Reinventing the Millennium

Yike's 2014 will not go smoothly. This is an extremely certain expectation given the current sales of products, and it is linked to Ice Core.

Fang Zhuo didn't need to talk too much about gasoline man's technology. He only needed to tell him such a judgment to believe that this financial tycoon could reveal enough bad news.

This does not mean that he must go against the trend, but that he will encounter setbacks anyway, so it is better to squeeze out the maximum benefit from the setbacks.

However, there are no signs of this matter yet. Samsung also has problems due to its semiconductor manufacturing process.

On February 18, Samsung Electronics quietly launched a slightly modified version of its flagship Trump product on its official website and major channels. There were not many other changes, except that the CPU was replaced by Qualcomm’s Snapdragon 801 from Orion Exynos.

Just two days later, Samsung dropped its lawsuit against Qualcomm and announced a settlement on patent licensing.

This sudden move surprised many people who pay attention to industry patent litigation. Has the joint resistance of the three companies against Qualcomm collapsed? It has only been three months since Yike launched a counterclaim.

According to the previous opinions of many industry insiders and legal experts, this time there will be a point in the fight between mobile phone manufacturers and Qualcomm, but this point is most likely to be the first ruling in a lawsuit against Qualcomm... and then there will be Transformation occurs.

There was no news about Samsung in advance, and they suddenly reached a settlement with Qualcomm. Wouldn't it be a backstab in the back of the Yusan family, which obviously had a tacit understanding?

Fang Zhuo received a call from Apple soon after seeing the news and briefly communicated with Cook. He still maintained his original attitude of not paying the patent fees and waiting for the outcome of the lawsuit.

Cook condemned Samsung's actions on the phone and said that there had been a relatively fierce dispute during the call with Lee Jae-yong just now.

"Backstabbing is a tradition of Samsung." When Fang Zhuo said this on the phone, he suddenly thought of one thing. Although backstabbing is a tradition of Samsung, this time the backstabbing seemed particularly hasty, and it was obviously similar to Samsung's flagship Trump connected together.

Originally, Samsung relied very little on Qualcomm. The chip already used its own Orion design, and the baseband chip also used products jointly developed with Intel. However, it still needed to pay patent fees.

This time, Trump turned to Qualcomm’s Snapdragon, possibly out of necessity to reach multi-faceted cooperation with Qualcomm.

This "last resort" is...

"Samsung's process yield is likely to have a problem." Fang Zhuo listened to Cook's voice on the other end of the phone and suddenly made his own judgment.

Apple does not have its own wafer manufacturing plant. Cook is not sensitive to this link. Hearing this, he asked: "Samsung's 28nm? I heard that Samsung is increasing investment and increasing production capacity."

"28nm is a sweet node with a long life cycle. We are also increasing investment in Ice Core. It is not surprising." Fang Zhuo said this first, and then said, "Samsung's 28nm uses a front gate solution, and Ice Core is also increasing investment." Xinhe Taiji uses the back gate. Although different manufacturers often have different production processes, this divergence may have an impact on the yield rate."

Even if the front gate solution is used, the wafer can be manufactured, but the yield rate of the wafer factory determines the cost and profit.

The initial yield rate of Ice Core in the 28nm process was only 67%. It was not until the beginning of this year that the process yield climbed to 86%, making it very competitive.

Normally, the profit line of a wafer factory should be above 75%. Although there are changes in different processes, it cannot be much worse. Even if advanced processes can often start mass production with a low yield in the early stage, they must continue to elevated.

Taking Ice Core as an example, the cost of a 28nm process product with a 67% yield is at least equivalent to that of a competitor's 90% yield product using the 32nm process.

As the yield of Ice Core 28nm increases, the cost and profit of advanced processes are no longer comparable to those of rival 32nm.

This is how to compete with new technology against old technology.

However, can the yield climb be climbed...

This is a very critical question.

The ice core is progressing very smoothly, and Taiwan reporters have not heard of anything unusual. Both of them use the back gate solution, while Samsung uses the front gate solution...

In addition, low yield is not only a loss that cannot cover the cost, but also proves that the product is inferior and inefficient, and even if it is finally used, abnormalities may occur.

For example, Samsung Trump is also complaining about a heat dissipation issue.

Perhaps, this is not only a battery problem, but also a problem with the Orion chip based on Samsung's 28nm process technology. This led to a hasty change of course and had to negotiate with Qualcomm on the patent licensing fee and urgently used the Snapdragon 801.

From the end of October last year to the beginning of February now, most of the best life cycle of flagship products has been wasted. If Trump does not make changes, it will undoubtedly cause a blow to the image of Samsung's high-end brand.

Two Evils, Backstab, to boot.

After Fang Zhuo's eloquent analysis, Cook on the other end suddenly felt that this person was indeed engaged in semiconductors. Although there were speculations, it was very likely that he had restored the situation that Samsung was encountering now.

"Mr. Fang, last year it was said that Ice Core's 28nm process affected Yike's mobile phone release. Unexpectedly, Samsung's early determination was the hidden danger." Cook thought of the situation last year. At that time, there were rumors that Ice Core's 28nm process would be difficult to produce. Who knew, Samsung, which was going smoothly, eventually overturned.

The most critical point is the initial selection of front and rear gates.

"Samsung is not incapable of correcting the problems caused by the process plan." Fang Zhuo pondered for a while, "But it may be more difficult in the short term."

Bingxin spent a lot of energy on the selection of the two plans, and also specifically tried two routes.

Fang Zhuo is very impressed by this. Even for front gates with poor yield, the yield and stability can be improved by optimizing the doping process, improving film deposition quality, and strengthening heat treatment control.

But these require time, investment, and reinvigoration. Unfortunately, Samsung’s flagship mobile phone cannot wait.

"It seems that Apple made a wise choice by handing the order to the reporter." Cook suddenly felt a little lucky.

Apple transferred its A-series chip orders because of litigation and competition with Samsung. Unexpectedly, it avoided Samsung's suspected overturn on the 28nm process.

Fang Zhuo laughed dumbly: "Very good, Cook, you mentioned another important competitor of ours."

He has already connected things together, and he only needs a little verification later to know whether it is correct or not.

"There's nothing we can do about it. Mr. Fang has so many opponents." Cook also joked at this point, "We were stabbed in the back by 'Little Yike', so we should find our way back from head-on competition."

"Qualcomm is really breathing a sigh of relief this time. Samsung has been added to the high-end market for no reason. Unfortunately, manufacturing companies need more communication." Fang Zhuo was thinking about the competition with Qualcomm, and his own company was notified by Qualcomm. Moreover, this time the Snapdragon chip is actually very powerful.

Samsung moved away from Orion and switched to the new Snapdragon. This may not be a weakening, but an enhancement.

"The will of the antitrust alliance needs to be consolidated, and it must also invest in lobbying Washington. Mr. Fang, the scope of application of the Exhaustion Doctrine may really have to go to the Supreme Court to get the result." Ku. Ke mentioned the top priority of this lawsuit against Qualcomm and said seriously, "If the verdict against Yike being sued is unfavorable, we must not rush into negotiations."

Samsung's backstabbing impact was alleviated during the process of process analysis, but new worries rushed into Cook's mind. Samsung responded. The person on the other end of the phone...

South Korea’s Lee Jae-yong also said it well before.

"Lee Jae-yong's betrayal, can he compare with me?" Fang Zhuo said calmly, "Yike pursues long-term interests."

Cook can only say that he is half relieved. However, South Korea's Lee Jae-yong is not as good as China's Fang Zhuo. Samsung only reached a settlement with Qualcomm. If Yi Ke really wants to do it, he might turn around and sue Apple.

He ended the call, thinking about how to use Samsung's problems to strengthen competition in the front market, and also let executives continue to explain Apple's position to the foundries.

Yuerjia's momentum is obviously not as strong as the collective resistance of high-end mobile phone brands like Yusanjia. It is still necessary to pay attention to the positions of other comrades in the trenches.

Fang Zhuo here put down his mobile phone and considered the new changes, feeling unavoidable in his heart.

A process, or in other words, the choice of process solution in a process, affects Samsung's wafer manufacturing level, which in turn affects the performance of Samsung mobile phones in the market, which in turn leads to changes in Qualcomm's situation, and also means that Samsung has temporarily withdrawn. The competition for the global advanced process wafer foundry market...

It really affected many changes in the industry!

Similarly, this is like the impact of the ice core manufacturing process on Yike, perhaps even worse.

Fang Zhuo hesitated whether to call Qiu Ciyun or Liang Mengsong, but finally suppressed a trace of anxiety caused by Samsung's backstabbing. His inquiries and urgings would not help, and would only bring more pressure to them.

The pressure on the ice core is already great enough.

Another day later, due to the settlement with Samsung, Qualcomm's stock price rebounded by 6.9%, which was a very good performance. Jacobs, the head of Qualcomm, also took advantage of the situation and called the head of Yike, wanting to discuss the dispute with Yike.

Samsung conducted secret negotiations with Qualcomm in January. This proactive contact from one of the three companies really surprised Jacob, and it took only two weeks to reach a final settlement.

On the one hand, Qualcomm has slightly reduced the proportion of patent licensing to Samsung.

On the other hand, Qualcomm requires Samsung to use Snapdragon chips in its Trump series in the next three years.

Samsung can start a new series and continue to carry Orion, but Trump is a high-end mobile phone brand that it has established and will not give up easily. Even if it launches a new series, its influence is unknown.

This kind of binding can immediately help Qualcomm get rid of the embarrassment of having only half a foot in the high-end mobile phone market and reduce its reliance on the Yike Selfy series.

"Mr. Fang, Qualcomm and Yike have been cooperating for a long time. Regardless of Ice Core or Yike, I always solve problems with the most sincere attitude." Jacob did not make any gestures, but was extremely sincere, "I must reiterate Although Qualcomm filed the lawsuit, it did not seek a ban on the sale of Yike products. As I have always said, I view the lawsuit as an opportunity to change the views of both of us."

"As long as Qualcomm does not take a commission from the price of the whole machine, Yike can immediately reach a settlement with Qualcomm." Fang Zhuo said calmly.

"Mr. Fang, Samsung's choice is wise. The so-called anti-Qualcomm monopoly alliance is just a group of manufacturers with different interests temporarily standing together. Once their interests are satisfied, the alliance will immediately collapse." Jacob was very happy He said confidently, "Samsung is just the first one."

"Then let's wait for the result." Fang Zhuo didn't think it was necessary to continue talking.

Jacobs came back without success from Mr. Fang, so Qualcomm turned around and held a high-profile press conference, inviting Samsung executives to participate and answer many questions from the media.

"Qualcomm's investment in communication technology is the world's leading, so we have the necessary technology licensing fees before we can continue to invest money in new research and development."

"We highly commend Samsung for its understanding of this point. Any high-tech company with high aspirations should consciously maintain and respect Qualcomm's investment and efforts."

Qualcomm's press conference criticized high-tech companies that were unwilling to reconcile without naming names. At the meeting, the vice president of Samsung Electronics also talked about friends and businessmen in a rather sinister manner and praised the advancement of Qualcomm's Snapdragon chips.

The two companies, which had previously been suing each other, suddenly became happy.

Before Yike gave any response, Apple's Cook had already stood up and pointed out the problem: "There are problems with Samsung's 28nm process. It is just helpless that it chose to use Snapdragon chips. This does not affect Apple's decision-making."

Are there problems with Samsung’s 28nm process?

Is this what brought about this change? ?

The information revealed by the head of Apple to the media was very influential and caused waves in an instant. Customers queuing up to place orders from Samsung were hesitant... Aku, you...

Aku, where did you get this news? Fidelity?

Aku, why are you so sensitive to semiconductor manufacturing process factors?

This must not have been revealed by Fang Zhuo, who built one of the world's top three semiconductor wafer manufacturing companies, right?

Because Samsung lost a large order for Apple chips, it has been vigorously exploring foundry customers since last year. When it suddenly heard Cook's accusation, it immediately denied it: "Samsung's 28nm is progressing smoothly, and the production process has always been very reliable. We have already obtained it." Qualcomm’s Snapdragon order, using Snapdragon chips this time is a win-win decision.”

"We all know what happened." Cook responded calmly again.

Samsung, on the other hand, was quite cautious, condemning Cook's remarks and stating that it would not rule out pursuing legal responsibility.

"Apple is very pleased that the cooperation with Taiwanese journalists has gone very smoothly, and our decision is on the right track." Cook responded three times, mentioning his current position.

Another Samsung response suggested something else: Mr. Cook, the man behind the cheaper iPhone, should be paying more attention to Apple than chasing rumors.

The two companies are embroiled in disputes.

The head of Yike was caught by reporters. When faced with the same question, he just laughed and did not give an answer.

However, on February 27, China Anti-Monopoly issued its preliminary investigation results on Qualcomm and determined that Qualcomm had monopolistic behavior.

On this day, Qualcomm’s stock price fell sharply again. (End of chapter)