Rebirth 08: Rise from copycat phones

Chapter 351 The Magical King of Africa Chuan Yin

Although he has a lot of daily affairs to deal with, Xu Shenxue has also paid attention to the recent affairs of Galaxy Pharmaceuticals.

But he is not in a hurry. Anyway, all patients in the country can use Xiluokeda, so it doesn’t matter when foreign patients can use it.

Even though some countries did not approve the marketing of Xiluokeda, Xu Shenxue didn't really care.

Anyway, the one who died was not one of ours!
Xiluokeda, a broad-spectrum anti-cancer drug, is not a regular commodity, but a good thing for curing diseases and saving lives. Xu Shenxue did not use this thing as a means of blackmail to negotiate with those consortiums to demand various conditions. Instead, he opened up the export. This can be regarded as Xu Shenxue's kindness.

Of course, this is mainly because they can’t threaten those financial groups… They don’t lack medicines, and they are not the ones dying. It’s none of their business whether ordinary people in their area die of cancer or not…

Therefore, Xu Shenxue’s attitude towards the overseas launch of the drug Xiluokeda is: take it or not!
If the other party opens up the market and allows Xiluoceda to successfully complete local clinical trials and then obtain marketing authorization, then we will sell it... Otherwise, we will not sell it.

Anyway, there is no need to worry about this drug not making money!

When Ji Chenghe was chatting with him, he was amazed at this: "The anti-cancer drug market is worth more than 70 billion US dollars a year, and it is increasing year by year. According to Xiluokeda's situation, it will definitely be able to capture a market of several hundred billion US dollars."

"Moreover, the gross profit margin is extremely high, and most of the revenue is gross profit. It's really enviable!"

Xu Shenxue said, "You only see the thief stealing, but not the thief being beaten. Galaxy Life has spent billions of dollars on research and development over the years to come up with such a commercial drug, and the research and development expenditure will be even higher in the future!"

"Let's not talk about Galaxy Life, even Galaxy Pharmaceuticals has planned nearly $1.5 billion for research and development this year alone, and even more next year. And the marketing expenditure is not a small amount either."

For pharmaceutical companies like Galaxy Pharmaceuticals that focus on original drugs, their biggest expense is research and development funding. The R&D funding for a drug can easily be tens of millions or even hundreds of millions of dollars or more, and clinical funding accounts for a large share of this.

The estimated cost of clinical trials of Xiluokeda in the United States alone is more than 500 million US dollars. This is mainly because there are many indications, and each indication must be clinically tested separately, and it cannot be done blindly... Therefore, it is more expensive than clinical trials of conventional drugs.

And this is just the clinical trials conducted in the United States.

If clinical trials are conducted in other countries, although many countries will recognize the FDA's clinical trial results, if you want the drug to be marketed in that country, you still need to go through some simplified clinical trials and review procedures, which will ultimately cost a lot of money.

What is even more despairing is that most drug development projects will eventually fail...

Often, only one drug development project is successful among a dozen or even dozens of them. In order to recover the huge R&D costs, pharmaceutical companies will also count the costs of other failed R&D projects into the successful projects. Then, the "R&D cost" of a drug may reach an extremely exaggerated amount of tens or even hundreds of billions of dollars.

This is also the reason why newly launched original drugs are so expensive
So although pharmaceutical companies seem to be making money, they are also under a lot of pressure, and it is normal for them to go bankrupt.

This is also an industry with a huge head effect. Large pharmaceutical companies not only have strong R&D capabilities, but also have old flagship products that continuously bring in huge revenues and profits as support. This means that they can continue to invest in expensive R&D. Even if they fail dozens of times in a row, they can hold on and support until the successful development of new drugs... and then repeat the above cycle.

As for small and medium-sized pharmaceutical companies, they do not have flagship products, have insufficient cash flow, and have weak R&D capabilities. Once they fail in research and development repeatedly, they often cannot hold on and will eventually be acquired or go through bankruptcy reorganization.

Similarly, this is also the reason why very few domestic pharmaceutical companies engage in original drug research and development. It’s not that they don’t want to, but they can’t do it... This business is a serious high-investment and high-risk industry, which is very different from conventional industries.

Previously, Lin Yaxian’s eldest brother tried to engage in original drug research and development in the Lin Family Pharmaceutical Company. He invested 700 to 800 million yuan but did not make a single penny, which eventually led to the company falling into a business crisis. This is a typical example.

Galaxy Pharmaceuticals, on the other hand, is relatively special. It is backed by Galaxy Life Science, and its first commercialized drug, Xiluokeda, was the result of luck.

But now that we have Xiluokeda, a miracle anti-cancer drug, Galaxy Pharmaceuticals will be able to carry out continuous research and development processes like other large pharmaceutical companies.

There will also be excess funds to support Galaxy Life's research and development in the field of life sciences.

Xu Shenxue was already satisfied with this and had no other big ambitions.

As his business grew bigger and bigger, Xu Shenxue's mentality changed a lot compared to before. Now when he does business, he often considers more aspects rather than whether it can make money.

As for money alone, he has enough, so much that he himself can't even figure out how much he is worth.

As for the investment in the pharmaceutical and medical fields, it is more like unintentional success. Since a miracle anti-cancer drug has been developed inexplicably, then just keep doing it, and then try to develop other drugs so that the Chinese people can use better drugs.

In addition to original research drugs, there are also extremely critical generic drugs!
Therefore, it didn't take long for Xu Shenxue to call the person in charge of Galaxy Pharmaceuticals and explain to them the strategy of developing some good generic drugs... The purpose was not to make money, but more to shoulder some social responsibilities.

For most ordinary patients, most of the medicines used for daily illnesses are drugs whose patents have expired. Among these drugs with expired patents are imported drugs from original manufacturers. These original drugs are effective, but they are very expensive.

In addition, there are domestically produced generic drugs, which have different prices and effects... After all, the effectiveness of generic drugs is a rather metaphysical issue. Those made by large manufacturers are okay, but the effectiveness of those made by small manufacturers is hard to describe.

Therefore, Xu Shenxue gave instructions: "In addition to continuing to develop new drugs, Galaxy Pharmaceuticals should also join in the field of generic drugs. For some commonly used drugs, especially those for which domestic generic drugs on the market are not doing well, or for some drugs that have not been reversely developed in China, we should conduct targeted reverse development and then launch generic drugs with good efficacy."

“We also need to follow up on the research and development of generic versions of some original drugs whose patents have just expired or are about to expire!”

Fang Yulin, CEO of Galaxy Life and also CEO of Galaxy Pharmaceuticals, said: "Reverse research on generic drugs also requires some costs, and if the drug efficacy is to be ensured after development, the cost will not be too low."

"Some generic drugs whose patents have just expired are not a big problem. They still have a large market and can enter the medical insurance market. However, some mature generic drugs may find it difficult to enter the medical insurance market!"

The medical insurance market is very sensitive to price controls on mature generic drugs... Again, this is used to ensure the medical bottom line, not to raise the upper limit!

Xu Shenxue said: "It doesn't matter whether the mature drugs are included in the medical insurance. At least in the non-medical insurance market, people can be provided with a choice of domestic generic drugs with a big brand, guaranteed efficacy and not too expensive."

"I believe that even if we cannot enter the medical insurance market, as long as the product quality is good and the price is relatively affordable, there will still be a market. As long as this part of the business does not lose money, it will be fine. It can be regarded as training R&D personnel and channel systems."

Fang Yulin said: "If mature drugs focus on the retail market, then the problem is not that big. The drug retail market is developing rapidly now, and the market for mature drugs outside of medical insurance is also huge. It mainly depends on the channels and brands!"

"At present, although our brand is new, it still has a very high starting point. After brewing in the next one or two years, there shouldn't be any problems!"

Is Galaxy Pharmaceuticals considered a big brand?

It certainly didn't count in the past, but now, the name of Galaxy Pharmaceuticals has spread all over the world with Xiluokeda. In the eyes of many industry insiders, Galaxy Pharmaceuticals has rapidly grown into a multinational pharmaceutical group that can be compared with multinational pharmaceutical groups such as Roche and Novartis.

Many industry insiders estimate that once Galaxy Pharmaceuticals' Xiluokeda completes clinical trials and obtains marketing authorization in major markets around the world, its global annual sales will conservatively start at US$20 billion.

This will be the first drug in the world with annual sales exceeding 20 billion US dollars!
And this... is just a conservative estimate!
In fact, if we are more optimistic, the annual sales of this drug are expected to reach 30 billion US dollars or even more.

But even if it is a guaranteed minimum, the sales volume will be at least 20 billion US dollars.

You know, even though it has not yet been officially launched on the market and has only obtained emergency approval from some countries, many analysis agencies and industry insiders have judged that the drug's sales this year are expected to reach the level of 4 billion US dollars.

Although it is only an emergency license and its usage restrictions are very large...but there are many cancer patients, including many advanced patients, and if conditions permit, advanced patients will most likely use this drug to treat their disease.

Therefore, even with emergency authorization, the actual sales volume of the drug will be very large.

Even in China, sales are expected to reach more than one billion US dollars this year. It will not only completely replace other anti-cancer drugs in 16 indications...it will actually replace many other cancer treatments, such as chemotherapy and surgery.

In this way, medical insurance can save more money... In the past, medical insurance patients who were diagnosed with cancer had to use various methods, such as chemotherapy, surgery, and anti-cancer drug treatment.

Among these treatment costs, except for some sky-high anti-cancer drugs that are not covered by medical insurance, some conventional treatments can actually be reimbursed, which means that a considerable portion of the treatment costs need to be borne by medical insurance.

Now, with Xilokeda, patients’ treatment will not be so troublesome. They can directly take Xilokeda and then control the disease or even recover, which means saving the cost of many other treatments.

When people calculate their medical insurance, they save even more money.

This is also an important reason why other countries approved Xiluokeda's emergency license: it saves more money!
Although Xiluokeda is expensive, it is worth its price...

With such a miracle drug here, its sales volume will not be too low no matter what. The global annual sales volume is 20 billion US dollars, which is already a conservative underestimate given by industry insiders.

With the revenue support from such a drug, Galaxy Pharmaceuticals will be able to expand its operations and R&D systems around the world and grow into a truly multinational company.

And this multinational pharmaceutical company is also a domestic company... This means that in the future, Galaxy Pharmaceuticals will grow into a first-class pharmaceutical brand in China, gain recognition from more consumers, and thus increase drug sales.

Therefore, even if Galaxy Pharmaceuticals is developing generic drugs, it will do better than other pharmaceutical companies.

As for whether it will drive domestic pharmaceutical companies to death, there is no need to worry about that... Even if Galaxy Pharmaceuticals develops domestic generic drugs, the sales price at that time will not directly go to the low-price market, and it will not compete with those low-priced domestic generic drugs for the market.

Galaxy Pharmaceuticals' domestically produced generic drugs are intended to enter the mid-range price market, which is lower than original research drugs and more expensive than other domestically produced generic drugs.

Xu Shenxue has never been interested in doing low-end business, competing with ordinary manufacturers for food and squeezing the low-end industrial chain.

Even though Weiku Electronics, which initially positioned itself in the mid-to-low-end market, is now moving towards the upper low-end and then focusing on the mid-end market.

When Bai Qiwen found Xu Shenxue to make a report, he mentioned the sales of Weiku Electronics in the first half of this year:
"In the first half of this year, we shipped a total of 110 million units, an increase of 8 million units compared to the first half of last year."

"The average selling price of our mobile phones has also increased from 1,200 yuan last year to 1,450 yuan."

"This year, the best-selling products are phones priced around 1,500 yuan!"

"As sales are difficult to increase significantly, we are gradually launching new models to increase the average selling price and thus increase revenue and profits."

Xu Shenxue said: "The overall approach is still good. We should focus on the mid-range market and try to enter the high-end market above 3,000 yuan. As for the low-end market below 1,000 yuan, we can give up appropriately. Otherwise, it will continue to affect the brand, and the loss will outweigh the gain in the long run!"

Among a number of domestic mobile phones, Weiku Electronics' mobile phones are not cost-effective, let alone low-priced mobile phones.

The brand positioning is actually higher than other domestic mobile phones.

To be honest, the Chinese people's recognition of the Little Blue brand under Weiku Electronics is second only to their recognition of the Zhiyun brand.

V-Cool Electronics is the fourth largest smartphone brand in the world, the second largest mobile phone brand in China, and the third largest mobile phone company in the world in terms of shipments, with annual shipments exceeding 200 million units.

The "high-end mobile phones" of the Xiaolan MAX series, which start at 3,000 yuan, can sell more than 2,000 units a year, which other domestic mobile phone brands cannot do at present.

Weiku Electronics is currently gradually improving its brand positioning and the average selling price of its products. In the future, it plans to concentrate its product line's high-volume models on those priced between RMB 1,500 and RMB 2,000, then try to take a mid-to-high-end route, expand its market share between RMB 2,000 and RMB 3,000, and continue to impact the RMB 3,000 market.

As for the market below 1,500 yuan, Weiku Electronics is actually gradually giving up... The competition in the mobile phone market at this price is too fierce and the gross profit margin is too low.

As for the market below 1,000 yuan, they have already given up... Zhiyun Microelectronics has made mobile phones at this price before, focusing on the market of 800 to 900 yuan, but the results were not very good... On the one hand, the gross profit margin is low, and on the other hand, Xiaomi and some other mobile phone manufacturers are too aggressive in price-performance ratio and have taken this market too seriously.

So last year, Vico Electronics officially gave up the market below 1000 yuan, and the cheapest of its new models are all above yuan. Therefore, the market below yuan is currently being taken up by other domestic mobile phone brands, and they are doing quite well.

For example, Blackmi, a sub-brand of Dami, specializes in this market, focusing on the market of 800 to 900 yuan. Even old models can be sold at a low price, and they are selling very well... This is also an important factor supporting Dami Technology's mobile phone sales to reach tens of millions.

Several other domestic mobile phone companies also have mobile phones priced at thousands of yuan. These mobile phones have formed a domestic market between 500 yuan and 1,000 yuan... This market provides ample choices for low-income consumers, while also wiping out a large number of various copycat phone manufacturers.

Mobile phones at these price ranges are another major force in China's current mobile phone exports.

Among China's current mobile phone exports, the market above 15 yuan is exclusively for mobile phones under Zhiyun Group. If calculated by export volume, they occupy most of the market... Zhiyun's S series mobile phones are too expensive. The export volume brought by exporting one SMAX is equivalent to the export of more than a dozen mobile phones from other brands.

Then in the 3,000 to 4,000 yuan range, Zhiyun C series and SX series are the main forces, and then there is the Little Blue MAX series from Weiku Electronics. However, this market is small to begin with and the impact is not significant.

Further into the future, there is the 2,000 yuan to 3,000 yuan market, where Weiku Electronics is the main force, and then there are various other mobile phone brands, such as Huawei, Zhongxing, Lianxiang, OV, Dami and other brands... Although this market seems to be highly competitive, the total volume is actually not large.

How to put it, consumers in developed countries look down on it, and people in backward countries can't afford it. It's a very embarrassing situation.

The real main export market is actually the export market below 2,000 yuan. The export market between 1,000 yuan and 2,000 yuan is the main force. Weiku Electronics, Huawei and other mobile phone manufacturers are all striving to export.

However, the share of the export market below 1,000 yuan has changed... The most eye-catching mobile phone company among them is actually Sichuan Conservatory of Music, which is relatively unknown in China and focuses on the markets in Africa, West Asia, South Asia and Southeast Asia. Its annual export volume is very large, reaching 70 to 80 million units, which is quite exaggerated.

In general, except for the high-end mobile phone exports driven by Zhiyun, the rest of the domestic mobile phone exports are concentrated in the mid- and low-end market areas between 500 yuan and 2,000 yuan.

In this field, domestic mobile phones have a huge competitive advantage overseas...cheap and affordable!

This is mainly because these domestically produced mid- and low-end mobile phones are supplied by mature domestic supply chains, and the costs can be very low. It is very difficult for foreign mobile phone manufacturers to compete with domestic mobile phones in the mid- and low-end mobile phone field.

Because driven by Zhiyun Group and Weiku Electronics, China has a very mature and complete mobile phone supply chain, from mobile phone SOC to flash memory, memory, screen, battery, camera, body and other various spare parts, from high-end to low-end, there are domestic supplies.

Among them, Zhiyun Semiconductor, a subsidiary of Zhiyun Group, provides a one-stop solution for the low-end market, selling SOC plus running memory plus flash memory and other chipsets in packages. The price is also relatively favorable, at least there is no tariff.

This also makes these domestically produced mid- and low-end mobile phones more cost-effective, and better mobile phones can be made with better components.

Even if it is a simple low-priced mobile phone, it can still achieve better performance.

Like Sichuan Conservatory of Music Technology in Shenzhen, this company does not sell domestically, but mainly exports its products in Africa, West Asia, South Asia and Southeast Asia.

The company is not well-known in China, and ordinary people don’t even know that such a company exists, but the company’s smartphone shipments are huge.

The company's mobile phone brand has an absolute leading position in Africa, occupying more than 65 percent of the African market share. It can monopolize more than 10 of the top 20 African mobile phone best-selling models, which is extremely strong.

In the African market, no matter whether it is domestic mobile phone brands such as Weiku Electronics, Dami, and Huawei, or foreign mobile phone brands such as Six Star and LG, they have to stare blankly when facing Sichuan Conservatory of Music in Africa!
I really can’t beat it!
As for Fruit and Zhiyun, no one is too lazy to count... because the sales of these two mobile phones have never been high in Africa. The products are too expensive and the locals cannot afford them. The sales are extremely limited and are concentrated in a very few African countries with decent economies.

Not to mention that sales in Africa are not good, even in developing countries like India, which is relatively stable and has a decent economy, sales are extremely low...

The Zhiyun S series of mobile phones are an example of a well-known brand with low sales in the Indian market: everyone knows that it is a top-level flagship with all kinds of awesome features, but people just can’t afford it.

Zhiyun Group has sold mobile phones like luxury goods in India and other economically backward countries...

In these places, the products of mobile phone companies like Sichuan Conservatory of Music are the king, and then the sub-brand Black Rice of the Rice Company is also very good. Then there are the low-end mobile phones of some domestic mobile phone brands: cheap is king!

Among them, Sichuan Conservatory of Music’s products are the cheapest ones!
The company's main products are ultra-low-end mobile phones. The main models of smartphones shipped are those priced at 400 to 500 yuan. For this brand, mobile phones priced at 700 to 800 yuan are already high-end phones.

A mobile phone that costs only one thousand yuan is already a top-level flagship!

After all, the people in the backward markets they operate in have limited incomes, and the prices of their products need to be positioned in line with local income levels.

But don’t be fooled by the fact that they sell at a low price. Their shipment volume is huge, with 70 to 80 million units shipped each year... A large number of domestic mobile phone manufacturers would have to admit defeat after seeing this!
If the company continues to develop in this way, it is estimated that its shipments will reach over 100 million units next year, ranking second only to Vicoo Electronics in sales and becoming the world's fifth largest mobile phone company.

Of course, it’s just that the shipment volume is large...because the unit price of the product is low and the profit is low, the company’s revenue and profit are very average.

The company is also one of Zhiyun Semiconductor's main customers.

In the end, they basically bought up all of Zhiyun Semiconductor's inventory and various obsolete chips that could not be sold. These obsolete chips were used in mobile phones that cost four or five hundred yuan, and then they were just right for sale in Africa.

Zhiyun Semiconductor has cleared its inventory and can continue to make money using old designs, while also bringing some orders to domestic wafer fabs with mature processes.

There are 70 to 80 million mobile phones a year. The SOC also has memory, flash memory and other chipsets, which add up to a huge number. Even if the unit price is low and the profit is low, it is better than no orders!
So, even though they are just a company that sells ultra-low-end mobile phones and have no reputation in China, they are a strategic partner of Zhiyun Semiconductor.

When designing some ultra-low-end chips, Zhiyun Semiconductor would even consider some opinions from Sichuan Yin Technology... after all, they are the main customers.

As a return of favor, Sichuan Yin Technology's products basically all use various chip products from Zhiyun Semiconductor, and storage products use Zhiyun storage.

Therefore, from SOC to memory, to flash memory and other chipsets, all are Zhiyun's chip products.

At the same time, the company also accepted some strategic investments from Zhiyun Semiconductor, so Zhiyun Semiconductor owns 6% of the company's shares... not much, just symbolic, to consolidate the strategic cooperation relationship between the two parties.

Zhiyun Semiconductor not only owns shares in this company, but also owns shares in many other domestic mobile phone companies.

For example, in Dami Technology, Zhiyun Semiconductor also holds a 4% stake... Otherwise, how could Dami Technology obtain a large number of 14-nanometer chips, whose products are in short supply, this year?

A similar situation occurred with the newly emerging OV, which also accepted the strategic investment from Zhiyun Semiconductor and gave up 5 percentage points of its shares.

The above three companies are also the main strategic partners of Zhiyun Semiconductor besides Weiku Electronics. Zhiyun Semiconductor gives them price and supply preferential treatment for chip supply, and even carries out some special optimization and matching.

In return, they mainly use various chip products from Zhiyun Semiconductor.

Even mobile phone companies such as Huawei, Lianxiang, and Zhongxing, although Zhiyun Semiconductor does not have shares in these companies, are also important cooperative customers of Zhiyun Semiconductor, purchasing large quantities of various chip products from Zhiyun Semiconductor and Zhiyun Storage.

Zhiyun Group is an upstream enterprise in the domestic smart terminal supply chain and has a huge say. It also reaps considerable profits from these chip products.

Otherwise, people in the industry would not say that the money made by domestic mobile phone manufacturers from selling a mobile phone is not as much as that made by Zhiyun... because this is the fact.

Even its sister company Weiku Electronics is no exception... Even though Weiku Electronics is a sister company of Zhiyun Group, it still has to pay the patent fees and spare parts procurement costs to Zhiyun Group.

To some extent, compared with other domestic mobile phone manufacturers, Weiku Electronics does not actually offer much discount in terms of spare parts supply, except for some supply priorities and early use of some exclusive technologies. All prices are regular purchase prices.

After all, Xu Shenxue is working on the industrial chain, and he is supporting the entire domestic smart terminal industry, not just Weiku Electronics.

In order to better develop the semiconductor design and manufacturing fields and better develop the entire smart terminal industry chain, Xu Shenxue treats other domestic manufacturers, including Wecoo Electronics, equally and will not give too much preferential treatment to Wecoo Electronics.

Because today if you dare to give Weiku Electronics preferential treatment, such as lower prices, Weiku Electronics will have a greater competitive advantage and cut off the survival path of other domestic mobile phone manufacturers.

Tomorrow, other domestic mobile phone manufacturers will directly introduce MediaTek, Qualcomm, Samsung and other foreign chip suppliers!

You are going to kill them, how can they continue to support you and make domestically produced chips?

Therefore, although Weiku Electronics and Zhiyun Group are both industries of Xu Shenxue, Zhiyun Group provides support in some special fields, such as operating systems and under-screen optoelectronics, but treats other fields equally.

Especially in the very important field of SOC and storage chips, Zhiyun Group will not give Weiku Electronics any special treatment. Weiku Electronics will set the same price as other manufacturers, and whoever has more orders for new chips will be given the first launch rights.

Therefore, in the past few years, the first launch rights of Zhiyun Semiconductor's W series chips have always been in the hands of Sixing. Because the order volume is large enough, Weiku Electronics has to wait for several months before using them.

When running an industrial chain, it is very important to treat customers equally, otherwise why would customers choose to cooperate with you?
Could it be that you, Zhiyun, have SOC chips, but Qualcomm and MediaTek next door don’t?
Are you the only Zhiyun that has storage chips, while the neighboring Four Star, Hynix, and Micron don't have them?

Because Zhiyun Group is engaged in smart terminals, it will cause some customers to worry about its semiconductor business. In other words, Zhiyun Group's smart terminal products have always been targeting the high-end market and have no direct competitive relationship with most customers, otherwise these customers would not use them!
For example, when it comes to fruits, people won’t use your Zhiyun supply chain products, even if they are better and more affordable!
Therefore, in many aspects, Zhiyun Group has done a relatively fair and appropriate job in order to develop its semiconductor business and spare parts market and gain the trust of its customers.

Some products sold externally are basically open to the public and anyone can sell them...even four-star products.

Even the foundry business of advanced chips has been directly opened up. Since January this year, it has begun to undertake the foundry capacity of 14-nanometer process to external parties. It is also the first manufacturer in the world to undertake large-scale foundry business of 14-nanometer process to external parties.

When Huawei wanted to develop a 14-nanometer SOC, Zhiyun Microelectronics actively welcomed and even cooperated with it, and even gave it a price discount. Now, Huawei's 14-nanometer SOC has been shipped on a large scale and installed in their flagship phones.

Since Zhiyun Microelectronics will not take on this foundry business, TSMC or Four Star will be happy to take it over.

A similar situation also occurred with some of AMD's orders. In order to take over AMD's orders, Zhiyun Microelectronics also offered considerable discounts and cooperation.

Even Zhiyun Microelectronics once tried to approach Qualcomm and Apple to get their new generation chip foundry orders, saying that our company's 14-nanometer process foundry has sufficient production capacity, preferential prices, and the protection of customers' business secrets is obvious to all. You can even send people to supervise the whole process.

We even told the fruit company that our 12-nanometer process production capacity is actually quite good this year. If you come over, we can also use the 12-nanometer process to manufacture this year's chips for you, and the delivery time will definitely not be later than that of the S series chips.

It’s just that they didn’t support Zhiyun Microelectronics... What a joke, no matter how stupid the people at Apple are, they will not give up supporting TSMC or Four Star, and then give the huge chip foundry orders to Zhiyun Microelectronics.

The 12-nanometer process is fun to use for a while, but in a few years... TSMC and Four Star have lost Apple's advanced chip foundry orders, and have no revenue and profit, resulting in the inability to keep up with the advanced technology. When Zhiyun Microelectronics is the only one in the world with advanced technology, do you think Zhiyun will put a choke on Apple?

The management of the fruit company would be unable to sleep just thinking about that scene!

Even a fool knows that Zhiyun Group is trying to cut off the source of funds...by directly cutting off the foundry orders from TSMC and FourStar Semiconductor.

Therefore, Apple would rather continue to use TSMC's 16-nanometer improved process than use Zhiyun Microelectronics' 12-nanometer process.

They can still distinguish between temporary discomfort and being strangled in the future.

Ignoring the fruit is one thing, but the open attitude shown by Zhiyun Microelectronics directly announced to the world that its top-level 12-nanometer process products can be opened to the outside world... This is an extremely important attitude declaration.

Enough to bring a sense of security to many customers.

This is the attitude of doing supply chain: no matter who the customer is, just sell to them as long as they pay; sell to whoever pays the most!

(End of this chapter)