Shockingly, a counterfeit factory has produced a 3-nanometer chip.

Chapter 84 Taishan BB1 Successfully Developed

Agreeing to these conditions would make becoming the dominant player easy, but at the cost of sending chips to competitors' (now customers) factories.

They had all the latest secrets firmly in their grasp, and the other party didn't seem to be as kind as they appeared.

Shen Fei: It's nothing, I just wanted to have another subsidiary...

"I need to discuss this issue with President Cai and the other members of the board of directors," Lin Wenxiong finally said hesitantly.

"Please go ahead." Shen Fei glanced at his watch. "However, Mr. Lin, I have a meeting at 3 PM. If you can't give me an answer by 2 PM, then this cooperation is..."

"I'll call now."

Lin Wenxiong took out his phone, and the call lasted for more than half an hour. During that time, Lin Wenxiong left the meeting room three times, and each time he returned, his expression was more and more unpleasant.

The last time he returned, he slumped into a chair, as if under immense pressure.

"President Shen..." he said with a sense of relief. "The board of directors has agreed. But we also have two conditions: the first batch will only produce 500 million units, and the licensing fee must be reduced to 10% of the profit."

Shen Fei nodded first, then shook his head directly: "500 million pieces is fine, but the licensing fee is 20%, not a penny less."

And it's 20% of the selling price, not profit.

"Mr. Shen, 20% is too high. Our gross profit margin is only 35%. If we give you 20%, we'll only have 15% left."

In comparison, we're just employees, working for both you and Taikun Electric, and in the end, we're the only ones who suffer.

"Then you can sell it for a higher price." Shen Fei had no intention of backing down and had even thought of a way out for them.

"A 30% performance improvement, the level of two generations of toothpaste that bursts out of your tube, and a 30% price increase? That's not unreasonable, is it? In the end, your profits will actually increase."

Lin Wenxiong opened his mouth, but found he couldn't refute it. For the entire industry, performance improvement was synonymous with price increase.

Moreover, they can modify the silkscreen printing on these enhanced chips to launch a higher-end series, at which point it will be much more than just 20%.

After all, there will always be some consumers who are willing to pay a high price for high performance!

……

After finalizing the contract, Lin Wenxiong breathed a sigh of relief and happily signed his name on the revised agreement.

MediaTek and Huaxin Strategic Cooperation Agreement

MediaTek will deliver 500 million MediaTek MTK6573 chips to Transsion's factory in Guangzhou within a week.

Transsion will provide chip enhancement services, guaranteeing an average performance improvement of 20%, with a service fee of 20% of the chip's sales price. Settlement will be made monthly.

The agreement is for a three-year term, with no exclusivity, and the party has the right of first refusal to renew upon expiration.

Although Lin Wenxiong wanted to make the contract longer, Shen Fei said they would discuss it later...

After signing, the two shook hands again, and Lin Wenxiong complained once more: "President Shen, this is the first time I've signed an agreement like this since I joined MediaTek."

Even mature chips still need to be sent to other factories for processing.

"Mr. Lin, times have changed. In the past, chip manufacturers defined mobile phone performance, but from now on... Transsion will define chip performance."

Although the statement was made with great confidence, Lin Wenxiong could not refute it, since Shen Fei had already given him face.

……

After seeing him off, Huang Tianya came in.

"Mr. Shen, isn't it too much for us to cut 20% of the selling price at once? Will MediaTek hold up orders and retaliate in kind?"

"They had no choice."

At this time, Lin Wenxiong's convoy had already left the park, and their destination was not Taiwan, but other mobile phone companies.

They need to find a more suitable buyer for this batch of chips.

"Since the release of the Mate series, domestic manufacturers have become very interested in the MTK6573 chip, but the reference chip is not up to par."

Cooperation is a win-win situation; if they want to cause trouble, then…”

Huang Tianya instantly understood Shen Fei's plan; no wonder he directly acknowledged the existence of the enhancement technology.

Looks like I really need to save some money; MediaTek needs to find at least one new shareholder soon...

…………

Meanwhile, in the communications lab, everyone gathered around the test bench once again, but this time they were all on edge, fearing that the chip test would fail.

This time, the chip being tested is not a small chip like a fast-charging chip, but a real communication baseband.

Taishan BB1.

Transsion Semiconductor Labs' first self-developed 3G baseband chip currently supports China Unicom and China Mobile. China Telecom is in a state of being compatible but not yet activated because CD2000 has not yet been cross-licensed.

"Download speed... 72Mbps!" the tester excitedly read out the number. "Upload speed... 28Mbps! Latency... 38ms."

A cheer immediately erupted in the laboratory.

What does a download speed of 72Mbps mean?

It can be said to be the undisputed world's best. Currently, the best Qualcomm 3G baseband chip on the market has a download speed of 42Mbps.

The performance of the Taishan BB1 exceeds that of the others by 70%.

Seeing this data completely resolved Li Jiahui's doubts. During the design process, he felt that something was off about the Taishan 900; he felt that the chip was somewhat like a 4G chip...

Now he completely understood that this wasn't a 3G chip; it was an entry-level 4G chip.

No wonder!

"How's the power consumption?" After resolving his doubts, Li Jiahui asked.

"Full-load power consumption is 35% lower than Qualcomm's solution, and standby power consumption is less than 50%."

It's still a high-performance, low-power solution. Now it can truly lead the era.

"What about the cost?"

"If mass production is carried out, the cost can be estimated at $12 based on 1000 million units, which is similar to Qualcomm's package deal."

But our performance needs to be better; Qualcomm's best communication baseband costs $30.

Li Jiahui clenched his fist as he held the chip; the first step in developing his own SoC had finally been a success.

Immediately afterwards, cheers erupted from the laboratory: "It's done! The most difficult step has finally been accomplished!"

Now we should be ahead of the fruit.

Jobs: Please don't bring up the topic of communication baseband. They're so slow, they're a bunch of useless idiots.

Sometimes I really wonder if I'll live to see the project succeed at their pace!

Shen Fei: This is truly a hellish joke.

Amidst the cheers, Li Jiahui dialed Shen Fei's number: "President Shen, it's a success."

The Taishan BB1 chip has passed testing successfully, outperforming Qualcomm in performance, consuming less power, and costing less for the same performance. Furthermore, its upload speed is close to that of a 4G chip.

On the other end of the phone, Shen Fei was having tea with Ren Zhengfei at the headquarters of the GC factory.

Of course, his main purpose this time was to discuss the layout of lithography machines, not to show off...

When Shen Fei answered the phone, he deliberately turned on the speakerphone, so Ren Zhengfei heard everything he said.

Ren Zhengfei's hand trembled slightly, and the tea spilled out.

"Mr. Ren, our baseband chip is complete. Its performance is significantly better than Qualcomm's, while the cost is basically the same..."