Chapter 1407 The Way of Competition

The relationship between Intel and Chaowei is actually very interesting. Why have there been remarks in the previous life that Chaowei is actually controlled by Intel?

Not only because the directors of Chaowei are the former directors of Intel, but also the former shareholders of Intel among the shareholders of Chaowei, but also because the two parties have a cooperation agreement to exchange authorized technology patents.

The research directions of Intel and Chaowei have always been different. Although they are both processors, the research directions of processors are also different.

Just like this time, Chaowei is slightly better on dual-core processors, but with single-core processors, Chaowei still can't compare with Intel.

But if the two parties exchange technical patents, they can both master new technologies, allowing them to be far ahead of other semiconductor companies in terms of processor technology, so that the two of them share the processor market.

Intel's annual turnover last year was almost ten times that of Chaowei. Chaowei's turnover last year was less than 4 billion US dollars, but Intel's turnover was close to 40 billion US dollars.

Although the PC market is increasing rapidly, and the processor and workstation market is also rapidly expanding, in the processor market, Intel's market share has been crushing Chaowei.

However, Intel did not dare to crush Chaowei, because that would involve a monopoly and would force Intel to be split up. Even if Intel doesn't want to, other semiconductor companies will sue on the grounds of monopoly.

Therefore, Intel has been maintaining a competitive and cooperative relationship with Chaowei.

Competition is naturally the competition in the market. Intel has always wanted to suppress Chaowei, but it will not use its own influence to make Chaowei have no orders.

Cooperation is the exchange and authorization of the patented technologies of both parties, ensuring that they are ahead at the same time. Of course, there are limits to the licensing of patented technology exchanges. Obviously, neither party will license the most core technologies to the other party, which means that the most they authorize are sub-new technologies.

In the past, Chaowei and Intel often fought lawsuits, accusing each other of patent infringement and accusing each other of monopoly in certain aspects.

Most of Chaowei won as a weak group, and at most one time he lost nearly 1.5 billion US dollars, which is much higher than the profit of Chaowei in one year.

Almost every time the other side introduces a new processor, they sue. Either Chaowei sued Intel, or Intel sued Chaowei.

Last time, Chaowei sued Intel and there was vicious competition in the sales of processors. This time, it was Intel's turn to sue Chaowei for using the pictures in the technical competition, and the out-of-context propaganda was an obvious means of unfair competition.

But Chaowei doesn't care at all. The two sides have been fighting for so many years, and there are no 100 or 80. If you sue, you will sue. Let's grab the market first.

Anyway, a lawsuit can't be finished all at once, especially among big companies. All kinds of evidence, all kinds of delays, no verdict will be made for a year and a half. The lawsuit between Microsoft and the European Union dragged on for six or seven years is proof.

If you see a little bit of the other party's intention to win, you can ask the lawyer to make an appointment with the other party for an out-of-court settlement or something. Then the settlement talks collapsed, and the court went to court again.

Of course, there are also successful out-of-court settlements, depending on how the two parties exchange interests.

Not only Chaowei and Intel, but this relationship of competition and cooperation exists among a variety of peer companies.

For example, the earliest Suoni and AIWA are like this. They authorize each other's patents and borrow channels from each other, so as to crowd out other competitors and let them share the Walkman market.

It was only after AIWA was acquired by Feng Yu that this cooperation was suspended. After years of development, AIWA has completely surpassed Suini in portable music player products, which may never be expected by Suini.

Feng Yu had seen many methods of competition in his previous life. For example, in two domestic milk companies, the employees of one company concocted fake news saying that the other party's milk source had problems, which made the other party's dairy products unsalable and increased their sales.

There are also two beer companies competing,

In order to monopolize the market, a terminal salesperson buys each other's beer bottles. The beer bottle itself is a recyclable bottle, but when one party wants to produce it, they find that there are not enough beer bottles, and the loss rate far exceeds a hundred times the normal loss, making them unable to produce.

Another beer company took the opportunity to mass-produce and thus occupy the market. Although it cost a lot to acquire the other party's beer bottles, the market grabbed it, and it didn't take a year to earn it back.

There are also two kinds of home appliance salespersons, promoting sales in one place, and then in order to compete for customers, the two sides fought each other, and both sides lost. There was even a life lawsuit.

Another thing is that between two software companies, because the software market makes technical means for each other, if you can use my software, you cannot use your software, and the two software are incompatible with each other.

The constant pop-up window prompts that the other party's software is a virus and needs to be uninstalled and deleted. This brought great inconvenience to users, some users chose to delete one of the software, and some users simply deleted both softwares.

But in the end, it was one of the software that triumphed with more and more loyal users. Under the mediation of the above, the two sides also patched each other and made compromises. One of them is Penguin.

The competition between enterprises is originally healthy competition, that is, normal business competition under certain rules. See whose product is better, whose price is cheaper, whose service is better, and so on.

However, some companies advocate the so-called wolf culture, in which corporate competition is either you eat me, or I eat you. In fact, this is only done by small businesses. Who would dare to swallow up all the competitors in a real big business?

Just like where there is Coca-Cola, there will be PepsiCo, and where there is McDonald's, there will be KFC. Although they compete, they also promote each other and crowd out other competitors.

Feng Yu asked the CEO of Chaowei, but the other party told him that there is no need to worry, it has become the norm for them and Intel to sue each other, and I believe that it will not be long before they will settle out of court.

As for how long it will take, it should depend on who has researched the newer technology first.

But no matter what, next year, Chaowei's market share will increase to more than 20%. Originally, Intel was ten times more powerful than Chaowei, and it would quickly shrink to about four times.

As long as Chaowei can develop a leading processor, the gap will quickly narrow. Five years later, Chaowei's market share has increased to more than 40%, which is very promising.

At that time, Intel could no longer underestimate Chaowei so much, or that Chaowei really had the ability to wrestle with Intel.

At this time, Feng Yu got together with Liu Chuanzhi and others to discuss the production of a new product.

...(To be continued.)

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