Reborn Tokyo Golden Age

Chapter 409 The Accumulation of Wealth

After several years of development, SIC is no longer unknown in Neon.

Especially in the industry, with the name of Neon's first self-developed company, SIC can be said to have earned a lot of attention.

In terms of technology research and development, SIC basically retains about 10% of its profits every year and invests in the research and development of next-generation chips.

After the last update iteration, the 8-bit chip of SIC has two families, 8089A and 80289M.

Below them are subdivided branches developed for various applications, and there are always dozens of them.

This year's 8-bit chip shipments have increased to about 5 million compared to last year's 3 million.

While shipments increased by 1.67 times, profits did not grow by the same multiple.

Compared with last year's profit of 11.25 billion yen, this year's profit is 13.75 billion yen, which is still a long way from 1.67 times of 18.8 billion.

The reason is that with the large-scale application of the 1.5-micron manufacturing process, the manufacturing cost of the chip has also dropped significantly.

Now that the cost has dropped, the price has naturally come down as well.

After all, there is more than one chip manufacturing company in the world, and there is room for price cuts if there is competition.

A year or two ago, the price of an 8-bit chip was in the range of US$20-25, but now the price of an 8-bit chip has dropped to about US$13-15.

The price of SIC's 8-bit chips is also within this range, and it cannot be lowered any further. SIC's profit will even be lower than last year.

Nowadays, it is quite good to be able to maintain a profit of US$10-11 per chip, at least there is still some profit.

With the continuous advancement of technology in the future, Moore's Law will have a stronger sense of existence in the chip industry.

At that time, because the number of transistors integrated in the chip will increase exponentially, the cost of developing a chip will increase significantly.

The cost of masking, etching, and testing may be many times that of now, so the chip industry enters the market early and eats meat early.

When the process evolves to the nanometer level, the number of transistors inside the chip will increase to tens of millions or hundreds of millions.

Imagine what a huge project it is to arrange so many transistors into an ideal circuit.

Without the initial underlying architecture as a reference, it is simply impossible to achieve it in one step.

This is also the reason why several major semiconductor manufacturers in Neon want SIC architecture technology.

After several years of iterations, SIC technology has become quite mature.

NEC doesn't say that they don't have relevant technical talents, even if they have them, it will take several years to reach the current level if they start from the beginning.

But after a few years, will the technical level of chips stand still and wait for NEC to catch up? The answer is obvious.

Therefore, the fastest way to enter the industry is to get other people's technology and start your own research and development on this technology.

Of course, dealing with NEC and the others is another story, and now SIC is still making a lot of money in the neon market.

Compared with the 8-bit chip with a shipment volume of more than 5 million, its enhanced version 8089 and 80289 have shipped a total of more than 2.5 million.

Compared with last year's 1.4 million, the increase is obvious. Its profits, though also shrunk, remained around $30.

2.5 million pieces is a profit of 18.75 billion, which is about 1.5 times higher than last year's 12.25 billion.

It can also be seen from this that the more the number of internal transistors, the more complex the process. Although its profit is also affected by the new process, the decline is limited.

This is most evident on 16-bit chips, where SIC's profit per chip reached $180 last year.

Although the price has dropped to around US$200-250 this year, the cost has also dropped significantly compared to before.

Last year, the cost of 300,000 pieces was close to US$100 per piece, but this year it was only around US$60.

And because Fujitsu applied 8081 in batches on high-end computers, the annual shipment once reached 500,000 units.

Together with the cumulative 300,000 pieces in other fields, a total of 800,000 16-bit chips were shipped.

The profit they brought to SIC was 120 million U.S. dollars, or 30 billion yen.

As for the 20,000 to 30,000 pieces of the latest 80281 shipped to Apple, each piece lost $20.

For this batch of goods, SIC paid roughly $500,000. There is no way that the shipment volume is too small, and the cost cannot be suppressed.

Of course, it is still cost-effective as a ticket. As long as Apple’s evaluation of SIC remains unchanged, it will not worry about making money in the future.

All of SIC's family chips add up to a total profit of 62.5 billion yen, a total of 250 million US dollars.

Tsk, although it has increased by less than two times compared to last year.

But this profit data has almost caught up with Toshiba's entire semiconductor business unit.

No wonder they couldn't bear it anymore and wanted to attack SIC. The processor chip market is indeed growing at an impressive rate.

However, it is not known whether SIC can maintain such a growth rate after a few years.

After all, Neon has Fujitsu, Hitachi and Toshiba here, which have obtained the authorization of SIC.

A few years is enough for them to develop corresponding chips and apply them to their own products.

But after thinking about it carefully, Bai Chuanfeng let go of this worry again.

Because the most affected are only the products of these companies, and they are not yet able to compete with SIC in the external market.

With the development speed of Moore's Law, when they develop their own chips a few years later, the 32-bit chip of SIC has already come out.

There is no doubt that in the cutting-edge market, SIC is still the unique existence of Neon.

And with the development of overseas markets later, SIC's territory will become larger and larger.

"SIC's goals for next year are mainly overseas, especially the computer market.

In terms of external authorization, it can be opened to chip companies in the non-computer field, such as instrument and equipment manufacturers such as Arnold.

But in the field of CPU processors..." Bai Chuanfeng paused, "This is the jewel in the crown of SIC's technology, and it must not be awarded to others! "

"Hay!" Heitaro Nakajima agreed with a serious face.

He also understands that computer processors will be the sole domain of SIC, at least in Neon.

Speaking of computers, Bai Chuanfeng turned his attention to Kimura Eiji again.

"Kimura-san, how about the computer Anke cooperated with Softbank this year?"

Kimura Eiji, who was named, got up quickly, with excitement in his expression.

"UW (Union world) computer sales are not bad, 130,000 units were sold in the first year.

Sun Sang has raised the sales forecast for next year, and Anke has received more orders than usual. "

As a brand-new computer brand, it can be called a big success if it can sell more than 100,000 units in the first year.

Sharp's X-series computers sold a little more than 200,000 units.

In contrast, Softbank's development in the computer field is off to a good start.

This also proves that the computer market in the past two years has indeed become more and more popular.

SIC's profits and Anke's data all showed Bai Chuanfeng one thing.

That is computer fever, which may gradually rise in the next few years until it sets off an information revolution affecting the global economy.

Tsk, the storm is picking up.

All these signs made Bai Chuanfeng somewhat greedy for the computer market.

But think about it or forget it, first concentrate on your own notebook.

It will be the sail of Shirakawa Electric in the information field in the future, and the chips of SIC and the software of HAL will escort it.

And because Anke proved for the first time his ability in product design.

Although Kimura Eiji's hair is getting grayer now, his spirit is more energetic than before.

Make money by making your own products.

Last year, the profit of OEM for others was only 1 billion yen, but this year, new products such as computer motherboards and power supplies were launched.

As well as the business of assembling computers for Softbank, Anke's operating profit has reached 6 billion yen.

Although the total amount is not large, it has soared six times compared with last year.

This growth is very gratifying, and Eiji Kimura is already very satisfied in his heart.

In the past, when I was fighting alone, Kimura Manufacturing Co., Ltd. was in its best years, and its profit was only two to three hundred million yen.

Now Anke Electric, although he Kimura Eiji only has 30% of the shares.

But the profit of 6 billion, how can there be 1.5 billion in the hands.

Look, what is this?

This is a blessing in disguise.

When Kimura Manufacturing was acquired by Shirakawa-san, maybe it was his own luck.

The elated Kimura Eiji didn't remember how he knelt on the ground and begged Bai Chuanfeng to raise his hand.

Of course, Bai Chuanfeng doesn't care about his thoughts now. After learning about Anke's business situation, he finally has a clearer understanding of the manufacturing industry under Bai Chuan Holdings.

The battery factory is 4 billion yen, the LCD factory is 15 billion yen, and the optical disk factory is 3.5 billion yen. These peripheral non-core businesses made a total profit of 22.5 billion yen.

The leader in the manufacturing industry, the profit of all products of Shirakawa Electric is 1.908 billion US dollars. But add in the $275 million for optical drives, and the total comes to $2.183 billion.

In the end, if you choose to share, and remove the research and development expenses and other project budgets for the coming year, then Shirakawa Holdings can get roughly 1.041 billion US dollars.

Of course, this is pre-tax income. Neon’s dividend tax rate is about 20%, which is not a small expense.

In addition, adding SIC's 250 million US dollars and Anke's 4 billion yen, the total revenue of all manufacturing companies under Shirakawa Holdings is 1.397 billion US dollars.

If taxes are deducted, there may be more than 1.1 billion US dollars left in the final account.

The 1.1 billion U.S. dollars from the manufacturing industry, plus the 700 million U.S. dollars after tax from Baichuan Interactive Entertainment, totaled 1.8 billion U.S. dollars.

These are the bulk of Baichuan Holdings' income for the whole year, but of course this is not all.

Don't forget that there is also Beidu Bank in the financial industry, but this year because there is no good job like Baichuan Electric's listing.

Hokuto Bank's profit fell from last year, but 35 billion yen was still booked.

Others such as Bic Camera, Hudson Software, and Capcom's revenue of more than one billion yen are not worth discussing seriously.

Excluding the necessary research and development expenses and project funds for the coming year, Shirakawa Holdings has a total profit of US$1.95 billion this year.

1.95 billion U.S. dollars, which is more than the 1.7 billion U.S. dollars that Bai Chuanfeng saved a few years ago.

what does that mean? This means that the money earned throughout this year is more than the sum of the previous years.

Sure enough, as long as the primitive accumulation of capital is completed, wealth will increase at a speed beyond your imagination.

And Bai Chuanfeng is not ready to touch this wealth of more than three billion US dollars, and it is far from the time to enjoy it now.

With this money, he is preparing for next year. Oh no, it's only a few days before 84.

In short, he planned to use this money to play a big game in 1985, and by the way, help Beidu Bank complete the transition from a medium-sized bank to a large bank.

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