Chapter 1002 Spreadtrum

Zhang Ran thought about it, and really had no impression of this company: "Haven't you heard of this company, they produce mobile phone chips?"

Wu Ruide turned his head to Liu Zuohu and said, "You are an expert in mobile phones, or you can introduce it!"

Liu Zuohu said: "The mobile phone chip is roughly divided into four parts, CPU, baseband chip, RF chip, and power management. Spreadtrum is doing CPU, baseband chips and RF chips, among which the baseband chip is doing well, and the market share is relatively high. Spreadtrum was founded in 2001 and went public in the United States in 2007. The company initially responded to the call of the country to manufacture Chinese chips, and made the earliest TD-SCDMA chips to support China's own standards. It's just that the 3G license has been delayed for several years and cannot be issued, and Spreadtrum almost went bankrupt, and finally survived by relying on the Indian and African markets. In recent years, with the advent of the 3G era, Spreadtrum has had a more nourishing life. This year, they began to enter 4G, launching two chips, manufactured on a 40nm process, with a Cortex-A5 architecture dual-core, with a frequency of up to 1.2GHz, for low-end solutions, focusing on China and other developing markets. ”

Zhang Ran somewhat understands that Spreadtrum does have the ability to fill the vacancy of MediaTek, but Spreadtrum has only launched a chip with a 40nm process this year, and the technical level should be relatively backward: "How about the performance?"

Liu Zuohu said: "It's not as good as MediaTek, but it's cheaper than MediaTek." After MediaTek didn't sell us chips, I went to Spreadtrum. When I was chatting with Li Liyou, the CEO of Spreadtrum, I learned that Tsinghua Unigroup was interested in acquiring Spreadtrum and was negotiating. I think it's an opportunity that we can buy Spreadtrum. After I came back, I told Mr. Wu about the matter, but I didn't expect Mr. Wu to also have the idea of laying out chips. ”

Wu Ruide looked at Zhang Ran and said: "Qualcomm and Intel are both involved in the Prism Project, but the country has no way to deal with them, and they must use their chips." I'm thinking, now that the US government can force Qualcomm and other companies to participate in the Prism Project, when the Sino-US trade war starts in the future, will the US government jam us in the neck? If we wait until the trade war starts and the United States jams us in the neck? In the future, there will be more and more friction between China and the United States, and we have to guard against it!"

Zhang Ran nodded, the friction between China and the United States will definitely become more and more, and it will turn into a trade war, which is absolutely unavoidable. Last year, the GDP of the United States was $15.68 trillion, and China's GDP was $8.3 trillion, and China's GDP reached half that of the United States. The comprehensive national strength of the two countries is gradually approaching, and the international order is gradually transitioning from the original unipolar pattern to the bipolar pattern between China and the United States. How can the Americans allow others to snore, and how can the Americans allow others to threaten their position as the boss, so they will definitely use various means to attack China in the future.

Thirty years ago, Dongying's GDP reached 70% of that of the United States, threatening the position of the United States. So the Americans thundered and used a square agreement to knock Dongying into the clouds. The United States will not be soft on its loyal allies, so how can it be possible to keep its hands on China.

Now that China's GDP is only half that of the United States, the United States has begun to contain China. By the time China accounts for 60% of the GDP of the United States, a trade war is likely to break out. It doesn't matter who the president is, whether it's a Democrat or a Republican, there's no way around it.

Of course, it is unlikely that the United States will fully embargo chips on China, and these chip companies such as Intel and Qualcomm want to make money, and if they lose the Chinese market, these companies will also be greatly impacted. However, it is possible for the U.S. government to knock on the mountain and shake the tiger, and it is possible to take the peak of the century, after all, the peak of the century is the most influential Chinese company in the world, so it is indeed necessary for the peak of the century to acquire chip companies, which is to leave a way back for itself.

"There is also the rule that whether it is a PC, an eb, or a smartphone, whoever can build and define a new technology platform will own the future. We believe that in 20 or 30 years, the VR platform will replace the existing computer and mobile platforms, and it will be necessary to define the platform in all aspects. If we had the chips in our hands, we would be in a much better position to define VR standards. It is necessary to acquire chips and make layouts. Google, Amazon and other giants are all laying out chips, and we can't lag behind on this point. ”

It's not that Zhang Ran hasn't considered the problem of laying out chips, but he just thinks that the company has a lot of debts now, and the chips are too money-burning, and VR can only really mature after twenty or thirty, so there is no need to rush the layout. However, now that others want to take the chip card to the pinnacle of the century, it is necessary to lay out the chip on the chip: "I support the acquisition of Spreadtrum, you can come up with a plan as soon as possible!"

After Zhang Ran nodded, Century Summit quickly began negotiations with Spreadtrum on acquisition-related matters.

Now that Spreadtrum's business has reached a critical period, its advantages in TD-SCDMA have become less obvious with the imminent arrival of 4G. In the past, there were not many opponents in the TD-SCDMA field, and Spreadtrum had a very good time, but in the 4G field, Spreadtrum will face a strong impact from Qualcomm and MediaTek, and Spreadtrum has no advantage at all. If Spreadtrum wants to achieve better development in the 4G era, it must obtain more financial and technical support to develop high-quality mobile phone chips. In this case, being acquired by a large enterprise is undoubtedly the best option.

Tsinghua Unigroup also intended to acquire Spreadtrum, but Tsinghua Unigroup's strength is too far from the peak of the century. Last year, Tsinghua Unigroup's total revenue was 6.53 billion yuan and its net profit was 72.32 million yuan, while the total revenue of Century Summit last year was 36.9 billion US dollars and its profit was 4.5 billion US dollars, which is not a level rival at all. Moreover, the peak of the century has a mobile phone in hand, and the Spreadtrum chip can be directly used on the mobile phone of the peak of the century. Acquired by the pinnacle of the century, Spreadtrum is definitely hugging the golden thigh.

Century Summit and Spreadtrum hit it off, and the two parties quickly reached an agreement, and Spreadtrum's board of directors quickly approved the merger agreement. Spreadtrum is a publicly traded company, and U.S. investors and institutions own the largest shares, and they value earnings more. These shareholders are not very optimistic about Spreadtrum's performance in the 4G market, and they do not see the possibility of Spreadtrum's earnings reaching a higher level in the near future.

After the board of directors of Spreadtrum approved the merger agreement, Wu Ruide took Li Liyou to Lin'an to meet Zhang Ran.

Li Liyou really wanted to see Zhang Ran, and he admired this young man who was more than a round younger than himself. After Wu Ruide had an in-depth conversation and learned about the concept and layout of the future at the peak of the century, he admired it greatly and wanted to see Zhang Ran even more.

In Li Liyou's imagination, Zhang Ran should be more arrogant, and maybe even a little domineering. However, when he saw Zhang Ran supporting Zhang Jingchu for a slow walk in the yard, he was very surprised, thinking that this looked like the boss of a large group, but like a little man at home.

Wu Ruide stepped forward to greet Zhang Jingchu: "Jingchu, how do you feel, the due date is coming, right?"

Zhang Jingchu smiled and said, "It's soon, next week!"

Wu Ruide reminded: "Pay attention to rest, don't get tired!" He introduced to Zhang Ran: "Zhang Dong, this is Mr. Li Liyou of Spreadtrum. ”

"Hello, Mr. Li!" Zhang Ran laughed and stretched out his hand, "It's a pleasure to meet you." I was supposed to be there for such a major merger, but my wife's due date is approaching, and I can't go, so I'm really sorry. ”

Li Liyou hurriedly stretched out his hands and clasped them tightly with Zhang Ran: "No, no, you are too polite." ”

Zhang Ran nodded at Li Liyou, and then said to Wu Ruide: "Old Wu, you take Mr. Li into the house to sit down, and I will take Jingchu to talk to you after walking!"

Wu Ruide didn't say much, and walked into the room with Li Liyoudian. Zhang Ran's father was reading a book in the living room, and when he saw Wu Ruide and them coming in, he asked the maid to pour them tea, and then chatted with them.

After a while, Zhang Ran and Zhang Jingchu came back. Zhang Ran carefully helped Zhang Jingchu to sit down, and then took Wu Ruide and Li Liyou to the study. Zhang Ran first asked about the negotiations, and then asked about Spreadtrum R&D and chip sales.

Zhang Ran looked at Li Liyou and said slowly: "Mr. Wu should have talked to you, VR is an important strategy for our company in the future. We believe that in the future, VR platforms will replace existing computer and mobile phone platforms, and all of this is inseparable from the support of chips. In the future, Spreadtrum may devote some of its energy to the research and development of VR chips. What do you think about this?"

Li Liyou felt that Zhang Ran was testing himself, and if his answer could satisfy Zhang Ran, then he could continue to be in charge of Spreadtrum, and if his answer could not satisfy Zhang Ran, he would probably have to move his position. He muttered: "VR will be widely used in the future, such as decoration, you can design a good plan, let users bring VR equipment to feel the decoration effect in the virtual world, and then carry out the actual decoration after the user is satisfied." For example, through VR, you can see the real size of the products you are going to buy online, and even use a virtual mannequin with the same height, weight and measurements as yourself, so that you can know in advance whether the clothes you want to buy will fit. In addition, people can use VR to attend sports events, concerts, and online education through VR. ”

Speaking of this, Li Liyou glanced at Zhang Ran and continued: "There are two biggest obstacles that VR is facing now, one is resolution, and the other is vertigo. Resolution is a purely technical issue, while vertigo is more complicated, with the physiology of the human body, the refresh rate and frame rate of the headset, the production quality of the VR application, etc., all cause vertigo. To improve these two points and enhance the audience's feelings, chips are crucial. At present, VR chips are still a blank field, and there are no dedicated VR chips. If Spreadtrum deploys VR chips in advance, coupled with the capital and technical support of Century Peak, it will have the opportunity to become a leader in the chip industry. ”

Zhang Ran was noncommittal to Li Liyou's answer, and said slowly: "The day before yesterday, I talked about the issue of VR chips with Professor Vidro, the head of the Los Angeles Graphics Lab. Professor Videro said that the computer CPU uses Intel's X86 instruction set, but in the era of mobile Internet, the X86 architecture lost to the ARM architecture, and ARM dominated the mobile phone chip. Intel has made great efforts to promote X86 on mobile phones, but it has not been successful. Mobile phones and VR have different requirements for chip performance, and future VR chips may be based on other instruction sets. If you put your energy into the development of ARM-based chips, you are likely to make the wrong bet. What do you think of Professor Vidro's words?"

Li Liyou thought to himself, now ARM dominates the field of mobile phones, but whether it can continue to dominate the VR market, it is really difficult to say! It's just that he doesn't know why Zhang Ran said this, so he said: "It's too normal for different platforms to use different architectures and instruction sets, but there are many instruction sets on the market now, ARM, MIPS, SPARC, X86, etc., it's hard to say who will win in the future!"

Zhang Ran said with a smile: "I said at the time, since we don't know who can win, let's invest a little bit in all types of chips." We can acquire or invest in a number of different chip companies in China, giving them ample space to develop freely and independently. After the signs come out, we will make every effort to support and promote its rapid development. Professor Videro said that there is now a completely new set of instructions, and that set of instructions is likely to beat ARM in the future!"

Li Liyou was stunned for a moment, and then his eyes lit up: "New instruction set, you mean RISC-V instruction set?"

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