My Age of Investment
One thousand three hundred and twenty, price war
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"How many orders has the SC6600L received so far?"
Xia Jingxing looked at Li Liyou with a smile. Whether Spreadtrum can make a good turnaround this year or next two years depends entirely on this baseband chip.
Although it is not the 3G baseband chip that represents Spreadtrum's highest technical level, it is very practical.
Because it takes time to complete the promotion and coverage of 3G, in the next one to two years, OEM machines in China and for developing countries will mainly be 2G/2.5G.
Li Liyou did not immediately answer Xia Jingxing's question, but also mentioned MediaTek.
"Industry insiders estimate that MediaTek's baseband chip shipments in the first half of this year can reach 150 million units, accounting for 90% of the mainland baseband chip market.
Spreadtrum’s baseband chip market share is only 5%, which means that its shipments in the first half of this year were only 8 million. "
Li Liyou spread his hands and said, "Compared with MediaTek, we are like a little kid.
However, faced with the huge gap, we did not stop catching up.
SC6600L is a product that competes with MediaTek’s flagship product MTK6255.
Zhang Xuezheng, CEO of Wingtech Technology, saw our products when he visited Spreadtrum some time ago. He commented that the performance of this chip in all aspects is no worse than MTK6255.
And most importantly, SCTK6255 is $1 lower! "
Deng Yuanjun looked at the confident Li Liyou with a confused expression. Did he take the wrong medicine? A price war with MediaTek? Spreadtrum has suffered such a loss, how dare you still play like this?
Could it be that with the backing of Renaissance Semiconductor, you can cause trouble to the company at will?
Deng Yuanjun was about to ask, but Xia Jingxing asked him first, "Aren't you afraid that Cai Mingjie will end up having fun with you?"
Looking at Xia Jingxing's slightly amused eyes, Li Liyou didn't feel panic at all and replied calmly: "Don't be afraid!
They wear shoes, we go barefoot.
Spreadtrum's annual shipments are only over 10 million units, while MediaTek's is at least 200-300 million units.
For every dollar they lower prices, they lose two to three billion dollars in revenue and net profit.
Spreadtrum has now been privatized and delisted and is no longer a listed company, while MediaTek is still a listed company.
Cai Mingjie may not be able to make this determination and face Spreadtrum at the expense of financial reports and stock prices.
Moreover, MediaTek has always boasted that its technology is better than ours, so it should be priced a little more expensive than Spreadtrum. "
Xia Jingxing smiled and said, "You underestimate Cai Mingjie, he is also a ruthless person.
But you are right. Now that MediaTek is in a leading position in the market and technology, it is not necessarily willing to stoop down to make money like Spreadtrum.
But what if they are determined to fight Zhan Xun?
If Spreadtrum is killed, they will have a near-monopoly on the mainland mobile phone baseband chip market. "
If Li Liyou still had such worries before, now he has no such concerns at all.
He said with a smile: "He should not dare to start a price war with Spreadtrum, because behind us are Fuxing Semiconductor and Mr. Xia."
Xia Jingxing laughed loudly, this flattery was very good.
In fact, he was also looking forward to it. Knowing that Zhanxun was standing behind him, would Cai Mingjie dare to fight with him?
For him, using hundreds of millions of dollars to fight a price war is equivalent to Mr. Wang's petty, Who is afraid of Who.
However, at this time, 3G licenses have been issued for less than half a year, and 2G/2.5G has entered the final stage.
Even if we engage in a price war to gain market share, it will not make much sense.
The focus should be on 3G.
Due to Spreadtrum's status as the landlord and its early deployment of TD terminal chips, it is actually ahead of MediaTek. In its previous life, it suppressed MediaTek in this market segment.
Later, because it was fooled by Intel, it gave up the ARM architecture and went to use the X86 architecture to make mobile phone chips. It also let Intel replace Gulf Power's foundry status, resulting in a missed opportunity to fully catch up with MediaTek.
Just like Huaxin International now, the gap with Gulf Power was once narrowed to one generation of technology. However, due to various factors such as lawsuits and infighting, it eventually fell behind by three generations of technology.
In the chip field where competition is fierce and there is serious interference from external forces, once you make a wrong step, you will have to pay a huge price to catch up again.
In fact, besides money, Xia Jingxing also has a huge advantage, that is, he can direct the company to avoid detours.
Now that Huaxin International's thunder has almost been sorted out by him, the next most important task is to pursue Guangdian.
As for Spreadtrum Communications, the short-term goal is to catch up with and surpass MediaTek, and the long-term goal is to chase Qualcomm.
Xia Jingxing looked at the endless flow of vehicles outside the window and said, "I have no objection! MediaTek bullied Spreadtrum in the past, but now the situation has changed, and it's time for us to fight back.
I give you the authorization to allow Spreadtrum Communications to sell chips at the lowest cost price. "
Speaking of this, Xia Jingxing turned to Li Liyou, "Now that Fuxing Semiconductor is backing Spreadtrum, you no longer need to consider using 2G/2.5G business to support 3G business.
Your current task is to use 2G/2.5G business to bleed MediaTek and catch up with and surpass them in 3G business.
If MediaTek dares to fight, Huaxin International can sacrifice its foundry profits if necessary. "
Hearing these words, Li Liyou's eyes brightened a lot.
This is the benefit of embracing a thick thigh, and it also reflects the advantages of large IDM manufacturers. The three major aspects of chip production and manufacturing can be grasped at one hand, which can save costs to a great extent.
Deng Yuanjun added at the right time: "Spreadtrum's positioning should not stay in the field of mobile phone baseband chips, but should develop in the direction of digital TV chips, Internet of Things chips, automotive chips, etc., and become a large chip design platform, cooperating with the group's various businesses. Group collaborative development.”
Xia Jingxing nodded, "Yes, the group is currently reorganizing the industrial chain. Fuxing Semiconductor has received a total of nine code names. The Suanni chip is a mobile phone system-level chip. The baseband chip can choose one of the remaining eight code names.
There are still seven code names, and they will be arranged one by one next. "
As soon as these words came out, Li Liyou completely felt Xia Jingxing's passion to make a big splash in the chip industry.
Not only has it opened up the entire IDM industry chain, it also wants to launch attacks on segmented giants in areas other than mobile phone chips.
Will he bite off more than he can chew?
Li Liyou had some doubts in his heart, but seeing Xia Jingxing's high interest and having just joined Fuxing Semiconductor, he didn't dare to throw cold water on it.
"Hey, by the way, you just said that Zhang Xuezheng came to inspect Spreadtrum Communications. Does Wingtech have cooperation with Spreadtrum Communications?"
Li Liyou nodded to Xia Jingxing, "Yes, Wingtech placed an order for 1 million baseband chips with us.
This number is already quite a lot for them. Wingtech’s mobile phone shipments in the first half of this year will be approximately six to seven million units. "
Xia Jingxing hadn't paid attention to Wingtech's development for a long time and couldn't help but ask a few more questions.
If you don’t ask, you won’t know. If you ask, you will be shocked.
Even Xia Jingxing was shocked by Zhang Xuezheng's development speed.
Four years ago, this guy started a company in a residential building with 100,000 yuan. Then he took the first mobile phone motherboard product designed by the team to Huaqiangbei and sold it door to door. In one month, he sold 200,000 copycat units. machine.
In the second year after starting the business, it successively won orders from first-tier domestic mobile phone brands such as TCL, Amoi, and Bird, and quickly became the top spot among Chinese mobile phone IDH companies.
It only took two years from starting a business to becoming a leader in a niche industry.
Someone who understands technology and marketing, and is hard-working will never do too badly.
Li Liyou couldn't help laughing when he mentioned his meeting with Zhang Xuezheng, "I went to Huaqiangbei to promote, and he was also promoting in Huaqiangbei.
He was surprised to see me and said that CEOs of listed companies also came to visit Huaqiangbei.
I replied at the time: You, the leader of IDH, come to Huaqiangbei, why can’t I come?
Besides, Huaqiangbei, Hidden Dragon and Crouching Tiger, just looks relatively low-key. In fact, it is the number one electronics street in China and is famous all over the world. "
Xia Jingxing laughed loudly, "Looks like I'm going to visit Huaqiangbei another day."
Li Liyou smiled and said: "Zhang Xuezheng is very capable, matching his ambition.
Not satisfied with his position as the leader of IDH, he established a Wingtech mobile phone factory in Hecheng Nanhu last year, expanded his business to the upper reaches of the industrial chain, provided complete machine manufacturing services, and embarked on the ODM road that integrates R\u0026D, manufacturing and delivery. "
Xia Jingxing nodded slightly. To put it simply, IDH is design, OEM is manufacturing, and ODM combines the two to provide brands with one-stop services from design to OEM.
In fact, the brand owner only pays for a brand, and all other work is done by the ODM manufacturer.
In its previous life, Wingtech Technology developed a magic phone called Redmi for rice phones, which swept the mid-to-low-end smartphone market with a price of 799 yuan. Sales of more than 100 million units broke up the popular "China Cool Alliance".
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