Life 1984

Chapter 365 Huge loss of US$15 billion!

As Li Yunhai spoke, he stood up and walked out the door.

In the secretary room stood Li Jiacheng and his assistant.

Li Yunhai took two steps forward, shook hands with Li Jiacheng, and said, "Mr. Li, please come inside."

He then ordered Su Hong: "Make tea."

At this time, Zhu Lin and Gong Jie came over hand in hand.

The two of them lived in a hotel near the company with Su Hong and others. They also attended the Coliseum Conference as senior executives of Sihai Group yesterday and helped with work in the evening.

Li Yunhai said to them: "Today's work will be left to the people in the company. You can go to Xiangjiang to have some fun!"

Zhu Lin saw that Li Yunhai was busy at work, so he didn't bother him and went out to play with Gong Jie.

Li Yunhai turned back to the office and sat on the guest sofa with Li Jiacheng.

"The stock price of Sihai Group rose to 70 yuan at the close yesterday." Li Jiacheng said, "Mr. Li, you can consider issuing additional shares to increase the company's market value. With your company's current strength, it is not a problem for the total market value to rise to 500 to [-] billion Hong Kong dollars. .”

Li Yunhai didn't know what the purpose of Li Jiacheng's visit was to talk to him about this matter.
"We will also consider the issue of additional shares." Li Yunhai smiled slightly, "Mr. Li, regarding the land in Causeway Bay, we developed it ourselves and did not ask you to cooperate. Please forgive me."

Li Jiacheng said: "There are many opportunities for this kind of cooperation. I have a piece of land in Mong Kok. If you want to cooperate, we can develop it together."

Li Yunhai was greatly surprised. He didn't know what Li Jiacheng's purpose was in asking him to develop this land together.
Are you short of money?Short of funds?

This is impossible.

There cannot be love without reason in the world, and it is impossible for people to be kind to themselves without reason.

Sure enough, what Li Jiacheng said next was the purpose of his coming here: "Mr. Li, we can have more extensive cooperation, and I can invest in your company. As soon as the news of our cooperation comes out, the stock prices of the two companies will rise." It will all go up.”

Li Yunhai asked: "How should we cooperate?"

Li Jiacheng said: "To be honest, I am very optimistic about the project you are developing in Beijin."

Li Yunhai suddenly realized and said: "You are talking about the Sihai Plaza project."

Li Jiacheng said: "Yes, that's the project. I will take out the land in Mong Kok and cooperate with you to develop it, and you will own 49%. In your project in Beijin, I will hold 49% of the shares. This is great for both of us. It’s a beneficial cooperation. If you take advantage of this opportunity and issue additional shares, your company’s market value can directly double.”

It has to be said that Li Jiacheng is still very sincere. He not only exchanges projects for projects, but also helps Li Yunhai plan the development prospects of the stock market.

Li Jiacheng said: "Mr. Li, I have 5 square meters of land in Mong Kok. I can build two buildings or a commercial plaza. I am still considering it. If you are willing, this will definitely be a win-win cooperation." Good thing."

Li Yunhai nodded and said: "Thank you Mr. Li for your trust in me. I also hope to work with Mr. Li on projects. I wonder if Mr. Li is interested in our Sihai Group's office equipment business?"

Li Jiacheng said: "I am old and don't understand these emerging things, so I dare not rush into the industry. What I am interested in are traditional industries. But I am very optimistic about the telecommunications industry."

Li Yunhai said: "What about our cooperation in developing telecommunications business?"

Li Jiacheng asked: "What kind of business? Domestic telecommunications? It seems that it is not open, right?"

Li Yunhai said: "What I mean is that we can invest in the future telecommunications industry. Mobile phones abroad are very popular, and Lingnan Province in my country has also begun to introduce mobile phones, which is commonly known as Big Brother in Xiangjiang. We are now setting up a telecommunications company The company, starting from the most basic telecommunications business, will definitely achieve great success in the future."

He was taking matters into his own hands, but he never mentioned the two companies' cooperation in real estate.

Li Jiacheng said: "Domestic telecommunications? Basics? I really don't understand. I have to think about it carefully. Mr. Li, can you agree to the two projects I just mentioned?"

Li Yunhai said: "I am very optimistic about the future real estate development of Xiangjiang and Beijin. Our two families exchange like this. To be honest, no one suffers. But is this necessary? You do yours and I do mine. Isn't it just right?"

Li Jiacheng understood and said, "Okay, let's work together again if we have the opportunity in the future."

He stood up, shook hands with Li Yunhai, and then left.

Li Yunhai sent him to the door.

During the conversation just now, Su Hong had been listening. After Li Jiacheng left, she asked: "Mr. Li, what does he mean?"

Li Yunhai smiled and said: "It's obvious! The income from my project in Beijin must be higher than the income from his project in Mongkok. That's why he is willing to trade with me. And I am naturally unwilling."

Su Hong said: "But what he said makes sense. If the two companies cooperate and our company's stock is issued additionally, it will definitely rise sharply."

Li Yunhai smiled and said: "If I don't cooperate with him, our stock market will also rise sharply!"

Su Hong smiled and said: "Mr. Li is still wise."

Li Yunhai said: "As a businessman, I can't afford to start early if there is no profit. I can understand."

At this time, the phone in the office rang.

Li Yunhai answered the phone.

Lin Zhi's anxious voice came over: "Yunhai, aunt just called me and told me something big!"

Li Yunhai was stunned and said, "What's the matter? Don't be anxious and speak slowly."

Lin Zhi said: "My aunt said that Intel will tighten the X86 licensing and cut off all licenses except their own company! I don't know what this news means! Will it have any impact on us? Anyway, my aunt is very I'm anxious, do you want to call my aunt and talk to her? I'll give you the phone number of her hotel room."

Li Yunhai looked at the time. It happened to be night in the United States, and said, "Okay, I understand."

After he hung up the phone, his brows knitted together.

Unexpectedly, what was supposed to come finally came!
And it came so fast and violently!

If Intel cuts off all X86 authorizations, it means that Li Yunhai and the others can no longer produce chips based on Intel's X86 architecture!
The photolithography machine purchased by Sihai Group has become a pile of scrap metal.

The scariest thing is that Sihai Group will have no cores available.

Of course, he can order chips from Intel.

In order to make money, people would definitely sell it to him.

But he has to rely on Intel for food.

Moreover, Sihai Group has just received so many PC production orders. If there is no independent chip production, and if it cannot get the chips from Intel in such a hurry, Li Yunhai will not be able to complete the delivery of so many orders as scheduled!

This is a contract signed!
During the contract period, if Li Yunhai fails to deliver as scheduled, he will face the most severe compensation!
Li Yunhai feels a little dizzy!

He calmed down and thought about countermeasures.

Sihai Group's self-developed chip must not be installed and used, because this chip is still two generations away from Intel's chip!
Use domestic chips?
The performance of domestic chips is also one or two generations behind!
How to do?
As for the current plan, Li Yunhai has only one way, which is to negotiate with Intel and strive to obtain a permanent authorization.

Li Yunhai called Lin Xiaofeng.

Lin Xiaofeng seemed to have been waiting for Li Yunhai's call and quickly answered it.

"Hai of Yun!" Lin Xiaofeng was so anxious that her words trembled!
Lin Zhi didn't know the importance of this matter, but Lin Xiaofeng knew it very well!

"Aunt, it's me!" Li Yunhai said calmly, "Don't worry, we will find a solution to this matter as soon as possible. If you negotiate with Intel, you must get their X86 authorization."

"It's difficult! Now Intel wants to tighten licensing, and we have no chance at all!"

"It's up to people!"

"What if they don't give us authorization?"

"If you can't get it, then order 386 chips from them, order 30 pieces first!"

"Their selling prices are extremely high. You know, the price is more than ten times that of our self-produced chips. If we import them, we have to pay heavy tariffs! Then how can our computers be cost-effective? We received There are so many orders and the prices are so low. If there is no profit on the chips, computers like us will be fine if we don’t lose money!”

"Auntie, we don't have time to think about making money now! Instead, we have to think about how to keep these orders and keep these customers! If we can't deliver the orders as scheduled, let alone make money, losing money will make us bankrupt! As long as the customers They still trust us. As long as customers are still there, if our generation of computers does not make money, we can make it back from the next generation of computers. The 486 and 586 computers will be launched soon. The money we lost on the 386 computers will be earned again in the future!"

"Okay, Yunhai, then I will go to Intel headquarters to negotiate tomorrow. I don't know what conditions they have now!"

"Well, when you arrive, negotiate with them first. If they offer conditions that we cannot accept, don't refuse on the spot. You must contact me before you reply to them! Remember, no matter what they offer, No matter what the conditions are, don’t refuse! This is our only way out, no matter how difficult it is, we can only go on."

"How long will it take for our self-developed chips to be used?"

"I don't know, it could be as fast as two years or as slow as 20 years!"

"Huh? So, our self-developed chips are still unreliable?"

"Unreliable!" Li Yunhai said decisively, "I will give you three directions for negotiation. The first is to strive for a permanent authorization, the second is to strive for a short-term authorization for a few years, and the third is the last option. Order 30 yuan from them. Chip, and it must be delivered within two months!”

"Okay, I understand. How much is appropriate for this authorization? I don't know. Give me a base."

Li Yunhai thought for a while and said: "I don't know what to do with it. Intel is tightening authorization. If we go to ask for authorization at this time, I'm afraid they will charge a sky-high price! No matter what, you go and ask first!"

Li Yunhai put down the phone and took out a cigarette to smoke.Now the international chip war has reached its decisive moment.

Since the 80s, American chip companies have been unable to resist the aggressive offensive of Japanese chip companies.Even with the help of the "Semiconductor Agreement" and the "Plaza Accord", the United States ultimately failed to restore the collapse of the chip industry.Intel was unable to fight back under Toyo's crazy attack of "always pricing 10% lower", and its memory market share plummeted, reaching as low as 10%. Among them, the newly launched new memory market share was as low as only 1% .

The process of strategic turning is quite cruel!
In 1986, Intel closed 8 of its 7 factories, laid off 7200 employees, and lost more than $1.7 million.This is also the only loss Intel has experienced since its listing.

While exiting the memory business, Intel invested US$3 million in research and development expenses to build the 80386 microprocessor. The 386 is Intel's first 32-bit processor. It is three times faster than the 16-bit processor 286 and is compatible with the latter. It also has multitasking capabilities, that is, it can run multiple programs at the same time. .

After learning from the painful experience, Intel decided to shrink the licensing of X86 chips in order to kill all external chip manufacturers and make one dominant one!
They do this for a better survival. Otherwise, Intel is likely to die under the Japanese chip war.

However, the photolithography machines and technology Li Yunhai purchased originally came from Nikon.

Now Intel wants to strangle Dongyang's company, which will harm Chi Yu and hurt Li Yunhai.

Li Yunhai had also approached Intel before for a permanent license, but the other party did not agree.

Because when Li Yunhai entered the chip market, it happened to be the time when Intel made strategic changes!
Li Yunhai thought that Intel had no time to take care of a small business like his, but he didn't expect that the other party would start cutting it across the board so quickly and not give anyone a chance!

The list of compatible processor manufacturers, including AMD, made Intel very angry because the deal with IBM that year left a lot of legal gaps in the X86 architecture patents that could be exploited.

In the past, authorization from other manufacturers was authorized through AMD.

But now even AMD has been sued by Intel and cannot normally have the authorization for the X86 architecture!
As for the authorization of other manufacturers, it will be deprived!
The patent rights are in the hands of others, and you can do whatever they say. If they say you violate the rules, you violate the rules.

Even if Li Yunhai can hold on like AMD, it will be useless, because Sihai Group is not a US company, and they will not protect you like they protect AMD.

If Western countries unite to boycott Sihai Group's products, what's the point of Li Yunhai's death?
Even Dongyang's companies can't survive, let alone Sihai Group?

Li Yunhai can only hope that Intel can be more lenient now.

But this hope is slim.

Li Yunhai called Professor Ni and discussed this matter with him.

After Professor Ni learned about this, he exclaimed: "This is really difficult! Mr. Li, our self-developed chips are still far from being comparable to Intel!"

Li Yunhai smiled bitterly and said: "Professor Ni, I know. Let alone now, even if we are given five years, we may not be able to catch up."

Professor Ni pondered: "The only solution for us now is to buy chips from Intel. Their chips are very expensive! Especially the new chips that have just been developed are sold at very high prices. A 386 chip costs US$950 a piece!" "

Li Yunhai said: "Yes, they sell it for US$950! We can't add the chip technology we research yet!"

Professor Ni said: "If the chip price is so much more expensive, then our computers must also be sold at a higher price. There is no way around it."

Li Yunhai said: "Our advantage is that the price is cheap!"

Professor Ni said: "There is no way, Mr. Li, we can only reduce profits. We rely on others for food, so we can only eat leftovers!"

Li Yunhai said: "The most regrettable thing is that the photolithography machine we just bought! With an investment of several hundred million, is it just left unused?"

Professor Ni said: "My fault, I wanted to develop domestic chip technology, but I didn't expect that I was too aggressive! It was me who harmed you and the company!"

Li Yunhai said: "Professor Ni, don't say that. If we never take this step, then our country's chip industry will always follow in the footsteps of others. A loss-making business always needs someone to do it. If we don't do it, others will. We can do it. In the end, we are only at the mercy of others."

Professor Ni said: "Around 1978, my country also attached great importance to the development of the domestic chip industry. At that time, more than 600 factories in my country took 12 months to produce integrated circuit products, and a large factory in Japan only needed less than 3 days to produce them. Produced. Such a huge gap deeply stung the leaders, who were determined to develop semiconductor technology. Unfortunately, foreign chips subsequently entered our country, especially a large number of smuggled chips, which severely impacted the development of our country's chip industry! Several chip factories in the past had no extra funds to develop new technologies, and they were already dying!"

Li Yunhai said: "We don't care about others! Professor Ni, we have no choice. I am willing to invest all the funds in the development of self-developed chips, even if I have nothing in the end! I have no regrets!"

Professor Ni was startled and said: "With these words from Mr. Li, I, Mr. Ni, will be utterly devastated and will not hesitate to do so!"

Li Yunhai faced an unprecedented crisis since he started doing business in Shanghai!
And this crisis cannot be solved by his personal ability.

At this time, Su Hong shouted outside: "Mr. Guo is here! Mr. Li is inside!"

Immediately, Guo Wanhua walked in.

"Yunhai, why do you smoke so many cigarettes?" Guo Wanhua was still immersed in the great joy of receiving an order of 15 billion US dollars yesterday, and had no idea that a disaster was coming.

Li Yunhai smiled bitterly and told Intel about the upcoming tightening of X86 licensing.

Guo Wanhua understood the power of this and said: "As long as Intel is willing to sell us chips, we don't have to worry. It's just that the price of our computers must be increased by more than $500 to make enough profits, right?"

Li Yunhai said: "Raise the price by US$500? This is feasible, but can the dealer agree?"

Guo Wanhua said: "It's okay if you don't agree! Our company can't do business at a loss, right?"

Li Yunhai said: "It's not a loss, it's just a waste of work!"

Guo Wanhua said: "Yeah, working in vain doesn't mean losing money? Intel's processors are a bit too expensive! The cost doesn't need to be so much at all!"

Li Yunhai said: "Otherwise, as soon as the 386 chip came out, it would immediately go from a loss of 1.7 million US dollars to a revenue of more than 30 billion US dollars?"

Guo Wanhua said: "They are the ones who really make money! What we make is only a small profit, but they still want to crack down and take back the authorization!"

Li Yunhai said: "Who let others get the patent?"

Guo Wanhua said: "Yunhai, don't we have any other options we can think of?"

Li Yunhai said: "There is no way! There is no way at all! Just like in the field of CCA, others have nothing to do with us. We make money every year from CCA patents, isn't it the same? It's just that the money we make is far less than that of Intel many."

Guo Wanhua said: "What if we give up the PC business?"

Li Yunhai said shockedly: "Abandon the PC business?"

Guo Wanhua said: "Yes, just like before, we didn't have a PC business. Didn't you sell second-hand computers before? You can still make money."

Li Yunhai said: "Where can we make so much money? Of our US$15 billion, US$12 billion comes from the PC business."

Guo Wanhua had no choice but to say: "Yunhai, don't worry, at worst, we won't be in the PC business, just make less money!"

Li Yunhai said: "You are right, the worst thing is just not to do it!"

Guo Wanhua said: "Then the photolithography machine we bought is still useful?"

Li Yunhai said: "Keep it! Maybe it can be useful in the future!"

Guo Wanhua said: "Then how much money do we lose?"

Li Yunhai said: "If we cannot get the authorization, we will lose US$15 billion! Not counting future profits!"

Guo Wanhua took a breath: "Loss so much?"

Li Yunhai said: "We spent a total of 7 million U.S. dollars on the entire set of equipment for the lithography machine and memory production line, of which 2 million U.S. dollars were spent on the memory production line. The lithography machine and its configuration production line equipment cost 5 million U.S. dollars. This is a loss. of."

After hearing this, Guo Wanhua said heartbrokenly: "What a pity!"

Li Yunhai said: "If the orders we recently received at CES and two dealer conferences cannot be delivered as scheduled, it will not be a matter of making money. We will also have to pay other people's liquidated damages, which may be one billion US dollars." ?”

Guo Wanhua exclaimed: "That's not possible! I can't afford to lose one billion US dollars!"

Li Yunhai waved his hands feebly and said, "Forget it, let's listen to the news from the United States first! I hope there will be good news."

Guo Wanhua said: "What if I buy chips from Intel?"

Li Yunhai said: "Of course, but we have to order so many chips. If they schedule production, it will be difficult to deliver them within two months. Intel has shut down seven factories, and now only one factory is producing."

Guo Wanhua said: "You said they did this for what purpose? Is it to make the whole world buy the chips they produce?"

Li Yunhai said: "That's right! This is their purpose!"

Guo Wanhua's good mood disappeared in an instant.

Who would have thought that yesterday they were happy to receive an order of US$15 billion, but today they are worried that the order of US$15 billion cannot be delivered as scheduled!
Guo Wanhua thought of a more serious matter: "Yunhai, this news must not be known to the outside world! If reporters write nonsense, our stock price may collapse!"

Li Yunhai said: "I don't care about the stock price. If it crashes today, it can always rise another day."

Guo Wanhua suddenly said: "Yunhai, have you ever thought about it, if our stock price is bound to fall, if you sell half of the shares now and buy it back when it falls, you can make billions! The loss on the chip, you You can make up for it!"

Li Yunhai looked at her in disbelief and said in shock: "Sister Guo, how could you have such an idea!"

Guo Wanhua said: "Isn't it possible? No one knows!"

Li Yunhai said resolutely: "Absolutely not! Who says no one knows? You know, I know, God knows and earth knows! Even if I, Li Yunhai, have no pants to wear, I will not do such a shameful thing!" ( End of this chapter)

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