Chapter 56 Father has mother, it's better to have it yourself

January 1981. Pen @ fun @ pavilion wWw. biqUgE怂 ļ½‰ļ½Žļ½†ļ½

After the TN LCD panel of Xinai Electronics, the domestic peers engaged in the research and production of the LCD industry have come up to learn from it.

Rong Jian took this opportunity to convene the first liquid crystal display technology exchange conference.

The enterprises participating in the meeting are mainly the 774 Factory (Beijing Electron Tube Factory), 770 Factory (Hunan Shuguang Electron Tube Factory) of the Ministry of Electronics, Shanghai Electron Tube Factory and Tsinghua LCD Laboratory......

Of course, the production of TN liquid crystal by these peers is still at the stage of small workshops. The TN LCD production capacity in the country is not even comparable to the simple TN production line of Xinai Electronics.

In the face of the delegates, Rong Jian, general manager of Xinai Electronics Factory, said impassionedly: "Leaders and peers, welcome to participate in the technical exchange meeting initiated by our company. Our Xinai Electronics Factory used to produce electronic calculators, and now it produces TN LCD panels independently, which is purely forced to go to Liangshan!"

"Last year, the price of the function calculator produced in Japan was still above 1,000 yuan. Because we are optimistic about the profits of this market, Hong Kong New Venture Electronics Company and our Hong Kong Aika Electronics Company have joined forces to launch the new love scientific calculator, we entered the industry at the beginning, it is relatively smooth, all kinds of components, domestic production of domestic procurement, domestic no international procurement. ā€

"At the beginning of this year, our joint venture plant was put into operation in China. The retail price of the function calculator in China was quickly lowered to 299 yuan, and the same is true in the overseas market, where we are breaking through at a price of about $60...... The price of $60 can make huge profits, and you can imagine how cool the Japanese counterparts make by selling them for $300! And most consumers in the market, when they have cheaper choices, will of course choose our products! Rong Jian said, "Do you know what this means? It means that we have moved the interests of Japanese enterprises! Since 72 years, after Japanese manufacturers introduced TN liquid crystal display technology from the United States, they have begun to rely on electronic calculators and electronic watches to make great profits in the global market. Of course, because Japanese manufacturers do not have a patent moat, because the TN LCD technology threshold is low, and the basic patents are in the hands of Americans, Japanese manufacturers in order to avoid others from introducing technology to mass-produce TN LCD panels, and start a comprehensive competition with them. Therefore, we simply sell TN LCD panels to overseas manufacturers that produce electronic watches and calculators, and let the assembly of low-end electronic watches and calculators to thousands of small and medium-sized electronics manufacturers around the world! Of course, the high-end with higher profits, such as function calculators, is still monopolized by Japanese manufacturers! To be low-end, because this does not threaten its fundamental interests! But when we launched cheaper function calculators, Japan tore off its hypocrisy......

In October '80, they lowered the function calculator to $23, and the price in Hong Kong was HK$133. At the same time, the price of TN LCD panel has risen several times, and the original price of a few cents of the electronic watch LCD panel has risen to two or three yuan, which is almost the same as the ex-factory price of electronic watches in Hong Kong, so hundreds of enterprises that produce electronic watches in Hong Kong are about to lose their jobs. The LCD panel of the calculator has also risen from 2~3 yuan to 8~9 Hong Kong dollars, and then, of course, the electronics industry in Hong Kong that makes calculators has also collapsed, and four or five thousand people are unemployed......"

"Maybe everyone says that Hong Kong's enterprises have collapsed, what does it have to do with us, because we just close the door at home and don't let Japanese products come in? No, now that we have been reformed and opened up, it is impossible to go back to the old road if we want to earn foreign exchange through exports and make money in overseas markets, and if we want to import technology and equipment from overseas. Since it is impossible for us to close the door behind closed doors, and it is impossible for us not to make money and not to grab the market, then the means used by Japanese manufacturers to deal with Hong Kong enterprises can also be used against our domestic enterprises! Hong Kong's small and medium-sized electronics factories have failed because for many years hundreds of factories have been satisfied with assembly and are unwilling to join hands to raise funds to set up an independent TN LCD panel factory. ā€

In order not to let the other party not be stuck, we must master the core technology and master the lifeblood independently! If one day, Japanese manufacturers enthusiastically supply us with parts and components, we must be vigilant, because they do this in order to suppress our enthusiasm for independent production of components. When we give up on producing our own components, we are of course left to the slaughter. Sometimes, Japanese manufacturers are even so enthusiastic that they sell us all the production lines, which makes us even more vigilant, and the production lines of the entire industry are frantically sold to us, what does this mean? It shows that they are not optimistic about a certain industry, get rid of low-end production capacity, and concentrate resources on new technologies to replace it......

"TN LCD panel, it is currently a very important component, no less important than the integrated circuit and picture tube of the TV. It directly affects not only electronic watches, calculators and other industries, but also innovative products such as the current "Chinese Cube" handheld. ā€

"Since the reform and opening up, our domestic consumer market in the fields of electronic watches and calculators is very active, but we are not enough to meet the domestic market demand because of the lack of screens. As a result, many smugglers in China rely on smuggling electronic watches and calculators from overseas, and conservatively estimate that the amount of smuggling is 2 to 3 billion yuan every year. ā€

"In fact, we can kill such low-level things as electronic watches and calculators through domestic production. It is only necessary to solve the mass production ...... of LCD panels"

"As for the export of LCD panels, we have solved it. With a $3 million investment, Ekcar Electronics obtained a technology license from the United States. Therefore, once we can produce TN panels, it can not only be used domestically, but also sold to overseas markets. Well, our electronic watches and calculators, which use self-produced screens, can also be exported. ā€

Many of Rong Jian's views were completely instilled in him by Lin Qi.

Most of the Chinese in this era feel that Little Japan is amiable and the most active in selling things to the Chinese. However, Japan has made the most small moves.

For example, the complete set of equipment sold by Japan to Baosteel for the first phase of the project used up China's savings for the whole year to earn foreign exchange through exports, but this expensive set of equipment, the iron ore and coal needed, the need to import high-quality ore from Australia or Brazil, and the use of China's domestic iron ore, will always fail. In the early days of reform and opening up, China's foreign exchange resources were pitiful, and the precious foreign exchange was basically used to introduce equipment and technology, and iron ore was eager to be exported, but unfortunately foreign countries did not want China's low-grade iron ore, and how could they be willing to spend foreign exchange to import foreign high-grade iron ore?

To put it simply, Japan sold a set of advanced equipment that was not suited to China's national conditions in the 80 s and could not afford to use it even if it bought it! The cost of readjusting and transforming this set of equipment was no less than that of reintroducing a new set!

The Japanese know it, but they don't tell you before they sell it.

The TV production line is the same routine, in the 70s ~ 90s, Japan frantically sold more than 100 production lines to China. Because, CRT CRT picture tube technology, is outdated...... Japanese TV manufacturers have begun to develop the next generation of plasma TVs and TFT LCD TVs......

The lesson we have learned over the past few decades of reform and opening up is that Japan is the worst cheater! At first, you feel that you are taking advantage of it, but the more you think about it afterwards, the more you will suffer...... I was miserable by the devil!

The huge benefits of TN LCD panels, the delegates attending the meeting, are also well aware. The electronic watches and electronic calculators of this era alone can make the manufacturers of TN LCD panels full!

It is conservatively estimated that the domestic demand for LCD panels is 500 million per year...... That's still a lot lower, in fact, it's only going to be more!

If you have the ability to start the production line, the domestic TN LCD production line has already bloomed everywhere, and it is not the turn of Xinai Electronics to put into production the first TN LCD production line.

"Manager Rong, we all understand what you said! But investing in a TN LCD production line and producing 5 million TN screens per month will cost at least 100 million US dollars. The representative of the Shanghai Electron Tube Factory raised his hand and said, "It is impossible for us to afford such a high price in China! Moreover, foreign equipment manufacturers do not accept renminbi and can only use foreign exchange to purchase a complete set of equipment! How can we have the ability to build such a production line?"

Rong Jian nodded and said: "At the beginning, we were also powerless to launch a production line of 100 million US dollars, but ...... The advanced ones may not be the most suitable for our national conditions!" Rong Jian paused and took out a stack of technical documents, "This is the production line drawings that the United States sent after we purchased the patent authorization of the Radio Corporation of America (RCA) TN LCD panel. With about 69 years of technology, it is also a mass production line, with a monthly production capacity of 500,000 TN LCD panels per production line. In addition, it includes the formulation of liquid crystal chemicals for mass production...... It has low investment cost and low technical threshold, which is in line with our domestic productivity level, does not require imported equipment, and is a technology that we can afford to use and can make money!"

The major representatives present were moved!

Compared with the domestic workshop-style experiment is a production line, the production line with a monthly output of 500,000 TN LCD panels is already very advanced.

"How much does it cost to invest in this production line?" asked Wang Dongsheng, a young technical cadre at the Beijing Electron Tube Factory, as he raised his hand.

"It takes about 500~10 million yuan, the monthly output value can exceed 1 million yuan, and the gross profit margin is as high as 50%. Rong Jian said seriously, "If you are interested in putting into production, we can take the technology into shares, as long as 10% of the equity, we can license this set of technology to you!"

"It's done!" Wang Dongsheng said through gritted teeth.

Because the interests are moving, according to the current market, a TN LCD production and production, the investment cost can be recovered within 2 years, and after that, it is a net profit of millions of yuan per year!

After this technical conference, Beijing Electron Tube Factory embarked on a completely different path from history. At this time, the electron tube factory still has a little background, under the promotion of Wang Dongsheng, BOE Technology, a subsidiary of Beijing electron tube factory, was established more than ten years ahead of schedule.

The newly established BOE Technology Co., Ltd. was invested by Xinai Electronic Technology to obtain 10% of the equity, and the Beijing Electronic Tube Factory provided 3 million yuan of funds accounting for 50% of the equity, and the remaining funds were raised by BOE founder Wang Dongsheng and other employees. BOE, which was established more than ten years ahead of schedule, started with TN LCD panels with lower technical thresholds.

Later, Lin Qi saw that among the panel suppliers, there was actually BOE, and BOE was also a shareholding company of Xinai Electronics, and Xinai Electronics was a subsidiary of Xinchuang Electronics.

Because of this relationship, coupled with the bonus of BOE feelings in memory, BOE has gradually become the largest supplier of LCD screens of Xinai Electronics.