Lianhua is the first semiconductor company on the island, and it originally started by producing integrated circuits for its own products.

The MPEG-1 decoding chip is still high-tech for mainland manufacturers, but it is not too difficult for Lianhua.

After reaching the development goal with Sony, UMC launched the production line of MPEG-1 decoding chips.

With the strength of Lianhua today, three months is enough to come up with a formal product. However, less than two months have passed, and the product is about to start production.

Several mainland enterprises that had already reached an intention suddenly notified them to cancel their purchases. Even the deposit that has already been paid in advance is not required.

How eager to order before, how quickly you can cancel now.

"What happened?" Since Cao Xincheng became chairman of the board of directors in 82, he has always been in charge of the mainland market, which is also his most proud strategy in the past two years.

"BBK announced the release of VCD technology and unlimited supply of MPEG-1 decoding chips. Price~ The price is fifteen percent cheaper than ours. "The assistant who just got the news didn't expect that backgammon's movements would be so fast.

According to the practice of general electronic enterprises, few enterprises that have mastered this patented technology are willing to let go of sharing.

For example, Sony, Toshiba, Hitachi, and other large companies will basically treat these patented technologies as long-term meal tickets.

No one can be contaminated.

"How much can the cost of the MPEG-1 decoding chip we put into production be?" Cao Xincheng didn't expect that backgammon would use this method to deal with it.

It's just that now things have progressed to this point, and Lianfa has invested millions in the early stage, and it is impossible to stop now.

The only thing to consider is that after it is produced, there will be a price war with backgammon.

"The cost today is between 130-150." In this era, there are not many companies that can produce IC boards, especially when exporting to the mainland, Lianhua's profits have always been considerable.

When more and more companies enter the market in the future, the prices of these basic components will gradually fall. It even reached the price of cabbage at one point.

It's like the IC board of the learning machine, which has dropped from the original 120 pieces to the current 40 pieces in a year.

The price is staggering. On the one hand, there is the progress of technology, and on the other hand, there are too many manufacturers entering the game.

In order to stabilize the market, merchants have chosen to reduce prices. For manufacturers, the investment in the early production line has been completed, and how much can be made by selling at a low price, and if the initial investment is not sold, it will be wasted.

The same is true for the MPEG-1 decoder chip now.

"Then we will also reduce the price, and speed up the shipment, and give priority to the supply of old customers." After deliberation, Cao Xincheng also chose to reduce the price.

500 pieces of MPEG-1 decoding chip, for MediaTek, is still acceptable. After all, twice the profit, as long as hundreds of thousands of goods are delivered, Lianfa can earn back the initial investment.

Now the question is nothing more than how much to earn. With the huge VCD market, Cao Xincheng still believes that this investment will not be lost.

However, not long after Lianhua made the decision to reduce prices, it received another document.

"The mainland commerce department has sent a patent infringement statement!" Several IC boards produced by Lianhua are basically the technology eliminated by the book, but they have all been authorized by the technology.

Of course, it also cost a lot of money. The reason why it did not pass the patent party this time was that it was directly launched. First, because of the cooperation with Sony, MPEG belongs to an international organization and has R&D patents, as long as you pay a sum of money, you can also get the basic authorization.

The second is that BBK with application patents is a mainland enterprise, and the mainland is still in its infancy in terms of patents, which is different from the perfect law in this book.

In the past, even if there were, there was basically no one to buy it. After all, when you can prostitute for nothing without spending money, there are a few who are willing to spend more.

In addition, the relationship between the two parties is very delicate nowadays, and under normal circumstances, even if you know that it has been pirated by this side, it will not be too much of a problem.

Especially at present, Lianhua is preparing to invest in the mainland. It's really being approached by backgammon. Most of the time, I will turn a blind eye to the past.

However, what he didn't expect was that a tolerant ** would take the initiative to send a letter here for such an innocuous technique.

"What now?" The supervisor in charge of the MPEG-1 decoding chip looked at Cao Xincheng anxiously.

"I seem to remember that backgammon also has trade dealings with us?" Cao Xincheng didn't answer, but asked the assistant on the side.

"Yes, they have purchased our 8-bit chips to make FC learning machines." The assistant hurriedly checked it, and replied with the information about backgammon that he had compiled before.

"It's stopped for them, and it won't be supplied for the time being." Cao Xincheng's decision surprised everyone present.

If Lianhua does this, it will be clear that it will compete with backgammon. This is a very unwise choice in business.

According to the normal situation, when encountering this kind of thing, it is a big deal to make up the formalities, and you can purchase the authorization. Especially now that there is official intervention, it is basically very easy to reach cooperation with the official as an intermediary.

With Lianhua's energy, after a little operation, in the end it is only a matter of how much the license will cost.

After all, they did the same when they pretended to be Nintendo's IC board. It's just getting on the bus first and buying a ticket, which is nothing to Lianhua.

But Cao Xincheng's current decision is uncompromising. This made many people present incomprehensible. Is it worth gambling with a small company?

What they don't know, however, is that Cao Xincheng is unwilling to compromise. It is also a long-term formation of thinking inertia.

In the face of this subsidiary, Lianhua, which has been in OEM production, chooses to obey and even buy patent authorization, which in his opinion is a normal business means.

There is no shame in bowing your head in the face of a strong opponent. But when facing mainland enterprises, this identity is reversed.

Mainland enterprises without independent production capacity have always relied on IC boards supplied by UMC to survive.

Among the mainland semiconductor companies, there are a considerable number of IC boards, all of which are purchased from the bend. In front of them, Lianhua is an upstream enterprise and has this privilege.

What's more, BBK itself started by relying on the IC board sold by Lianfa. Now on the other hand, Lianfa actually asked Lianfa to pay him the patent licensing fee, which made Cao Xincheng unacceptable for a while.

Besides, he also wants to challenge the bottom line, he doesn't believe that ** will really be more serious for such an inconspicuous patent.

When you are used to being a superior person, you naturally can't accept the following offenses below. In later generations, Cao Xincheng was known as a chameleon.

In fact, it is also this kind of psychology that is at work. When you enjoy various special policies and can make a lot of money from here, you actively support it.

But when he couldn't pick up the wool, he immediately turned his face and didn't recognize people, and what he said turned his head and was eaten by himself.

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