"It's okay, we still have the final move!"
Wang Yi took a deep breath and spoke calmly: "Have you checked the existing inventory of 40-nanometer chips and the inventory of related model components?"
"Everything has been investigated. This is the result." Zhu Changlin handed a document to Wang Yi.
Wang Yi looked at it carefully and then said:
"When the situation has developed to this point, it is considered the worst outcome, and we have to make a choice."
"There can be no problems with third-party customers' orders. They must be supplied on time. This part of the production capacity must be released first."
"Fortunately, the 150 million 40-nanometer chips to customers will be delivered starting from the end of December, and will be delivered in six months, 25 million chips per month."
"In other words, from December to May next year, our monthly 40-nanometer production capacity is 30 million, and we will provide 25 million to third-party customers."
"Excluding these production capacities, there is still 5 million production capacity left every month to produce the 40-nanometer chips we need! But this is definitely not enough."
Everyone nodded, 5 million a month was too big a difference.
Unbounded 1st generation alone is not enough.
The current monthly sales of Unbounded Generation are 15 million, and even in December it will be more than 10 million.
Wang Yi continued: "Fortunately, we still have 10 million 40-nanometer chips in stock. Fortunately, TSMC can still manufacture 30 million 40-nanometer chips in the last month. Fortunately, in November, we can produce another 30 million 40-nanometer chips."
There is no need to give the chip to a third party."
"This is all the 40-nanometer chips we have available for our own use, a total of 70 million."
"But it's still not enough. If we follow the current model, it will last until December at most, and all the inventory will be exhausted."
"By January, there are only 5 million 40-nanometer chips left, which is not enough. Even the first generation of Unbounded is not enough."
Everyone's expressions became serious, the gap was too big.
If there are TSMC's 20 million chips per month, plus its own monthly production capacity of 30 million, a total of 50 million 40-nanometer chips per month will be enough.
But now, without TSMC’s 20 million units, there is a gap of 20 million units.
There is still a gap of 20 million pieces per month!
Wang Yi sighed: "There is no other way. There is no other way, and we cannot delay the delivery of orders from third-party customers."
"That's the only last resort!"
"Cut down most of the 40nm product lines in advance and upgrade to 28nm in an all-round way! This way, the limited 40nm chip production capacity can be supplied to a small number of 40nm products!"
Zhu Changlin sighed: "This is the last resort. Instead of discontinuing production of 40nm cores, it is better to turn passive into active and comprehensively upgrade new 28nm products!"
Wang Yi nodded: "Yes, that's it. Next, cut off the product line!"
"First, Xingyi Tablet 1st, Xingyi Tablet 1Pro, Xingyi Tablet 1 Ultra, all 40nm chips, use the final components, all discontinued production, Double Eleven cleansing inventory, and released 28 nanometer Xingyi
Tablet 2nd generation, Xingyi tablet 2Pro. Therefore, a large amount of 40 nanometer chip consumption, and achieve the perfect upgrade of the 2nd generation of Xingyi tablet. "
"Second, the Xingyi TV X40, X50, X55, X60 of the 40 -nanometer chip, after using the final component, all discontinued production, clearing inventory. Next month, the 28 -nanometer Star TV 2nd generation, except X40, except X40
, The whole department 4K version. "
"The second generation of the unbounded TV is still under research and development.
Xu Mingyi agreed very much: "The second -generation 4K version of Xingyi TV is launched, and Xingyi TV, which has been listed for a year and a half, must have a big price reduction. Instead of cutting the price, it will affect the brand image. It is better to stop production directly. Focus on selling the second generation! Anyway
There is still a border TV support. "
"And Xingyi Tablet and Xingyi TV are fully discontinued, and tens of millions of 40 nanometer chips can be saved every month! Greatly alleviating the pressure lack of pressure."
"Yes, but not enough, the next part of the mobile phone." Wang Yi continued.
"Do you want to change the core to upgrade? Turn XPHONE 2, XPHONE 2PRO's 40 -nanometer chip Kunpeng 702, all the core changes upgrade to Kunpeng 706?" Zhu Changlin asked.
Wang Yi waved his hand: "Don't change the core upgrade, let's directly push the new product, the new series!"
"Reverse the core upgrade, don't talk about it, and you can't reduce the price significantly. But the price is not greatly reduced, and the sales are not good. After all, it is an old product, and it is not as good as the new product.
"Like XPhone 1 Pro and XPhone 2, the sales volume continues to decline at the moment. Instead of continuing the price reduction, it is better to stop production after using the final components, reduce the consumption of Kunpeng 700 and Kunpeng 702."
"At the same time, the new 28 nanometer products are launched, the Note series and the unbounded S series are not launched to fill the gap!"
"Like the motherboard chip set of Kunpeng 505, we all did it, and it was about to be successful. You can directly push a 4G new machine of Kunpeng 505, as an unbounded Note!"
"As for mass production, unbounded Note 1 and unbounded Note 1Pro with Kunpeng 706 SOC, change it to an unbounded S series!"
"In the future, there is no boundary digital series, focusing on a thousand yuan machine, 1499 below."
"Unbounded Note series, positioning the middle, 1499-2499."
"Unbounded S series, high-end, 2499-3999!"
"Xingyi mobile phone, 4000-8000!"
"In the future, Xingyi has no models under 4,000, maintaining high -end blood."
"Even if the old model drops to about 4000, it is better to stop production and do not continue the price. 4000 or less, it is a market for unbounded mobile phones!"
"Next, xphone 1 pro and xphone 2 have used up their inventory components and have completely stopped production. The inventory will be cleared during Double Eleven. New phones will be released at the same time, Unbounded S1 and Unbounded S1pro."
"The Unbounded note 1 equipped with Kunpeng 706, renamed Unbounded S1, without fingerprint, 10W fast charge, single Teana M1 HIFI chip, 2G +16G, starting at 2999."
“Unbounded note 1 pro with fingerprint, renamed as Unbounded S1 pro, press-type fingerprint unlocking, 20W fast charging, dual Teana M1 HIFI chips, 2G +16G, starting from 3999.”
These two models are the two motherboard chipset designs of Kunpeng 706 SOC.
It was originally the Unbounded note series, but now because the 3G model has been cut off in advance, it has to be upgraded to the S series!
Use the Unbounded S1 and Unbounded S1 pro starting at 2999 and 3999 to replace the xphone 1 pro and the market vacated after the xphone 2 was discontinued!
"As for the new phone equipped with Kunpeng 505, it will be named Wujie note 1, starting from 11,499, and it will focus on entry-level 4G phones!"
"Develop it as soon as possible and strive to launch Unbounded Note 1 after New Year's Day."
“In the second half of next year, Kunpeng 505 will be distributed to Wujie 2, Kunpeng 508 will be distributed to Wujie note 2, and Kunpeng 902 will be distributed to Wujie S2 and S2 pro!”
"In this way, even if the 40nm 3G mobile phones xphone 1 pro and xphone 2 are discontinued, there will be two 4G mobile phones, Unbounded S1 and Unbounded S1 pro, to replace them. In January next year, there will be Unbounded note, which is enough."
"Other 40nm mobile phones, TVs, and tablets have all been cut off and production has been discontinued. Only the most high-end xphone 2pro and the most popular unbounded 1st generation, as well as unbounded TVs, will be retained."
"In this way, our 40-nanometer products and chips will be enough!"
"At least it can be used until March next year."
"In March next year, Xphone 2pro, whose sales have been declining, will also be discontinued, and Xingyi X1 and X1 pro will be released."
"The production of 40-nanometer Unbounded TV has also been discontinued, and the 28-nanometer Unbounded TV 2 generation has been upgraded to further reduce the consumption of 40-nanometer chips."
“At that time, only the Unbounded 1 generation 40nm mobile phone will be on sale, which will be enough to last until June.”
"With the delivery of orders from third-party customers in June, there will be no pressure on 40-nanometer chip production capacity. At that time, some 40-nanometer product lines can be restored depending on the situation."
Everyone nodded.
Zhu Changlin said: "This arrangement is the best. Although some warriors are frustrated and cut off most of the 40-nanometer product lines in advance, they can reduce their own 40-nanometer chip consumption to a minimum. Coupled with the support of inventory chips, it is enough to ensure the first
Three-party delivery will help us survive the current crisis and achieve 4G transformation ahead of schedule!"
George also said: "4G will be launched in China at the end of the year. It is undoubtedly best and most timely to transform to 4G now."
"And we have abundant 28-nanometer production capacity next month. The 28-nanometer production capacity will increase again next month. The total 28-nanometer production capacity will be as high as 90 million units per month, with an annual output of 1.08 billion units. It will be enough to deliver 300 million units to third-party customer orders.
We can’t even use it ourselves.”
Wang Yi looked around at everyone: "The transformation process may be painful and cumbersome, and all aspects need to be adjusted. But as long as we get through the transformation pain period in the next two months, what will greet us is infinite light, that is, comprehensive 4G, comprehensive 28nm unlimited
bright!"
"Do you have confidence?"
"Yes!" Everyone responded in unison.
"Very good!" Wang Yi nodded with satisfaction: "The next two months are a critical period for transformation and a critical period for cutting product lines. All departments must be more vigilant, go all out, and coordinate everything. They must reduce losses to
lowest."
"Never eliminate a certain product line, only to find a large number of unused components wasted. That would be stupid!"
"Don't use all the components, which will result in the after-sales repair products being out of parts! These must be calculated clearly."
"Cutting the product line will definitely cause losses, but what we can do is to minimize the losses!"
"Each department has set up a special operations team to work together to promote it. The responsibility is assigned to each person. We must fight the battle of transformation and reduce losses!"
"yes!"
Everyone responded one after another.
Afterwards, coordination meetings started one after another, and everyone performed their duties.
For each product series, how many components are in stock, how many products will be produced, and when will production be discontinued...
How many components are left, hand them over to the after-sales department...
All must be calculated clearly to advance perfectly.
As for some products that are discontinued and there are some remaining chips in stock that cannot be digested, that doesn't matter, they can be delivered directly to third-party customers.
Third-party customers have placed orders for four 3G chips.
Deliver what is in stock first, and what is not enough will be mass-produced according to the gap.
The remaining excess production capacity will be used to produce Kunpeng 702 for the Xphone 2pro, and Kunpeng 500 for the Unbounded 1 generation.
The reason why xphone 2pro has not been discontinued is simply that it is too new. It has only been on the market for 7 months and it continues to sell well.
"Chairman, won't the Xphone 2pro undergo core replacement? Will it be upgraded to Kunpeng 706 SOC?" Zhu Changlin couldn't help but ask.
Wang Yi shook his head: "If you don't do it, you won't have enough time. The xphone 2pro needs to be adjusted for core replacement, and you have to make a prototype and test it. It will take at least two months, and you won't have enough time."
"The prototypes of Wujie S1 and S 1pro are ready. If we change the name, they can be mass-produced immediately and will be launched next month."
"Secondly, once the Xphone 2pro is upgraded to 706 core, the sales price will be 4999, and the sales volume will not explode. If it drops to 4499, the price will be reduced by 1000 in 7 months. The price reduction is too fast, which will affect the high-end positioning and brand image of Xingyi mobile phone.
.”
"Instead of doing this, it is better to make Unbounded S1 pro and misplace competition."
"Thirdly, in March after the year, there will be Xingyi X1 and Xingyi X1 pro. The xphone 2pro will not be upgraded without core replacement, and there will be no shortage of 4G flagship phones."
Zhu Changlin suddenly realized: "Yes, we are starting to change the core now, and it will be launched after New Year's Day. The Xingyi X1 will be released in March, which is too close, and it is really unnecessary. On the contrary, the Unbounded S1 and S1pro will be released in November!"
"Furthermore, as a high-end product, Xingyi mobile phone is not convenient for price reduction too quickly. But it doesn't matter for Wujie mobile phone. It focuses on the mid- to low-end. In the future, it will be based on market conditions. If the price should be reduced, it will be reduced. If there is a price war, it will be a price war. It will not affect
Xingyi Technology.”
This is another consideration for Wang Yi.
Unbounded mobile phone is a sharp knife!
Zhu Changlin said and changed the topic: "But this time, we have been tricked by TSMC. Originally, these products were not to be discontinued until next year. But now, at the end of this month and the beginning of next month, they have to be discontinued one after another, three or four months in advance.
.”
"The situation is stronger than others, but it doesn't matter. It's painful now, but after the comprehensive transformation to 4G and the comprehensive upgrade to 28 nanometers, our products will be more competitive and can completely defeat the Qualcomm chip products of our friends, thereby increasing Qualcomm chip shipments
Sharp decrease!”
Wang Yixiao said: "For example, once the Xingyi TV 2 and Xingyi tablet are upgraded to 28 nanometers and equipped with tablet and TV-specific chips, the cost will not increase, but the performance will be greatly improved and sales will soar."
"As a result, the products of friendly companies using Qualcomm chips will be affected and therefore unsaleable."
"Once a friend's product is unsaleable, Qualcomm's chips will also be unsaleable. This is a chain reaction!"
"Qualcomm has recorded all its accounts and settled them one by one."
"As well as TSMC, this backstab will also have to be avenged!"
It is not a gentleman to refuse to retaliate!
"That's right, we have to take revenge. This time we were tricked by Qualcomm and TSMC, Mad!"
Zhang Chao, who has always been a high-quality person, started to curse: "But how to repay is a question."
Wang Yi smiled: "Simple, just grab TSMC's customers and orders."
"Go to Huawei, offer OEM prices that are more affordable than TSMC, and win Huawei's chip orders!"
The previous K3v2 was manufactured by TSMC, but its performance was inferior.
However, the Kirin 910, which will be released next, has begun to rise.
Next year, Kirin 920, Kirin 925, and Kirin 928 will be launched in one go!
In previous lives, these chips were manufactured by TSMC.
But this time he was stabbed in the back by TSMC, so Wang Yi was not polite!
"Tell Huawei that our Xingyi Semiconductor has abundant 28nm production capacity. They can give them as much as they want. There are also discounts for tape-out, and we can guarantee that no matter if any problems arise at any time, they will not stop foundry at every turn like TSMC!
"
"The confidence is that our Xingyi Semiconductor's technology is all self-developed and not controlled by Laomi!"
Zhang Chao's eyes lit up: "What a great idea. We can't win chip orders from Apple and Qualcomm, but it's entirely possible to win chip orders from Huawei! Especially since our M2 packaging and testing factory in Shanghai has also been delivered and will be put into production next month.
.When the time comes, chip mass production, chip packaging and testing, and one-stop service will be delivered directly to Huawei's major factories and foundries."
"Take Huawei's Kirin chip order and show it to TSMC!" Wang Yiping said: "The price can be lower than TSMC. It doesn't matter if you make less money. The main reason is to make TSMC uncomfortable!"
"Do you really think we are so easy to bully?" Wang Yi said coldly.
"Okay, I'll arrange for someone to go there right away. No, I'll go there myself!" Zhang Chao said with a smile.
Wang Yi nodded. Next came the painful transformation period of cutting down the product line, and also the period of comprehensive product upgrades.
Zhu Changlin and George are both busy.
It would be best to leave the matter of winning orders from Huawei to Zhang Chao.
Once this wave is over, it's time for Xingyi Technology to fight back!
Winning Huawei's chip foundry orders and killing TSMC is a backstab in revenge against TSMC.
Next, Qualcomm will also have to take action from the Thunder.
Being beaten and not fighting back is not Wang Yi's style.
Just how to better and continuously attack Qualcomm?
This needs to be planned slowly.
Subsequently, the entire Xingyi Technology and all departments were operating rapidly.
Every product and every component is included in the statistics.
All product lines have entered a period of discontinuation one after another.
For example, the Xphone 1 Pro was discontinued after a week to clear inventory.
Xphone will also be discontinued at the end of February.
In fact, since the release of xphone 3 and xphone 3 plus, the sales of xphone 2pro have dropped a lot, with monthly sales falling to less than 10 million units.
There is no way, the difference between xphone 2pro and xphone 3 is only 700 yuan, the configuration is very different, and there is also a gap between 4G and 3G.
Everyone is buying xphone 3 and xphone 3 plus, so the sales of xphone 2pro have naturally dropped sharply.
As for the sales of xphone 1 pro and xphone 2, they have dropped even more, with monthly sales of less than 5 million units.
It is natural to stop production to make way for the Unbounded S1 and Unbounded S1 pro.
For example, the xphone 2 has outdated configurations and is still a 3G phone. Even if it is reduced to 3999 on Double Eleven, it will not sell much. Instead, it is not as good as launching the Unbounded S1 pro for 3999!
The Unbounded S1 starting at 2999 and the Unbounded S1 pro starting at 3999 have higher sales than xphone 1 pro and xphone 2, and the profit is not much different. You can definitely earn more.
The containment and suppression of Qualcomm this time is a challenge, a threat, and an opportunity for Xingyi Technology!
Unless the other party forces Wang Yi to a dead end, it would be difficult for Wang Yi to cut off so many product lines so simply and transform to 28nm and 4G in advance!
I can only say that transformation is painful in the short term, but it is a great thing in the long term!
"Chairman, BYD needs to be comforted." Zhu Changlin couldn't help but speak.
"Yes, Lao Zhu, you are still thoughtful."
Wang Yi almost forgot about this: "There will be so many products lined up to be discontinued, and most of them are BYD OEMs. Shopkeeper Wang will have to be kept in the dark."
"Yeah, Shopkeeper Wang probably thought something happened!"
"In this way, we will produce the Unbounded S1 pro ourselves, and all the Unbounded S1 will be handed over to BYD to make up for the gap in the discontinuation of production. Both products are hot sales, especially when the xphone 1 pro and xphone 2 are both discontinued.
It can sell like crazy.”
"Okay!" Zhu Changlin responded.
Two days later, George came to Wang Yi with the contract:
"Chairman, SMIC came to negotiate with us again and said that they do not intend to sell the wafer factory, but they can cooperate, but the terms of cooperation are a bit high."
"According to their plan, they shipped the factory, and we produced 40-nanometer technology, trained employees, and guaranteed to provide orders. In the first two years, the profit was 82%, SMIC 80%, and we were 20%. After two years, the profit was 91%.
They 9…”
"..."
Wang Yi laughed angrily, not knowing what to say at all.
Wang Yi is not surprised at all that SMIC is raising its price from the ground up.
In the past, SMIC was begging Wang Yi to develop 40-nanometer technology, but now Wang Yi is begging SMIC to develop chip factories.
Now that the guest of honor has changed, SMIC will naturally raise its price and take advantage of the opportunity.
What's more, Wang Yi previously proposed to cut subsidies to semiconductor companies and instead invest in research and development in areas such as lithography machines. From an overall perspective, this is a good thing.
But it has also harmed the interests of some semiconductor companies, such as our own Xingyi Semiconductor and SMIC!
Now the other party is taking the opportunity to raise the price, and is also suspected of taking revenge.
"Chairman, how should we respond to the matter of cooperation?" George asked.
"Cooperation? Cooperation for what? We have cut off so many 40nm products and fully upgraded 28nm products. There is no need for 40nm wafer fabs, and they are still raising prices? Let them slowly raise prices!"
With that said, Wang Yi threw the contract directly into the trash can.
Wang Yi was very optimistic about SMIC and even planned to invest in SMIC to support its expansion.
However, the current situation of SMIC and the struggle for power made Wang Yi very confused and completely lost his interest.
It is precisely because of this that Wang Yi changed from not building a wafer fab and investing in SMIC to build his own Xingyi wafer fab!
They are all forced!
However, it turns out that this road is completely correct.
It's better to rely on yourself!
Especially the core business of chip, if you want to be stuck, you still have the most reliable in your own hands!
Qualcomm headquarters.
The high -level meeting was held again, but the atmosphere was a lot of harmonious:
Franz Qu Quentin said with a smile: "Chairman, good news, the strategy of blocking Xingyi Technology is fully successful. TSMC will stop foundry on the 17th next month.
The gap of nano chip. It depends on how Wang Yi chooses, hahaha! "
"20 million chip gaps? This time it is Wang Yi uncomfortable!" Jacob's belly laughed: "Hehe, I am curious how they will choose?
"Insubuctive goodwill, or benefit benefit?"
Others also danced with eyebrows, and they spoke: "I guess they will cut off their orders."
"Do you have to cut a lot?"
"This is certain. Without TSMC, the production capacity of 40 nanometer of Xingyi Semiconductor is 30 million, the third party is 150 million, the supply of six months, and 25 million per month.
It is not enough, it is supported by the inventory chip, but how long can I support it? "
"Xingyi Technology is troublesome!"
"I guess they will cut off 90%of the product line."
"Their unbounded 1st generation of their family, 15 million a month, will be discontinued immediately, hahaha!"
"There are XPHONE 1PRO, XPHONE 2, XPHONE 2PRO, Xingyi TV X40, X50, X55, X60, unbounded TV, Xingyi tablet, so many products are 40nm chips, shouldn't all of them be cut off?"
"So many product lines are cut off! It's so uncomfortable! I sympathize with them, hahaha!"
Chapter completed!