Chapter 83: Taking Over and Acquiring MediaTek
Chapter 83: Taking Over and Acquiring MediaTek
Lin Wenxiong's tense face changed instantly...
"Mr. Shen, you might not be aware of the situation." He moved closer to Shen Fei again, which surprised Shen Fei. Could this guy have something going on with him...?
He's not from Sichuan.
Shen Fei's subconscious avoidance made Lin Wenxiong feel a little disappointed, but it did not interrupt his train of thought.
"In the current global mobile phone chip market, Qualcomm and Texas Instruments have a monopoly on the high-end market. Sansang has its own industry and has Apple as a major customer."
MediaTek is the only partner who can achieve a win-win situation with you in the smartphone market.
The MediaTek MTK6573 chip proves that our collaboration can definitely succeed. If we collaborate…”
"President Lin." Before he could finish his grand plan, Shen Fei interrupted him. "If I said we were willing to acquire MediaTek for $20 billion, would you agree?"
This is also a high premium, which allows for better cooperation...
MediaTek achieved an astonishing market share of over 90% in China thanks to its turnkey solutions, but the profits were not that high, and it only saved MediaTek.
Adding to the impact of the financial crisis, they were only worth $17 billion at that time.
$20 billion is indeed a very high premium.
"Um...of course..." Lin Wenxiong looked at Shen Fei with a puzzled expression. He wanted to laugh and accept the joke, but seeing that Shen Fei didn't seem to be joking, he immediately changed his mind.
"This...this is not the same thing, and your company probably doesn't have that much cash either."
"We have it! We can double it!"
Huang Tianya, who hadn't spoken since the beginning of the meeting, delivered a devastating blow to Lin Wenxiong the moment he opened his mouth.
The $10 billion in the previous plan was raised through begging and pleading with various shareholders, and the result was...
This guy really doesn't value money, and Lin Wenxiong didn't know how to start the conversation...
While he was silent, Shen Fei took a chip out of the drawer and placed it on the table.
"This is the MediaTek MTK6573 used in the Mate series. Compared to the reference chip, it offers approximately a 20% performance improvement."
Mr. Lin should be very clear about what this technology means.
Lin Wenxiong was well aware of this, and he also knew that this chip was not so simple and could not be solved by a simple algorithm.
Their reference chip has a gate oxide layer thickness of 2.1nm, which is the standard data for Taikun Electronics' 40nm process.
However, the MTK chip on the Mate was 0.3 nanometers thinner, which improved its switching speed by 18% and reduced leakage current by 22%. At the same time, it also solved their traditional problems in GPU decoding algorithms.
This is definitely not something that overclocking software can achieve; the other party must have a more advanced production line.
Although I don't know how they did it, the facts speak for themselves.
"Mr. Shen, I have a question. Why are your company's chips slightly different from our reference design chips?"
"We have our own post-processing technology. As someone in the industry, Mr. Lin, you probably don't really believe that an overclocking algorithm can improve performance so much, right?"
This is an improvement of about two generations; if we're talking about incremental improvements, even three generations would suffice.
The meeting room immediately fell silent, and Lin Wenxiong's forehead gradually began to bead with sweat.
No wonder! No wonder Transsion had the confidence to refuse a billion-dollar investment so easily.
They really know their stuff. As long as they have this golden goose, Chuanyin can make as much money as he wants.
If you want to save yourself the trouble, just buy their chips and resell them to make money.
[Chipmaker: Where do you think our chips come from?]
"President Shen..." Lin Wenxiong sat down again and took the initiative to talk about the new plan, appearing very generous.
"MediaTek is willing to purchase the license for this post-processing technology; you name the price."
Shen Fei smiled and said, "Didn't President Lin just say that he was considering an acquisition or equity investment?"
"That's..." Lin Wenxiong looked embarrassed. As a professional, he immediately shifted the blame to the board of directors, since they weren't there and didn't know the specific plan.
"That's the board's decision; I personally prefer technical cooperation."
Shen Fei's smile faded, and he even readjusted his posture: "Authorization is possible."
"Mr. Shen, don't refuse so quickly. We can agree to your conditions," Lin Wenxiong replied subconsciously, but his assistant nudged him.
"What, you're willing to agree?"
"Of course, but there's a condition..."
"Mr. Shen, please tell me... I can agree to 100 conditions, not just one."
Those around him chuckled again. 100 conditions? It would be good enough if they agreed to even one of these conditions.
Seeing the barely suppressed smiles around him, Lin Wenxiong realized something was amiss, but since he had already spoken, he had to listen to the rest.
"All the chips that require cooperation must be sent to Transsion's factory."
We only process the chips; we don't look at the design or ask about the manufacturing process. But the chips must be sent here, enhanced by us, and then sent back.
After speaking, Shen Fei picked up the two documents on the table and continued reading them, occasionally nodding to indicate that they were both quite good and sincere.
But Lin Wenxiong, who was standing to the side, had already lost his temper.
"That's impossible." He was getting anxious. "These chips are our most important asset. How could we possibly send them to the third factory? What if the technology is leaked prematurely..."
"Then there's no point in discussing it." Shen Fei stood up. "President Li, see the guest out."
"Mr. Shen, we can sign the strictest confidentiality agreement, and Transsion can send engineers to our packaging plant to handle the process under our supervision..."
We can also offer the highest rental fees for the relevant equipment.
But Shen Fei did not stop. When he reached the door, he said again, "The technology is ours, the process is ours, and it must be on our turf."
This is the bottom line.
"etc……"
But Shen Fei ignored him and left the office.
Lin Wenxiong tried to get up, but was stopped by the other representatives who were communicating telepathically.
Over the next two hours, he proposed various solutions: joint venture to build a factory (which Wang Shangzhong rejected), only processing low-end chips (which Wang Shangzhong also rejected), charging higher patent fees (the equipment would still not be exported, and the price would be set at $2 per chip)...
Huaxin's delegation remained consistent: agree to the proposal, or there would be no discussion.
After Lin Wenxiong relented, Shen Fei returned to the conference room.
As soon as he entered, the other party said with a wry smile, "President Shen, you're... trying to strangle us!"
"If we agree, all chips will have to go through audio transmission processing in the future, and then audio transmission could block us at any time..."
"Mr. Lin, you're overthinking it." Shen Fei maintained his usual insincere smile. "Transsion makes mobile phones, not chips. We have no interest in cards; we just want to protect our core technologies."
And it's simply about securing a stable supply chain.
"And this is also good news for MediaTek. With our enhanced technology, your chips will outperform Qualcomm's and be cheaper."
At that time, Samsung, HTC, LG... will all be scrambling to place orders. MediaTek's market share could increase by at least 20%.
And if your technology improves someday, can you cancel it at any time?
Lin Wenxiong remained silent.
Can I cancel anytime?
That's a 20% performance boost. Once you use it, can you really go back to normal?
However, he also knew that if MediaTek's chip performance improved by 30%, it would be the absolute hegemon in the market, and Qualcomm, Samsung, Nvidia, Texas Instruments... would all have to kneel down.
Lin Wenxiong is now facing a very difficult choice!
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