Reborn in 2011, 985 missing from two copies

Chapter 621: The revenge of supply cut will ruin TSMC!

"I, Zhang, am not a coward. I will never come to Wang Yi's house and beg him for forgiveness in person!"

"I'm too stubborn to learn to bend down. I can't afford to lose face like that!"

Every word Lao Zhang spoke was passionate.

The major shareholder laughed and said, "Old Zhang, who can you blame for this? It was you who chose to cut off the supply to Xingyi Technology and offended Director Wang so much. Now you don't come to his house, but just call to apologize. Will he accept it?"

"That's right. If you had given them some leeway, Xingyi Technology would still be a major customer of TSMC, and we wouldn't be unable to get even one order for the 16nm process! Lao Zhang, you have to take full responsibility. Coming to apologize is the best solution."

"I! @#￥%..." Lao Zhang really wanted to curse!

Qualcomm initially threatened TSMC and demanded that it cut off the supply of chips to Xingyi Technology, but the board of directors voted and approved it unanimously.

At the beginning, these two fat and big shareholders were the representatives who absolutely supported Qualcomm, firmly supported Qualcomm, and actively demanded to cut off the supply to Xingyi Technology!
Now that Xingyi Technology has become powerful and Qualcomm has declined, these two bastards refuse to take responsibility and it becomes his sole responsibility!
How shameless.

However, before Lao Zhang could say anything, another major shareholder also sighed:
"Well, forget it. Since you don't want to, we won't force you. I'd better sell the stocks. It's better to lose a little than to lose everything."

The corner of Lao Zhang's mouth twitched: "..."

Other shareholders also spoke up:
"Yes, if you cash out now, you can save some money. By next year, TSMC's 20nm process will lag behind Samsung by a large generation, and there will be no orders for its 16nm process. By then, TSMC's stock price will surely fall even more miserably. If you cash out then, the loss will be much greater."

"Yeah, it's better to cash out now. Anyway, Zhang has given up and has no intention of saving TSMC."

"That's right, Zhang is not doing his job well. TSMC is not worth investing in. Everyone should cash out as soon as possible."

Hearing this, Lao Zhang's face turned extremely pale, but he knew in his heart that these bastards were really capable of doing this.

As the chairman and founder of TSMC, Zhang can share the ups and downs with TSMC, but the major shareholders will not, because they are just in it to make money.

What TSMC's major shareholders care about most is not how TSMC is doing, but how much money they can make.

TSMC has a good development momentum, its stock price is rising steadily, and it has a bright future. Naturally, they are willing to hold TSMC's shares for a long time, or even continue to buy and support them.

But when TSMC encounters a crisis, its prospects are bleak, and its stock price is about to plummet, the major shareholders will naturally cash out and leave as soon as possible in order to protect their own interests.

In this case, TSMC is really finished!
Lao Zhang took a deep breath and suppressed his anger: "Okay, I'll go! You guys can do it, I'll go!"

After saying this, there was a lot more loneliness and sadness on Lao Zhang's old face.

He is 83 years old!
And Wang Yi is only 22 years old!
Let the 83-year-old man go to the 22-year-old young man’s house to apologize in person, ask for forgiveness, and ask for orders!
This is really a bit frustrating, too frustrating.

But for the orders and the development of TSMC, Zhang had to do so.

"Mr. Zhang, thank you for your hard work. Don't worry, we are all major shareholders of TSMC and will firmly support TSMC."

Seeing that Lao Zhang agreed, several major shareholders quickly spoke up:
"Yes, Lao Zhang, just go ahead. We will face this crisis of TSMC together. As long as we can get Mr. Wang's forgiveness and win the huge order from Xingyi Technology, the matter will be settled."

"That's right. Maybe crises will turn into opportunities. Thank you for your hard work, Lao Zhang!"

Looking at the old friends whose faces changed instantly, Lao Zhang was so angry that he didn't know what to say.

This expression changes so quickly.

The last second, he was forcing himself to apologize to Wang Yi in person by reducing his stake in TSMC, but now he has to face it together and firmly support it...

Really... hehe.

But Zhang, who has lived for more than 16 years, is also a very clear-headed person. He smiled and replied, "Book a ticket for me. I will go to the capital tomorrow. Even if it means losing my reputation, I must win the -nanometer chip order from Xingyi Technology."

"Thank you for your hard work, Mr. Zhang!"

"Bon Voyage!"

Several people spoke up, in a good mood.

"Oh!" Old Zhang let out a long sigh, and the high-level meeting ended here.

Other senior executives of TSMC quickly followed suit.

Several major shareholder representatives came together and spoke up:
"Will this work?"

"It's not a big problem. After all, Lao Zhang is so shameless that he came to apologize to Director Wang in person. Director Wang should accept it."

"The most important thing is that Xingyi Technology only achieved mass production of 28-nanometer technology last year, and it will not be able to achieve 20-nanometer technology next year. They can only use our 16-nanometer technology of TSMC."

"Yes, I'm worried that Wang Yi will bear a grudge, so he would rather use Samsung's 14nm process than our 16nm."

"That depends on Lao Zhang. Why did we ask him to come and apologize? It's to show our sincerity!"

"Oh, if I had known this would happen, I would have never done it. Everyone thought Qualcomm was great and Xingyi Technology was not. But I didn't expect that Qualcomm would fail, while Xingyi Technology exploded and even became international."

"Yes, the chip with the highest sales volume is not Apple A8, nor Qualcomm Snapdragon 800, 801, 805, but Kunpeng 902 and 906 from Xingyi Technology!"

"Last year, we sold 902 million Kunpeng 1s to third parties, and Xingyi Technology used 2 million for itself. This year, we sold more than 906 million Kunpeng 1s to third parties, and with our own use, we have another 3 million. The same will be true for the next generation of Kunpeng next year, at least 3 million!"

"If TSMC wins the Kunpeng order from Xingyi Technology, it will be at least 3 million 16nm chips, which is even more powerful than Apple + Qualcomm."

"Yes, for this matter, it's not shameful for Lao Zhang to come to our house in person."

"Don't even mention coming to Wang Yi's house. He should kneel down to Wang Yi."

"Hahaha, that's too much. It's just a big order of 80 million chips. We make 240 yuan per chip, which is billion yuan."

"For 240 billion, I'm willing to kneel down."

"And it's not just about the 240 billion. With this 500 million chip order, TSMC's revenue soared by 240 billion, its profit soared by 240 billion, and its stock price soared. Without the 240 billion, TSMC's revenue plummeted, its profit plummeted, its losses were severe, and its stock price also plummeted. The difference is not billion, but hundreds of billions, or even tens of billions."

"Yes, for hundreds of billions, Lao Zhang's sacrifice is worth it! Hahaha."

The shrill laughter echoed throughout the corridor of the conference room.

Although they are all TSMC executives and shareholders, their interests are not the same.

Lao Zhang was helpless and could only ask his subordinates to buy tickets and set off on the journey to fly directly to the imperial capital.

After arriving in the imperial capital, Lao Zhang stayed in a hotel near Xingyi Technology.

The next day, he came to Xingyi Technology headquarters and asked to see Wang Yi.

Jian Ziyan reported the matter to Wang Yi: "Chairman, TSMC Chairman Zhang is here and hopes to meet you."

"Is Lao Deng here?"

Wang Yi frowned and felt that the tea in his hand no longer had any fragrance.

Zhu Changlin beside him was also startled: "What is he doing here? Is he asking for an order?"

Wang Yi nodded: "Haha, it seems that this old guy was forced into a corner and had to come and apologize."

"I see. Last time, this bastard listened to Qualcomm's threat and cut off our supply of 40-nanometer chips, causing us to suffer heavy losses. We had no choice but to completely cut off a large number of 40-nanometer products and launch new 28-nanometer products ahead of schedule. Only then did we get through the crisis."

"Now that Qualcomm is ruined and Snapdragon 805 sales are low, he is starting to do this again? What a joke!"

Ever since Wang Yi said that Snapdragon 805 would fail seriously, it has aroused doubts from major mobile phone manufacturers.

In addition, the early release and simultaneous sale of Kunpeng 906 made the originally hesitant major mobile phone manufacturers quickly abandon the 32-bit Snapdragon 805 and choose the 64-bit Kunpeng 906.

This caused Qualcomm to decline again. From Snapdragon 600 to Snapdragon 800/801, to Snapdragon 805, the performance of three consecutive generations was poor, and sales plummeted for three consecutive years.

This directly led to the shaking of Qualcomm's dominant position, and the chip orders placed with TSMC and Samsung were constantly cut and reduced.

Xingyi Technology has achieved excellent performance for three consecutive generations from Kunpeng 702 to Kunpeng 902 and then to Kunpeng 906, with explosive sales for three consecutive years!
As one thing grows, another shrinks, and the chip landscape has completely changed.

Qualcomm, once the dominant player, has now fallen to the bottom of the first-tier market. If it continues to decline, it will become a second-tier company along with Samsung and MediaTek.

Xingyi Semiconductor has grown from a small chip manufacturer to a first-tier large manufacturer!
Whether it is word of mouth, chip sales, or market share, they have all skyrocketed, especially in the high-end chip field, where it has surpassed Qualcomm.

Such an incredible change made the boss of TSMC feel extremely regretful and he had to come and apologize.

Wang Yi smiled: "Just because he came to apologize, we have to give him this face?"

"That's right. It was him who cut off our chip supply and screwed us over so badly. How can we cooperate with them again?" Zhu Changlin was very angry.

Wang Yi smiled coldly: "It's okay, whether you cooperate or not, give him some hope first."

"Chairman, what you mean is... to paint him a rosy picture? To make him mistakenly believe that we have won our 16-nanometer chip next year? Then we can produce it ourselves and leave TSMC helpless?"

Zhu Changlin took a deep breath and said, "But isn't this a bit too much? TSMC will be screwed by us, hahaha!"

Wang Yi smiled faintly: "Is it a loss? It's just that I return the favor to others."

"That's right. Last year, TSMC broke the contract and cancelled our chip orders for Qualcomm, leaving us without chips. Next year, we will achieve a breakthrough in self-production and also break the contract and cancel the chip orders to TSMC, causing TSMC to suffer heavy losses. This is perfect!"

The more Zhu Changlin thought about it, the better he felt: "This is called a gentleman's revenge. Two years is not too late!"

"But by then, TSMC will be in trouble. Apple A9 was given to Samsung, and Qualcomm's Snapdragon 820 is probably also given to Samsung. Huawei's Kirin 950 was given to us, and our new Kunpeng flagship is also produced by ourselves. Nvidia is probably giving up, and TSMC will be finished by then."

Wang Yi said: "By then, TSMC will only have MediaTek's flagship chips left, which are not worth mentioning at all. After all, MediaTek's flagship is just a foil. As for mid- and low-end chips, 16 nanometers is not necessary at all, 20 nanometers is enough."

"In addition, there are some chips from AMD, but the volume of AMD's chips is not large, only tens of millions at most, and many of them are 28-nanometer chips produced by GlobalFoundries."

Zhu Changlin agreed very much: "Yes, GlobalFoundries is a spin-off of AMD after all. AMD has to take good care of its own son, no matter how useless he is. The low-end and mid-end chips are all given to GlobalFoundries, and the high-end ones are given to TSMC. There are not many at all."

"As a result, TSMC will suffer heavy losses, and the 16nm process will not be able to recover the cost at all!"

Wang Yi nodded: "Yes, this is the plan we set for TSMC, and it is also revenge for the supply cut last year!"

"Haha, that's perfect. We are not the Leshan Giant Buddha. We only care about revenge and grievances." Zhu Changlin said with a smile: "Then I will invite Lao Zhang in now?"

Wang Yi waved his hand: "Why rush? Let's leave him alone for two days first."

"Ah?" Zhu Changlin was a little surprised: "Chairman, if we leave him alone for two days, will Lao Zhang get angry and go back directly? Then our revenge plan..."

Wang Yi didn't care at all: "No, if he can't bear it for two days, he is not Lao Zhang. And if you invite him in now, Lao Zhang will not believe it!"

"What do you mean?" Zhu Changlin was a little confused.

Wang Yi was very calm: "You will understand soon, just leave him alone for two days."

"Okay." Zhu Changlin followed Wang Yi's instructions, randomly assigned a minor role, and sent Lao Zhang away:

"Sorry, Director Zhang, Director Wang is busy today and doesn't have time to see you."

"..." The corners of Lao Zhang's mouth twitched. Even though he was prepared, he still felt a little embarrassed: "Then President Zhu..."

"President Zhu is also busy." said the subordinate with a smile.

"..." Lao Zhang remained silent for a long time before he said, "Okay, I'll come back tomorrow."

But the next day, Lao Zhang came to the door of Xingyi Technology again and asked to see Wang Yi.

Still a similar answer:

"Director Wang is busy!"

"President Zhu is busy!"

After hitting a wall for two consecutive days, Lao Zhang had no choice but to leave in disappointment and said he would come again tomorrow.

Lao Zhang could tolerate this, but the vice president accompanying him could not:

"Chairman, when you were so powerful, Wang Yi was just a child. Now you come to Xingyi Technology in person to apologize, but Wang Yi refuses you again and again. How can this be tolerated?"

"You can bear it, but I can't!"

"Too deceiving!"

"Too deceiving!"

Old Zhang waved his hand and smiled faintly: "Since you are here, why are you in such a hurry?"

"Are we going there again tomorrow?" asked the vice president.

"Of course."

"If I get turned down again..."

"Then we'll go the day after tomorrow."

“…” The subordinates were silent, and even more furious.

Old Zhang laughed: "It was just a rejection, but not a complete rejection, which means that Director Wang is just angry, but there is still a possibility of cooperation. This is a good thing."

"Let's go to their door a few more times and get rejected a few more times. Director Wang will be in a good mood, and then the deal will be done. Xingyi Technology will get the big order. Do you understand?"

"I see! Chairman, you are still taller!" The vice president was shocked.

Old Zhang chuckled, "Boss Wang is like this, a man of temperament. If he had not turned us away and had come to see me directly, I would have been worried. Now that he has repeatedly turned us away and vented his anger about the previous supply cut, I feel relieved."

"I see, that's a good thing."

"Yes, that's a good thing." Lao Zhang smiled and said, "But it's a once and a twice, but it won't work for the third time. We were rejected the first two times, but we should be able to get in the third time. After all, Xingyi Technology also needs our 16nm process to produce 16nm Kunpeng chips to compete with Apple A9, Qualcomm 820, and Samsung's new flagship."

“That’s the basis of our collaboration.”

"Been taught a lesson."

Sure enough, on the third day, Wang Yi left Lao Zhang alone for another two hours. Lao Zhang waited for two hours and was finally invited in.

However, the person who came out was not Wang Yi, but Vice President Zhu Changlin: "Director Zhang, please take a seat."

Looking at the people in front of him, Lao Zhang frowned: "President Zhu, Director Wang..."

"Alas! Director Wang told me that he couldn't get over it, so...he handed it over to me."

"Okay, I understand. It's the same if President Zhu comes out to talk." Lao Zhang thought to himself:

'Wang Yi, Wang Yi, you are really a man of temperament. Because of the supply cut last year, he didn't want to cooperate with us. But because of the rigid demand for 16nm process, he had to cooperate with us.'

"So you left me alone for three days and sent the vice president!"

'Haha, interesting.'

Lao Zhang had no doubts: "Don't worry, we will definitely give Xingyi Technology a super low price. This time, we come with absolute sincerity."

"Oh? I'm very interested in this." Zhu Changlin said.

"Then I'll get straight to the point. This year's 20-nanometer process is still very expensive. I wonder if Xingyi Technology needs it?"

Zhu Changlin waved his hand and said: "The improvement of 20nm and 28nm is limited, but the cost is too high. In addition, we have enough 28nm production capacity, so the Kunpeng 910 in the second half of the year will continue to use the 28nm process."

"Is this going to require our own 20-nanometer process breakthrough?" Lao Zhang had a guess in his mind.

As for Xingyi Semiconductor's 14nm breakthrough and the realization of 14nm mass production...

This absurd thing is no different from India's successful moon landing, it is totally unrealistic!

Lao Zhang didn't even doubt it.

Zhu Changlin continued: "In the second half of next year, Kunpeng 916 may choose a more advanced process."

Zhang's eyes lit up: "Kunpeng 916 and TSMC's 16nm process are a perfect match!"

"is it?"

"Of course, all are 16!" Lao Zhang said with a smile: "Don't worry. We can give Xingyi Technology a super low price."

"The 14-nanometer process and the 16-nanometer process are both of the same generation, and both are very expensive at the moment."

Zhang said: "Apple placed an order for 6000 million 14nm A9 chips from Samsung, and Samsung offered an ultra-low price of $28 per chip."

USD 28, RMB 182.

This price is not cheap, it is even very expensive.

But there is no way, 14 nanometers is not 28 nanometers, let alone 40 nanometers, this is all normal.

For example, when the 40-nanometer process first came out, TSMC's initial foundry price was more than 100 yuan.

Later, after 28-nanometer came out, the price of 40-nanometer dropped to 50 yuan and 30 yuan, and now it is around 25 yuan in large quantities.

28-nanometer chips were also ridiculously expensive when they were first launched on the market, and the price has only come down in the past two years.

Now that Samsung's 14nm process will not be mass-produced until next year, the price will naturally be high.

Apple A9 costs 182 yuan, and Qualcomm Snapdragon 820 costs about 180 yuan in the second half of the year. Qualcomm is not as big as Apple, and although it is half a year later, it does not reduce the price.

The price Qualcomm sells to other brands is 360-420 yuan.

“But we will give Xingyi Technology an ultra-low price for Kunpeng 916, only 165 yuan per piece! It will be ready for mass production in July next year. If Xingyi Technology signs a contract now, I can do it at 7 yuan! This price is much lower than Apple’s.” Lao Zhang said sincerely.

Zhu Changlin curled his lips and said, "Still 160? When we produce it ourselves, the cost price will only be 80 yuan!"

For chips, TSMC's gross profit margin is around 40%-50%.

Basically, the cost is 80 yuan, TSMC sells it to Qualcomm for 160, and Qualcomm sells it to major brands for 320-350.

"The price of 160 sounds cheap now, but by the second half of next year, Samsung's 14nm process will probably drop to this price, right?" Zhu Changlin said meaningfully.

Old Zhang's face changed drastically, and he said decisively: "Don't worry, President Zhu, we will follow the market when the time comes. No matter how much Samsung wants, we will give you a 10% discount! If Xingyi Technology's order volume exceeds 1 million, we will be 20% cheaper than Samsung!"

"That's right." Zhu Changlin smiled: "What if we exceed 2 million?"

"We are 30% cheaper than Samsung!" Lao Zhang said decisively.

"Okay, I see Mr. Zhang's sincerity." Zhu Changlin's eyes became profound.

I discussed a lot of details with Lao Zhang, and finally signed a letter of intent, but not a formal order.

After all, it’s the second half of next year. It’s still too early for TSMC’s 16nm process to go into production, and Xingyi Technology’s Kunpeng 916 chip has not yet started development. It’s still a long way off.

It’s difficult to sign a formal order.

But with the intended order, Wang Yi's complicated attitude, and Zhu Changlin's careful attention to details, Zhang felt relieved. He thought that Xingyi Technology was really going to give the order to TSMC.

After all, Zhang feels that it is unrealistic for Xingyi Semiconductor to break through 16 nanometers next year, and since it cannot do without the 16 nanometer process, it can only cooperate with TSMC.

Finally, Lao Zhang left TSMC happily with the intention order contract for 200 million chips from Xingyi Technology.

Zhu Changlin handed the letter of intent to Wang Yi: "Chairman, everything is done."

Wang Yi glanced at the intention order contract on the table and smiled faintly: "What does the intention contract signed by Kunpeng 916 have to do with us Kunpeng 920?"

After saying that, he threw it directly into the trash can.

"Hahaha." Zhu Changlin laughed heartily.

在星逸科技的规划里，今年下半年发布28纳米的鲲鹏910，明年下半年发布14纳米的鲲鹏920，根本没有16纳米的鲲鹏916！

There is not even a plan.

But Zhang believed it, and TSMC officially announced the news the next day:

"TSMC and StarEase Technology have joined forces to sign a contract for an order of 16 million -nanometer chips, which will be put into mass production in the second half of next year."

When the news came out, the world was shocked.

TSMC's plummeting stock price has also begun to stabilize.

Ever since Samsung officially announced that its 14nm chip would be put into production at the end of the year, TSMC has fallen behind in all aspects and its stock price has begun to fall.

Now that TSMC has received a large order of 2 million chips from Star Technology, its stock price has finally stopped falling and is even showing signs of recovery.

This made Zhang very excited, but Qualcomm Chairman Jacob was very angry:
"Fuck! TSMC is colluding with Xingyi Technology again. They don't take Qualcomm seriously at all!"

"Okay, great! Contact Samsung and restart the Snapdragon 820 negotiations. All Snapdragon 820 orders for the second half of next year will be manufactured by Samsung!"

(End of this chapter)