And why does Weiruan do this?
The most fundamental reason is that mobile phone platform manufacturers are too aggressive. They are madly attacking the fields of laptops, desktop computers, and servers.
If WeiRuan does not change and does not try to attack the mobile terminal, then the WeiRuan system will be eliminated!
"In this case, we will devote all our efforts to acquiring SIS Company and developing the Sugon Computer Multimedia Instruction Set."
Ni Guangnan said something with a smile and then left slowly, while Lin Chen continued to be busy with his things.
So in the following time, the negotiations between Sugon R&D Center and Weisheng Electronics fell into a stalemate, but the negotiations between Sugon R&D Center and Wandao SIS Company were relatively smooth.
On July 3, 2004, Sugon R&D Center officially reached an agreement with SIS Company.
Sugon used US$380 million in cash to acquire the company's CPU business, graphics card business, and chip business.
The reason why the price is so cheap is because their CPU business does not even have an X86 processor R&D team, but only has the authorization of the X86 instruction set.
The only asset they have is the graphics card and chipset business, but their graphics cards and chipsets are quite average in the world and just serve as a background board.
Not to mention compared with companies such as ASUS, MSI, ATI, Invida, etc., even Weisheng Electronics cannot compare. In this case, the prices of their CPU, graphics cards, and chipset businesses cannot be raised.
Sugon spent US$380 million to acquire the CPU, graphics card, and chipset business of Wandao SIS Company. This news immediately caused an uproar around the world.
Among them, the media in Bay Island and Daxia reported this matter in the form of headlines. The headlines were about the rise of domestic chips and the news that Sugon officially entered the computer industry!
After the news came out, Intel President Barrett had a very bad look on his face, lamenting in his heart that there was really no way to prevent Sugon Technology from entering the X86 processor world.
Of course, at the same time, Chen Wenqi, the head of Wandao Weisheng Electronics, felt a little empty.
After all, Sugon has already purchased SIS's CPU, graphics card, and chipset business for RMB 380 million. Naturally, they will no longer purchase Weisheng Electronics' CPU and graphics card business, at least they will not continue to offer high prices.
Thinking that Weisheng Electronics will face the three powerful enemies of Sugon Technology and Intel at the same time in the future.
Chen Wenqi somewhat regrets that she raised the price after obtaining the three major authorizations and insisted on quoting high prices, leaving Sugon to bear the losses of their CPU and graphics card business for many years.
If he had not raised the price, would he have been able to sell the CPU and graphics card departments that had been burning for several years?
If you had not stuck to the bottom line of US$2 billion, but had taken a step back and been willing to sell the CPU and graphics card business at a small loss, would it have been a different story now?
However, the final outcome has already appeared, and it is useless to think about another future at this time.
After all, Sugon has already purchased the CPU, graphics card, and chipset business of Wandao SIS Company, and will not continue to spend high prices to purchase the CPU and graphics card business of Weisheng Electronics.
Thinking of this, although Chen Wenqi felt a little melancholy, she could only put down the matter calmly and prepare to spend a large amount of money to develop new processors.
But the facts told him that he was overthinking it, because within a few days, Chen Wenqi received a shocking piece of bad news.
On July 5, 2004, Weisheng Electronics' company account received a contract penalty of US$10 million, and then Weisheng Electronics also received a notice from Intel to tear up the contract.
Obviously, Intel directly refused to fulfill the technology patent licensing contract they had promised.
In other words, Intel refuses to authorize the SSE3 instruction set and hyper-threading technology to Weisheng Electronics as promised in the contract!
Knowing this result, Chen Wenqi was stunned on the spot!
Although Chen Wenqi actually had a bad feeling in her heart when she received the news about Sugon's acquisition of SIS Company.
But I didn't expect Intel to be so straightforward and willing to pay 10 million contract liquidated damages instead of providing SSE3 instruction set authorization and hyper-threading technology authorization to Weisheng Electronics.
And the consequence of this behavior is that their Weisheng Electronics was screwed!
Although Weisheng Electronics has obtained the authorization from D Company for its X86-64-bit processor architecture, Weisheng Electronics can now officially develop and produce 64-bit X86 processors.
But the problem is that this authorization alone is not actually of great help to Weisheng Electronics. It is almost equivalent to standing still.
Because now, whether it is .D or Intel's X86 processor, which one of them is not a 64-bit X86 processor?
Weisheng Electronics obtained the authorization for the X86-64-bit processor architecture, which only regained the basis for standing with them, but whether they can win against others by standing together is another matter.
Therefore, without SSE3 instruction set authorization and hyper-threading technology authorization, Vise Electronics' X86 processor cannot win at all. D and Intel's processors naturally cannot compete for market share.
Therefore, although Weisheng Electronics has obtained the authorization for the X86-64-bit processor architecture, it is of little actual help and has no practical effect. The market share is estimated to be between 0.2% and 0.5%.
Thinking about this joint, Chen Wenqi, the head of Weisheng Electronics, was so angry that he wanted to vomit blood, and he was so angry that he gritted his teeth against the head of Intel, Barrett.
According to later gossip, Chen Wenqi, the head of Weisheng Electronics, even cursed "a despicable villain!" "Shameless person!" "Damn Beruitian, how dare you bully me!" He waited for ten minutes to calm down. Come down.
But after calming down, we have to face the cruel reality after all. Anger and curses cannot solve any problems.
After all, he, Chen Wenqi, could scold Lin Chen, the head of Shuguang Technology, and Barrett, the president of Intel, with just his words.
So Chen Wenqi calmed down and began to face the cruel reality.
However, I think that in the future, Weisheng CPU will continue to maintain that sad and shameful market share.
Thinking of the future, the CPU business will continue to crazily devour the profits of Weisheng Electronics, dragging Weisheng Electronics into the quagmire of the abyss.
Chen Wenqi took a deep breath and then made a crazy decision. This decision was that Wei Sheng Electronics would lower the bottom line of quotations for the CPU and graphics card business!
Intel would rather pay 10 million liquidated damages than sell the remaining two patent licenses to them, denying them the chance of Weisheng Electronics struggling to rise.
Then don't blame Weisheng Electronics for ruthlessly lowering the bottom line of the quotation and selling Weisheng's CPU and graphics card business to finance the enemy. As for whether it can be sold, Chen Wenqi is still confident.
Because although Sugon R&D Center acquired the CPU, graphics card, and chipset business of Wandao SIS Company, there are actually many CPU technology patents that Sugon R&D Center has not obtained.
After all, in addition to the X86 instruction set, an X86 processor also has many other technology patent authorizations. Chen Wenqi believes that Sugon R&D Center will be interested in those technology patent authorizations. (End of chapter)
