Chapter 3224: A Front

Hearing what he said, Zhou Buqi was in trouble.

Samsung and Apple are different.

Apple integrates software and hardware, and all products it makes are closed products that can only be used by itself and cannot be used by outsiders. This means that even if Apple is willing to sell self-developed chips, no one will buy them because they are simply not suitable or compatible.

Samsung is different.

Samsung's electronic products are conventional and open and have strong compatibility with the market.

This makes Samsung the most important supply chain manufacturer in the smartphone industry.

Naturally, this also includes chips.

Samsung makes chips not only to supply its own electronic products, but more importantly to sell them.

It’s just that Qualcomm has developed too fast in recent years, and its American engineers are so good that its mobile phone chip business has lagged behind Samsung by a large margin.

In fact, when smartphones first appeared, Samsung’s chips were no worse than Qualcomm’s.

When brands including HTC, Apple, and Sony Ericsson first started making smartphones, they all purchased Samsung chips instead of cooperating with the expensive and overbearing Qualcomm.

But it hasn’t been so good in recent years.

Qualcomm is developing too fast.

The technology is too strong.

In the field of mid-to-high-end chips, Qualcomm has left Samsung behind by a long way, resulting in an increasingly concentrated industry. The flagship models of mobile phone manufacturers are mainly based on Qualcomm chips. Only some mid- to low-end models may purchase Samsung chips.

Even within Samsung, Samsung mobile phones have made similar decisions under huge pressure. For flagship models, Qualcomm is considered, and self-developed chips are mainly placed on mid- to low-end phones.

This is naturally unacceptable to the ambitious Samsung.

In the past two years, Lee Jae-yong has invested heavily in the U.S. semiconductor market, and will continue to increase investment in the next few years. The main purpose is to rely on the US market to boost Samsung's semiconductor business.

The experience of the past few years has given Samsung a clearer understanding of the chip industry.

Relying only on Koreans, Samsung can only make mid-to-low-end chips at best.

If Samsung wants to compete with Qualcomm in the high-end chip field, it must invest heavily in the United States and rely on the world's top chip engineers in the United States. Behind the battle for chips is a battle for technology, and behind the battle for technology is a battle for talent.

Behind the battle for talent is the national level. Samsung cannot change the status relationship between South Korea and the United States, so don't be strong. If you can't grab talent, you can take the initiative to invest and build factories in places where talent gathers.

This can be regarded as the advantage of Koreans, they are very pragmatic.

Zhou Buqi did not follow him around and said with a smile: "This time, Samsung's chips are so proud! No wonder Qualcomm teamed up with Ericsson to launch patent lawsuits against Samsung and Asda's self-developed chips. It turns out that this is Wait!”

Li Zaiyong laughed and said: "I have guessed it a long time ago. There must be something wrong with Qualcomm's chip business. If our own chips are not good, we will find ways to suppress other people's chips."

"If you can't compete with chips, you can only use some crooked methods."

Zhou Buqi sat behind his desk, with the phone turned on so that Zhou Shaoning and Ning Yaxian could hear clearly.

Li Zaiyong said: "Fortunately, Ericsson will not fully cooperate with Qualcomm. As long as it pays the patent fees, we can settle."

Zhou Buqi asked: "Even if Ericsson pays the patent fees they require, Samsung's chip prices will still be lower than Qualcomm's, right?"

"Of course, Qualcomm is using its monopoly position to raise prices, so that the price of Qualcomm chips is generally 20%-30% higher than the price of similar products in the market. This unfair transaction has made Samsung and Asda suffer in the past. We have suffered huge loss of profits in the past year. Isn’t this what Apple’s lawsuit against Qualcomm is about?”

Li Zaiyong had heard what he meant, and his tone was high-spirited, which made him very happy.

Zhou Buqi then asked: "Galaxy Note has reached the final stage, right?"

Lee Jae-yong said frankly: “Indeed, there are still some internal debates. Some people think that we should try to use Snapdragon 810, while others suggest using Qualcomm’s secondary chip Snapdragon 808.”

"Do you agree?"

"No."

"If it were me, I wouldn't agree." Zhou Buqi put himself on the opposite side of Qualcomm. "Samsung and Asda are both making self-developed chips. This road is very difficult. I want to get through the cracks of Qualcomm." To come out, you not only have to be good enough, but you also have to wait for your opponents to make mistakes. Now is a good opportunity. I heard that Snapdragon 810 is a real technical failure, which is a business impact caused by internal workplace struggles at Qualcomm. "

Li Zaiyong smiled, "I've heard about it, but I'm not sure about the details. But it's only been a long time. In less than a year, there have been two CEO changes. The internal power struggle must be serious."

Zhou Buqi said: "A good thing, this is a good thing!"

Lee Jae-yong said: “All of Samsung’s flagship models this year will use self-developed chips. Our new chips also use the most advanced technology, and the 8-core processor is no worse than Qualcomm. In terms of competitiveness, we can have huge advantages. Advantages.”

Zhou Buqi saw that he kept going around and refused to speak first, so there was nothing he could do.

After all, Aisda is on the passive side in this matter.

Zhou Buqi could only lower his stance and first expressed his intention to cooperate, "In the business of self-developed chips, Asda and Samsung are on the same front, and Qualcomm is a common opponent of both parties. And Ericsson's previous The patent complaint has also brought Samsung and Asda together. I think the interests of both parties are consistent and we can further deepen our cooperation.”

"Further cooperation?" Li Zaiyong laughed, "Okay, I'm looking forward to it!"

He is the head of Samsung Electronics.

He has to manage not only the mobile phone business, but also the business of semiconductors, screens, sensors, and electronic foundries.

The most profitable business is, of course, mobile phones.

However, the profit margin of the mobile phone business is very low.

Moreover, with the promotion and popularization of smartphones, the market stock has reached 2 billion units, which means that the sales growth of the smartphone market will gradually slow down in the next few years.

In the long run, Samsung Electronics will rely most on its semiconductor and panel businesses.

No matter how the form of electronic products changes, TVs, computers, Walkmans, tablets, smartphones, smart watches, VR headsets, digital glasses... these things are all inseparable from semiconductors and displays. In the future, smartphones may no longer exist and may be replaced by a new form of electronics, but semiconductors and displays will always be at the core of the electronics industry.

This is also Samsung Electronics’ long-term plan.

Don't look at the mobile phone business that makes the most money for Samsung.

But from a strategic perspective, semiconductors and display panels are Samsung Electronics' core businesses.

If there is an opportunity to promote the development of Samsung's chip industry, even if it damages the mobile phone business to a certain extent, it will be strategically worthwhile. Samsung, a family business, has been passed down to the third generation, and the Li family wants to continue passing it on for a long time.

Zhou Buqi also grasped this point and was very sure that Li Zaiyong would do his best to promote the cooperation between Samsung's self-developed high-end chips and Asda.

Even if he looked at Boss Zhou's face, he had no reason to refuse.

"Let's do this, I'll make the decision to further strengthen the cooperation between Asda and Samsung." Zhou Buqi stopped going around the bush on things that you know and I know, and revealed the answer first, "Asda will be meeting this year." Launch two high-end models, one is Aster7 and the other is Motorola’s Ultra2. If you agree, Asda can abandon Qualcomm and use Samsung’s chip solutions!”

Li Zaiyong was a little surprised, "Really? Two products?"

Zhou Buqi said: "There are indeed some disputes within the company. Most people think that Motorola's model can use the Snapdragon 808 chip. As you know, Motorola's high-end phone business is in the United States and is handled by the American team. Development. They are more inclined to cooperate with Qualcomm, but I prefer Samsung. Since I have chosen Samsung’s solution, there is no need to hesitate.”

Li Zaiyong took a deep breath, "If that's the case, Samsung can give you the best offer!"

"Well, I have three requirements." Zhou Buqi was not polite to him. "First, the quotation must be low; second, the supply must be sufficient; third, the quality must be guaranteed. Now this is the best way to fight against Qualcomm. Timing: If Samsung and Asda join forces, Qualcomm will suffer a fatal blow in the global high-end mobile phone market.”

Li Zaiyong assured: "No problem, we can organize a team to discuss this matter right away. How about I send someone over?"