Even the CPU wants to do it himself, Duan Yongping is really completely speechless now, why can't he go to heaven.

"I naturally know how troublesome it is to make these things all by myself, how thankless it is, but there is no way, we can only do this, if there is no core technology that belongs to us, killer features, then we will have no power to fight back in the face of the attack of foreign companies in the future, not only most of the profits will be exploited, but also controlled by others. Fang Chen said in a deep voice.

In fact, in the previous life, the contention of hundreds of schools of thought in the domestic VCD industry was a very accidental thing, not only because Wan Yan created this field, but he did not have the ability to control this field, and he did not even have the right to speak.

What impact can a company with a market share of only 2% have on the market?

Not to mention dominance.

Another key is because European, American, Dongwei and other enterprises do not pay attention to VCD.

In the previous life, after Wanyan developed the VCD, Dongwei relied on its strong scientific and technological strength to quickly reversely develop the VCD belonging to Dongwei from the purchased Wanyan VCD, and it was better in terms of advancement.

However, the Dongwei people made a strategic mistake, they believe that VCD is a transitional product between the VCR and DVD, its technical life is only four or five years, and the market potential is limited, not to mention that the function of laser disc and VCD in the Dongwei market is basically similar, and the market is booming, there is no need to vigorously develop VCD.

The misjudgment of the Dongwei people left a relatively pure space for the development of Huaxia VCD.

Later, it was discovered that the VCD market, or the DVD player market, was vibrant and had endless potential, and some multinational companies quickly adjusted their strategies.

Toshiba modified its own software to produce VCDs with strong error correction capabilities suitable for China's national conditions, and Philips also developed VCDs of about 1,000 yuan to compete with domestic machines.

South Korea Samsung, Daewoo and other companies have also attacked the Chinese market with new products and low-price VCDs.

These foreign companies quickly defeated the local enterprises in China, and in a short period of time, they occupied 60% of the market share of China's VCD.

There is no way, although the price of domestic VCD at that time has been forcibly pulled from three or four thousand yuan to about two thousand yuan by Aiduo, but in the face of many grandfather companies such as Dongwei and Nangaoli, they have no power to fight back at all by taking advantage of scale advantages, technical advantages, and capital advantages to sell more than 1,000 yuan of VCD.

Among them, the most obvious advantage of foreign manufacturers is the technical advantage.

Relatively speaking, although Huaxia is a big VCD producer, it is not a strong country, and the main components of VCD, such as decoding chips, laser heads, and movements, all rely on imports.

At the end of 96 to 97 years, the Chinese manufacturers actually encountered a joint blockade of the market by foreign investors, and the other party also raised the price of parts and components while fighting a price war with the Chinese manufacturers, and adopted measures such as restricting the supply of Chinese manufacturers.

Originally, 60% of VCD profits were taken away by these few decoding chips, laser heads, and movement manufacturers, and then foreign companies used these means, how could local Chinese companies be undefeated.

After VCD gradually disappeared from people's sight, some scholars analyzed that most companies hoped to stabilize the price of VCD at a higher price, so that enterprises could save enough stamina with huge profits, strengthen technology development capabilities, and win with high technology.

But Fang Chen wants to say that this is wishful thinking, because large international companies with strong capital and strong technology will destroy this idea of small investment and small development overnight.

This kind of foreign enterprises take advantage of their own technological advantages to exploit most of the profits from Chinese enterprises, and even use this to blackmail Chinese enterprises at some times, and jam the necks of Chinese enterprises, which abound.

For example, domestic dairy companies, Mengniu Yili, including Guangming, Huiyuan, Wahaha, Want Want and Yinlu, etc., are all working for a Swedish packaging factory, Tetra Pak Packaging Company.

The Swedish company's products account for forty percent of the cost per carton of milk.

However, for every carton of milk sold, dairy companies can only get 1/4 of the profits, but the Swedish company can get 3/4, and some media have described Tetra Pak as "the arms dealer behind the dairy battlefield".

In the face of such exploitation, domestic companies are naturally unwilling, but why can they still only pinch their noses and endure it.

The reason is simple, Tetra Pak is highly skilled.

Tetra Pak's bad bag rate can be controlled within 1 in 10,000, while the average level of domestic enterprises is 2 to 3 in 10,000, in addition, the difference between Tetra Pak and other packaging materials is also reflected in the storage time of milk.

The difference between the two can reach 20%-30%. In other words, if the shelf life of Tetra Pak is half a year, other packaging materials may only be four or five months.

This is related to the life and death of a dairy company, or whoever does not use Tetra Pak's packaging will be killed by other dairy companies because of backward technology.

On a tiny bag, Tetra Pak holds more than 5,000 patents for the technology, with 2,800 in development and pending.

Other foreign high-tech companies, such as Intel chips, Qualcomm chips, YKK zippers, etc., are similar to Tetra Pak packaging, not to mention that you can make money lying down, but that's really what it means, using your own intellectual property rights, patent advantages, and the maximum benefits.

A parts supplier earns much more than the main engine factory.

However, it is worth mentioning that in 2016, the State Administration for Industry and Commerce found that Tetra Pak Group had abused its dominant market position and violated the anti-monopoly law, and imposed a fine of about 668 million yuan.

This is also the reason why Fangchen now insists on developing key parts such as its own decoding chips, laser heads, and movements.

"The survival of high-tech products must be built on their own strong technical strength, otherwise it is the moon in the well, the flower in the fog, and the mirage-like existence. Fang Chen said in a somewhat sad tone.

Duan Yongping was silent, he felt that his brain was a little insufficient, Fang Chen threw out such a big issue at once, he couldn't catch it.

After a long time, Duan Yongping asked: "I agree with what you said, and I also think that it is essential to have your own core technology, but you must know that manpower is sometimes poor, and some things are not said that we are willing to solve them, and we will definitely be able to solve them." ”

"You want us to do these by ourselves, then I have three questions you need to answer, the first is the problem of capital investment, the second is the problem of technical strength, for example, Philips' laser head, Philips has manufactured and developed laser heads for more than ten years, invested hundreds of millions of funds in it, and hundreds of scientific researchers working for the research and development of laser heads, it can be said that it has spent countless manpower, material resources, energy, and time, so that there are current results, how do you compete with them?"

Fang Chen chuckled, "In my opinion, both of your problems are the same problem, that is, the problem of capital investment, after all, scientific research strength, or scientific researchers, can also be purchased with money, Philips uses a hundred researchers, I will use two hundred, or even three hundred researchers, as long as the funds are invested enough, I don't think the research progress is a problem, and do you think I am short of money?"

There are three types of scientific research in this world, basic research, applied research, and development research.

The most difficult thing is basic research, such as gravity, the theory of relativity, the unified field theory, string theory, and so on.

Basic research, in addition to financial investment, relies more on the promotion of geniuses such as Newton and Einstein.

However, the latter two, applied research and development research, basically follow the principle of more people and more power, the more money invested, the more researchers invest, the faster the results will be produced, and the more likely they will be successful.

In particular, research activities and development research are carried out with the content of producing new products or completing engineering and technical tasks.

As long as the money and people give enough, it is only a matter of time before the results are produced.

This is also the reason why China knows that the battery technology is not up to par now, and vigorously promotes battery cars, as well as the Netherlands and Norway in 2025, Germany in 2030, France and the United Kingdom in 2040 to ban the sale of fuel vehicles.

Because it is clear to everyone that the battery problem will definitely be solved, it is only a matter of time, not a technical one.

However, it is necessary to know a truth, that is, the latecomer advantage, the latecomer has a "free ride" effect, and the latecomer will save a lot of investment than the first-mover in many aspects such as product and process research and development, customer education, staff training, basic investment, etc., and then benefit from it.

That is to say, the first movers, spend 100 million to research something, and the later movers can obtain this technology with 10 million or even lower research funds.

This is also why, since the nineties, the strength of Huaxia science and technology has grown by leaps and bounds, and the price spent by the pursuers is always much lower than that of the pioneers.

It can even be said that why the late-developing countries such as the United States, Dongyi, and South Korea in their time were able to become scientific and technological powers is also because of this reason.

What Britain, Germany and other European countries painstakingly researched, the United States can obtain at a small cost, or even nothing.

"You are naturally not short of money, and I admit what you said, the money is in place, and the technical strength is not a problem, but the most important thing is, the third question, have you ever thought about what if we can never catch up with the latest technology that Philips has?" Duan Yongping said helplessly.

While they are making progress and catching up, Philips people will not be idle, and people will also research better technology products.

However, there is one distinguishing feature in the tech sector, and that is winner-takes-all.

Everyone wants to use the best products, which means that the second-class products will be ignored, and the second child will almost starve to death.