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Chapter 395 Operating System Development Strategy
This morning, Lin Rui and Li Yaqin were discussing the development of the operating system.

Li Yaqin said: "With the current industry structure, if you want to make achievements in the operating system and occupy a part of the market, the rise of smartphones is an opportunity."

"According to Mr. Lin's plan, this Internet of Things-based operating system, depending on the focus, can not only be used as an operating system for smartphones, but also a PC-side operating system."

"We can take a break on the PC side. Microsoft's advantages in this area are too obvious, and it is difficult to find opportunities. First concentrate on the development of mobile phone operating systems, and wait for some achievements in smartphone operating systems. With a user base and influence, It is slowly making efforts to the PC-side operating system.”

Lin Rui nodded and said: "I think so too. Nowadays, smartphones have not been on the rise, especially in China, and there will be a huge wave of replacements in the next few years. As long as they are operated properly, it is not too difficult to occupy a part of the market. things."

"When we gain a firm foothold in the smartphone operating system in the future, and then enter the PC-side operating system, the hope is great. This can learn from Apple, and in the future, we will enter the two major operating systems of mobile phones and PC-side at the same time."

Li Yaqin said: "Boss Lin is right. The company can develop in this direction in the future. However, open source is very important for the rapid promotion of the operating system. It is necessary for the company to launch an open source operating system first."

Lin Ruidao: "Launch an open source operating system first to learn from Google's Android? Compared with Android, the closed Apple system has a better experience."

Li Yaqin nodded in agreement, and then said: "Apple's system experience is really good. If you learn from Apple, the company will need to get involved in hardware in the future, and even launch its own mobile phones and computers."

Lin Rui froze for a moment, and pushed out his mobile phone and computer!

He really didn't think about this, he just wanted to develop an operating system.

After thinking about it carefully, if you launch a closed operating system like Apple, you really need to launch your own mobile phone and computer, otherwise how will the system be promoted.

It's just that mobile phones and computers are different from Internet software products that are all virtual. They involve a lot of hardware and are not so easy to make.

After thinking for a while, he asked, "What do you mean?"

Li Yaqin said: "I think the company should launch an open-source operating system first, so that major mobile phone manufacturers can use it for free, and then win over domestic mobile phone manufacturers to install it by buying shares or other methods."

"Don't expect them to give up the Android system, but they can take out some mobile phones to use the new system."

"In addition, the company has invested in so many start-up companies and so many Internet software, it is not difficult for them to port their products to the new operating system."

"In this way, the basic software ecology is established."

"If you have a mobile phone and an ecology, you can accumulate users and gradually improve the mobile phone ecosystem."

"If you want to learn from Apple in the future, with the ecology established by the open source system, it will be easy to launch a closed operating system on the basis of reproducing the ecology."

"Users and ecology are ready-made, as long as they are carefully polished, it is easy to develop."

Lin Rui thought about it, and it was indeed the truth.

"You are right. Time waits for no one, and the operating system is not so easy to develop. We need to concentrate all our energy on developing an operating system and bringing it to the market."

"Now, on the eve of the outbreak of smartphones, we must take this opportunity to push the system to the market and form an ecology."

"As long as this goal is achieved, whether it is to launch a closed operating system or a PC-side operating system, it will be much easier."

Seeing that Lin Rui agreed with his point of view, Li Yaqin was very happy.

After discussing for a while, the two settled on this matter.

Next, Weiyang Research Institute will use most of its resources and manpower to develop an open source operating system based on the Internet of Things.

After the conversation just now, Lin Rui also became interested in hardware.Think about what it would be like to learn from Apple one day, build a complete ecosystem, and launch your own brand of mobile phones and computers.

I asked Li Yaqin about it, and he was quite optimistic about it.

As long as the operating system forms an ecology and masters certain core technologies in hardware, it is a good time to enter the market and make mobile phones.

The two discussed some core technology issues, and Li Yaqin provided some suggestions.

"To enter the mobile phone industry, a simple assembly plant has little future. It needs to master its own core technology. This is the confidence to stand at the top and build a brand."

"The two most critical technologies for smartphones are the operating system and the chip."

"The operating system is the company's next main target, so don't worry about it. The chip is very troublesome. At the current domestic level, it is very difficult to start self-development from scratch."

"However, if you want to build a brand, especially a high-end brand, you can't do it without your own technology. Especially the chips of your own brand are very important."

"Just like foreign high-end brands, Apple and Samsung have self-developed chips. Although there are so many mobile phone brands in China, it is difficult to develop into high-end. Huawei's Hisilicon chips are good, and there is hope to enter the high-end market in the future."

Lin Ruidao: "The chip is indeed a problem. If you want to develop your own chip, what is the simple and effective way?"

Li Yaqin said: "In the chip industry, technology accumulation is very important. If you want to start from scratch, you will not even be able to enter the door within a few years."

"The most suitable way to enter the market is acquisition. As long as the target is suitable, talents, technology, and industrial chain are all available!"

Lin Rui nodded and said: "Acquisition is a good way, but most of the powerful chip companies are abroad. It is difficult for the West to restrict domestic restrictions. I am afraid it will be difficult."

Li Yaqin said: "It is not necessary to acquire foreign companies. There are also chip companies that do well in China. Although there is a certain gap in technology compared with foreign companies, the foundation is very solid and has its own complete technology system. As long as we increase investment, we will gradually can also develop.”

Lin Rui said: "You mean..."

Li Yaqin said: "Mr. Lin, have you heard of Spreadtrum?"

Lin Rui shook his head. He is familiar with the Internet and doesn't know much about domestic chip companies.

Li Yaqin said: "Spreadtrum is a chip design company established in 01, and it has been 11 years now. It has independent intellectual property rights and technology systems, and has a very solid foundation. It is mainly engaged in wireless broadband technology, signal processing technology, and IC design..."

"Including a new generation of dedicated baseband chips, multimedia chips, and radio frequency chips... this aspect is second only to Huawei HiSilicon, and is one of the best chip companies in China."

"In 03, we developed the world's first multimedia baseband integrated single-chip, and in 04, we developed the world's first dual-mode baseband single-chip. The technology accumulation is very strong."

"They were listed on Dasnak in the United States in 07, with a maximum market value of more than 30 billion US dollars. However, due to the emergence of smart phones in the past two years, Spreadtrum's efforts in this regard are a bit late, and they are not recognized by American investors."

"At present, Spreadtrum's price-earnings ratio in the US stock market is only about ten times, which is much lower than that of US chip companies, and its market value has been fluctuating around US$10 billion."

"Placing Spreadtrum in the United States is naturally not outstanding. Compared with American chip companies, its competitiveness is not high. This is also the reason for the low market recognition and low stock prices."

"However, it's quite different in China."

"If it is acquired, it will have mature technology patents and development ideas. As long as it is willing to invest in research and development, even if it is technically inferior to those foreign chip companies, it has its own unique product system and chip system. As long as there is enough time, there will always be catch up. day."

After listening to Li Yaqin's introduction, Lin Rui's eyes lit up. US$10 billion is not expensive. Even if it is acquired at a 50% premium, it is only US$15 billion, which is just over 100 billion yuan.

For such a high-quality enterprise, the company only needs to provide 30 billion in cash, and the bank can handle the rest.

Moreover, the most important thing is that Spreadtrum is a domestic enterprise, and there are no restrictions on acquisitions.

The more Lin Rui thought about it, the brighter his eyes became. He looked at Li Yaqin and said, "Yes, Spreadtrum is really suitable. We can consider acquiring it. Are there any domestic chip companies worth acquiring?"

Seeing Lin Rui's appearance, Li Yaqin was obviously moved, and he knew everything about such a bold and aggressive boss.

After thinking for a while, he said again: "There is another chip company headquartered in Shanghai called Di Rui Ke, which is also very strong. It was listed on NASDAQ in 10 years, and its current market value is about 6 million U.S. dollars."

"This company is mainly engaged in radio frequency ICs, and has accumulated a large number of technologies in digital, analog circuits, radio frequency systems, power amplifiers, and signal processing."

"It can produce a variety of chips, including communication support chips, broadcast communication chips, set-top box radio frequency receivers, mobile TV signal receivers and tuners, satellite TV tuners, and wireless data connection chips."

"There are also many types of chips on mobile phones. Di Rui Ke can make a good supplement to Spreadtrum, and it is also a suitable acquisition target."

"In addition, there are many potential chip companies in China, or chip companies that are developing well in other fields."

"However, the company will enter the smartphone market next. I think these two companies are more suitable for acquisition in terms of technology accumulation and R&D strength."

"If everything goes well and the two companies are merged, the company's shortcomings in chips can be made up. Although the technology will lag behind in a short period of time, it will always catch up slowly."

Lin Rui nodded, a little excited.Clearly pleased with his answer.

The two chatted for a while to finalize the matters that needed to be dealt with, and then ended the conversation.

Then Lin Rui ordered her secretary, Shen Fei, to find someone to collect some technical information related to mobile phones, as well as some companies in the domestic related industrial chain, especially the top-ranking chip companies in China, to sort them out.

In the evening, just after Lin Rui had dinner, he opened his notebook, and the materials Shen Fei had sorted out had already been sent.

Click on the mailbox to collect relevant technical information and industrial chain companies, as well as some information on domestic chip companies.

First look at Spreadtrum's information, in 05, it developed a multimedia entertainment mobile phone chip with independent property rights; in 06, it developed a GSM/GPRS baseband chip with independent intellectual property rights.

In 07, it developed a mobile phone core chip supporting HSDPA function, and in August of the same year, developed the world's first commercial AVS audio and video decoding chip with independent intellectual property rights.

In 08, Spreadtrum successfully acquired Quorum Systems In, an American radio frequency chip company, and released the world's first single-chip four-card four-standby mobile phone.

It was only later that we entered the design of smartphone chips. In January last year, we released the world's first 1nm low-power commercial multi-mode communication chip.

After so many years of development, in addition to Huawei HiSilicon, Spreadtrum is the most powerful mobile phone chip designer in China.

It is indeed worth buying.

Then I turned to Di Ruike Chip Company, which is similar to what Li Yaqin introduced, and it is also a very powerful chip manufacturer in China.

There are still many chip companies left in the data, and many companies are not weak.However, they are all in other industries, related to smartphones, and there are only these two companies with a solid technical foundation.

Then I saw the leading domestic chip foundry "SMIC", as the largest chip foundry in China, from the introduction of the information, the development of SMIC is very bumpy.

Compared with the glory of the past few years, it has now declined.

"SMIC" was established in 2000. At that time, as a key project, it received the country's key attention and attention, and the initial fundraising had 10 billion US dollars.

In 02, the 0.18 micron logic process passed the verification and realized mass production, and then began to expand aggressively.

In 03, it raised another US$6.3 million. In 04, SMIC was listed in New York and Hong Kong, raising nearly US$18 billion. At that time, its market value exceeded US$60 billion.

With the cash in hand and a large number of loans from the bank, SMIC began to build factories in many places and rapidly expanded production capacity.

At that time, chip shipments were second only to TSMC and Intel, ranking third in the world, and Samsung Semiconductor only ranked fourth.

Then TSMC felt threatened, and many of SMIC's R&D teams came from TSMC, and Zhang Rujing, the person in charge, was even an old rival of TSMC.

As a result, it began to vigorously sue SMIC for infringing its intellectual property rights internationally, and the lawsuit continued until 09.

Being entangled in lawsuits caused SMIC's development to plummet. In 09, TSMC saw that SMIC was no longer a threat, and the two parties reconciled.

Then Samsung Semiconductor looked at the opportunity and hired a large number of technicians from TSMC with several times the salary, even including Liang Mengsong, the head of the technical department of TSMC, and Samsung Semiconductor began to rise from then on.

TSMC has recently started an international lawsuit with Samsung. Unfortunately, Samsung is behind the American father, and TSMC has no choice but to slowly consume it.

……

After going through so many twists and turns, until now, SMIC's market value is only more than 30 billion US dollars, and its sales are not as good as even a few years ago, which is really impressive.

Lin Rui's heart was moved when he saw it. Chip manufacturing, as a key link in the chip industry chain, is very important. Is there any chance to get involved.

A wholly-owned acquisition of SMIC is not practical.Chip manufacturing is an important part of the country's development layout, and its importance cannot be undertaken by individuals.

The importance of SMIC, as a leading company in chip production in the mainland, is self-evident, and it is too difficult to acquire it.

However, it is a good strategy to absorb some stocks in the open market, inject a sum of funds into shares when the opportunity is right, and become a major shareholder of SMIC.

After reading the information about the chip, Lin Rui began to look at the related technologies and industrial chain companies of smartphones.

I secretly plan in my heart, if there are suitable ones, I will acquire a few, or hold a few holdings.Control part of the smart phone industry chain and support the development of related industries.

Compared with chips, some technologies are not core technologies and are not so eye-catching, but as long as the technology is leading, they are still very competitive.

(End of this chapter)