Reborn in 2011, 985 missing from two copies

Chapter 561: The chip war breaks out, and a strong attack is launched!
Currently, the largest seller of 3G mobile phones is Xingyi Technology.

Except for the newly released xphone 3 and xphone 3 plus, all other models of Xingyi Technology are 3G mobile phones.

Xingyi Technology is also a major seller of 3G chips!

Except for the Kunpeng 902 SOC, other chips are also 3G chips.

Suddenly, there were concentrated reports that 4G will soon be commercially available in China, which made users choose 4G mobile phones and manufacturers choose 4G chips...

If this wasn't aimed at Xingyi Technology, Wang Yi wouldn't believe it!

It's already a conspiracy.

"We're already investigating, but it'll take some time!" As soon as this happened, Zhu Changlin arranged for people to take action.

Wang Yi nodded: "But the atmosphere has become so tense, it seems that 4G is already on the verge of being launched. 4G chips must also be fully deployed. Let's go to the chip department to take a look."

Regardless of whether they are targeting Xingyi Technology or not, Wang Yi must prepare for the worst and be prepared for any eventuality.

This is his usual style.

Afterwards, Wang Yi and Zhu Changlin came to the chip R&D department together.

"Chairman, you are here." George greeted him with a smile.

"How is the 28nm 4G chip upgrade plan going?" Wang Yi asked straight to the point.

As a reborn person, knowing that the domestic 4G era is about to begin, it is impossible for Wang Yi to be completely unprepared.

On the contrary, the 28nm 4G upgrade plan started several months ago!

“都搞定了。鲲鹏702的28纳米4G升级版鲲鹏706 SOC，以及鲲鹏706C都已经成功流片，并开始量产。”

"The 506nm 28G upgraded version of Kunpeng 4, Kunpeng 508 SOC, and Kunpeng 508C have also been successfully taped out. However, they are not yet in mass production because they are not in use at the moment."

"In addition, we also upgraded the entry-level Kunpeng 500 SOC to 28nm 4G, making it the Kunpeng 505 SOC and Kunpeng 505 C! They were taped out together with several other chips, all of which were successful and can be mass-produced at any time."

Wang Yi understood George's idea. This was a one-to-one layout corresponding to Qualcomm's four chip series!

This is a good idea, very good.

Mobile phones are divided into flagship phones, mid-range phones, low-end phones, and entry-level phones, and the chips are divided accordingly, which is a perfect match.

"How is the performance after the upgrade?" Wang Yi asked the key question, hoping not to let himself down.

"It's very powerful. Even without the 60% improvement in the XOS system, it can still outperform Qualcomm chips of the same level, or even surpass them!" George is full of confidence:
"In the field of flagship chips, the Kunpeng 902 SOC is 800% stronger than the Snapdragon 25 on paper, and with the 60% improvement in the XOS system, it is 85% stronger!"

"The upgraded Kunpeng 706 SOC is 702% stronger than the Kunpeng 25 and about 600% stronger than the Snapdragon 35. With the 60% improvement of the XOS system, it is 95% stronger!"

“鲲鹏706 SOC比骁龙600强35%？那岂不是不算XOS系统的60%加成下，都快赶上了骁龙800？“

Wang Yi was shocked. Snapdragon 800 is only 600% better than Snapdragon 40!

This is a significant improvement across generations.

至于骁龙801AA比起骁龙800，也就强10%。骁龙801AB能强15%。骁龙801AC强20%左右。

On the contrary, the Snapdragon 805 has made great progress. Its theoretical performance is much better than that of the Snapdragon 800, but its actual performance is hard to describe...

George nodded. "That's right. On paper, Kunpeng 706's performance is 800% lower than Snapdragon 5, but our tuning is better than Qualcomm's, so we can definitely surpass it. It can be said that Kunpeng 706 SOC can crush Snapdragon 800, and with a 60% improvement, it can crush the next generation Snapdragon 805!"

"Good, very good, extremely good!" Wang Yi was shocked.

I didn’t expect that Kunpeng 702 has upgraded to 28nm process and the improvement is so great after the main frequency is increased!

I can only say that George's team is very capable and is worthy of being the veteran team of Texas Instruments.

The core members of George's team and Zhang Chao's team are all elite members recruited from Texas Instruments.

Then, the team was joined by other domestic and foreign semiconductor elites recruited later. The overall strength is several levels higher than that of HiSilicon and is not much worse than the Qualcomm team.

It can only be said that although Texas Instruments has given up its mobile chip business, the former king is still the king, a king that even Qualcomm looks up to.

After all, the Texas Instruments team has always used a main frequency of 512M, which is comparable to Qualcomm's main frequency of 1G, and they can still maintain their lead, which has made Qualcomm so frustrated that it can only pile up parameters crazily.

In essence, these R&D personnel at Texas Instruments are very powerful.

Wang Yi felt like he had found a treasure.

At the beginning of Xingyi Technology's entrepreneurship, Wang Yi spent a huge amount of money to recruit the core chip R&D elites of Texas Instruments. This was the wisest choice he made!

The second wise choice was to bring in Mr. Hu, Mr. Liang’s mentor, and his team to build Xingyi Semiconductor and develop 40nm and 28nm process technologies.

If these two steps are not taken correctly, the Kunpeng chip is still a PPT...

乔治继续道：“鲲鹏508 SOC比鲲鹏506提升25%，比骁龙400强50%+，比骁龙600弱20%左右，但加上XOS系统60%的提升，比骁龙600强40%！”

骁龙800比骁龙600强40%，但骁龙600比骁龙400强80%！

On the contrary, Snapdragon 400 is only 200% stronger than Snapdragon 20.

To put it bluntly, Snapdragon 400 is the worst generation and few brands use it.

In the past, it was not until the performance of Snapdragon 410 was improved next year that it was used by many brands such as Redmi 2, Huawei, Honor, and ZTE.

"Kunpeng 505 is 500% better than Kunpeng 26, close to the performance of the previous Kunpeng 506, 400% better than Snapdragon 15, and with the improvement of XOS system, it is 75% better!"

"So, our worst 4G chip, Kunpeng 505, is better than Snapdragon 60, not counting the 400% bonus of XOS. There is really no product comparable to Snapdragon 200, they are too weak. The 40nm Kunpeng 500 is much better than Snapdragon 200."

Wang Yi was speechless. George was in Versailles!
The reason is simple. Qualcomm's high-end chips are doing well, and its mid-range chips are based on last year's flagship chip APQ 8064, which is also very good.

But Qualcomm's low-end and entry-level chips are very poor, even worse than MediaTek.

There is no other reason. Qualcomm has never made low-end chips before. The Snapdragon 200 and Snapdragon 400 series were both made by Qualcomm in its first year, so naturally they were very bad.

By next year, when Qualcomm starts making second-generation low-end and entry-level chips, things will be much better with experience.

As for why Xingyi Technology’s low-end chips are so powerful?
The reason is simple. Kunpeng 500, Kunpeng 506, and Kunpeng 700 are all castrated from Kunpeng 702. They have the same CPU architecture as Kunpeng 702, but with different main frequencies, which makes the difference, so they are all very successful.

As for Kunpeng 505, Kunpeng 508, and Kunpeng 706, they are just 28nm 4G upgraded versions of the above chips, which are naturally more powerful.

"Very good, George, you have done an excellent job in upgrading the 40nm 3G chip, very good!" Wang Yi gave affirmation and praise.

Developing new chips is important, but getting these upgrades right is also important.

With these chips, Xingyi Semiconductor's product range from entry-level chips to flagship chips has been enriched.

And it covers dual processes of 40nm and 28nm!
3G chips are all made using 40-nanometer technology.

4G chips are all made using 28-nanometer technology.

"Chairman, how do we arrange chip production next?" George asked. "Currently, only Kunpeng 902 SOC and Kunpeng 902C are in production, as well as Kunpeng 706 SOC and Kunpeng 706C."

Previously, the production capacity of 28nm chips was limited, with only two production lines in the Phase II and Phase III factories of the Imperial Capital B1 wafer factory in production.

A total of 5 wafers, with a monthly output of 3000 million chips.

A total of 7 million Kunpeng 8 SOCs were produced in July and August for use in Xphone 4500 and Xphone 902 Plus.

1500 million Kunpeng 902C chips are used for the Xingyi Tablet 2 Pro and Xingyi TV 4K version.

In September, 9 million Kunpeng 1500 SOCs were produced for use in Xphone 902 and Xphone 3 Plus.

500 million Kunpeng 706C chips are used for the Xingyi Tablet 2.

1000 million Kunpeng 706 SOCs, used for Unbounded Note.

But other types of chips have not yet started mass production.

Wang Yi asked: "The first phase of Xingyi B2 wafer factory was delivered more than two months ago. Will it be put into production next month?"

"Yes, Chairman. We will be able to start production of 28-nanometer chips in early October, with a monthly production capacity of 5 wafers and 3000 million chips."

George replied: "And the first phase of the Magic City M2 wafer factory was delivered half a month ago. It will be put into production in early November, and it will also produce 3000 million chips per month."

“这好极了！”王逸喜出望外：“10月初新增3000万产能，加上之前的3000万，10月份开始总共可以月产6000万颗芯片。11月份开始，能够月产9000万颗芯片！”

Wang Yi fell into deep thought and began to plan carefully.

Kunpeng 902C is used for Xingyi Tablet 2 Pro and Xingyi TV 4K version, and 1500 million pieces per month are enough.

Tablets and TVs are not mobile phones. It is good if they sell several million units a month, but they will not exceed tens of millions.

Kunpeng 706C is used in the standard version of the Xingyi Tablet 2. 500 million units have been produced. The subsequent 500 million units per month are more than enough. The main sales model is still the Xingyi Tablet 2 Pro.

The Kunpeng 706 SOC is used in the Unbounded Note, a high-end product that focuses on cost-effectiveness and high performance. 1000 million units have been produced, and the subsequent 1000 million units per month will almost maintain a sales balance.

However, as a 4G sub-flagship chip, it still has to be sold to third-party customers, so 500 million more units must be produced first.

As for the Kunpeng 508 SOC, not counting the 60% bonus of the XOS system, it is still 400% stronger than the Snapdragon 50 and only 600% weaker than the Snapdragon 20. It is a bit of a loss to compete with the Snapdragon 400.

Even Kunpeng 505 is stronger than Snapdragon 400 and can catch up with next year's Snapdragon 412.

It would be better to use Kunpeng 505 to compete with Snapdragon 400, sell it to third parties, snatch Snapdragon 400 customers, and simultaneously make a 4G version of the borderless phone, launch them together next year, and produce 500 million units per month first.

至于鲲鹏508 SOC都快赶上骁龙600了，留着给明年的无界2代，暂时不急着生产。打骁龙400和200，鲲鹏505 SOC足够了！
The remaining production capacity will be used to produce Kunpeng 902 SOC.

It also needs to be delivered to the top ten customers in batches, a large order of 8000 million pieces!

After considering all this, Wang Yi spoke directly. George had already taken out a pen and paper and started recording:
"Starting from October, we will produce 10 million Kunpeng 902 SOCs per month."

"706 million Kunpeng 1500 SOCs are produced every month."

"505 million Kunpeng 500 SOCs are produced every month."

"902 million Kunpeng 1500Cs are produced every month."

"706 million Kunpeng 500Cs are produced every month."

"In November, we will continue production as planned. The additional 2 million production capacity of the M3000 wafer fab will be planned according to the chip orders in October. The remaining part will be used to generate the Kunpeng 902 SOC!"

The most critical one is the Kunpeng 902 SOC, after all, there is a large order of 8000 million.

7、8、9月份总共生产了6000万颗，用于xphone 3和xphone 3 plus，截止9月底，将用掉3200万颗，还剩2800万颗结余。

The estimated sales volume of Xphone 3 and Xphone 3 Plus in October is about 2000 million units, at most 2500 million units, consuming at most 2500 million chips.

In October, 2000 million 902 SOCs were produced, plus 2800 million in stock, 2500 million were used, and 2300 million remained, which was just enough to deliver 1500 million to third-party manufacturers, leaving 800 million to prevent an order explosion.

The third-party manufacturer placed the order in September and Wang Yi started delivering the products in October, which was already very fast.

In November, the company added 3000 million chips of production capacity, of which 1500 million chips can be allocated to Kunpeng 706 and Kunpeng 505 to meet third-party orders.

The remaining 1000 million units of production capacity will be used to produce Kunpeng 902 SOCs. Subsequently, 3000 million units of Kunpeng 902 SOCs will be produced each month. In addition to 1500 million units delivered to third-party customers, the remaining 1500 million units and 800 million units in inventory are sufficient for self-use.

After all, subsequent mobile phone sales have been declining.

Such a large order of 8000 million chips was delivered in about 6 months!
Of course, this is just a rough plan, and it will have to be adjusted dynamically based on the number of third-party orders.

George looked at his notes and said, "This arrangement is just right. Kunpeng 505 is 64% stronger than Snapdragon 400, not counting the 20-bit upgrade. It is enough to beat Snapdragon 400!"

Wang Yi nodded: "Using Kunpeng 902 to beat Snapdragon 800, Kunpeng 706 SOC to beat Snapdragon 600, and Kunpeng 505 to beat Snapdragon 400 and 200, even without counting the bonus of the XOS system, we are 20%-35% ahead of Qualcomm in the same level, almost iteratively. Counting the 64-bit bonus, it is a win-win across 2 generations. We must kill Qualcomm and grab third-party customers!"

"Chip Marketing Department, act quickly and promote our Kunpeng 902, Kunpeng 706, and Kunpeng 505 SOCs as soon as possible. Also, Kunpeng 902C, Kunpeng 706C, and Kunpeng 505C. As long as there are customers who want them, we can produce them!"

"These chips must be sold well. We have no way out!"

"We also have 40-nanometer 3G chips. As long as there are customers who want them, we will sell them all!"

There is no way. Starting from November, Xingyi Technology's 28nm monthly production capacity will reach 9000 million chips!

The monthly production capacity of 40-nanometer chips is 3000 million chips.

A total of 1.2 million chips are produced per month!

With such a large volume, if they don’t sell it to third-party customers, Xingyi Technology can’t use it themselves, and the inventory will become rotten!
Next year, the second phase of the B2 and M2 wafer fabs will be delivered, and the year after that, there will be a Shenzhen wafer fab…

Without more production and more sales, there is no future.

It seems that OEM will have to be put on the agenda next year!

"Okay, Chairman, I will arrange for the chip marketing department to further contact major manufacturers, especially old customers we have cooperated with, and there is hope of winning them over."

George smiled and said: "After all, the previous Kunpeng 702 and Kunpeng 700 were well received by customers and have accumulated an excellent reputation. As for the chip debugging service, major customers cannot refuse it."

Wang Yi nodded: "Chip tuning service is a technical problem. Most mobile phone brands can't handle it. Even Qualcomm and Samsung can't figure it out. This is our core competitiveness and golden signboard."

Zhu Changlin was also very emotional: "Yes, the actual performance of a chip is not only determined by parameters, but also by tuning. For example, the Kunpeng 508 SOC was originally intended to compete with the Snapdragon 400, but it was too powerful. On paper, its performance was only 600% worse than that of the Snapdragon 20. However, after our tuning, its actual performance is estimated to be only 800% worse than that of the Snapdragon 5. If a useless brand negatively optimizes the Snapdragon 800, it may not be as good as our Kunpeng 508!"

“Haha, this is very possible. After all, negative optimization has always been the strong point of major mobile phone manufacturers.” Wang Yi said with a smile.

"How will the price of Kunpeng 508 be determined?" George asked, "Should it be based on Snapdragon 400 or Snapdragon 600?"

"Kunpeng 508 is comparable to Snapdragon 600 in performance, so it should be priced according to Snapdragon 600, or slightly lower. If customers find it too expensive, they will buy the cheaper Kunpeng 505, which is enough to crush Snapdragon 400. As for 508, it doesn't matter if it can't be sold, and it can be saved for next year's Unlimited 2." Wang Yi said:

"Including the training service fee, if the minimum order is 500 million pieces:"

"Kunpeng 902 SOC, 4G chip, sold for 300 yuan."

"Kunpeng 706 SOC, 4G chip, sold for 270 yuan."

"Kunpeng 702 SOC, 3G chip, reduced to 240 yuan."

"Kunpeng 700 SOC, 3G chip, reduced to 210 yuan."

"Kunpeng 508 SOC, 4G chip, sold for 210 yuan."

"Kunpeng 506 SOC, 3G chip, sold for 180 yuan."

"Kunpeng 505 SOC, 4G chip, sold for 180 yuan."

"Kunpeng 500 SOC, 3G chip, sold for 150 yuan."

The next lower is Snapdragon 200, which has even worse performance. Even with the baseband, it’s at least 120-140. Xingyi Technology does not have this product category.

George looked at the record and nodded: "This price is very competitive, especially for 4G chips. For example, Kunpeng 505 is 180 yuan, and Snapdragon 400 is about the same price, but its performance is not as good as ours, and it is not 64-bit. I am worried that they will lower the price!"

"It's OK. If they lower their prices, we will follow suit. The price of 3G chips has room for price reduction. As long as Qualcomm lowers its price, we can reduce the price of all our 3G chips by 30 yuan. It won't be a big problem." Wang Yi said with a smile:
"As for 4G chips, there is no need to reduce the price. Even if Qualcomm reduces the price by 30 yuan, we will not reduce the price. We have the advantage of 64-bit chips, all of which are integrated with 4G baseband. The performance is 20%-35% stronger than theirs. It is reasonable to be 30 yuan more expensive. We can definitely sell them!"

Wang Yi thought clearly that this was the bottom price for 4G chips and it would not change within a year.

If Qualcomm wants to kill itself by engaging in a price war, then we should reduce the price of 3G chips by 30, making them as cheap as cabbage, and kill Qualcomm.

Even if 4G commercialization begins in China next year, 4G mobile phones will only account for 4% at most, and 4G mobile phones will only account for about % worldwide.

On the contrary, most of the remaining mobile phones, especially mid- and low-end ones, are still 3G.

4G packages are expensive, so they are only being rolled out quickly in developed countries.

But more users are still in developing countries, and they are all 3G.

Even in developed countries, many users are still using 3G mobile phones.

Therefore, Wang Yi would not reduce the price of 3G chips to rock-bottom prices unless it is absolutely necessary.

But if Qualcomm is not sensible and starts a price war, Wang Yi will have no choice but to abandon the car to save the king.

Use cheap 3G chips to kill the opponent!
Just like the dispute between SMIC and TSMC in the previous life, TSMC monopolizes high-end technology, but mid- and low-end chips account for the majority!

Similarly, 3G chips will still account for more than half of the chip market next year!
In the following days, the entire Xingyi Semiconductor became busy.

In particular, the B2 wafer factory has entered the final preparations and started mass production of 28nm chips.

Two days later, Zhu Changlin approached Wang Yi and said, "Chairman, I have found out that the news that 4G will be commercially available in China at the end of the year was leaked by overseas media."

"It seems like this is Qualcomm's doing!" Wang Yi immediately made a clear judgment: "Are they planning to use this to suppress the chip sales of our Xingyi Semiconductor, so as to make Qualcomm's 4G chips popular?"

“应该是这样，毕竟高通的400系列是4G芯片，200和600都可以外挂4G基带，也是能做4G手机。”

Zhu Changlin said with a smile: "They probably thought that our other chips were 3G chips, and they had no idea that we had already achieved 28-nanometer 4G upgrades! And we have already started mass production."

"Yes, Qualcomm could not have imagined that we had prepared a 4G chip upgrade plan several months ago!" Wang Yi said with a smile: "But at this point, the chip war between us and Qualcomm has broken out. The other party has taken action, so we should also show our swords. Let's notify all major customers!"

"Okay, what day is it scheduled for?"

Just as Wang Yi was about to speak, there was a knock on the door and Jian Ziyan walked in:

"Chairman, the latest news is that Qualcomm will hold a 10G chip exhibition on October 5. Not only will there be high-end Snapdragon 4, mid-range Snapdragon 800, low-end Snapdragon 600, and entry-level Snapdragon 400, a total of four series, all 200G, all 4 nanometer process, and will be available worldwide."

"Sure enough, this was Qualcomm's doing. First, they laid the groundwork for 4G and launched a media campaign to let all manufacturers know that Xiaguo will also launch 4G next year and that they must make 4G phones. Then, they held a 4G chip exhibition and invited major manufacturers. In this way, all major manufacturers will be tempted and place orders one after another."

Zhu Changlin said: "Most of the orders for high-end chips are won by Xingyi Technology. Most of the orders for mid-range, low-end and entry-level chips are monopolized by Qualcomm. They have a good idea!"

Wang Yi nodded: "It is indeed a good plan, but unfortunately, an accident happened!"

"Spread the news. On October 10, we will hold a 3G and 4G chip exhibition. We will have everything you need!"

"Okay, Chairman." Zhu Changlin was in a good mood.

Just two days in advance, Qualcomm will be killed!
Soon, the two pieces of news became a sensation on the entire Internet, and netizens were all amused.

"Qualcomm just announced a chip trade show on the 5th, and Xingyi Technology announced a trade show on the 3rd. The tit-for-tat intention is too obvious."

"That's right! Domestic chips have always been suppressed and beaten. Now that Xingyi Technology is rising strongly, it's time to show our sword!"

"It's okay to show off one's sword, but Xingyi Technology only has one 4G chip and four 4G chips, which is a bit difficult. Qualcomm has Snapdragon 3, 200, 400, and 600, covering the entire range from entry-level to high-end, all of which are 800G chips or external 4G basebands."

"Yes, domestic 4G will also be launched at the end of the year, and Omni 4G has been launched for many years. Xingyi Technology only has one 4G model, so it is definitely not able to handle it. They are still holding the exhibition on the rd, which is a bit of a self-humiliation."

"What do you mean by humiliating yourself? Can't we give domestically made products more time? Kunpeng 902 is more powerful than Snapdragon 800, you can see that."

"Yes, Xingyi Technology is powerful in high-end chips, but what about mid- and low-end 4G chips? What about entry-level 4G chips? Xingyi Technology doesn't have any at all!"

"And Qualcomm has already popularized 28 nanometers, and has 4G chips in all four dimensions, high, medium and low. That's the gap!"

"Success in one dimension doesn't mean anything. Xingyi Semiconductor still needs to work harder."

(End of this chapter)