Chapter 165: Price Strikes Back

"Mr. Su doesn't think about it anymore? With Huawei's investment, we can not only solve the current crisis of your company, but also get greater support from the state, and with the 1 trillion yuan of special support funds from the national treasury in the next five years, our company can develop quickly. With the interference of the government, Qualcomm also had to give face, what kind of blockade to talk about? He Tingbo increased the temptation, but still did not give up.

Trillion......

Malegobi, he was about to sell the company if he continued to talk about it, and said after coughing twice: "President He, I need to consider this matter, now let's talk about the second plan!" ”

He Tingbo saw that Su didn't have this will, and couldn't help but sigh regretfully, and then returned to the right color and said: "Reduce the OEM price, and we will find ways to get back more orders from TSMC." ”

The cooperation between Huawei and TSMC is actually not pleasant, and it has even been cheated by TSMC. In the 12th year, HiSilicon developed the K3V2, which had the problem of heating and incompatibility, which was also the biggest dark history of Huawei terminals, and was heavily complained about by users. If you want to upgrade, TSMC's 28nm process capacity was low at that time, and it was all given to Apple and Qualcomm, and HiSilicon's 28nm processor queued for two years to get its turn.

But there's no way, who else can you give if you don't give TSMC foundry? At that time, SMIC was still playing with the 45nm process.

"How much lower? How much is the order? Su asked quietly.

"The foundry cost is relatively reduced by 10, and at least 20 million Kirin series processors of 16 to 20 nanometers will be contracted within a year." He Tingbo replied without thinking, obviously having a draft in mind.

"10, ruthless enough." The corners of Su's mouth twitched slightly, and it was really wolf enough, and there was blood and hair in the lower mouth.

The income of OEM is still good, even if it drops by 10, it can be earned, and the other party obviously understands the market. However, the income of the final semiconductor was originally low, and now it has dropped by 10, and the income has been greatly reduced.

"President He, your mouth is about to drop the price by 10, isn't it ruthless?" Liu Dacheng asked depressedly.

"In such a situation, it is not possible to be ruthless, and we also need to bear the risk of defaulting on TSMC. If your company really refuses to give up profits, we can only give an order for 2 million chips within half a year. Half a year later, the order with TSMC expires, and it may be possible to increase it. He Tingbo is not subtle at all, but his honest negotiation attitude refuses the space for negotiation.

The order of 2 million chips, half a year, even the company's operating costs are not enough.

However, no matter how the negotiation was conducted, HiSilicon refused to let go and was determined to reduce the foundry cost by 10%.

With the current predicament at the end of the day, it seems that there is really no power to reverse such a downward trend. And as long as you receive this contract, although the money you make is not much, it can at least keep the company running normally and not go out of business at a loss.

And although Huawei made this move for profit, people came with the sincerity to help the final end get through the difficulties, and Su really had no reason to refuse.

"Our labor costs are lower than those of Taiwan and South Korea, and the yield rate of the production line is very high, and the production line can be raised after the production line, even if the cost is reduced by 10, our profits are still very considerable, at least to survive the current predicament." Liu Dacheng whispered to Su at the very end.

In fact, not only that, the efficiency of this production line is very high, coupled with the advantages of labor costs and high yield rate, even if the cost is reduced by 10, the profit at the end may not be less than theirs.

"Well, compared to TSMC's cost reduction, 10 percent, at least 20 million 16 to 20 nanometer chips will be manufactured within a year." After thinking about it again, Su finally agreed to this plan. With the buffer of this year, the final end can be more fully prepared, and even if you can't get the order, you won't lose money.

"Aren't you really going to let us take a stake? Let Huawei join, and the final end semiconductor can develop faster, which is also beneficial to you. He Tingbo regretfully asked, Huawei Group is involved in a lot of fields, but there is still a lack of a wafer factory, and investing in the ultimate semiconductor is especially beneficial to the future development of Huawei terminals, otherwise it will not take tens of billions of funds to risk.

"I'm sorry, we don't have any plans for this for the time being, and if we can't do it in the future, I will definitely give priority to you Huawei." Sue joked halfway.

The next round of negotiations was to negotiate the contract. But there is a specialization in art, and Su Ji couldn't interject, just listened from the side.

20 million chips a year, more than 1.5 million per month. However, the first two months are only small production, and only hundreds of thousands of pieces need to be produced every month, even if the final end is still in the run-in stage at the beginning, the task can be easily completed.

Hundreds of thousands of pieces sounds like a lot, but in fact, each 12-inch wafer can cut hundreds of chips, even if two million chips are only a few thousand wafers, it is really not much, you must know that the final wafer factory can produce more than 100,000 pieces per month.

"Happy working together!"

"It's a pleasure to work with."

When the signed contracts are exchanged with each other, the final semiconductor finally has its first business.

But Su was the most unsmiling and expressionless, if it wasn't for the customer's face, he would have blackened his face a long time ago. TSMC and Samsung, you guys, this pair of sluts actually joined forces to ban him, and they said that they were competitors?

Spicy next door, this thing can't be counted like this, ** immortal board!

"If we run at full capacity, how fast can we produce chips in our factory?" Su asked Liu Dacheng the most.

"The fastest speed of the assembly line has not yet been highlighted, but I estimate that it can produce more than 6 million chips per month." This is still Liu Dacheng's conservative estimate, and the production capacity of this production line is terrible, especially the manufacturing capacity of wafers, and in the past few days, a lot of wafers have been piled up.

Su knows best that this number can be doubled, but the initial monthly output of 6 million is already enough.

"Concubine Su, contact Apple, and say that we are willing to reduce the foundry fee by 10 to make processors for them, more than 4 million per month, mainly for foundry 20nm A8 and 14nm A9." Su summoned Concubine Su immediately, but he still didn't believe that Apple would be too rich.

Last month, God of War had more than $100 million in sales in the Apple App Store, and Apple got more than $30, $30 million, and finally it was a bit abrupt to contact their other department, but it wasn't difficult.

With the design and manufacturing capabilities of the end-end game, Apple will not take it lightly, and then I heard that the foundry cost is 10% lower than that of TSMC and Samsung, and the relevant departments of Apple sent people to the field without saying a word.

The average cost of a chip like A8 and A9 is about 100 yuan, and 4 million pieces can save more than 40 million yuan per month if the foundry fee is reduced by 10, which is a lot of money in the long run.

As for Samsung and TSMC's blockade of the end-end semiconductors under the guidance of the government, Apple naturally knows, but in the world of capital, money is always placed first, and Apple will not be afraid of anyone.

Not to mention the bullish Apple, even if Testicle Pain (Qualcomm) knows about this OEM discount, they will not dump Samsung and TSMC or even their government and run back, they will never dislike more money.

However, because of the pigeon released by Qualcomm this time, although it is normal for such a thing to occur in the business field, Sue's impression of testicle pain is not very good. Now that Apple has expressed interest, it is only natural that Su will no longer kneel and lick 'testosterone'

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