Chapter 512: Comparison
Guangdong Province is the base camp for the production of induction cookers, washing machines, refrigerators, rice cookers, and televisions, and there are hundreds of such enterprises, large and small.
If Xiangyang Electronics puts low-end Igbt into production in Fushan, there is no worry about market sales.
At present, almost all of those factories import IGBT from abroad, and the price of importing from formal channels is high, and the purchase of parallel goods in large quantities is frightening. It is best if you can buy it and produce it locally.
After looking at the second-hand production line, Wang Weidong negotiated with Chairman Arakawa about the price of the purchase line.
Chairman Arakawa proposed to use their second-hand IGBT production line to take a stake in Xiangyang Electronics, and Fuji Electric became one of the shares of Xiangyang Electronics.
Wang Weidong did not directly refuse Chairman Arakawa's request.
"At present, we at Sunningdale mainly produce two kinds of products, one is the decoder board and movement for VCD machine. There is also a factory that produces tubes. Even if we agree to the second-hand production line provided by Fuji Electric to invest in Xiangyang Electronics, your Fuji Electric's share in Xiangyang Electronics will be very low, and there will be no right to speak. Wang Weidong said.
Compared with Sunningdale Electronics, which now has billions of assets, this production line accounts for a small proportion.
"Because I'm in Japan, I have a clearer view of the development of video technology, and from next year, the DVDs of several Japanese companies will enter mass production. Compared with DVD, VCD players are not able to compare with DVD players in terms of clarity and disc capacity, and VCD players are destined to be eliminated. There is no future for the decoder board and movement produced by you Sunningdale! Chairman Arakawa said.
"I don't know how much a DVD player costs, but I know very well the cost of a VCD player, a few hundred dollars is enough! And I'm sure that the price of a VCD machine will be much cheaper than a DVD machine! Today's consumption level of Chinese is still very low, and even if DVD machines are pushed to the Chinese market, they cannot afford to consume. Therefore, VCD machines can sell well in China for at least many years! Wang Weidong said.
Although Wang Weidong, Song Yu, Ou Xiaojun and Ou Xiaoyang had decided to stop the production of VCD decoder boards and movements after two years when they were in the board meeting, the four of them would never talk about this matter outside.
What is said outside is firmly that VCD opportunities will occupy the mainstream of the Chinese market for a long time!
To convince someone like President Arakawa, you can only use such words. For example, use the reason that China is very backward and the consumption level of Chinese is very low. As soon as they say this, they will believe it, because this is what China really looks like in their hearts.
In fact, it is true that the VCD machine is not entirely due to the DVD in the end. The popularization of the Internet, the improvement of network speed, the significant reduction of the price of hard disks, and the popularity of a large number of download software such as eMule Thunderbolt have promoted VCD machines to finally enter history.
"If Fuji Electric is willing to bring out the most advanced IGBT production line to cooperate with us, I would like to consider Fuji Electric to take a stake in Sunningdale." Wang Weidong continued.
There is no doubt that Wang Weidong's words were immediately rejected by Chairman Arakawa. Almost all Japanese enterprises will only take out the technology that is two or three generations behind and cooperate with Chinese enterprises, and it is absolutely impossible to take out the most advanced technology.
In the end, Chairman Arakawa, on behalf of the entire company, offered to sell the IGBT second-hand production line for $15 million, including equipment installation and commissioning and employee training.
"Mr. Arakawa, I will soon go to Saitama Prefecture to negotiate with the people of Sanken Co., Ltd., and only after careful comparison can I finally decide which production line to buy." Wang Weidong said.
Wang Weidong didn't mean to provoke the two companies when he said this, because he knew that it didn't make much sense.
It is very rare for Japanese companies to sell one piece, I will sell eight cents, and if you sell eight cents, I will sell six cents, and in the end, I would rather lose money than defeat competitors.
To put it sadly, this happens a lot between Chinese companies, but rarely among foreign companies.
Wang Weidong went to Shinza City in Saitama Prefecture the next day. Compared with Fuji Electric Co., Ltd., Sanken Electric is more focused on the development of semiconductor technology, and Fuji Corporation's subordinate groups have many production categories and are much larger than Sanken.
This second-hand IGBT production line in Xinza City was put into operation by Sanken Electric in 1970, and it has been more than a quarter of a century now.
However, there is still no problem with this line to produce low-end IGBTs.
Wang Weidong proposed the same conditions as when he negotiated with Chairman Fuji Electric Arakawa, hoping that Sanken Electric would be responsible for supervising the installation of the production line and the training of employees, and that the contract would not be completed until the yield rate of the product reached more than 80%.
Of course, even after the production line is put into operation, Sunningdale guarantees to purchase wafers and other related supporting raw materials from Sanken Electric.
Chairman Kotani of Sanken Electric finally decided to sell the production line for $12 million.
The most uncomfortable thing about Wang Weidong's visit to Xiaoben this time was that there was no one, and he originally wanted to find a few experts in Chinese universities to go to Japan with him for investigation.
However, in the fifties and sixties, most of the electrical knowledge that Chinese experts and scholars learned in universities was electron tubes, and even if it involved a certain amount of transistor knowledge, it was far from the level of CPU and IGBT production.
In the fifties and sixties, when semiconductors advanced by leaps and bounds, it was a time when the country was in a state of isolation.
Nowadays, many teachers in universities have knowledge of advanced semiconductors and computer languages and networks, and they have no practical experience at all.
"Miss Li, how do you compare the production lines of these two companies?" Wang Weidong asked.
"Boss, I know you don't care about spending a little more, what I hope is that they can provide better technical and technical guidance." Li Yueshi said.
"Fuji is much more famous in Japan and the world than Sanken. However, Sanken Electric focuses on the production of semiconductors, and its technology in semiconductors is by no means lagging behind Fuji. Although Fuji Electric wants to sell us a production line a few years later than Sanken Electric's production line, it should be the same in terms of technical level. Since the technical services they provide are the same, I think it is better for us to buy Sanken Electric's production line. Li Yueshi continued.
"In fact, I also think so in my heart, the bigger the company, the easier it is to bully people, and the store is big to bully customers. After the production line is completed, the purchase of the same amount of production raw materials may not be a big deal for Fuji Electric, but for Sanken Electric, we are their undoubted big customers! Wang Weidong said.
(End of chapter)