Chapter 2009 Idiom Exam
Computer instruction systems are divided into two types: complex and streamlined, which determines two completely different development directions of chip products. Intel's x86 architecture belongs to the former one.
As early as the 1990s, Intel's CEO Andy Grove made a bold decision at the risk of the company's bankruptcy and made a bold decision to develop the x86 architecture with all its efforts. At that time, this decision put Intel on the opposite side of all chip companies, but Intel took the right bet.
Since then, Intel has achieved great success and has gained a lot throughout the PC era.
But in recent years, the market trend has changed.
Although the streamlined instruction set chip represented by arm is not suitable for complex application systems of PCs, it is naturally very suitable for smartphones and tablets because it consumes less power and is more stable.
With the changes in the market, Eagle Country Arm has risen rapidly and has become the opponent that Intel fears the most, and has made great efforts in the mobile market.
More and more manufacturers are authorized by the arm, the most representative of which is Qualcomm. Qualcomm's share in the mobile chip market has become so large that Intel envies.
According to a data from last year, in the global smartphone market, the share of chips using the arm architecture has reached more than 90%. What makes Intel even more nervous is that Microsoft, their most reliable and determined ally in the PC era, has also selected arm products on smartphones...
Just a few days ago, Microsoft just released their new product, Surface tablet, and the chip used is the arm architecture.
Even the old partner with an unbreakable friendship of more than 20 years has done so, and you can imagine how bad Intel is now.
When the spring breeze of the times was so proud that the horse's hooves were fast, I don't know how many flowers withered under the horse's hooves. Intel was once a handsome young man riding on a horse, but at this time it turned into mud and crushed into dust.
Things in the world are so cruel. I never say hello, I want to abandon you, please be prepared. I will only rudely knock open the door and throw you out!
Intel's new product Ultrabook looks thinner and has better battery life, and is already trying to embrace the new era. However, Li Rui knows that this kind of improvement that is neither up nor down is actually particularly embarrassing. It cannot attract users who are already accustomed to the tablet computer ecosystem, nor can it meet the needs of laptop users.
Successful products are extreme. In order to gain a group of users, they can only abandon a group of users. Any product that wants to have both will often end up being useless.
However, Li Rui also knows that it is not easy for Intel to make such a transformation. We can't let them give up the complete transformation of the x86 architecture that depends on for success. That means giving up the still huge PC market is absolutely impossible!
Who made them make a huge mistake six years ago?
In 2006, Intel sold the xscale mobile phone and handheld device chip business to Marvell for 600 million magnesium, because the xscale series processors cost billions of magnesium in R&D costs, but can only generate 250 million magnesium in revenue for the company every year, which is not cost-effective.
At that time, this was not a bad idea. It was understandable to cut off unprofitable businesses and concentrate on developing more profitable businesses.
What Intel did not expect was that in the second year after they sold their mobile chip business, Apple phones were born, redefining the concept of smartphones, and the market changed drastically.
Everyone knows the next story.
As the opponents were full of food under the tide of the mobile market, Intel could only watch them eat delicious food and drink spicy food, and then watch their biological son grow up healthily under the care of others, crying loudly.
Of course, the worst thing is that the kernel used by xscale is the arm architecture...
Ke Zaiqi wants to make up for the mistakes he made back then, but the difficulty is no longer comparable.
Li Rui did not make any comments. He knew that whether it was the Ultrabook plan or restarting the mobile chip business, it was something Intel had to do. If it was done, it might be successful. If it was not done, it would be a waste.
Let Intel try and make mistakes first... Li Rui thought with malicious intentions, only if the other party makes mistakes can he have a chance, right?
As for the moment, Li Rui certainly needs to take advantage of Ke Zaiqi's urgency to gain more benefits for himself.
"I will definitely support your plan, so we can talk about Spreadtrum's situation." Li Rui said. "I think instead of restarting the mobile chip plan by itself, Intel should invest in companies like Spreadtrum, develop chips with x86 architecture, test the market acceptance, and make further plans."
Ke Zaiqi immediately said: "This is consistent with my idea, and I also think this is a more cost-effective model."
It is worthy of being a coo, and the starting point for thinking about anything is cost-effective.
Instead of spending billions of magnesium to rebuild the mobile chip R&D business and completely unpredictable market acceptance, it is better to spend more than one billion magnesium to invest in several chip companies and let them take the lead!
If the product is successful, it will not be too late for Intel to take action personally. If the product fails, it will only be considered a failure in investment at most and will not affect Intel's main business.
Whether considering business risks or financial costs, this is a better approach.
Li Rui said: "But I don't recommend Intel Investment Zhansun."
"Why?" Ke Zaiqi was shocked.
This time, visiting Huaguo to negotiate investment and investing in Zhan Xun is one of Ke Zaiqi's important goals. If Li Rui changes his mind, wouldn't he be in vain? And if this matter is ruined, it will also be a major blow to his competition for Intel CEO!
Li Rui said: "Because Xingrui is acquiring Ruidike, after the acquisition is completed, it will merge Zhanxun and Ruidike. This new company will become the largest mobile chip and baseband design and development company in Huaguo. The overall acquisition and merger process is expected to be completed by mid-next year. If Intel is willing to invest at that time, I would be very welcome!"
Ke Zaiqi narrowed his eyes, as if he was thinking about something.
Li Rui added: "If you are afraid that you will not have time, Xingrui is willing to sign a legally binding investment letter of intent with Intel to ensure that the cooperation between the two parties can be completed as promised."
"That would be great!" Ke Zaiqi was overjoyed.
What Ke Zaiqi is worried about is not that the investment cannot be completed, but that the investment cannot be completed before Intel determines the candidate for CEO. Otherwise, wouldn’t his efforts be in vain?
With this investment letter of intent, investment is a surefire, and this performance can be secured.
"Li, thank you so much. You helped me a lot!" Ke Zaiqi said excitedly.
Li Rui smiled: "The valuation of the new company may be much higher than before. So I suggest that we only agree on an investment amount and we will negotiate the price at that time."
"No problem." Ke Zaiqi agreed.
Chapter completed!