Chapter 906: You Have to Spend It

3DFX’s compromise really surprised the industry.

To the outside world, 3DFX has always been a very proud company.

After all, the three entrepreneurs so far are all under 30 years old. Not only that, the company has only been established for less than four years. It is a truly young company and at the same time, it is also very successful.

In four years, it has almost reached the pinnacle of the industry.

This arrogance is understandable.

But because of this, he offended the entire industry.

After all, as a display chip manufacturer, it is too unkind to manufacture boards and compete with downstream board manufacturers. Therefore, it has been boycotted by all board manufacturers in the entire industry. These board manufacturers have switched to Nvidia or ATI.

They don't make voodoo graphics cards, let you play with them yourself.

The industry is generally not optimistic about this situation. Even if you are at the top now, the IT industry is changing too fast. It is common for someone to fall off the altar by accident.

As a result, who would have expected that it would suddenly announce that it would abandon the board manufacturer and focus on display chips. This really makes people admire that it is indeed a young company and can bend and stretch.

Therefore, board manufacturers such as ASUS, MSI, and Gigabyte have also returned. After all, voodoo is now popular and can make money. Who doesn’t want to make money?

At this moment, Lei Jun looked confused.

"We bought a board manufacturer?" Lei Jun was immediately confused.

Qin Feng smiled.

"Yes, I bought STB, an old board manufacturer. You arrange for someone to accept it and then move it to China." Qin Feng said, "By the way, this acquisition cost 200 million US dollars. Company funds As for the turnover, if it’s not enough, wait until I come back to sign another agreement with the bank!”

Before this, 10 billion was borrowed. But it has already been spent.

For a CPU farm, 10 billion sounds like a lot. In fact, the funds for various equipment, production lines, employees, research and development, etc. are simply not enough.

What's more, now Huaxia Loongson doesn't make any money at all. In China, only the manufacturing cost of Godson is flat, and it does not make a penny. As for the millions of pieces exported, the average loss per piece is about US$5. And as international logistics costs increase, this loss will continue. Moreover, the export volume of Loongson is also increasing.

Including the astonishing R&D funds, 10 billion yuan is really not worth spending.

This is why Cyrix sold the company so cleanly, even if it clearly had a new technology yet to come out, it did not hesitate to sell it.

The reason is that the CPU factory is too expensive.

Intel's annual R&D funding is tens of billions of dollars. Otherwise, how could we maintain such a strong technical advantage? This is why Intel must sell at a high price.

R&D costs are too high.

This is why Intel hates Qin Feng’s price war so much. They lost a lot of money out of thin air, making it difficult to fill the gap in research and development funds.

Therefore, there used to be some newspapers in China,

It is pure nonsense to say that 50 billion yuan can produce chips.

Their annual R&D costs are more than 50 billion!

Of course, if you have to just get a chip and say it was developed by yourself, that is indeed possible. But if you want to truly independently develop something, it is impossible to develop it without long-term investment of several years or even more than ten years.

"Okay, we are not very short of funds." Lei Jun said.

Now the company just doesn't make money, no, even Lei Jun admits it's losing money.

Because this is related to China's great cause. But Qin Feng brought a graphics card manufacturer over, what was he going to do?

"Here, what do we do?" Lei Jun asked confused.

Qin Feng smiled.

"Producing graphics cards." Qin Fengxiao said, "And this time I am cooperating with voodoo. In the future, we will launch a CPU with an integrated graphics chip. But before that, we have to integrate the graphics memory chip into the motherboard."

Lei Jun exclaimed when he heard this.

This kind of integration is unprecedented. But if you think about it, you will know how big the market is.

After all, computers are expensive. For many families, buying a computer is a high expense. Everything costs money.

If you can save money on a graphics card, that's naturally good.

In this way, the purchase cost can be reduced a lot.

After all, no matter what, a graphics card, no matter how rubbish it is, now costs one or two hundred yuan. These days, missing one or two hundred yuan is a big deal.

"Can this really be integrated?" Lei Jun asked.

"Yes, this is our only chance to overtake in a corner!" Qin Feng affirmed, "By the way, how much money does the company still have on its account?"

"Well, at present, there are still 7.6 billion left on the books!" Lei Jun said.

Qin Feng did the math and bought STB for US$200 million. Based on the current exchange rate, it is about 1.6 billion. Then I bought the equity of 3DFX, which is only 15%, which is not expensive. This one is $45 million. Converted, that’s about 350 million.

This adds up to 2 billion. There is still plenty of money left.

Of course, this is why Qin Feng first borrowed 3 billion to set up the CPU factory, and then saw that the situation was not right. He took advantage of the opportunity to build a U-shield with the four major banks and borrowed another 7 billion, making up 10 billion.

Otherwise, there is really a lot of shortage of funds.

In particular, it will still cost a lot of money to relocate the STB.

"Well, you apply for foreign exchange and remit the money to the company's overseas account. Well, you can exchange 5 billion directly." Qin Feng said, "I am also going to talk to ATI about acquiring their CPU technology!"

"They also developed a CPU?" Lei Jun was surprised.

"Well, internal information from voodoo, they also developed a CPU, and the performance was good, but it was not cost-effective and the cost was too high, so they gave up." Qin Fengdian said.

After all, doing cross-industry business involves huge risks, which can easily lead to industry boycotts. ATI originally responded to Intel's inter-industry move, and they wanted to cross-industry.

If Intel gives up, they will naturally give up too.

"By the way, Qin Feng, I have something to say, I don't know whether I should say it or not!" Lei Jun hesitated.

"What are you talking about?" Qin Feng asked curiously.

"That is, if you spend money like this, it is all borrowed. What if the bank doesn't borrow it?" Lei Jun said worriedly.

Now his side is entirely a loan operation.

Although the cameras and microphones produced make money, they only make "little money" and cannot cover the CPU overhead.

Qin Feng spends money lavishly again, although in the long run, it is all money that should be spent. But spending so much money is too scary.

"Alas, there is no way, we don't have any technical reserves! Therefore, we should spend all the money we should spend!" Qin Feng was determined.

Lei Jun sighed.

He always felt that if he spent money like this, spending bank money, it would be troublesome if someone intercepted the capital chain.

At this moment, Qin Feng has arrived in Canada.