Reborn in 2011, 985 missing from two copies

Chapter 668 TSMC crisis, Qualcomm becomes low-pass!
"AMD's own GlobalFoundries wafer fab has poor process technology and low yield rates, so it can only outsource mid- to high-end chips."

Zhu Changlin analyzed: "Given the old rivalry between AMD and Intel, it was doomed that the two sides would not cooperate, so AMD turned to TSMC. However, TSMC's advanced production capacity was given priority to Apple and Nvidia, as well as our non-existent Kunpeng 916 SOC!"

"Hahaha." Wang Yi laughed.

Now TSMC does not think that Xingyi Semiconductor will be able to mass produce 14nm next year, and the industry does not think that Xingyi Semiconductor can reach 14nm.

Lao Zhang believes that Xingyi Technology’s Kunpeng 916 super large order can only be handed over to TSMC, using TSMC’s 16nm process.

Zhu Changlin continued: "At TSMC, AMD is only a second-tier customer and can only pick up the second-rate production capacity left by others. As long as we treat AMD as a first-tier customer, there will be no problem in taking their orders!"

Yu Longxing, director of the graphics card department, also agrees: "In addition, Xingyi Semiconductor not only mass-produces chips, but also has a full set of foundry systems for heat dissipation modules and PCB motherboards. AMD can only produce chips at most if it asks TSMC to do the foundry, and it has to do the subsequent heat dissipation and PCB motherboards by itself. If it asks us to do the foundry, it can directly get the finished CPU and graphics card!"

Wang Yi nodded: "Yes, this is our advantage. Another advantage is that the local market is strong. We have one-fifth of the world's users, and it is also the world's second largest consumer market. AMD asked us to do OEM. After production, we can directly send it to AMD's storage centers in various parts of the country through the Xingyi logistics system, or go to the Xingyi storage center and directly sell it on the Douyin Mall. We can integrate these resources, which are all our strong competitive advantages!"

"Great! This way, TSMC can't be our opponent!" Williams praised.

TSMC’s business is single: chip foundry + packaging, nothing more.

For AMD graphics cards, you will have to deal with the heat dissipation, PCB, etc. by yourself and assemble them into graphics cards by yourself.

But Xingyi Technology is different. It not only has chip OEM and packaging services, but also heat dissipation module OEM and PCB motherboard OEM services. It can directly manufacture and deliver finished graphics cards.

There is also a powerful Xingyi logistics system. AMD does not need to ship the products back for distribution. It can directly connect with Xingyi Logistics from Xingyi Semiconductor's factory and distribute them directly to AMD storage centers across the country through Xingyi Logistics.

At that time, AMD only needs to ship the chips from overseas and directly distribute them domestically, providing one-stop service.

And there is Douyin Mall. AMD’s stores in Douyin Mall are even simpler. After the products come off the production line from the factory, they are directly sent to the storage centers in various places of Douyin Mall, which makes things even more convenient.

In this way, not only will AMD's costs be lower, but its efficiency will also be greatly improved.

In the past, it took many rounds of turnover and a lot of time to distribute the goods, but with Xingyi Technology, it is much easier.

And Xingyi Technology can also earn more.

Not only can Xingyi Wafer Factory earn chip foundry fees, but it can also earn graphics card assembly fees, heat dissipation foundry fees, PCB foundry fees, Xingyi logistics and transportation fees, Douyin Mall commissions, etc.

The money that TSMC can only make once, Xingyi Technology can make N times.

Key customers can also save money and receive strong support!

This is the gap between single business and resource integration.

This is also Wang Yi’s original intention for diversified development.

"Following this idea, we will connect with AMD and try to win all the big chip orders AMD has given to TSMC!"

"Okay!" Zhu Changlin responded.

As for helping AMD with foundry business, will it aid the enemy and make AMD a rival of Xingyi Semiconductor?
Wang Yi was not worried about this at all, or it was useless to worry.

After all, if Xingyi Semiconductor does not produce for AMD, TSMC will do so. At that time, AMD will continue to develop and become as strong as before, and will still be the rival of Xingyi Semiconductor!
TSMC's revenue and profits also surged because of AMD's big order, which was not conducive to Wang Yi's plan to destroy TSMC!

It can be said that not outsourcing to AMD will do more harm than good.

Instead of doing this, it would be better to snatch TSMC's orders and do OEM for AMD. At least it can make more money and suppress TSMC.

Why not?
The most important thing is that next year AMD's graphics cards and CPUs will still use the 28nm process, while Xingyi computer's CPUs and graphics cards will all be upgraded to the 14nm process!

Without upgrading to 14nm process, AMD will not be a match for Xingyi Technology, not to mention that the process is so different!
Moreover, next year, Xingyi Semiconductor's new flagship chips will switch to 14nm process and will be manufactured by two wafer fabs in Shenzhen. Therefore, in addition to producing mid- and low-end chips and manufacturing for Huawei, the 28nm production capacity in Shanghai and Beijing will have a lot of vacant space, which will be just right for AMD to manufacture.

But by the year after next, we will have to manufacture 14nm process for Huawei and AMD.

It can be said that next year will be the worst year for AMD, no doubt about it.

The Zen architecture has not made any breakthroughs, and is facing a double blow from Star Semiconductor and Intel's 14nm process, which is a terrible situation!
Qualcomm is in a similarly tragic situation.

Their new flagship Snapdragon 810 next year, which will be produced using TSMC’s 20nm process, will also fail miserably, facing a double kill from the 920nm Kunpeng 9 from Xingyi Technology and the Apple A14!

There is no other way. We cannot produce it ourselves and need to outsource it to a third party, which means we are at the mercy of others!
Especially when TSMC is promoting the 20nm process next year, Samsung and Star Semiconductor unethically skipped 20nm and went directly to 14nm, which is a trick for TSMC!
TSMC's 16nm process will not be put into mass production until July next year, which is too slow.

"Chairman, AMD has no major problems. However, we have overproduced Kunpeng 910, CPUs, and graphics cards, resulting in a backlog of inventory. We will have to reduce production in the future, leaving a large number of production lines vacant. What should we do?"

Wang Yi waved his hand and said, "It's okay. We will fully utilize the 28nm production capacity this year. When we have enough inventory, we will directly cut a large number of 28nm production lines by the end of the year and upgrade them to 14nm production lines!"

"Next year, our 28nm production line will not be able to grab orders as well as TSMC's 20nm production line, but when it comes to the 14nm production line, TSMC will not be our opponent!"

"Yes, once the 14-nanometer production line is released, all customers will place orders. We will produce a large number of our own chips in the early stage, and then design the 14-nanometer chips of our competitors and outsource them to them. This way it will be safe! The key is to see when the 14-nanometer production line will be put into production and whether it can be done!" said Williams.

Wang Yi smiled: "You have to believe in Mr. Hu's ability! Let's get AMD's chip order first."

"Out of respect for AMD, I will go there in person!" said Zhu Changlin.

Wang Yi waved his hand and said, "Old Zhu, don't go abroad at this time. Let the president or vice president of Xingyi International go."

"Franz Quentin, the vice president of Xingyi International, is suitable. He is currently in charge of Xingyi Semiconductor's international business and connecting with major customers. Franz Quentin is currently developing and connecting with chip orders from customers such as Sony, LG, and Nokia."

"Okay, it's him. He will also be responsible for the subsequent foundry business of Xingyi Semiconductor!"

Wang Yi is very optimistic about Franz Quentin.

The former vice president of Qualcomm was quite capable and should have won every battle, but unfortunately he met Wang Yi, a cheating player, and ended up losing every time.

Eventually, Qualcomm mistook him for an undercover agent of Xingyi Technology and kicked him out.

Franz Quentin joined Xingyi Technology angrily and was entrusted with an important task by Wang Yi.

Franz Quentin did not disappoint Wang Yi. As soon as he joined Xingyi Semiconductor, he brought in many big Qualcomm customers...

Many of Qualcomm’s international customers were previously developed and maintained by Franz Quentin. Now that they have fallen out with Qualcomm, they were naturally given to Xingyi Semiconductor.

Of course, the main reason is that Qualcomm has been lagging behind in recent years and its strength is weak, far inferior to Xingyi Semiconductor.

With the mediation of Franz Quentin, international customers such as LG, Sony, Sharp, and Nokia not only purchased Kunpeng chips from Xingyi Semiconductor for their flagship chips, but also for mid- and low-end chips.

Afterwards, Wang Yi called Franz Quentin and explained the matter to him.

Franz Quentin was delighted: "Chairman, rest assured, I will definitely get the chip order from AMD. And not only AMD's chip order, we can also try to get the chip order from Sony."

Wang Yi's eyes lit up: "Yes, Sony also has a lot of chip orders, especially next year, Sony will launch the image quality chip X1, which requires 28 nanometer technology, you can focus on it."

"Okay, Chairman, I will definitely get them all!" Franz Quentinxin promised.

He immediately asked his secretary to contact AMD and set off for the trip.

Wang Yi thought of the picture quality chip and asked again, "How is the development of the picture quality chip for Xingyi TV going?"

George replied: "Chairman, our image quality chip X1 has been successfully developed and has been taped out, and its performance is excellent. But I have an idea, can we integrate the image quality chip directly into the SOC chip Kunpeng 910C to make it a TV-specific chip Kunpeng 910V!"

“Integrated into the SOC chip!”

Wang Yi thought about it and said, "This is a good idea. The X1 image quality chip is equivalent to a baseband module. If it is integrated into the 910C, it will be almost the same as the 910 SOC!"

"Yes, Chairman, this way we can use one chip to realize the functions of two chips: a TV processor chip and a picture quality chip."

Currently, smart TVs only have one processor chip.

This is also true for the second generation of Xingyi TV.

But starting next year, Sony will launch a professional image quality enhancement chip X1, which will be a processor chip + a image quality enhancement chip X1.

The existence of X1 can support 4K HDR, greatly improving picture quality.

Similarly, LG, Samsung and Hisense will also launch their own picture quality chips to improve picture quality performance.

But they are all separated from SOC.

The disadvantage of this is that two chips need to be made, which has high cost, low integration and high power consumption.

So George had an innovative idea and directly packaged the image quality chip into the SOC chip to make it into one chip. In this way, many modules can share one set, which greatly improves the integration and reduces the power consumption.

For example, what Sony, Hisense, and Samsung are doing is similar to what they did in the past: a processor chip with an external baseband chip.

George's idea was to integrate the baseband directly into the SOC.

This is undoubtedly a huge progress and a good direction of development.

"Okay, let's integrate it. This way the cost will be lower and the energy efficiency will be higher!" Wang Yi agreed.

An external image quality chip is like an external baseband chip, which is not as good as integrating it into the SOC.

Especially since Kunpeng 910C does not have a baseband, some space is left, which is just right for packaging the X1 image quality chip and integrating it to make Kunpeng 910V!

In the future, Kunpeng 910 SOC, CPU + GPU + baseband, will be dedicated to mobile phones.

Kunpeng 910C, CPU + GPU, no baseband, dedicated to tablets.

Kunpeng 910V, CPU + GPU + picture quality chip, dedicated to TV!
The biggest feature is the addition of a picture quality chip, which makes the display effect achieve a qualitative leap.

“Isn’t the Xingyi Tablet 2nd Generation going to have an ultra version? It can also directly use Kunpeng 910V!” said Wang Yi.

"Yes, the ultra version is the flagship version. The processor is upgraded from the pro version's Kunpeng 902C to 910C. It's better to upgrade to 910V in one go!"

Zhu Changlin's eyes lit up: "Tablets also need powerful image quality chips to improve the display effect!"

Wang Yi nodded: "Well, let's do it. From now on, the standard version and pro version will use the C series ordinary tablet chip without image quality enhancement. The ultra version will directly use the V series chip with image quality enhancement! In a word, it is so powerful that there is no rival!"

"So much the better."

Wang Yi was not disappointed. Franz Quentin was very efficient and reached a deal in just four days, winning AMD's CPU chip order. AMD directly gave 60% of its CPU chip orders for next year to Xingyi Semiconductor for foundry.

What we value is the powerful and sufficient 28nm process of Xingyi Semiconductor, as well as the subsequent direct delivery by Xingyi Logistics.

Of course, another part of the reason is that AMD is somewhat disappointed and angry with TSMC.

TSMC has already started mass production of 20nm process this year and is manufacturing A8 for Apple. AMD also wants to use 20nm process in order to get something better.

Even if TSMC's 20nm production capacity is given to Apple this year and AMD doesn't get it, it will be its turn next year!

But unfortunately, TSMC’s 20nm process will not be available next year!

台积电把今年的20纳米产能给了苹果A8，明年的20纳米产能给了高通骁龙810和联发科MT6795（Helio X10），以及苹果A8！

As for the 16nm production capacity, mass production will not begin until July or August next year. Not to mention that it is impossible to give it to AMD, even if it is given, AMD cannot wait.

AMD's CPUs and graphics cards will be released in May and June next year. It is impossible to wait until July or August for mass production.

As a result, TSMC can only provide AMD with 28nm production capacity!

This made AMD extremely angry!
It’s fine if we can’t get our turn at 20 nanometers this year, but we won’t get our turn next year either, so we can only continue to use 28 nanometers!

Deceiving too much!

It’s just that there was no choice before, and AMD couldn’t do anything about it.

Now it has a choice. AMD immediately turned to Star Semiconductor and gave 60% of its CPU orders to Star Semiconductor in order to get rid of its dependence on TSMC, which is also a communication and warning of anger.

As for the remaining 40% of low-end CPU orders, they will continue to be outsourced to GlobalFoundries.

Although GlobalFoundries is weak and its 28nm yield rate is not high, it is a factory spun off from the company after all, and it is its own son, so it has to be nurtured even if he does not perform well.

Nothing can be done.

"Chairman, because our 28nm process is more powerful and stable, AMD has entrusted the production of mid- and high-end CPUs to us, Xingyi Semiconductor. Low-end CPUs are still produced by GlobalFoundries."

"Haha, AMD is quite calculating." Wang Yi said with a smile.

"However, AMD did not agree to the graphics card deal. They have some doubts about our ability to manufacture graphics cards, so..."

Wang Yi was not surprised. The Xingyi CPU has powerful performance and is a global best-seller. It surpassed AMD in the first generation and even beat Intel. AMD has no doubts about Xingyi Semiconductor's ability to manufacture CPUs.

But the Xingyi graphics card has not been launched yet, and AMD does not know whether Xingyi Semiconductor has the ability to manufacture graphics cards. Such doubts are normal.

Before the Xingyi graphics card became a big hit, AMD didn't want to be a guinea pig.

"It's okay. People are sentimental. Once our graphics cards are released, AMD will know what to choose. There's no rush. You tell AMD that it can wait and see." Wang Yi said calmly.

The reason why TSMC was able to snatch AMD's chip order so easily this time was that it overestimated itself and bullied AMD badly, making AMD feel insulted.

If TSMC had given AMD 20nm production capacity, AMD would not have directly rebelled and joined Star Semiconductor.

"Okay, I have already signed the contract. Next I will go to Sony to discuss chip foundry for Sony," said Franz Quentin.

Wang Yi nodded: "Go ahead. Sony's TV processor chip is currently self-developed and manufactured by TSMC. It uses a 55-nanometer process. We will directly give them a 40-nanometer process. The price can be more favorable. The picture quality chip uses a 28-nanometer process."

"Okay, Chairman, Sony will not refuse such an offer."

"Well, there are also sensor chips. As long as Sony is willing to upgrade to 40 nanometer technology, we will take it."

The 14nm process will be put into production next year, and the 28nm production capacity is too abundant. Xingyi Technology's 40nm mid- and low-end chips have all been upgraded to the 28nm process.

As a result, there was idle production capacity in the 40nm process, which was just right for Sony to manufacture.

Give Sony some good things too, the 55nm Sony TV chip is really too bad.

These days, Sony still develops its own TV processor chips. When the cost of subsequent self-development becomes too high, Sony will give up self-development and switch to MediaTek.

It becomes a combination of MediaTek processor + Sony picture quality chip!
The characteristics of this combination are powerful image quality and first-class performance.

This is what Sony did in its previous life.

Now Wang Yi asked Franz Quentin to take over Sony's chip order, one to generate revenue, and the other for Sony as a customer.

In a few years, Sony will find that its self-developed TV processor chips are losing too much money and will give up. With the current cooperation, Sony TV will then abandon its previous MediaTek solution, choose the Star Semiconductor solution, and purchase Kunpeng TV chips!
By then, Xingyi Semiconductor will have another long-term major customer!

Wang Yi was not disappointed, Sony was more efficient.

The cooperation was reached in just three days.

Sony's TV chips will be fully upgraded to 40-nanometer technology next year and outsourced to Xingyi Technology.

The image quality chip X1 is also outsourced to Xingyi Technology.

Even the sensor chips have been fully upgraded to 40-nanometer technology and outsourced to Xingyi Technology.

The cooperation between the two parties is very deep. Xingyi mobile phones and Xingyi tablets purchase so many lens modules from Sony every year. They are Sony's super big customers. Sony naturally hopes that the two parties will cooperate more and deepen the relationship.

After all, if they really refuse and continue to outsource the manufacturing to TSMC, once Xingyi Technology cuts off single-lens modules and turns to purchasing Samsung lens modules, Sony will have nowhere to cry.

By outsourcing Sony's chips to Star Semiconductor, the two sides will deepen their cooperation and become mutually beneficial strategic allies, which is in the interests of both parties.

Win-win cooperation!

It can be said that for Sony, losing TSMC does not matter, but it cannot lose Xingyi Technology, its big customer and financial sponsor!

Soon, the news spread throughout the industry.

TSMC was shocked.

"waste!"

"A bunch of trash!"

Old Zhang was furious and yelled, "You are all a bunch of rubbish!"

"Ask yourselves, how many of our big customers have been taken away by Xingyi Semiconductor?"

"talk!"

The senior executives of the marketing department lowered their heads, looked gloomy, and trembled, but they dared not say a word.

"I tell you, three families!"

"There are already three major customers, and they have all been snatched away by Xingyi Semiconductor."

Zhang was furious: "At the beginning, Huawei's Kirin chip orders this year were all snatched away by Xingyi Semiconductor. Kirin 910, Kirin 920, 925, 928, four flagship chips, to million chip orders a year, were all snatched away by Xingyi Semiconductor."

"You are a bunch of losers. You just got the news after the contract was signed. You are such losers!"

"Okay, this is your first failure, so it's an accident. I'll give you a chance!"

"The results of it?"

"AMD's CPU chip orders have been snatched up again!"

"Another few tens of millions a year, and they're gone again!"

"You bunch of losers haven't figured this out yet. Sony's TV chips, picture quality chips, and sensor chips have all been snatched away by Xingyi Semiconductor!"

"You bunch of rubbish are really good!"

"That's fucking great!"

The more Mr. Zhang thought about it, the angrier he became, and his blood pressure even rose.

So annoying!

Xingyi Semiconductor's speed is infuriating, and TSMC's marketing department is even more infuriating!
More importantly, Xingyi Technology is also a major customer of TSMC.

The 16nm production capacity in the second half of next year depends on the huge order of Kunpeng 916!
We can't afford to offend big customers.

It is precisely for this reason that TSMC did not dare to say anything when its major customer abandoned it and could only swallow its anger.

Zhang was naturally angry, and he didn't dare to vent his anger on Xingyi Technology, so he could only vent it on the marketing department:
"This year, we have Apple's A8 chip orders and some AMD chip orders, so TSMC's production capacity vacancy rate is relatively low, only about 15%. But next year, Apple's A9 chip will be given to Samsung, AMD's chips will be taken away again, and Sony's chip orders will also disappear!"

"By then, how much will TSMC's capacity vacancy rate surge?"

"30%? Or 40%?"

"You bunch of losers!"

Everyone was silent, not daring to say a word.

The current situation is very pessimistic for TSMC, and it may even make the situation worse.

In particular, the A9 chip orders were snatched away by Samsung's 14nm process, which was a fatal blow to TSMC.

"Chairman, we have won the Qualcomm Snapdragon 810 chip order, which is relatively stable." The head of the marketing department couldn't help but say.

"More stable? Are you kidding me? Is the current Qualcomm still the same Qualcomm as before?"

Old Zhang was so angry that he laughed: "Qualcomm used to be the absolute overlord, with an annual output of tens of millions of flagship chips. But what about now? Qualcomm is almost being beaten to a pulp by Xingyi Semiconductor, with sales cut in half again and again. And it's still relatively stable? What a joke!"

"This..." The supervisor's mouth twitched, and he sighed with emotion: "Yes, now the high pass has become a low pass!"

(End of this chapter)