Chapter 731 $1.72 billion on the first day! Joint venture factory construction plan! Chen Yansen: I only want controlling stake!
Jinmanlou is only 800 meters away from Luzhou International Center, a ten-minute walk or even shorter drive, almost instantaneous.
Mike, Wu Shengyu, and Daniel remained in the conference hall, busy with the follow-up Q&A session.
Zhao Dongsheng followed behind Chen Yansen, in charge of the banquet hall's social affairs.
Chen Yansen had originally invited Meng Yuanzhi to go with him, but Meng Yuanzhi knew very well that the luncheon was essentially a new product negotiation meeting for Tiangong Technology, and his presence would not be of any practical significance. So he simply got into his Audi A6 and turned back to the Central Division.
As soon as Chen Yansen got out of the car, he glanced around and saw that the hotel's reception area was full of people.
Lei Yijun, Yu Chendong, Wu Hongxin and others did not go upstairs directly, but waited on the first floor.
As soon as they saw Chen Yansen get out of the car, they immediately put on smiles, warmly greeted him, and said hello to him.
"President Chen!"
"Mr. Chen!"
There were quite a few people standing behind them.
Representatives from upstream RAM supply chain suppliers, packaging and testing companies, and even companies like Sunstar and Hynix were present.
Once a person has power, they will naturally gain status.
Xiaomi, Meitu, and Huawei want to purchase Tiangong A200 and Tiangong T200 chips, while raw material and equipment suppliers are eagerly waiting for Mr. Chen to give them a handout.
Chen Yansen nodded slightly, as a response to the crowd.
There were too many people there, and if he went up to each of them to exchange pleasantries, it would only waste everyone's time.
"Mr. Chen, congratulations to Tiangong Technology on launching another groundbreaking product. Based on my experience, I predict that in the next two years, the Tiangong A200 chip will be hard to find a competitor in the high-end mobile processor market."
Yu Chendong stepped forward without hesitation and a string of flattering words came out of his mouth.
Although Huawei also has its Kirin series processors, these processors can only barely compete with those from Qualcomm and MediaTek.
In terms of accumulation in basic technology fields and advanced design, the Kirin series is still far behind the Tiangong 200 series.
Therefore, for Yu Chendong, as long as Huawei wants to make a splash in the high-end smartphone market, it will never abandon the Tiangong chip as a key support.
"Sycophant!" Lei Yijun muttered to himself.
"Mr. Yu, you flatter me. MediaTek, Nvidia, and HiSilicon chips are actually not bad either."
Chen Yansen listened and gave a perfunctory reply.
On the surface, we're all good business partners, so there's no harm in saying a few nice words.
Yu Chendong grinned, about to speak, when suddenly his body swayed and he was forcefully pushed aside.
Lei Yijun was already standing in the spot where he had been standing, smiling as he looked at Chen Yansen and said, "President Chen, Xiaomi 4S will definitely be the first to use the Tiangong A200 processor, and we will fully support Tiangong Technology."
As a member of the Orange Technology ecosystem, Lei Yijun was among the first to express his support.
"Don't worry, we have plenty of production capacity. We're all our own people, so we'll definitely give them priority in supplying us."
Chen Yansen's gaze fell on Lei Yijun, Yu Chendong, Wu Hongxin, and others, and he spoke with certainty.
The implication is that if you acknowledge me as your elder brother, then I will certainly not treat you unfairly.
Huang Zhang and Chen Yongming, standing in the second row, could not hide their excitement.
After joining Orange Technology's ecosystem, Meizu and OPPO simply replaced their systems, chips, and batteries with Orange Technology's products.
Despite the criticism from netizens who called them "special edition orange-branded machines," their sales volume has undeniably increased.
Sales have easily doubled compared to last year.
What's wrong with being a subordinate?
Making money is the only true goal!
Even Huawei is gradually transitioning from Android to Aurora Future OS, isn't it?
Having received Chen Yansen's promise, all the underlings wore satisfied smiles.
The representatives from Sansa and SK Hynix exchanged a glance, both seeing a hint of anxiety and unease in each other's eyes.
Tiangong Technology already has no shortage of high-quality suppliers for high-purity silicon wafers and photoresists. The fact that these two companies approached them was primarily because they wanted to secure metal interconnect materials and electronic specialty gases for Tiangong Technology. They couldn't just make a wasted trip.
The claim that they wanted to threaten Tiangong Technology with raw materials is completely unfounded.
No one would believe that a company capable of independently developing EUV lithography machines and high-precision five-axis CNC machine tools cannot handle upstream raw materials.
Perhaps a joint supply cut across the entire industry could delay Tiangong Technology's development to some extent.
However, if they force the other party to take over the entire technology chain, and Tiangong Technology retaliates, their profits in the semiconductor industry will be completely wiped out.
Chen Yansen chatted briefly with everyone at the entrance for two minutes before leading the group toward the elevator.
Zhao Dongsheng followed closely behind. He knew very well that his core task at the upcoming luncheon was to promote the Kunpeng 14nm 16Gb chip to manufacturers both at home and abroad.
How much bonus I can get in the fourth quarter depends entirely on today's market feedback.
Logically, manufacturers like Xiaomi, Huawei, NetEase, Meitu, LeEco, Meizu, and OPPO would definitely purchase a batch of memory modules, but the specific quantity they can negotiate depends on their negotiating skills.
at the same time.
Major domestic media outlets rushed to report on Tiangong Technology's press conference, highlighting the three products: Kunpeng 14nm 16Gb, Tiangong T200, and Tiangong A200.
"The world's first 14-nanometer mobile phone processor!"
"Overtaking on a curve! StarSource Technology surpasses TSMC and Singstar to become the world's first fab with mass production capability of 14nm process!"
"Following the Dawn A220, this is another major breakthrough for Xingyuan Technology!"
"Performance and power consumption far surpass Qualcomm! Breaking the international monopoly and making a comeback in the chip market!"
"Tiangong Chip's New Strategy: Kunpeng and Tiangong Roadmap Revealed!"
Netizens, seeing the increasingly sensational news headlines, knew without even reading the content that Orange Technology had unveiled an even more advanced product at the press conference.
In the comments section, netizens have already started a heated discussion.
"To be honest, when I learned that Xingyuan Technology had mastered the 14-nanometer manufacturing process, I was actually quite calm. I didn't feel the same excitement I had when I first learned that they had achieved the 28-nanometer process."
"Holy crap! Me too!"
"Compared to the Dawn A220 EUV lithography machine and the Aurogon G1051 five-axis CNC machine tool, the process development difficulty of 14-nanometer technology doesn't seem that high?"
"Those guys upstairs are all getting cocky! You should know that even TSMC Taiwan and Singstar don't dare to say they have the capability for mass production in the 14nm process field."
"Don't think that mass production of 14-nanometer chips is a simple matter!"
"Does that mean that in the future, when we buy mobile phones and computers, we can use domestically produced memory and processors? Will the prices be cheaper?"
"Definitely! Xingyuan and Tiangong are both their own companies. As supply chain costs decrease, the final selling price will definitely follow suit!"
On Zhihu, an article titled "From 28 nanometers to 14 nanometers: How Chinese chips achieved a three-stage leap in two years" became a trending topic.
The author meticulously recounts Xingyuan Technology's entire journey from breaking through the 28-nanometer process to developing EUV lithography machines and achieving 14-nanometer mass production. The author concludes by remarking, "This is not a simple technological breakthrough, but a collaborative victory for the entire industry chain! The investment from Senlian Capital, the technical support from the Huazhong University of Science and Technology Association, the cooperation from domestic material manufacturers, and the chip design from Tiangong Technology—no single link could have been missing."
Many netizens have doubts.
Xingyuan Technology completed three leaps in technological iteration in just one year, which is incredibly fast.
Previously, print media, television media, and social media have repeatedly promoted high-precision machine tools as "industrial mother machines" and lithography machines as "industrial pearls," which shows the extreme difficulty of these technologies.
But why does Xingyuan Technology seem to have conquered them so easily, in no time at all?
"So, are there any technical difficulties in developing the Dawn A220 and the Aurogon G1051?"
“Semiconductor companies in Europe and America are all purchasing from them. Do you think they don’t have any technological content?”
"It's not that the difficulty is not high, but that Xingyuan Technology's R&D capabilities are too strong. In order to improve the production process, they also built the lithography machine in the process; and in the process of building the lithography machine, they also developed a five-axis CNC machine tool!"
The online discussion was in full swing, which propelled both Tiangong and Xingyuan Technology to legendary status.
Anyone who dares to utter a single question or harsh word will immediately be labeled as unpatriotic.
On the other side.
Standing among a dozen mobile phone brand owners, Zhao Dongsheng held a sample of the Kunpeng chip in his hand and talked eloquently about its performance, compatibility, and production capacity.
After hearing the price quote, Lei Yijun immediately responded, "Mr. Zhao, Xiaomi will order 5 million units in the first batch."
"Mr. Zhao, Huawei needs 4 million units." Yu Chendong raised his hand to indicate.
"Meitu needs 3 million units."
"2 million from NetEase."
"360 needs 6 million units."
"..."
In fact, Zhao Dongsheng didn't need to say much; a group of "little brother" manufacturers readily placed their orders.
No sooner had this matter been settled than Apple's Asia Director, Ge Yue, made another move.
After a moment's thought and a conversation with Cook in the United States, he readily gave the figure: "5 million."
After all, Apple had no reason to refuse a RAM chip that had a larger capacity, lower cost, and stronger performance.
The representatives from Sansaeng, SK Hynix, and Micron looked increasingly grim upon seeing this.
At that time, Apple was still the world's second-largest purchaser of smart devices, with annual orders reaching $3 billion.
Before 2013, this market was split 50/50 between Sansung and SK Hynix; after 2013, Micron acquired Elpida, a subsidiary of the small-scale company, and was able to get a share of the pie as well.
Now there's another company, Tiangong Technology!
With more competitors, they'll have less to eat!
More importantly, they are very familiar with Apple's procurement process.
Once the actual performance of the Kunpeng RAM chip can meet Apple's product requirements, the market share of companies like Sansung, SK Hynix, and Micron will only continue to shrink.
They either need to develop a RAM chip with performance no less than Kunpeng in a short period of time, or they can only wait for their major key customers to switch to Tiangong Technology.
Chen Yansen sat at the table with the upstream suppliers.
Domestic brands include Yake, Huahai, and Lianrui, while international brands include Shanxing, Hansong, Shin-Etsu, and JSR.
Seeing that the two sides had talked enough and the atmosphere was right, he slowly and deliberately presented his cooperation proposal.
To ensure stable production capacity, Tiangong Technology prioritizes upstream companies that it has joint ventures with when selecting suppliers.
Simply put, Tiangong Technology is willing to share the pie, but suppliers must show sincerity and cooperate with Tiangong Technology to build factories.
Domestic and overseas companies are treated equally; whoever agrees first will have their goods used.
If no one agrees, Tiangong Technology will take matters into its own hands.
Chen Yansen only raised one core requirement: the controlling stake in the branch company must be 51%.
For core patents, the branch company only has the right to use them, not the ownership. This arrangement effectively reduces the difficulty of cooperation.
This model is similar to OEM manufacturing, and also resembles the cooperation model between foreign car brands and domestic car manufacturers decades ago. The branch can only supply semiconductor companies under Senlian Capital and has no right to sell products to third parties independently.
The patent ownership still belongs to the respective companies; Chen Yansen only requests to control the management.
The domestic supplier representatives exchanged glances; some frowned, while others were eager to try.
Tiangong Technology proactively offered to establish a joint venture factory, which would not only stabilize supply orders but also allow them to leverage Tiangong's technology and market resources to enhance their own strength. This is simply a windfall.
In stark contrast were the representatives of foreign suppliers.
A 51% controlling stake means that Tiangong Technology has the dominant control, and the joint venture can only supply products to companies under Senlian Capital, which is no different from "OEM production".
But if we don't agree, we'll immediately lose a major client.
Furthermore, Chen Yansen stated that Senlian Capital has not yet ventured into the materials research and development stage, not because the research and development is too difficult, but simply because it wants to participate in the international semiconductor industry chain ecosystem in a peaceful manner.
Among the domestic supplier representatives, the technical director of Lianrui New Materials quietly pulled aside the general manager of Yake Technology and whispered, "Old Zhou, a 51% controlling stake means that Tiangong can change the production standards at will. What if the equipment we invest in can't keep up? If the photoresist production line we just introduced last year is scrapped because of the standard adjustment, the loss will be considerable."
The general manager of Yake Technology lowered his voice and said, "Kunpeng chips will expand production by 30% next year. If we can keep up with their pace, we will definitely not have to worry about orders. But the key issue is that, given our current level of technology, we may find it difficult to compete with overseas suppliers."
Although Chen Yansen's controlling stake was very firm, he did not demand patent technology, which undoubtedly put Korean, Japanese, and American suppliers at ease.
Seeing their hesitant expressions, Chen Yansen waved his hand and said calmly, "No need to rush, take your time to consider! I'll give you a week. Whoever offers the most favorable terms will be the one I choose first."
Three hours later, as the sun slowly set outside the window, Chen Yansen left the hotel and got into a Hongqi L5 to return to Bihu Yunxi.
At 8 p.m. that evening, Tiangong Technology announced that the first-day order amount for Kunpeng 14nm 16Gb, Tiangong A200 and Tiangong T200 had exceeded US$1.72 billion.
In addition to orders from domestic manufacturers, Apple also purchased a total of 14 million chips.
At the same time.
All of Chen Yansen's information from birth to the end of October 2014 was sent to the headquarters of the North American Anguo Association.
(End of this chapter)
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