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Chapter 210 - Chapter 210: Pre-researching 4G, laying out patent moats!

Basebands are harder to develop than chips, and Williams can't handle it either.

After all, Texas Instruments' basebands are all purchased third-party external ones...

Wang Yi had an idea; baseband development must also be planned in advance!

For next year's processors, baseband chips will still be external.

But Qualcomm's Snapdragon 800, to be released the year after next, will integrate the baseband into the processor.

Subsequent processors like Huawei's Kirin 910 and Samsung's will also be SoCs with integrated basebands.

Only Apple, which cannot make basebands, still uses external basebands, leading to poor signal...

Wang Yi wants to develop his own chips, and he can still use external basebands in 2012-2013.

But after 2014, baseband development and integration must certainly proceed simultaneously!

It's just that baseband development is more difficult, requiring more investment, talent recruitment, and solving the most crucial CDMA patent issue.

Or directly acquire a baseband R&D company.

In his previous life, Apple spent $1 billion in 2019 to acquire Intel's baseband business.

Wang Yi could also invest money to acquire it several years in advance.

However, Wang Yi's acquisition target is not Intel's baseband division.

Instead, it is the San Diego branch of VIA Telecom, a communications subsidiary of VIA Technologies.

This branch is VIA's baseband division, holding a large number of CDMA patents.

CDMA is a foundational patent for 3G and 4G, mainly held by Qualcomm, with a minority held by VIA.

Simply put, without CDMA patent authorization, it's impossible to develop mobile phone basebands.

Even Huawei, to develop mobile phone basebands, had to buy authorization from Qualcomm or VIA Telecom.

Or directly purchase VIA Telecom or Qualcomm basebands for external use.

But Qualcomm's basebands sold individually are too expensive, which is why Huawei phones in recent years have all used external VIA Telecom basebands.

However, VIA Telecom is on the verge of bankruptcy, only releasing the cheap CBP8.2D baseband based on 55nm process in 2009, which suffered from severe overheating.

Therefore, Huawei phones in 2012-2013 all had poor heat dissipation.

Meanwhile, Qualcomm at the same time moved to 40nm and 28nm basebands.

A single CDMA patent caused an uncommonly large gap between the two sides.

Later, from Huawei Kirin 910 onwards, it integrated its own baseband, also by purchasing CDMA authorization.

But this method is unreliable; once Qualcomm stops selling authorization, basebands cannot be manufactured!

Even if Qualcomm sells, it will continue to charge high prices.

Even with so many patents, Huawei still has to pay Qualcomm 1.8 billion in patent fees annually.

After much thought, Wang Yi concluded that the most reliable approach was to directly acquire VIA Technologies' baseband division.

This way, not only would he master VIA's baseband technology, but he would also directly control some CDMA patents, making Qualcomm powerless.

With these foundational CDMA patents, he could sign patent cross-licensing agreements with Qualcomm.

Wang Yi remembered that in his previous life, Intel acquired VIA Technologies' communications subsidiary VIA Telecom's baseband business for $100 million in 2015.

Now Wang Yi could act earlier and acquire it immediately.

After all, procrastination leads to complications.

If he acquires it now, it might not even cost $100 million.

However, Wang Yi cannot handle this personally; he needs to arrange for Old Chen to come forward.

Currently, Chen Chuanqing is developing flagship stores on Taiwan Island, so he can conveniently handle the acquisition.

Wang Yi is currently too high-profile; if he were to handle the acquisition, it might attract the attention of the Empire, leading to acquisition failure.

If Old Chen steps forward, there won't be any issues.

The Empire's blockade is not yet so tight, so there is still an opportunity.

A few years later, when the Empire is keeping a close watch, Wang Yi would not be able to acquire VIA Telecom's baseband division.

Thinking this, Wang Yi immediately called Chen Chuanqing:

"Old Chen, go to VIA Technologies as soon as possible and acquire all of their baseband division and CDMA patents! Act quickly and discreetly."

"Okay, boss, what about the price..."

Chen Chuanqing hesitated.

Wang Yi thought for a moment:

"It's best to get it for $50 million. If not, $80 million is acceptable!"

Intel acquired it for $100 million in 2015, so $50-80 million in 2011 should be about right.

After all, VIA was on the verge of bankruptcy due to Qualcomm, its factories had long been shut down, and R&D had stopped.

The basebands currently sold to Huawei are 55nm basebands from 2009 inventory...

Simply put, VIA's baseband business was in a worse position than Texas Instruments.

Wang Yi's willingness to pay for the acquisition meant VIA would not refuse.

The only ones who might refuse are Qualcomm, and perhaps the Empire.

However, in 2011, smartphones were just starting, Qualcomm was not yet the hegemon, and could not dominate everything.

The Empire's blockade of the East was also not so high.

Wang Yi must act quickly, strike under the radar, and seize the opportunity!

As long as he acquires VIA's baseband business and foundational CDMA patents, Qualcomm will be powerless against Xingyi Technology in the future!

"Okay, boss, I'll go right away!"

Chen Chuanqing, seeing Wang Yi attach such importance to an issue for the first time, understood the seriousness of the situation and hurried off.

"Go, and contact me anytime if anything comes up,"

Wang Yi said.

Baseband technology involves patent barriers, and the earlier one enters, the better.

Later, it would be truly difficult.

And foundational patents like CDMA are crucial and cannot be bypassed.

Qualcomm relied on foundational CDMA patents to collect "Qualcomm tax" and rake in huge profits.

For example, Xiaomi's Surge S1 integrated a baseband.

But to avoid the Qualcomm tax, it specifically bypassed Qualcomm's patents, resulting in support only for five modes of Cat.4, meaning it could only use China Mobile 2G, 3G, 4G, and China Unicom 2G.

It not only did not support China Telecom 2/3/4G, but also didn't support China Unicom 3G, 4G.

Simply put, Surge S1 was a congenitally deficient China Mobile 4G chip, completely unsupported by China Unicom and China Telecom 3G, 4G.

It was precisely to avoid Qualcomm's patents that a universal network chip was self-crippled into a China Mobile chip... sales and revenue plummeted.

Wang Yi wants to make chips, which cannot be done without integrated basebands, and he must also quickly lay out patents.

The 3G era is now a thing of the past; all the meat has been divided, not even bone fragments are left.

Qualcomm took the lion's share; if Wang Yi enters now, he'll get nothing.

He can only pay patent fees or acquire some 3G patents from other giants to build his own patent moat!

For example, VIA Telecom's CDMA patents must be acquired.

In addition, if the price is right, 3G patents held by other giants must also be acquired with significant investment.

With enough patents, he can contend with Qualcomm and negotiate with them!

And for the upcoming 4G, Wang Yi still has a chance.

He can invest heavily to recruit industry experts and communication specialists, plan ahead, develop in advance, and seize the initiative!

Currently, many 4G standards are being developed in various countries, including WiMax, HSPA+, LTE, and WirelessMAN-Advanced... all of which hold some patents.

No one knows which standard will ultimately be adopted as the international standard.

Once their developed standard becomes the final international standard, they can earn substantial profits and gain discourse power based on the patents accumulated at that time.

But if the developed standard does not become the international standard, all investments will be wasted, all patents rendered useless, and there will be no discourse power, ultimately resulting in a complete loss of capital...

It's either a meteoric rise or total defeat, all depending on the gamble!

Just like in the 3G era, with so many standards, who would have thought that CDMA would eventually be chosen?

Thus, Qualcomm, which held the vast majority of CDMA patents, directly went from a small semiconductor company to a meteoric rise, becoming an industry hegemon!

It became a semiconductor giant that stepped on Nvidia and Intel, and punched Texas Instruments, MediaTek, and HiSilicon!

But Wang Yi, as a reborn person, clearly knows that the future 4G international standard will not be the currently popular WiMax or HSPA+.

But LTE and its improved version, LTE-Advanced!

China's TD-LTE-Advanced and FDD-LTE-Advance will also jointly become international 4G standards.

Knowing the final 4G standard makes it simple!

Simply put, other giants developing 4G are crossing the river by feeling for stones, all relying on guesswork.

Some are developing LTE, some WiMax, some HSPA+...

Those who guessed LTE correctly will make a fortune, hold a large number of 4G patents, and have great influence.

But those who guessed wrong, developing WiMax or HSPA+, will lose everything, all investments will be in vain.

But Wang Yi is navigating with a clear path, heading straight for the final standard!

Wang Yi can now invest heavily to recruit global communication experts and top talents, focusing on targeted R&D for LTE and LTE-Advanced!

Simply put, other giants will take detours, go down the wrong path, and lose all their capital.

But Wang Yi knows the final 4G international standard and will not take detours or go down the wrong path at all.

However, the 4G international standard will be released in three months, so R&D now will be difficult to yield results in the short term.

But Wang Yi can invest heavily to acquire core LTE patents developed by other companies and individuals!

LTE is not yet an international standard, and these patents are not expensive now, so Wang Yi can invest money to acquire them in advance!

This way, by early 2012, when the LTE standard becomes the international 4G standard, Wang Yi will have a certain ranking in 4G contributions.

Coupled with subsequent R&D investments, continuously producing new 4G patents,

His discourse power will also gradually increase.

As for the upcoming 5G final standard, Wang Yi also knows it clearly and can carry out targeted R&D in advance.

The difference between an open-book exam and a closed-book exam is that big.

Other giants developing 5G are taking a closed-book exam, while Wang Yi, as a reborn person, is taking an open-book exam!

He just needs to recruit top talent, invest money, conduct targeted R&D, and plan ahead.

Now that Xingyi Semiconductor has been established, application chip development has already begun.

A baseband department also needs to be established.

After acquiring VIA Telecom's baseband division, it will be the core for building Xingyi Technology's baseband department.

Then, using VIA Telecom's baseband technology as a foundation, he will continue to invest money to recruit talent and develop more advanced 28nm basebands!

Furthermore, he needs to recruit communication talent to establish Xingyi Communications, conduct targeted LTE R&D, and accumulate 4G and 5G patents!

At the same time, a patent pre-research division must be established to conduct early R&D on important patents in other fields!

For any core patents Wang Yi remembers, he will directly poach industry experts with high salaries, invest funds, and conduct targeted R&D!

For example, flip cameras for phones, 3D structured light, under-screen fingerprint recognition, fast charging technology, DC dimming, eye protection screens, hinge technology for foldable phones, etc...

Wang Yi is now investing funds and organizing talent for targeted R&D on these practical related patent technologies, which can completely yield results within a few years and become Xingyi Technology's patents!

In the future, when Samsung and Apple use them, they will have to pay patent fees to Wang Yi!

Additionally, for existing core patents, as long as the price is right, all acquirable ones will be directly acquired.

Xingyi Technology is just starting now, and what it lacks most is a patent foundation!

High-salary poaching for targeted pre-research + acquiring existing core patents, combining these two, will gradually build Xingyi Technology's own patent moat!

Once the patent moat is established, there will be no fear of patent wars or the Qualcomm tax.

Moreover, Qualcomm will later face repeated antitrust investigations and abuse from various countries...

After the abuse, Qualcomm's temper will have changed, and Wang Yi will have accumulated a large number of patents.

He can then cross-license with Qualcomm, making patent fees mutually exempt.

For a giant like Qualcomm, mutual exemption of a portion, and Wang Yi paying a tiny bit more, would be about right.

However, by the 5G era many years later, Wang Yi will be sufficiently prepared, having pre-researched relevant patents.

By then, it might even be Qualcomm that has to pay patent fees to Xingyi Technology!

Solid R&D is the fundamental key to rising.

Fortunately, Meiyou International has exploded, with impressive and sufficient revenue.

Sufficient profits support Wang Yi's massive investment in various talent recruitments, acquisitions, and R&D!

The road ahead is long and arduous; I will strive ceaselessly in my pursuit.

This path is destined to be difficult, but he must walk it.

As long as chip development is settled, baseband is settled, and patent layout progresses steadily, Xingyi phones will have a promising future in the high-end market!

Of course, for mass production, it still needs to be outsourced to TSMC and SMIC.

As for the lithography machine issue, that's something the official authorities need to worry about; Wang Yi can't handle it.

If Wang Yi can break Qualcomm's CDMA blockade and achieve self-developed chips and basebands, he will be very successful.

CPU, GPU, baseband, and patents are all indispensable; Wang Yi must lay out comprehensively.

For example, Xiaomi abandoned subsequent R&D of Surge S2, partly due to failed tape-out.

Secondly, it was still the Qualcomm tax!

After all, even if Surge S2 R&D succeeded, a sky-high tax would still have to be paid to Qualcomm.

If not paid, it could only be like S1, unsupported by China Unicom and China Telecom 3G, 4G.

Such a congenitally disabled China Mobile chip would see dismal sales...

Thinking of this, Wang Yi left the semiconductor department and immediately sought out Jian Ziyan:

"Ziyan, the hiring speed needs to accelerate! Semiconductor R&D engineers, baseband R&D engineers, recruit them all. Tell the HR department to speed up and incorporate their recruitment efforts into their performance reviews. Also, contact headhunters and offer generous commissions. Recruit some communication R&D talents as well..."

"Okay, boss,"

Jian Ziyan quickly replied.

She felt that ever since returning from the Empire, Wang Yi seemed like a changed man.

Previously, in fashion, Wang Yi was at ease, leveraging design styles a decade ahead of their time.

Brands like H&M, Zara, Gucci, and Prada were all directly crushed.

The fashion industry depends on design, cost, and marketing.

No matter how big the brand, if the design is ugly, few people will buy it, as consumers aren't blind.

Wang Yi, with his "pure desire" style designs a decade ahead, low domestic costs, and the Meiyou App and Meiyou Mall marketing targeting female users, used a combination of strategies to succeed directly.

To be honest, the barrier to entry in the fashion industry is not high.

But precisely because the barrier is not high, it means that what Wang Yi can do, others can also do; there aren't many entry barriers.

And precisely because of this, current fashion giants like H&M, with annual revenues of 160 billion, will be worse off in ten years than they are now!

Even Nike and Adidas will see their future revenues decline.

Simply put, the clothing industry and footwear industry are declining industries!

Any industry with low technical barriers will continuously decline.

But mobile phones and semiconductors are different.

Technical barriers, patent barriers, supply chain barriers... all aspects are difficult.

All must be broken through one by one.

This led to many new mobile phone brands failing within a few years and almost all going bankrupt in the following years...

(End of Chapter)

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