Chapter 173, Who Earns and Who Loses?

Sun Yan was stunned for a moment and laughed: "Mr. Song, this is a joke, right?" The result of our painstaking research, the life cycle of this product is only so many years, isn't this equivalent to selling it to you for a total of 1.5 million dollars? โ€

After that, he shook his hand and said disdainfully: "In the case of Huaguo, you said that you only use it for your own use and do not sell it externally, not that I don't believe you, but even if you secretly sell it to others, it will be troublesome for us to pursue it." After a little calculation, my side will raise the production capacity from next year, and it can sell at least 1 million pieces a year, and more in the year after. Mr. Song is also a businessman, and in the calculation of profits, is it cost-effective for us to authorize 500,000 US dollars a year? โ€

"Mr. Sun, the $500,000 does not require you to purchase raw materials, organize production, store and sell, this is an additional net profit directly realized from R&D costs."

That's not what I said. It's licensed to you, and we're missing a piece of sales, aren't we? Sun Yan looked at him with a fixed face, and said with a smile, "Mr. Song, it's just a little bit of a wait." It is said that the delivery will only be made in June, which is calculated according to the current production capacity, and we are also trying our best to increase the production capacity. โ€

He has the confidence to do so.

At this moment, Scober is the world's only supplier of MPEG1 standard decoding chips.

It wasn't until later that Aiduo VCD supported another small manufacturer, ESS, that Scottber's monopoly was interrupted.

In this process, the price of the $5 Scober decoding chip first soared to $75 a piece, and then fell to $10 a piece in competition.

This price is also the core reason why the selling price of VCD machines has fallen to a low price.

Song Yang is now also feeling the difficulty of entering the game at the beginning.

Rao waited for Wanyan to spend money to educate the market on what VCD is before entering the market, but he still had to face the problem of core spare parts supply.

Even if there is a figure like Wang Yuan, it is not a matter of time if you want to come up with a chip that can be commercialized and has a competitive advantage in performance and cost.

The time spent and the money invested in advance always have their short-term competitive advantage.

Of course, the current situation is mainly due to the entry of Lesong Investment, which has put a big move that is very accurate for Sanyou Electronics.

Quietly let Sanyou Electronics start production, and after Sanyou Electronics made a first-line endorsement for the market, bought a large number of copyrights and prepared to make a big deal, it suddenly cut off the supply of decoding chips to you.

In the way of throwing money.

Just as Wan Yan didn't order so many chips at the beginning, no one would take out tens of millions of funds to put up a large number of chips before seeing the real sales data feedback.

Although Song Yang has this vision, Li Ping and Li Ru do not. Li Ru is the one who paid the most, let him sell the car and the yard tun chip first? Isn't that a fuss?

Now, the general is here.

Song Yang counted the accounts.

According to the original idea, Sanyou Electronics plans to produce about 20 million VCDs in the entire VCD life cycle, and then it will be transferred to DVD products.

20 million decoding chips, according to the average price in this cycle, will require 5 to 1 billion US dollars.

The $5 to $1 billion is a frighteningly high profit margin for Scooper.

Of course, now that Sun Yan said that 500,000 a year is too little, it is impossible for him to imagine that this broken chip will have a shipment of hundreds of millions of dollars.

In his concept, this thing is the scale of production of millions of pieces a year, and it is remarkable that at its peak it reached 10 million pieces, and it is likely that it will only be like this for a year.

Song Yang looked at him for a long time before he said, "If $500,000 a year is too little, then how many pieces do we produce in a year, and pay another $2 in royalties for each piece?" โ€

Sun Yan's heart was pounding.

Such a model makes sense.

There's a guaranteed income and a net income of $2 per piece.

Jiang Wan said that this Sanyou Electronics has an extraordinary background, and he really has to be cautious. Relying on the previous friendship of cooperating in the development of VCD machines, Sun Yancai told him about Sanyou Electronics' order of 10,000 pieces.

There were 10,000 pieces in the first year, and now Wan Yan has ordered 100,000 pieces, as one of their big competitors, Sanyou Electronics, next year's plan should also be at this level.

That is, you don't have to do anything, and you will receive a net income of 700,000 pieces a year.

Sun Yan shook her head after groaning: "$2 a piece, too little." Mr. Song knows that the price of our chips now, although there is a guaranteed license fee of 500,000 US dollars, if it is a scale of 100,000 pieces, the net profit we can earn is more than 7 US dollars per piece. โ€

Song Yang looked at him deeply.

The $5 thing, their agent in the Asia-Pacific region is now selling for more than $30, and on his side, at least $20, it is indeed more than $7 per piece of net profit.

Sun Yan said disapprerovingly: "And with the market, this authorization time, naturally, can't be signed for three years at the same price." Mr. Song, if you can't wait, then sign for a year first. $700,000 in licensing fees, plus $5 per piece produced. โ€

โ€ฆโ€ฆ

Time waits for no one, if Professor Wang Yuan is asked to take this chip to analyze and restore the integrated circuit design drawing, and then modify and optimize the design, and then find the foundry to tape out the sample to test the performance, evaluate the cost, and then officially put into production and ship, everything will go smoothly in a year.

Later, it also has to face legal risks.

In Sun Yan's eyes, Song Yang was in a very unhappy mood in this negotiation with him.

In the end, the two sides agreed to pay a one-time license fee of $700,000 and a royalty of $2.50 for each piece produced.

Based on the scale of 100,000 pieces, it is 950,000 US dollars.

The more it produces, the more it is, of course, not cost-effective on Scottber's side.

But judging from what he knows now, Jiang Wan is quite well prepared, and this Sanyou Electronics may not be able to survive next year.

So it's okay to raise the licensing fee a little bit.

Sun Yan wanted a licensing fee of 1 million, which could cost $2 per piece.

In the end, it was negotiated that both sides had compromised.

It's just that Song Yang's compromise was very reluctant in Sun Yan's eyes, and he specially put forward the confidentiality clause in the cooperation agreement.

Sun Yan agreed with a smile.

In any case, there is no need to do anything, and at the scale of 100,000 pieces, a piece will net $9.5.

He doesn't care about the competition between these machine manufacturers.

On the contrary, now it seems that this Sanyou Electronics is on the table and has to continue to play.

A complete machine manufacturer is now going to a chip foundry to worry about chip production. The time cycle, the quality, and the fact that they can't directly use Scooper's name will all become disadvantages in their competition with Wan Yan.

For Sun Yan, the ideal state is that they paid the $700,000 for nothing, and they have to queue up to buy chips from Scober.

Then you have to admit it.

How can chips be so fun?

Sun Yanting wanted to say to Jiang Wan, he was too nervous about this Sanyou Electronics.

What's the big deal? It's completely unorganized!

Song Yang, who had negotiated and left from Scooper's side, was very satisfied.

One year is enough.

He proposed to sign for three years and offer a $500,000 authorization fee, all just to make Sun Yan bargain.

It will be much faster to get the original chip design file and directly combine it with its own products to optimize, upgrade and modify this technology.

After all, Professor Wang Yuan's team has already accumulated research on the MPEG2 standard.

Damn,There's a year,Not to mention the MPEG1 decoding chip,On the basis of MPEG2, which has not yet fully determined all the standards,Sanyou Electronics can try to get the so-called super VCD between VCD and DVD in advance,As the main model of the year after tomorrow to sellใ€‚

$700,000 is a lot of money, and it's five million less at the exchange rate. After that, for each piece produced, the foundry had to pay $2.5 to Scooper.

However, compared with the licensing fees of millions or even tens of millions of dollars plus the patent fees for each chip, it is also acceptable.

The main thing is that the foundries at the moment are extremely hungry for business, and they have the ability and enthusiasm to control the cost price of qualified products to a degree that is not much higher than that of a factory like Scopber, and may even be lower.

Just look at the maturity of the process, and the scale of production.

What 100,000 tablets...... If the first batch of products sells well, Sanyou Electronics' production capacity next year can be planned to soar to one million.

Even if there is no matter of Wan Yan rushing to buy 100,000 chips, the Scooper family may not be able to supply Sanyou Electronics according to the original pace.

If the scale of hundreds of thousands or even millions of tablets, the licensing fee of $700,000 is less than $1 per piece.

In that case, he should finally be able to get the chips for less than $10 each.

What is the cost of Wan Yan's side? The cost of this spare part is definitely twice that of Sanyou Electronics.

Song Yang didn't have much trouble while he was still in the United States.

First, he told Professor Wang Yuan that he had bought the chip authorization and would have the original design technical documents, and then asked him about his confidence in optimizing and improving to make his own new model.

In the new year, Li Ping invested another 2 million yuan in scientific research funds.

And Wang Yuan received some cold reception at this meeting, and he also held his breath.

Obviously, there are advantages and uniqueness in some specific algorithms, but they are only listed as alternatives first.

The next step is to publish the preliminary standards and technical roadmap next month, and then wait for the two-year market application test.

Although Wang Yuan's achievements are also included, if they are not adopted by mainstream products in the future, then of course there will be no so-called patent fees.

He had mustered up all the energy to go back and do this thing deeply and thoroughly.

As for the continuation of Sanyou Electronics' batch of chips after they are used up, there are still a few months in between, and Song Yang also asked him to make some small optimizations for error correction technology at the chip level.

There are two hands to prepare.

The first is to directly take the existing design scheme to find the foundry tape-out first to see the performance, yield, cost, and production capacity. If it's OK, it's a card to use.

Thinkers

The second is to communicate small optimizations at the same time, and then tape out, which will take a lot more time, and there is no guarantee that it will be continued at that time.

Song Yang didn't bother much, since he was looking for someone to do chip foundry, of course he directly contacted Wanji.

Regardless of the rights and wrongs of the future, one of the largest customers of Wanji at this time is Intel, and they have been squatting here in the United States for a long time.

After asking about the phone number of the person in charge of Wanji here, Song Yang called, and the other party heard that it was a Chinese company, so he spoke English euphemistically saying how advanced their current process is, implying that the cost and the like. Especially if the scale is small, it is even more difficult to verify the tape-out of the lithography machine.

Song Yang told him very firmly: "If you can do it, I have a plan for 20 million pieces in three years." The subsequent new design is more likely to reach hundreds of millions of pieces. It's not a low-end product, the latest audio and video standard decoding chip. โ€

He is not bragging, in the future, DVD will indeed be sold globally, and the mpeg2 standard decoding chip is not only used in the field of electrical appliances.

There are application scenarios in the field of radio and television and limited television, and even in the field of video conferencing and video surveillance.

The phone immediately changed to a very locomotive voice: "Mr. Song, please speak, I'm listening!" โ€