Li Xuan smiled and said: "We are not ready to open a factory in Hong Kong, but in Chinese mainland! The Chinese government has established a special economic zone in the area connected to Hong Kong, allowing wholly foreign-owned factories to set up factories!"

The new joint venture will be managed, produced and sold by us, and RCA will only be responsible for providing the technology, and we will be able to enjoy the dividends at the end! We hope that the new factory will have an annual production capacity of more than 3 million picture tubes!"

Li Xuan directly threw out a bomb, and he didn't believe that the senior management of RCA would not be moved. In 1981, the U.S. economy was in the midst of a mild but rapid recession. Dongfang Electronics' game and computer industries are all emerging industries, and the market itself is expanding rapidly, so the impact of the economic recession is not obvious.

But in a mature industry like television, the market has long been saturated, and the recession has directly led to a decline in demand, and the sales of TV sets in the United States have been declining since the beginning of the year, which is definitely very bad news for RCA.

Last year, RCA's total sales of televisions were 3.8 million units, and the total production of picture tubes was about 5 million, and these two figures are expected to decline this year.

Li Xuan proposed to build a new joint venture factory with an annual output of 3 million picture tubes, which is 60% of RCA's total production of picture tubes. If the products from this new plant do not capture RCA's existing market, it will definitely be a good investment!

"I found that RCA's main market for CRT is in North America, and it only has a large market share in the Taiwan-Gulf region in Asia! The rest is mainly sold in the Asian market!, so that it will not cause damage to RCA's existing market, and it will be a beneficial and harmless investment for your company!" Li Xuan said with a smile.

RCA has lost almost all of its overseas markets in competition with Japanese electronics companies. If a counteroffensive can be achieved in the Asian market. This is definitely good news for a heavy dà.

Li Xuan's planning of the new factory will naturally not directly build a production capacity of 3 million picture tubes in one go. Instead, it will be built in two phases. Each phase of the plant has a production capacity of 1.5 million picture tubes. With the development speed of the arcade and computer industry in the next two years, when the first phase of the factory is put into production, Oriental Games Company and Aikang Company will be able to digest at least 1 million CRTs internally. The remaining 500,000 CRTs are not very difficult to sell to the mainland and Southeast Asian markets.

Building a factory with an annual output of 3 million CRT tubes is definitely a big business with an investment of tens of millions of dollars. Even if both parties are interested, they need to sit down and talk slowly. In the future, Dongfang Electronics will use more detailed numbers to convince RCA that they are fully capable of absorbing the capacity of the new factory, which is not a very risky investment.

In fact, RCA does not have any technical advantages over Japanese TV giants such as Sony and Hitachi, but Li Xuan did not choose to cooperate with Japanese companies. U.S. companies pay more attention to practical interests when negotiating joint ventures. Rather than infiltrating and controlling the collaborators. As long as the price is right, U.S. companies are willing to sell a variety of patents. Japanese companies, on the other hand, have large conglomerates behind them, hoping to assimilate you into a small vessel in their tight industrial network.

What's more, throughout the 80s, Japan's electronics companies were at their peak, while RCA was constantly weakening. RCA is more willing to lower its profile than Japanese companies, which puts Li Xuan in a more advantageous position in the negotiations. For example, on the issue of production management rights for the new plant, as long as the joint venture can ensure financial transparency and profitability, Li Xuan believes that RCA is very willing. Be a shareholder who only participates in dividends and does not interfere in the daily management of the enterprise.

"Dongfang Company wants to acquire our RCA company's liquid crystal display business?" Charlison frowned, this was the second topic that Li Xuan raised today that he didn't expect.

"Yes, we found that the LCD business does not seem to be the core business of RCA, and your company has not invested much in this area in recent years!" Li Xuan nodded. He continued: "Dongfang Electronics' game company has a Gameboy handheld game console, and it needs to purchase a large number of LCD screens every month! We hope to acquire RCA's related business at a suitable price. So as to integrate into our industrial chain and reduce the production cost of products!"

Li Xuan's explanation is very reasonable. The total global sales of Gameboy have exceeded 24 million units, if you count the sales of game cards. In the past year, Dongfang has purchased at least 50 million small LCD screens. Dongfang Company has been a single customer with the largest purchase volume of Japanese LCD display manufacturers such as Sharp, Casio, and Epson.

But in fact, the earliest breakthrough in liquid crystal display technology came from the real Yàn room of RCA company. In 1964, Dr. Heilmeer, a young researcher who was only 28 years old, achieved a breakthrough in the key technology of liquid crystal display in the real yàn room of the RCA. RCA, in order to prevent being preempted by competitors, classified his research as a secret program.

But at that time, RCA's shadow mask CRT technology was unique in the world, and the company did not have much incentive to invest heavily in LCD research and development. Feeling unappreciated, Hellmer left RCA in 1968. And it was precisely in that year that Sony launched the Exquisite CRT, and since then RCA has begun to go downhill.

Since the 70s, Japanese companies such as Sharp and Casio have invested heavily in the development of liquid crystal display technology, but RCA has not been able to keep up with them. In 1973, Sharp first developed a small-sized LCD screen and applied it to the digital display of electronic calculator screens. RCA just woke up at this time and began to follow up quickly, but it has long ceased to be the leader in LCD technology.

In later generations, the LCD industry was a large industry with an annual output value of more than 40 billion US dollars, and such a huge market was completely divided by Japanese and Korean companies. RCA originally had the opportunity for ZTE to rise, but they failed to grasp it, and they can only say that the time is also fate!

At present, the manufacturing scale of RCA's LCD products is not large, and Li Xuan pays more attention to RCA's R&D strength. In the future, the TFT liquid crystal glass substrate production line and wafer factory have to fight, and they are all super investments of billions of dollars.

But now the LCD industry is just beginning to emerge, and the first TFT color display actually applied to laptops will not come out until ten years later. Although RCA's current LCD technology has been reduced to the second rate in the industry, it still has a relatively good foundation.

More importantly, RCA holds some underlying basic patents for liquid crystal technology, which can be used to cross-license patents held by other companies to quickly expand the foundation of liquid crystal technology research and development. Then as long as Li Xuan is willing to spend a steady stream of money into it, he may not be able to catch up with Japanese companies.

"I'm sorry, I'm not in charge of the LCD business, so I can only convey your intention to the company's board of directors!" Charleson said with a stern face. RCA's LCD division is small, but at least a multi-million dollar merger and acquisition project.

Li Xuan nodded in understanding. The LCD business can only be regarded as a marginal industry in RCA, and it is a tasteless and discardable chicken rib for them. As long as Li Xuan's bid is suitable, he should not encounter much resistance.

At present, the value of LCD technology has not really been reflected, and the threshold for entering this industry is not high. Thirty years later, an 8.5-generation TFT LCD panel production line will cost $4.5 billion, and without strong capital, it is not qualified to participate in the game.

Even if you have sufficient funds, it has taken more than a decade or even decades for those pioneers to go from R&D to fruition, and their mastery of technology is far from being comparable to that of new entrants. You can buy technology with money, but it's unknown whether you can achieve the same productivity and cost control as theirs.

In the previous life, there were two huge loss-making enterprises in China, the wafer industry was SMIC, and the LCD industry was BOE. From the perspective of technical equipment, the pace of catching up with these two companies is actually very fast, but under the squeeze of foreign giants, they have lost money year after year without independent core competitiveness.

Li Xuan has enough patience to bear the investment for a long time in the early stage, and when the LCD industry matures, he will become a giant who really controls the right to speak, and earns back the money invested before.

Li Xuan stayed in New York to await a response from the RCA board. It just so happened that IBM's PC was listed in New York, and he had nothing to do.

After detailed discussions, RCA's senior management agreed to cooperate with Dongfang Electronics to build a new picture tube factory in Asia. RCA is also willing to sell its LCD division to Dongfang Electronics. After Li Xuan got the satisfactory result, he flew back to Hong Kong from New York to Tokyo. As for the specific negotiation matters, naturally there is no need for him, the big boss, to come out in person.

But as soon as Li Xuan got off the plane, he got bad news from Ke Lilun, the administrative assistant who came to pick him up. IBM has just filed a complaint in the U.S. District Court for the Northern District of New York, alleging that iKang's ABC series computers infringe seven patents held by IBM. The court is seeking an injunction from the sale of ABC series computers in the U.S. market and seeks a hefty $145 million in damages. (To be continued......)