Chongguang is you and your family. ”
Hu Yiting shook his head and said: "Don't spread this news, this world is not safe!"
"Of course, don't worry, I will never tell such a trade secret, but I think if someone wants to investigate, it is not difficult to find. Hu Yiting, being rich is not a shameful thing, if you feel that it is not safe to stay in China as a rich person, I suggest that you immigrate to the United States, I can help you take care of everything, including your family and even the servants you like, I can help you with the affairs of the immigration bureau, whether it is naturalization or green card, I can tell you that our chairman of Cyrix, Mr. Adam Cohen, has a lot of congressional friends. ”
Hu Yiting refused: "Hehe, thank you for your kindness, but I love my motherland deeply and don't want to immigrate to any other country." ”
Then Hu Yiting picked up the wine glass, took a sip of red wine, and raised his voice and said: "In short, as one of the owners and managers of the company, I can't promise you more concessions." Now let's talk about your plans to occupy the market, what are you going to do?"
Seeing that Hu Yiting's attitude was firm, and his goal had been achieved, Friedman was actually satisfied in his heart, thinking that he could get such a negotiation result, which was enough for him to brag about it on the board of directors. As for the future, maybe in half a year, Hu Yiting will be able to persuade Hu Yiting to make greater concessions next time.
"Cheers to our friendship!"
The two clinked glasses, and Friedman drank it all, beckoning the waiter to say, "Give us a bottle of champagne, the best." ”
"We have Don Perignon here, sir, for $590. The waiter's expressionless routine reminder.
Friedman: "That's it." ”
After he finished speaking, he smiled at Hu Yiting and said: "Tonight, let's celebrate well for the success of both sides, as well as the success of the cooperation 6X86-Dragon, and our friendship, I'll take you to a good place later, generally minors are not allowed to enter, but where do I have friends, hehe." ”
Hu Yiting smiled shyly, with some inexplicable anticipation in his heart, and then some hesitation, who knows where Friedman is going to take him to get around, the casino, the sky show, the striptease, or ......"