Chapter 1313 Price War

   "How many orders have SC6600L received so far?"

  Xia Jingxing looked at Li Liyou with a smile on his face. Whether Spreadtrum can make a good turnaround this year and next year, I hope it all depends on this baseband chip.

  Although it is not a 3G baseband chip that represents the highest technical level of Spreadtrum, it is very practical.

  Because it takes time to complete the promotion and coverage of 3G, in the next one to two years, the domestic and developing countries' OEM machines will mainly be 2G/2.5G.

  Li Liyou did not immediately answer Xia Jingxing's question, but talked about MediaTek.

   "Industry estimates, MediaTek's baseband chip shipments in the first half of this year can reach 150 million, accounting for 90% of the mainland baseband chip market.

   Spreadtrum's baseband chip market share is only 5%, which means that the shipment in the first half of this year is only 8 million. "

   Speaking of this, Li Liyou spread his hands, "Compared to MediaTek, we are like a little bit.

   However, in the face of the huge gap, we have not stopped catching up.

  SC6600L This product is aimed at MediaTek's flagship product MTK6255.

  Wingtech CEO Zhang Xuezheng visited Spreadtrum some time ago and saw our products. He commented that the performance of this chip is no worse than MTK6255 in all aspects.

   And most importantly, the SC6600L is always $1 less than the MTK6255! "

  Deng Yuanjun looked at the confident Li Liyou with a bewildered face, did he take the wrong medicine? Price war with MediaTek? Spreadtrum has lost so much, how dare you play like this?

   Could it be that with the backing of Fuxing Semiconductor, you can bring disaster to the company?

  Deng Yuanjun was about to ask, when Xia Jingxing asked, "Aren't you afraid that Cai Mingjie will end up having fun with you?"

   Looking at Xia Jingxing's slightly playful smile, Li Liyou didn't feel flustered at all, and answered with ease: "Not afraid!

   They have shoes and we are barefoot.

   Spreadtrum only ships more than 10 million units a year, while MediaTek has at least 200 to 300 million units.

   For every dollar that drops in the price of their products, it means a loss of $200 to $300 million 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 up his mind to fight Spreadtrum at the expense of financial reports and stock prices.

   And MediaTek has always boasted that its technology is better than ours, so it should be 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, MediaTek is in a leading position in the market and technology, and it is not necessarily willing to bend over to make money like Spreadtrum.

   But what if they are determined to fight Spreadtrum?

  If Spreadtrum is killed, they can almost monopolize the mainland mobile phone baseband chip market. "

   If Li Liyou had such concerns before, but with the acquisition of Spreadtrum by Fuxing Semiconductor, he has no such consideration at all.

   He said with a smile: "Cai Mingjie should not dare to fight a price war with Spreadtrum, because Fuxing Semiconductor is standing behind us, and Mr. Xia is standing behind you."

  Xia Jingxing laughed, this flattery is good.

  Actually, he also had some expectations. Even though he knew that Asia's richest man was standing behind Spreadtrum, Cai Mingjie dared to fight him.

   Taking hundreds of millions of dollars to fight a price war, for him, it is equivalent to President Wang's small idea, Who is afraid of Who.

   However, at this time, 3G licenses have been issued for half a year, and 2G/2.5G has entered the final stage.

   Even if the market share is grabbed by a price war, it is of little significance.

   Focus on 3G.

  Due to Spreadtrum's status as a landlord, and at the same time deploying TD terminal chips several years in advance, it is actually ahead of MediaTek to a large extent, and it suppressed MediaTek in this market segment in its previous life.

   Later, because of being fooled by Intel, Spreadtrum gave up the ARM architecture and ran to use the X86 architecture to make mobile phone chips. At the same time, it also let Intel replace the foundry status of Gulf Power, resulting in a missed opportunity to fully catch up with MediaTek.

This experience of    Spreadtrum is as unfortunate as Huaxin International.

   The gap between Huaxin and Wandian was once narrowed to one generation of technology, but due to various factors such as lawsuits and infighting, it finally led to three generations of technology behind.

  In the chip field where competition is fierce and external forces interfere seriously, once you take a wrong step, you will need to pay a huge price to catch up again, and at the same time, you need to look at opportunities.

   In fact, apart from money, Xia Jingxing also had a huge advantage, which was that he could direct the company to avoid detours.

   Now that Huaxin International's Lei Kuai is almost lined up by him, the next most important task is to pursue Bay Power.

   As for Spreadtrum, 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 stream of vehicles outside the window, and said slowly, "I have no problem with the price reduction! MediaTek has bullied Spreadtrum enough in the past, and now the feng shui turns and it's time for us to fight back.

  I authorize you to allow Spreadtrum to sell chips at the lowest cost price. "

   Having said this, Xia Jingxing turned his eyes to Li Liyou and said solemnly: "Now that there is Fuxing Semiconductor as the backing of Spreadtrum, you don't need to think about supporting 3G business with 2G/2.5G business.

   Your most urgent task now is to bleed MediaTek with 2G/2.5G business, and at the same time catch up and surpass them in 3G business.

   If MediaTek dares to fight, Huaxin International can sacrifice the profits of the foundry when necessary. "

   Hearing these words, Li Liyou's eyes brightened a lot.

   This is the advantage of having thick thighs, and it also reflects the advantages of IDM manufacturers. The three major links of chip production and manufacturing can be used in one hand, which can greatly save costs.

Deng Yuanjun added in a timely manner: "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. group development.”

  Xia Jingxing nodded in agreement, "Yes, the group is currently clearing up the industry chain, Fuxing Semiconductor has obtained a total of nine code names, the 狻猊 chip is a mobile phone system-level chip, and the baseband chip can be selected from the remaining eight code names.

   There are seven other codes, and we will arrange them one by one. "

   As soon as these words came out, Li Liyou completely felt Xia Jingxing's pride in wanting to do a big job in the chip industry.

   Not to mention the whole industry chain of IDM, but also want to attack one by one segment giants in fields other than mobile phone chips.

   Will you be too greedy to chew?

  Li Liyou had some doubts in his heart, but when he saw Xia Jingxing's high spirits, and at the same time he considered that he had just joined Fuxing Semiconductor, he was very soft-spoken and did not dare to stand up and persuade him.

   "Hey, by the way, you just said that Zhang Xuezheng came to inspect Spreadtrum, and Wingtech is cooperating with Spreadtrum now?"

  Li Liyou nodded towards Xia Jingxing, "Yes, Wingtech has placed an order for us for 1 million baseband chips.

   This number is already quite a lot for them. In the first half of this year, Wingtech's mobile phone shipments will probably have six or seven million units. "

  Xia Jingxing hadn't paid attention to the development of Wingtech for a long time, so he couldn't help asking a few more questions.

   If you don’t ask, you don’t know, you’re startled when you ask.

   Even Xia Jingxing was surprised by Zhang Xuezheng's development speed.

Four years ago, this guy started with 100,000 yuan, started a company in a residential building, and then took the first mobile phone motherboard product designed by the team to sell door-to-door in Huaqiangbei, and won 200,000 cottages in one month. machine order.

   In the second year of its establishment, Wingtech has won orders from first-tier domestic mobile phone brands such as TCL, Amoi, Bird and so on, and quickly took the top spot in China's mobile phone IDH company.

  Wingtech has only taken two years from its establishment to becoming a leader in the segmented industry.

   Zhang Xuezheng understands both technology and marketing, and is hard-working. Such a person will never be too bad.

   When Li Liyou mentioned his meeting with Zhang Xuezheng, he couldn't help laughing, "At that time I went to Huaqiangbei to sell, and he was also selling in Huaqiangbei.

   He was surprised to see me, and said that CEOs of listed companies also visited Huaqiangbei.

   I replied to him at the time: You, the IDH leader, are all coming to Huaqiangbei, why can't I come?

   Besides, Huaqiangbei Tibetan Dragon and Crouching Tiger, it just looks low-key, but it is actually the first street of electronics in China. It is very famous all over the world. Every Chinese electronics person should come and visit. "

  Xia Jingxing laughed, "Looks like I'm going to visit Huaqiangbei another day."

   Li Liyou smiled and said again: "Zhang Xuezheng's ability is quite strong, which matches his ambition.

   He is not satisfied with the status of IDH leader, and considering that after the birth of smartphones, the integration of mobile phone chips has become higher and higher, and IDH may not be able to go on this road for a long time.

So he took out all his savings last year and established a Wingtech mobile phone factory in Nanhu, Hecheng, and began to expand its business to the upstream of the industrial chain, providing complete machine manufacturing services, and embarking on the ODM road of R&D, manufacturing and delivery. . "

  Xia Jingxing nodded slightly. To put it simply, IDH is to design mobile phones, OEM is to manufacture OEM mobile phones, and ODM is equivalent to combining the two, providing mobile phone brands with one-stop service from design to OEM.

   Under this kind of outsourcing service, the brand owner actually only pays for one brand, and the other work is all done by the ODM manufacturer.

In the previous life, Wingtech Technology once designed a magic Redmi for rice mobile phones. It swept the low-end smartphone market at a price of 799 yuan, and the sales of over 100 million units directly dismantled the prosperous "China Cool Alliance". ".

   (end of this chapter)