The Millennium Semiconductor Survival Guide.

Chapter 363 The situation has closed the loop
In other words, Intel is showing its decline in the field of mobile chips and is about to fail miserably in this market.

In the vast Asia, Africa and Latin America, the high prices of Intel chips leave them no room to compete with Xinxin. However, in traditional developed countries such as Europe, North America and East Asia, Qualcomm, a late entrant, relies on its own strength in the field of wireless communications. The accumulated advantages gradually eroded Intel's original market share.

Samsung uses a similar style of play as Xinxin and has no problem sticking to its original territory. Only Intel has no advantage and is simply being beaten.

Although the decline in the mobile chip field will not affect Intel's monopoly in the personal PC field, the development trend makes Intel very worried.

Because since the advent of smartphones, both the time and frequency of users using smartphones have increased, and users' dependence on computers has decreased. This is not a positive sign.

Smartphones are a perfect combination of chips, communication technology and LCD displays. As technological advancement continues, Wall Street analysts believe that personal PCs will one day be eliminated.

Will Intel become a company similar to IBM in the future, relying on some to B business and patent licensing to survive?Barrett doesn't want to see the company he built fall into such a future.

Therefore, no matter how high the price is, he still hopes to cooperate with Zhou Xin and use Matrix to obtain the mobile chip ticket.

Barrett seemed helpless when he heard Zhou Xin complaining about the poor performance of Intel's X86 architecture on mobile chips, because this is a fact.

Lies don't hurt, truth is the knife.

X86 performed well on both personal and enterprise computers, but performed poorly when applied to mobile chips.

So much so that there are rumors that X86 chip dogs are not used.

This has a fatal impact on smartphones that aspire to be high-end brands. Therefore, X86 has only been able to survive on some mid-range models by relying on Intel's position in the industry.

Last year, Motorola couldn't figure it out. They thought Intel's chips had good performance and amazing power consumption. So wouldn't it be better if we made the phone larger and used a larger battery?

You can not only enjoy the high performance of Intel chips, but also enjoy the same battery life as other smartphones, and also have a larger screen.

Motorola launched a flagship machine named Max, and Intel also placed high hopes on it. In order to become an instant success, they also specially optimized the GPU so that this chip can perform better on the gaming side.

At the press conference, Motorola spent most of the space on the performance of the Max, using various data to show its amazing performance on the gaming side. The results were amazing and the heat was explosive.

Just play a game for 5 minutes and it can reach 65 degrees Celsius. Users in Maple Leaf Kingdom joked that with Max, they no longer need to wear gloves in winter.

Even more exaggerated than the Fire Dragon, such popularity led Motorola to update the operating system less than a month after releasing the new phone, and put performance limits on the CPU to control the temperature.

In this way, your biggest advantage is gone, so what’s your selling point?

Motorola has failed, and other smartphone manufacturers do not want to cooperate with Intel in their flagship models.

Intel's reputation is so bad that users may not necessarily know the quality and cost-effectiveness of the brand's specific models, but as long as they hear that this phone uses Intel chips, they will subconsciously feel that this phone is not good.

This reputation wants to be restored, and Barrett sees the only hope in the Matrix.

"You and I both know that technical problems are nothing more than investment. As long as you are willing to invest, you can always overcome them.

Intel is willing to upgrade the X86 architecture specifically for smartphones and design a chip architecture specifically for smartphones.

My thoughts on this point are this. The joint venture established by Intel and Matrix will buy the patents of the A-series chips from Xinxin, and then Intel will transform and upgrade the X86 architecture based on the A-series chips.

Intel gave the joint venture a commercial license for X86, and the next generation Mphone will use the newly designed chips of the joint venture.

As for the gap period in between, Intel will help Matrix lobby the Department of Energy and the White House to ask them to come up with a special exemption period. "Berrett's proposal covers almost all possibilities.

Only Intel, a son of Amerikan, could do it so easily and get the White House to grant Matrix a deadline exemption.

To be honest, unless Yanjing helps him and Americen break up, and the two sides threaten each other, if you don't let Xinxin's chips be exported to Americen, then I won't let Americen's chips come to China.

Otherwise, the solution provided by Intel is really the best solution.

At least for now, it is the optimal solution, and it is not ruled out that Edwin Chen can help Matrix obtain more favorable conditions in Washington.

"I will think about it carefully, Clegg, your proposal touches me. If Matrix cannot cooperate with Xinxin, Intel will be my first choice." Zhou Xin said frankly.

Intel's cooperation plan gives the new core room to move. The only problem is that Intel's so-called optimization of their X86 architecture based on smartphones takes time.

When Mphone4 comes out, Zhou Xin feels that whether Intel can come up with a sufficiently satisfactory chip that is significantly better than Xinxin's A3 chip is a blind box.

"The situation is stronger than the people. Americen now forces us to kneel down and cannot engage in high value-added manufacturing. This time it is for new cores, but next time it will be for the entire industry." Cao Yongluo sighed with emotion. road.

As a private channel of communication between Yanjing and Zhou Xin, he came to chat with Zhou Xin in his own name. After chatting, he conveyed Zhou Xin's opinions to Yanjing's decision-makers.

Matrix is ​​affected, and Yongxin Technology, which has more than 7 business sources in Chengdu and relies on Matrix, will have a difficult time.

Cao Yongluo is also in a hurry. Yongxin Technology has a huge OEM volume, and Mphone is their main source of profit.

In terms of shipments and number of units, there is not much difference between Mphone and Xiaomi, but the profits they bring to Yongxin are very different. Because Xiaomi pursues the ultimate cost-effectiveness, it leaves very little profit space for upstream and downstream companies in the supply chain. Thin.

Matrix is ​​an extreme case on the opposite side. Not only can the supply chain enjoy high profits, but these profits will also be used by Matrix to invest in research and development to keep up with Matrix's increasingly demanding requirements.

"People don't need a reason to deal with you. They can make up a reason without any reason. It's still too early at this point. How much money does Xinxin make from economic globalization and smartphones? And Intel's 20-year monopoly on personal PCs Compared with the market, Xinxin has just started, and the United States wants to kill us.

I would say it is impossible. Xinxin will not be restricted by them through administrative means so easily.

In addition to Americen, there are other markets. Other countries do not prohibit the entry of new chips. We also have advantages at the software level.

Yongluo, I was very anxious when I first received the news. If Xinxin cannot cooperate with Matrix, what will happen to the annual production capacity? How will it be digested? What will happen to the operating pressure caused by so many employees, investors, and equipment depreciation?
Later, we held frequent meetings to discuss and analyze what other methods and methods could be used by Xinxin and Matrix. Now I have calmed down enough. Zhou Xin said.

In fact, he was not as stressed as Cao Yongluo said, because he had already experienced such an unequal war in later generations.

When Zhou Xin was excitedly fighting for China in Washington, he often had the illusion that everyone in this city was my enemy. He was so stressed that he couldn't sleep all night.

Zhou Xin gives himself four hours of sleep every time before going to Congress for a hearing. At other times, he has to prepare materials for Congressional hearings.

After that experience, he was fully mentally prepared for the future with Amerikan. Now that Xinxin's technical strength and technology accumulation are much stronger, it is not so easy to be defeated by them.

Cao Yongluo nodded: "America's behavior this time surprised many people, and the Ministry of Commerce has held several meetings to discuss countermeasures.

Many experts have also been invited for consultation. Many so-called experts are trying to explain their actions to Amerikan, trying to use the free trade theoretical framework that Amerikan insisted on in the past to justify their actual behavior.

This is simply a joke. Our own company was beaten, and our so-called experts in the country did not help find a way to fight back or get out of trouble. Instead, they helped Amerikan figure out how to rationalize their operations.

Let me tell you, these experts who are trying their best to help Amerikan are suffering from rickets and cannot stand up. "

Zhou Xin can completely understand why Cao Yongluo is aggrieved. This was too common in 2009.

If Amerikan slaps you, these experts will blame you for not showing the other cheek to Amerikan.

Amerikan is as unquestionable as a statue in a temple. Experts are asked to learn Western theories so that they can use these theories to serve Eastern temples. As a result, they all become plasterers of Western temples.

"Isn't this normal? You have been in society for so many years. Don't you know the virtues of these experts?

Their opinions are not important, what we need to do is win the support of the general public.

I plan to let Xiaomi launch a new sub-brand to hit the high-end route. Some technologies originally intended for differentiated competition will be delegated to Xiaomi. Every year, Xiaomi's high-end flagship will compete with Mphone. "

Zhou Xin never expected that Xiaomi, under his leadership, would once again compete with Apple to attack the market share of high-end flagships. This is a cycle.

Currently, the only brand with appeal in the high-end price range, that is, above $800, is Matrix. Except for Matrix, other brands have products in this price range, but the sales volume is not very good.

There are products but no sales. Samsung originally ambitiously launched the first product of the Samsung note series at the end of last year. However, due to the financial crisis, sales of this smartphone specifically targeted at business people were bleak.

Business people themselves are about to lose their jobs. Where can they get the money to buy Samsung Notes?They're all going to be out of work, so what's the point of buying a smartphone with a pen?
The skinny reality makes mobile phone manufacturers tremble. There is a saying among mobile phone practitioners that only Matrix can maintain a high-end price point because Matrix is ​​the pioneer of smart phones. Other latecomers who follow the trend can imitate their products, but The status built in the minds of consumers is inimitable.

"Xiaomi also wants to make high-end models?" Cao Yongluo's eyes lit up. Xiaomi is good at making high-end models, and only high-end models are profitable. Its pursuit of the ultimate cost-effectiveness makes brothers upstream and downstream of the supply chain suffer.

"That's right, Xiaomi was restricted from taking the high-end route because of Mphone. I think that's enough. Now that Mphone will most likely not be able to continue to cooperate with Xinxin, we need alternatives." Zhou Xin said.

"Xiaomi's burden is heavy. In fact, I think it's time to separate Xiaomi from Xinxin Group and become a separate company.

With the current structure, Xinxin should focus on semiconductors and separate companies other than semiconductor functions from Xinxin, such as Xiaomi and Android. "Cao Yongluo said.

He is also an entrepreneurial veteran with almost ten years of experience. He feels that if you want Xiaomi to take on greater responsibilities, you have to give them a corresponding status.

Zhou Xin said: "I will consider it." There are advantages to becoming independent. Xiaomi's profits can be fully attributed to Xiaomi, and there is no need for everyone to share the big pot at the end of the year.

This is an optimized allocation model, allowing employees to have a more intuitive understanding of the benefits of improved corporate efficiency.

Cao Yongluo asked: “What does Yanjing need?
Yanjing asked me to tell them that they will try their best to help Xinxin overcome this difficulty. Whether it is tax concessions or policy preferences, they will try their best to favor Xinxin. "

This is inevitable. New Core has driven the development of the entire Zhangjiang. Once New Core is finished, Zhangjiang's chip industry will lag at least ten years in development, not to mention completely finished. Moreover, the overlord of the entire ecological chain will fall. Enterprises that rely on the overlord's existence will It also takes time to form a new ecology.

This will involve a major reshuffle and will seriously affect the original path of domestic substitution of semiconductors.

"In fact, Americen's behavior is not a bad thing. I attended an internal discussion meeting of the Ministry of Information Industry before and kept saying that we should go to IOE and reduce our dependence on IOE. There was huge internal opposition.

I think the risk of going to IOE is too high and unnecessary, and most companies around the world are using IOE, so why should we be new and different.

After this time, I will go to the Ministry of Information Industry for a meeting again, and I will ask them that Americen does not even allow personal information to use Chinese chips, and all our core infrastructure still uses Americen products.

Amerikan is reducing its dependence on us, but we still think it is not necessary. "

IOE is Intel, Oracle and EMC respectively. The backends of financial institutions purchase equipment from these three manufacturers in large quantities. Originally, IOE was not removed until 17, which means that financial institutions have to replace all these equipment with domestically produced equipment.

“My appeal is very simple, to control the targeting of Matrix within a certain range.

Minimize the impact on new cores as much as possible. "

(End of this chapter)