Reborn since 1993

Chapter 1172 Those are brothers, extra money is due!
In America, it is not uncommon for founders to be ousted from the companies they built. Some of these ousters were orchestrated by Wall Street and investment firms, such as Steve Jobs of Apple, the Cisco couple, and Jim Clark, the founder of Silicon Graphics and Netscape.

Besides, it's not uncommon for founders to be ousted due to infighting; for example, Microsoft founder Paul Allen was ousted by Bill Gates in recent years.

In just a few years, events such as the ouster of Facebook founder Saverin and Tesla founder Martin will prove that being a founder is a high-risk profession.

However, it's true that this year has been a bad year for Jim Clark, and companies associated with him have also been having a tough time.

Netscape, once the world's largest internet company, was utterly crushed by Microsoft's strategy of making its browser free and bundling it with its operating system.

Netscape Navigator's market share has plummeted from over 80% to almost becoming a niche browser.

As for Silicon Graphics, it lost more than $30 million in the last quarter alone. Keep in mind that its net profit last year was only $28 million.

Of course, these days, is it a big deal for tech companies to lose money?
Especially for internet-related companies, which one isn't losing money hand over fist, yet their stock prices keep hitting new all-time highs?

Therefore, it doesn't matter if tech companies lose money, as long as they know how to hype it up and can find a reason to convince retail investors, such as losing money to acquire competitors or burning money to seize market share, they can show that the future is still very promising and the stock price can still rise.

But this time Silicon Graphics is a little different. Wu Xinyi saw that Silicon Graphics' most important business is servers and workstation computers.

Another business is graphics processing, which can be simply understood as movie special effects. The special effects for the movie Jurassic Park were done using silicon images. In addition, aerospace, oil exploration, and other fields also require graphics processing technology.

But the most profitable business is undoubtedly selling servers and workstations. Besides these businesses, the most important thing Silicon Graphics has done in recent years is to develop MIPS architecture chips, aiming to directly surpass Intel, and reportedly investing one billion US dollars in research and development!
The exact amount invested is unknown, but Silicon Graphics' cash flow has been reduced from nearly $800 million to less than $300 million.

After all, it's only natural that they would acquire the MIPS architecture and develop chips.

The licensing of chip architecture can only generate a small amount of money. If chip technology can be developed, silicon imaging will be like Intel's, making money hand over fist!
But the ideal is full, the reality is very skinny.

Not all chip companies are like Intel, and having an architecture doesn't guarantee the development of top-tier chips. In any case, Silicon Graphics' chip development is a complete mess, and they haven't even seen a trace of a chip yet.

Globally, it is actually in the far East that Dongxin's Tianji, a general-purpose computer chip based on the MIPS architecture, has taken up the mantle of MIPS architecture computer chips!

The chip business suffered a crushing defeat, and Silicon Graphics' workstation computer business was brutally beaten by Sun Microsystems through a price war, almost to the point that Silicon Graphics' workstation computers were virtually wiped out from the industry.

As for servers, the situation is even worse. Intel's ability to deal with Dongxin in mainland China is due to the distance, and Intel's network and resources in mainland China are not as good as Dongling High-Tech's.

So, while their performance may fall short, in America, Intel can easily defeat its competitors, more easily than eating or drinking.

In an effort to shut down Silicon Graphics and eliminate the "heretics" in chip architecture, Intel, together with companies like HP and Dell, ruthlessly undermined Silicon Graphics's server business, taking away its server orders from institutions such as the University of America, federal departments, and NASA.

After reviewing the materials in his hand, Wu Xinyi had a thorough understanding of the current situation of Silicon Graphics.

With failed chip development, a lost server market, and a disastrous workstation business, how can Silicon Graphics convince investors that it has a future?
Silicon Graphics' stock price and market capitalization plummeted by 80% in six months, with its market capitalization dropping from $37.5 billion to $7.5 million. This is not just a halving; it's a direct cut to the ankle.

Otherwise, American stocks are more exciting, with their dramatic ups and downs and unexpected surprises!

This also explains why Silicon Graphics announced it was going to sell off MIPS and the MIPS architecture. If it didn't sell off its assets to recoup some losses, it wouldn't just be a matter of losing money, but a question of whether Silicon Graphics would even exist anymore.

Upon arriving at Silicon Graphics, Wu Xinyi immediately introduced himself to the receptionist.

Then, Berluzo, the president of Silicon Graphics, rushed out to greet Wu Xinyi.

"Wu!"

Belluzzo hugged Wu Xinyi like old friends, but in reality, this was the first time Wu Xinyi had met Belluzzo.

"Dongxin has created a miracle!"

After bringing Wu Xinyi into his office, Belluzzo praised him, saying, "Dongxin saved SVG, which is widely known in the semiconductor industry!"

In the past, Belluzzo might not have cared about Wu Xinyi and Dongxin at all, but things are different now.

Thanks to orders from Dongxin, SVG's stock price has soared in the past few days, almost like it's escaped from the ICU and is now clubbing.

At this critical juncture, Silicon Map suddenly received news that Eastchip was interested in the MIPS architecture of Silicon Map's subsidiary, Meipusi, and wanted to discuss acquisition matters with Silicon Map.

This was the first company to actually inquire about acquiring Mpsys from Silicon Graphics, so how could Belluzzo not take it seriously?

This is not only a matter of life and death for Silicon Graphics, but also his career and livelihood. How could Belluzzo not be anxious?

"Allies will help allies!"

"Dongxin is an ally of SVG, and also an ally of Silicon Graphics!" Wu Xinyi said with a smile. Dongxin is a company in the MIPS architecture camp, so to a certain extent, it is certainly an ally of Silicon Graphics.

"Yes, Silicon Graphics and Eastchip are definitely allies!"

Belluzzo smiled broadly and had his secretary serve Wu Xinyi a fine cup of coffee.

"Dongxin made the right choice. The MIPS architecture is the best architecture in the world!"

While Belluzzo was praising Dongxin, he was subtly promoting the MIPS architecture; good things naturally come at a higher price...

Upon hearing Belluzzo's words, Wu Xinyi did not choose to beat around the bush, but said directly, "President Belluzzo is also aware of the purpose of my visit."

"The MIPS architecture is going through its most difficult time. In the field of architecture licensing, the closed-source MIPS architecture has always been unable to shake the position of Intel x86."

And because of silicon maps... their current situation will become even more difficult!

Wu Xinyi said that in order to reduce losses, Silicon Graphics has started to use the three tricks that bankrupt companies always use: layoffs, closing departments, and selling off assets.

Now, let alone investing in MIPS's R&D, Silicon Graphics is even starting to withdraw money from MIPS to fill the gap left by its losses.

"For Silicon Graphics, Dongxin's acquisition of MIPS and MIPS is the best choice!"

Belluzzo fell silent for a moment after hearing Wu Xinyi's words.

He really didn't want to sell MIPS unless absolutely necessary. He also knew that given Silicon Graphics' current situation, its workstations and servers were already dead, and if it wanted to turn things around in the future, it would probably have to rely on the MIPS architecture.

"Wu, perhaps Silicon Graphics could cooperate with Eastchip in a different way."

With Dongxin Investment and Silicon Graphics handling the technology, this collaboration can develop the world's best chip architecture. In the future, Dongxin can use MIPS's architecture and technology for free!

Upon hearing Belluzzo's outlandish idea, Wu Xinyi merely glanced at him with a half-smile. At this critical juncture, Silicon Graphics still wanted to get Dongxin for free.
Let Dongxin invest money to develop a new architecture for MIPS, and in the end it will be a painless endeavor, with the architecture being given to Dongxin for free?
"President Belluzzo, I have come here with sincerity towards our 'allies'."

If Dongxin acquires MIPS, I guarantee that in the future, Silicon Graphics' servers and workstations will still be able to use the MIPS architecture for free.

Furthermore, Dongxin can manufacture the MIPS architecture chips required by Silicon Graphics at cost price!

Wu Xinyi turned to Berluzo and said, "It's just a pittance; Dongxin can offer Silicon Diagram much more."

Looking at Wu Xinyi's resolute attitude, Belluzzo knew that it was probably hopeless to try to fool him.

"Wu, as you know, MEP is Silicon Map's most important industry."

"Giving it up is like the West losing Jerusalem!" Belluzzo said with a pained expression.

But if you translate this sentence, it becomes the famous saying of a certain "pay-to-win" lay Buddhist. Those are my brothers, my beloved relatives and friends. To kill him, you have to pay more!
"Moreover, companies such as Intel, AMD, Sony, ARM, Cisco, Philips, and Panasonic are also interested in the MIPS architecture!"

Indeed, Sony's PS console, Cisco routers, and Panasonic and Philips' VCD and DVD chips all use the MIPS architecture.

Intel, AMD, and other competitors naturally want to acquire MIPS, a rival to x86.

But when Wu Xinyi heard these words coming from Belluzzo, he realized that he still wanted to sell Meipusi Company for a good price.

"Silicon Map, how much do you want to sell Meipusi Company for?" Wu Xinyi asked, frowning.

"Eight hundred million dollars!"

"impossible!"

Hearing this outrageous price, Wu Xinyi was shocked. He knew that Belluzzo might ask for a lot of money, but he didn't expect him to dare to ask for such a high price.

It's worth noting that six years ago, when Silicon Graphics acquired MIPS and MIPS, it cost $1.33 million. Even with the significant increase in the amount of US dollars issued and their sharp rise in value over the years, MIPS's valuation couldn't possibly have increased sixfold.

Three hundred million dollars!

Wu Xinyi announced a price: "Dongxin Semiconductor can be acquired in cash!"

Berluzo shook his head like a rattle-drum.

(End of this chapter)