Fidel stayed in Magic City for a while, and the more he learned about it, the more he realized that the problem between Rabbit and Eagle Sauce was too complicated. On both sides, you have me, and I have you. They are opponents who rely on each other. It is difficult to express them in short words.
to describe the relationship between the two parties.
However, in the semiconductor industry, Fidel sees Rabbit's current predicament. The low-end market has stabilized, but the mid-to-high end relies heavily on foreign products. Many companies in the semiconductor industry need various support and cooperation from foreign-funded enterprises to survive.
The Rabbit government wants to make a breakthrough, but the results cannot be seen in a short time. As Samsung executives said before... Japan, South Korea and a certain island can unite to form an industrial alliance to suppress the development of the Rabbit semiconductor industry.
Today, Fidel is going to accompany an IBM rabbit zone executive to visit a customer. He just wants to see what the actual semiconductor application market is like.
The client is a vice president of Citibank in Rabbit District. It is said that they want to expand their business in Rabbit District and purchase a batch of server equipment.
Fidel sat with IBM executives in the VIP area of the bank and casually chatted about the server market, "I heard that Rabbit's domestic servers have a large market share. Is this true?"
The sitting IBM executive laughed loudly: "Yes, Rabbit's several server manufacturers do occupy a large share. However, the servers they produce all use our chips and are inseparable from our software. The more they sell, the more they sell."
The more, the greater our profits will be.
Moreover, most of Rabbit's servers are in the low-end market. The high-end market is still firmly occupied by us, and their brands are far different. Especially in the field of bank servers, they have always wanted to enter, but they have not been very successful."
These days, many industries that Rabbit is engaged in dominate the low-end. For example, IBM simply gave up its PC business to Rabbit’s Lenovo. Why? The profit is low. How much money can you make from a PC? In order to pursue profit margins, people don’t even look at it.
That's a bit of a 'mosquito leg'.
Servers are tens of thousands cheap, and expensive are hundreds of thousands or millions. The profit from selling a server is equivalent to selling a bunch of PCs. Moreover, selling servers also involves software and post-maintenance costs, which is also a big profit item. And selling servers
I have never heard of how PC can make money in the later stage.
"For a long time, Rabbit Bank's servers were all from IBM, and basically no one could compete with us in this market. We have made special optimizations in terms of stability and response speed, so cautious customers like the bank can
Willing to buy our products.”
When talking about their company's products, IBM executives are quite proud. After all, everyone likes their products to be recognized. This is a full sense of accomplishment. But just when Fidel wanted to chime in with a few words, the vice president of Citibank's rabbit area
Walking into the VIP area, his face was gloomy.
"Hey, what's going on?" The IBM executive reached out and patted the Citi Vice President on the shoulder, "Old friend, you seem a little unhappy."
"Humph..." Citigroup's vice president sneered, "I'm not unhappy at all. I just have bad news to tell you. I can't directly buy your IBM servers."
"Ah..." IBM executives immediately rolled their eyes, "Which company is causing trouble? HP or Dell? Their servers are not as good as ours. No one in the high-end server market can surpass us."
Faced with these confident words, the vice president of Citigroup could only smile bitterly, "It's not HP or Dell, it's a newly established company called Radiation Electronics."
Hearing that there was a new opponent, IBM's executives became a little more serious. Citi's vice president continued: "We are going to expand our business in the Rabbit Zone recently. In exchange, the Rabbit Government hopes that we will give them domestic companies in the purchase of goods."
Equal opportunity.”
"So...?" IBM executives asked in confusion.
"So we have to conduct a tender and an evaluation to allow this 'Radiation Electronics' to submit their bids and products." Citigroup's vice president waved his hands and expressed helplessness.
When he heard the name ‘Radient Electronics’, Fidel cheered up, “I know this company, it seems to have been recently established and strongly supported by the Rabbit Government.
According to the business intelligence I received, it was the emergence of this company that caused the stock price of the Dutch ASML company to fall. This is because this company said that they had broken through the three-nanometer chip process and were about to mass-produce it."
"Isn't that company boycotted?" Obviously, IBM executives also know the news in the industry, "Aren't they going to build a wafer factory? Why are they suddenly selling servers?"
Hearing the word 'three nanometers', the vice president of Citigroup also exclaimed: "Yes, the people from 'Radiation Electronics' also promote that their products use the latest three nanometer process, and they say that their product performance is better than the current
The mainstream has moved up a generation.”
"Haha..." IBM's senior official screamed twice, obviously not believing it, "If you want to bid, bid, we can't lose. But not everyone can handle the three-nanometer process, even we are currently unable to do so.
There is no similar product. I think this company is suspected of fraud.”
IBM executives were obviously very angry, but Fidel calmed down as a bystander and continued to ask: "This company advertises that its servers use its own company's three-nanometer chips?"
"Yes." Citigroup's vice president nodded.
"Their chips are also designed by themselves?"
"It is said that it is."
"What structure?"
This is a good question. Chip design is not just a random drawing. Large-scale integrated circuits are very complex. The so-called architecture can be understood as certain rules followed when designing chips and certain patents used. These are big companies.
Technology blockade and the key to making money.
"IBM's POWER architecture." Citi's vice president smiled bitterly again, "It is said that I spent a lot of money to purchase a patent license from your headquarters, but I don't think IBM headquarters expected that it would have an additional opponent."
Patent licensing is an important means of technological blockade and an effective way to contain opponents. But now this sudden appearance of 'Radiation Electronics' actually relies on spending money to overcome this obstacle. Fidel couldn't help but feel horrified when he heard this.
.
The bad news doesn’t stop there. Citi’s vice president also said: “According to Radiant Electronics’ external publicity, they have made great improvements in the POWER architecture, and all of these improvements have been patented.
I'm not sure yet whether this is true. If it is true, IBM will also encounter patent issues if it develops the POWER architecture next."
"I've heard about this, but it was too fast." The IBM executive couldn't sit still. He apologized and walked to a remote place alone to call the headquarters to inquire.
Half an hour later, he came back sweating profusely and said: "Things seem to be really troublesome. We did sell the three-year right to use the POWER architecture."
IBM originally thought that it would only have two years of usage rights, so there shouldn't be any big problems. After all, chip design is not a simple matter. It may take two years to design a chip. To put it bluntly, this is underestimating the rabbit's ability to cause trouble.
.
But now it’s messed up!
At this point, the vice president of Citigroup also delivered the final blow, "It is said that the Rabbit Government has issued an administrative order. In the future, banks and government systems should give priority to products that radiate electronics when replacing server equipment."
Oh my god, this is really a big problem!
The IBM executive was about to burst into tears and cursed: "Isn't radiation electronics going to fight with the wafer factories in Japan and South Korea? Why did it come to make trouble with us? We didn't provoke it!"