Reborn in 2011, 985 missing from two copies

Chapter 707 breaks the record again and dominates Black Friday!
Fifty thousand RTX 970M graphics cards for laptops is basically the sales volume of ASUS' high-end laptops for more than half a year.

Similarly, 970 RTX graphics cards are also the sales volume of ASUS high-end desktop computers in more than half a year.

Asus cannot use the remaining 20 RTX 970 GPU chips itself, so it can only make them into graphics cards and sell them to the outside world.

This will be the first non-public retail graphics card for RTX 970!
There is no way, ASUS is so disappointed with NVIDIA!

The GTX 970 failed, and Nvidia refused to accept returns, cancel orders, or perform upgrades or repairs, let alone recalls.

But as a major computer manufacturer, ASUS has to sell both high-end laptops and desktops.

As a major graphics card manufacturer, we have to sell high-end graphics cards too!

There was no other way. Nvidia was acting like a rogue, and ASUS couldn't afford to lose all its high-end products, so it simply switched to Starry Semiconductor and introduced Starry RTX 970 on a large scale.

We will first launch new desktops and notebooks equipped with the RTX 970 finished graphics card, and immediately start the production and sales of the non-public retail version of RTX 970!
Even though the GTX 970 isn't selling well, Asus' graphics card production line can't be stopped, and the graphics card department can't starve to death, it has to keep running.

Xingyi RTX 970 is the way out!

Especially seeing that the RTX 970 is selling so well and is a global hit, ASUS is also tempted and jealous and wants to get a piece of the pie.

In addition to 970 finished graphics cards, they also bought RTX GPU chips!

Naturally, Wang Yi would not refuse.

Xingyi Semiconductor has chip research and development, wafer factory production, and graphics card assembly. If it makes all graphics cards by itself, it will actually be detrimental to the development of Xingyi graphics cards.

On the contrary, major graphics card manufacturers such as ASUS also purchase GPU chips from Xingyi Semiconductor and launch non-public version graphics cards of Xingyi RTX 970, which not only allows Xingyi Semiconductor to earn more, but also brings competition to Xingyi graphics cards.

What Wang Yi is most worried about is internal corruption and mediocrity.

If Xingyi GPU is only produced for Xingyi graphics cards and only promotes public versions, then Xingyi graphics cards will win easily and will not have much competitiveness at all. It will be easy for them to fail. Over time, inefficiency, incompetent management and internal corruption will follow.

Only by introducing graphics card manufacturers such as ASUS and achieving external competition can the Xingyi graphics card maintain sufficient competitiveness and thus make better progress and development.

Just looking at this news, Nvidia's Huang was angry:

"Damn Asus! Fuck!"

"They actually gave up on GTX 970 and purchased so many RTX 970 graphics cards and GPU chips!"

"Damn, damn it!"

The vice president was also puzzled: "Chairman, ASUS is doing this. It seems that they will replace our GTX 970 with the RTX 970. Next, they will mainly promote the RTX 970 graphics card and desktop notebooks equipped with the RTX 970. But what will ASUS do with the GTX 970 graphics cards in stock?"

"Yes, if they stop selling GTX 970 graphics cards and only promote RTX 970, won't all the GTX 970s rot in their warehouse? That's also a loss!"

Other senior executives were also puzzled.

Old Huang sighed: "I can only say that Asus is bold and decisive, and cut the Gordian knot."

"Now, both graphics card manufacturers and computer manufacturers are facing a problem: whether to continue selling GTX 970 graphics cards or new machines equipped with GTX 970 graphics cards, or to abandon GTX 970 graphics cards and switch to RTX 970."

"We will continue to sell GTX 970, but due to the memory issue, sales will not be high, which is a big problem."

"Switching to the Xingyi RTX 970 can boost sales, but the GTX 970 inventory will rot in the warehouse, which will also be a big loss."

"No matter what choice you make, the losses will be heavy."

“And you can’t have it both ways.”

"Asus chose to cut its losses in time and switched to the Xingyi RTX 970."

"As a result, the GTX 970 graphics cards in stock cannot be sold and are piled up in the warehouse, which is a big loss. However, the ASUS RTX 970 graphics cards can be sold well, and the new machines equipped with the ASUS RTX 970 can also be sold well. The most important thing is that ASUS's graphics card production line will not be stagnant, and the graphics card department will not be out of business!"

The vice president's eyes lit up: "I see. Although ASUS will suffer a significant loss if it chooses the RTX 970, it can still revitalize its graphics card and computer businesses. Especially for graphics card factories, the biggest loss is the idle production line."

Other senior executives also suddenly realized:
"And by choosing the Xingyi RTX 970, ASUS can continue to cooperate with the Xingyi RTX 970 in the future. Then ASUS's graphics card business will change from being centered on NVIDIA and supplemented by AMD to a dual-centered model of NVIDIA and Xingyi graphics cards, supplemented by AMD."

"In the future, if NVIDIA graphics cards sell well, they will mainly promote NVIDIA graphics cards. If Xingyi graphics cards sell well, they will mainly promote Xingyi graphics cards."

“Yes, this strategy is safer and more promising for ASUS, but it is troublesome for us at Nvidia.”

"Yeah, if other graphics card manufacturers do the same, it will be really troublesome."

Old Huang nodded: "This is also what I am most worried about. Xingyi graphics cards are developing too fast, and they are also catching up with the GTX 970 memory scandal. There is a tendency for them to become big all of a sudden."

"Especially now that we have rejected customer returns and cancelled orders for GTX 970 graphics cards, we have created some distance between ourselves and our major customers, and it is easier for them to turn to Xingyi graphics cards."

"That's right. This cooperation between Xingyi Technology and ASUS is just the beginning. I'm worried that other manufacturers will also seek to cooperate with Xingyi Technology, which will be troublesome."

"We must pay close attention to this and take some measures. If we continue to be arrogant, the consequences may be disastrous."

"Haha, you're worrying too much. Nvidia graphics cards have monopolized 80% of the global market. AMD is no match for us, let alone Xingyi Semiconductor?"

"That's right. This year's failure is just a failure of one generation of graphics cards. It's not a lasting failure. When our GTX 960, GTX 950, and 980 ti are launched next year, they will actively embrace us."

"And if we really have to take responsibility for the GTX 970 graphics cards and accept cancellations and returns, the loss would be too great."

"Yes, this hole cannot be opened. Once it is opened, the consequences will be disastrous."

Old Huang thought about it and nodded: "Let's take it one step at a time. I don't think those computer manufacturers and graphics card manufacturers dare to really abandon NVIDIA and go all in on Xingyi Technology!"

"Chairman, that's what we said, but if necessary, we still need to make a threat or two to make our position clear."

"Okay, that's it!"

Sure enough, with ASUS taking the lead, Shenzhou soon placed an official order.

A total of 50,000 graphics cards for desktops and laptops were ordered, and 50,000 CPUs were also ordered.

Shenzhou focuses on cost-effectiveness and is very interested in the powerful Xingyi graphics card and Xingyi CPU.

Especially after seeing the strong performance of Xingyi desktops and Xingyi notebooks dominating the charts during Double Eleven, all major brands were tempted.

Lenovo headquarters.

"Asus and Shenzhou have both placed orders for the Xingyi RTX 970, so we have to place orders as well, otherwise Lenovo's computer sales will plummet."

"That's right, not only do you have to order the Xingyi RTX 970, you also have to order the Xingyi CPU."

"Yes, the powerful integrated graphics of the Xingyi CPU is a killer in the field of mid-to-low-end computers. Looking at the sales list this year, the top five that originally belonged to Lenovo are all occupied by Xingyi computers, thanks to the powerful integrated graphics of the Xingyi CPU."

"There's no other way. The powerful integrated graphics of the Xingyi CPU is ten times more powerful than Intel's integrated graphics. It would be strange if consumers were not tempted."

"Especially the 7-yuan Xingyi computer, which is equipped with an X processor and has a core graphics card that is comparable to a mid-range discrete graphics card. There is basically no rival for big-brand computers under yuan. If I were in your shoes, I would be tempted too."

"Yes, in the field of mid- and low-end computers, at the same price, if you use the Xingyi CPU, the performance will be improved to a higher level."

"In the high-end field, the GTX 970 has failed again, and the Xingyi RTX 970 has more advantages."

"No matter what happens in the future, this year Intel + Nvidia cannot beat Xingyi Semiconductor."

"Asus and Shenzhou have placed orders, so we have to act quickly. Otherwise, Lenovo computers will continue to be unsalable."

"But Nvidia just released a message. Although it is more tactful, the threat is obvious. Anyone who dares to choose the Xingyi RTX 970 will definitely be targeted by Nvidia in the future!"

"Targeted? Lenovo has already lost so badly on Double Eleven, what else is there to be afraid of being targeted?"

"That's right. Besides, Nvidia is not the only graphics card manufacturer now. There are also Xingyi graphics cards and AMD!"

"Nvidia is so arrogant because we spoiled it!"

"Chairman, our sales have plummeted, and our stock price has plummeted. If we hesitate any longer, the Double 12 shopping festival will be ruined, and there is also the New Year shopping festival. If we continue to fail, Lenovo's stock price will not be able to hold up!"

When he heard about the stock price plummeting, Lao Yang lost his composure and said:

"Well, screw Nvidia!"

"Place an order for the Xingyi RTX 970. Place the order as soon as possible. We can't let Asus and Shenzhou get ahead of us. And we must launch Lenovo desktops equipped with Xingyi RTX 970 as soon as possible, and they must be available on Double !"

"There are also new Lenovo laptops that will be directly equipped with the Xingyi RTX 970 and will be launched as soon as possible."

"Buy another batch of Xingyi CPUs, and replace low-end Lenovo laptops with Xingyi CPUs."

"Yes!"

On that day, Lenovo directly placed an order for 5 Xingyi RTX 970 graphics cards, 970 Xingyi RTX 3M graphics cards, and 5 X7 CPUs, and X and X CPUs each!
Wang Yi was not surprised by this.

With the sales of Xingyi computers dominating the charts during Double Eleven and Lenovo’s plummeting stock price, Lao Yang has no way out!
Especially in the Double 11 sales list, all models of Xingyi computers were on the list, and the monopoly advantage directly hurt all competitors. As a result, competitors who were originally hesitant like Lenovo no longer hesitated and placed orders one after another.

In this regard, Wang Yi naturally accepted everyone who came.

Wang Yi doesn’t mind if rival companies launch new machines equipped with the Xingyi RTX 970, causing Xingyi computers to sell less.

Same thing: fewer computers are sold, but more graphics cards and CPUs are sold.

The most important thing is that the production capacity of Xingyi computers is limited. It is unrealistic to have super-hot sales like in the past two months and monopolize the market.

Right now, even large manufacturers like Lenovo and HP, which have the highest sales, only sell more than 40 million notebooks and more than 10 million desktops per year, which adds up to 50 to 60 million units, with an average monthly sales of only 4 to 5 million units.

In the past thirty days, Xingyi laptops have sold 10 million units per month!
The Xingyi desktop computer also sold five million units.

Such terrifying sales volume is comparable to Lenovo and HP’s sales in one quarter!
It can be said to be horrible, so horrible that it is scary.

Before the release of Xingyi's new laptops and desktops, they prepared more than 10 million stocks, which was supposed to be a quarter's sales volume, but they were sold out in just one month!

This directly led to the bottoming out of inventory.

Fortunately, Xingyi Technology quickly increased its production capacity, added production lines, and found a contract manufacturer, but it could only maintain a top level of five million per month.

It is simply impossible to maintain the extraordinary level of monthly sales of 15 million.

Not only Xingyi Computer can't do it, Lenovo and HP can't do it either.

The average monthly sales volume of the world's largest manufacturer is only 1500 million. Who can achieve a monthly output of million?
This is unreasonable and unscientific.

Xingyi Computer can't do it either.

Computer production lines cannot be increased or decreased at will.

It is even more impossible that the monthly production is 11 million units in November, reduced to 1500 million units in December, and 12 million units the next month. What should be done with the empty production lines?
The cost of adding a new production line is not low, and it is impossible to abandon it all after just one or two months.

On the contrary, we need to maintain stability for a period of time and increase and decrease in an orderly manner.

As for maintaining monthly sales of 15 million, this is even more unrealistic.

It is impossible for production capacity to increase dramatically in the short term. Instead of running out of stock and not making any money from orders, it is better to sell the Xingyi CPU and graphics cards.

In this way, Xingyi Computer can still maintain a saturated state of monthly sales of about 5 million, and can also earn some extra money from Xingyi CPUs and graphics cards.

This is also very profitable!
Even if you sell GPU chips directly, it is very profitable.

For example, the GPU chip of RTX 970 is sold to ASUS at the same price as the GPU chip of NVIDIA GTX 970, which is as high as 1300 yuan per chip!
Yes, it is that expensive.

And what about the cost?

The material cost of NVIDIA's GTX 970 GPU chip is only about 500, plus the R&D cost.

The GPU chip of the Starship RTX 970 is self-developed, produced and packaged by itself. Without the profit made by TSMC, the material cost is lower, only about three hundred.

As for R&D costs, Nvidia GTX 970's R&D costs are as high as 4 million US dollars, or 25 billion RMB.

If the GTX 970 is a hot seller, with 1250 million units sold during its life cycle, the diluted R&D cost will only be 200 yuan per unit.

But right now, the GTX 970 graphics card has fallen apart due to the memory issue and is in a state of poor sales. The expected sales volume is probably 500 million in total, so the R&D cost would be as high as yuan per chip.

In this way, the cost of the GTX 970 GPU chip is 500+500, a full one thousand yuan.

If sold to Asus and Gigabyte for 1300 yuan each, the gross profit is only 23 yuan, and the gross profit margin is only %.

That's it.

As domestic costs are low, the total R&D cost of the Xingyi RTX 970 is only 970% of that of NVIDIA's GTX 10, or billion RMB.

In addition, the current Xingyi RTX 970 is in hot sales, and the volume can reach 1500 million during its life cycle, which is three times that of GTX 970. The diluted R&D cost will also be much lower than that of NVIDIA GTX 970, at only 66.67 yuan!
The total cost of the Xingyi RTX 970 GPU chip is only 300+66.67, less than 370 yuan.

The same 1300 yuan per piece sold to manufacturers such as ASUS can bring a gross profit of up to 930 yuan, with a gross profit margin of up to 75%!

The same goes for graphics cards. If you sell them directly to Shenzhou or Lenovo, you can make a few hundred yuan from a Starry RTX 970.

This profit margin is completely acceptable and is not much different from selling complete machines.

However, the whole machine needs to be assembled, produced, distributed and retailed, which is rather troublesome and has a long payback period.

GPU chips and graphics cards, on the other hand, are sold in large quantities at one time, with a one-time payback period of a short time.

Entirely more appropriate.

As friendly competitors began to place orders, more and more computer manufacturers began to place orders for Xingyi RTX 970 and Xingyi CPU.

More and more graphics card manufacturers have begun placing orders for GPU chips.

Even if Nvidia warns and threatens openly or secretly, it is meaningless.

In response to this, Wang Yi accepted all requests and quickly arranged the shipment.

We have our own wafer fab, with sufficient production capacity, so mass production is not a problem.

In particular, Wang Yi had arranged to produce more graphics cards and CPUs long beforehand to ensure sufficient production capacity.

Nowadays, increasing production capacity and shipping in batches are no longer a problem.

This is the advantage of having your own wafer fab, which is completely autonomous and controllable.

Unlike Nvidia, which wanted TSMC to cut orders and stop production when it saw the failure of GTX 970, TSMC immediately worked overtime to produce the fourth batch of 200 million orders for it and shipped them quickly, fearing that Nvidia would refuse to accept them.

As a result, Nvidia also forced shipments, forcing graphics card manufacturers to accept 970 failed GPU chips, and forced computer manufacturers to accept failed GTX OEM graphics cards.

There are still 200 million GTX 970 GPU chips left, which are still piled up in Nvidia's warehouse and cannot be sold.

Old Huang has a huge headache.

As for the Xingyi graphics card, the situation is very good.

With orders from graphics card manufacturers such as ASUS, GIGABYTE, MSI, and GALAXY, and computer manufacturers such as Lenovo, HP, and Dell, the sales volume of RTX 970 has once again set a record!

In October, the Xingyi RTX 10 graphics card was launched for the first time, with monthly sales exceeding 970 million units.

In November, the sales volume of RTX 11 graphics cards exceeded 970 million, of which major computer brands placed orders for more than 220!

The Xingyi RTX 970 GPU chip has sold 150 million units!

There was no choice but to see that ASUS had placed an order for 20 GPU chips. Major graphics card manufacturers such as Gigabyte, MSI, GALAXY, and Colorful could no longer sit still and also placed orders.

The reason is simple. The RTX 970 is a global hot seller, and graphics card manufacturers all want to get a piece of the pie and make a lot of money to make up for the losses from the GTX 970.

More importantly, the graphics card production line cannot be shut down!

The loss from shutdown is the greatest.

In addition, the graphics memory chips, cooling modules, etc. that were ordered previously, along with the poor sales of GTX 970 graphics cards, have also become unsold and are rotting in the warehouse, resulting in heavy losses.

Now, if you purchase the GPU chip of Xingyi RTX 970, the video memory particles, cooling modules, etc. in these rotten warehouses can be made into Xingyi RTX 970 non-public version graphics cards and sold to the outside world!

In this way, the production line does not need to be stopped and there will be profits.

The video memory chips, cooling modules, motherboards, power supplies, etc. in stock can also be shipped and make money.

In the end, the only thing left in the rotten warehouse was the GTX 970 GPU chip.

This can be considered as stopping losses in time and generating income.

All major graphics card manufacturers have considered this clearly.

The same is true for computer manufacturers. The high-end new machines equipped with GTX 970 are unsold, and the production lines have been shut down, resulting in losses every day. Other graphics cards, screens and other accessories that were previously imported are also rotting in the warehouse.

Now that the Starry Sky RTX 970 has been replaced, the new machine can continue to sell well, and other accessories are also shipped out. The production line is running again to generate revenue. In the end, only the GTX 970 graphics card is left in the rotten warehouse. It is completely timely to stop the loss!
With this calculation, Nvidia's threat pales in comparison.

With the centralized purchasing of major brands, Xingyi graphics cards and GPUs are all hot-selling.

As a result, the Xingyi CPU was purchased in large quantities by third-party manufacturers and sold like crazy.

The Xingyi CPU and Xingyi graphics card have taken further steps, and their influence, market share and popularity have also been rising steadily.

(End of this chapter)