As the largest auto parts group in China, Nanshan Group's Nanshan engine, Nanshan gearbox and Nanshan auto parts have any big moves, and almost the entire Huaxia automobile OEMs will be involved.

Various parts companies will naturally hear some rumors more or less.

In particular, this time, Nanshan Group's action is so special, and a large number of chips of key components such as ECU (engine control unit), TCU (transmission control unit), and ESP (electronic stability system) have been replaced by localization.

This is something that no other vendor has done in the past.

Although Nanshan Group only synchronously reduced the price of related parts by 3%, it brought great stimulation to many OEMs and competitors.

"Mr. Li, the public of the magic capital is asking us how many points can we achieve in this year's annual price reduction?"

"Is there anything that can be moved forward with the VA proposal?"

As a supplier of ECU, TCU and other parts of Modu Volkswagen, United Electronics naturally felt the pressure this time.

As a joint venture of Bosch in Huaxia, United Electronics is relatively mixed in various OEMs in Huaxia.

It can be said that they do both the business of joint venture car companies and independent brands.

Compared with companies such as Continental and Denso, some of the measures of United Electronics will appear to be more flexible.

So even though the main shareholder is Bosch, they are more popular in China than Bosch.

"What we supply to Modu Volkswagen are all kinds of functional parts, in addition to making some generational changes when following the development of new models, where can we do anything VA in ordinary times?"

As the sales director of United Electronics, Li Jiating does not like to be asked such questions by customers.

Because they don't have satisfactory answers to these questions.

Fortunately, suppliers such as Delphi, Hitachi, and Denso, which are competitors of United Electronics, are basically the same virtue.

Therefore, it is not necessary to lose orders for this reason.

But now with Nanshan Group, things are starting to change.

Although these core control parts of Modu Volkswagen are not supplied by Nanshan Group, on the side of Modu Passenger Cars, the relevant parts are supplied by Nanshan Group.

The deputy director of the purchasing department of Modu Volkswagen is the person arranged by Modu Automobile Group, and there will be various exchanges with Modu Passenger Car every once in a while.

Therefore, Nanshan Group is engaged in chip switching, and the public of Modu naturally knows about it.

There is even a certain amount of pressure to reduce costs.

"I also replied to the other party in this way, but people said that Nanshan Group can change chip suppliers in mass production, so as to achieve this year's annual decline, why can't we?"

As soon as Tang Zimu said this, Li Jia's mood was even worse.

Obviously, he also heard about Nanshan Group's replacement of chips with chips produced by Nanshan Semiconductor within its own group.

I didn't expect the customer to act so quickly.

"Zimu, I don't think you should be led by the nose by the customer in this question."

"Nanshan Group used chips from manufacturers such as Deyi, Infineon and NXP, which are relatively mature models on the market, and the price is not very high."

"Now Nanshan Semiconductor has started to produce automotive-grade chips by itself, so they will switch."

"The switching logic behind it is to support the development of Nanshan Semiconductor, and it is definitely not to reduce costs."

"Even in my opinion, after their chip switching, the cost is likely to become higher."

"Goods such as clothes, shoes and socks will be much cheaper in China than in Germany."

"But high-tech products such as chips, the Chinese companies themselves may produce more expensive than the German ones."

"Especially now that Nanshan Semiconductor has just begun to mass produce chips, all kinds of amortization expenses are relatively high."

"Not to mention a few points of price reduction, but if they don't increase the price, I think it's because they have absorbed part of the cost internally."

Li Jia is also an expert in the automotive industry and has a good understanding of various situations.

In his opinion, the localization of chips at this time will not play a role in reducing costs at all.

There is also a VA proposal, which should not have anything to do with cost reduction at all.

At least that's how it looks at this stage.

Of course, he also knows that when a company like Nanshan Semiconductor first starts mass production, it will definitely quote the price of chips relatively low, so as to reflect its cost competitiveness.

Otherwise, no one will use you at all, and there will be no point in talking about anything.

Regarding Li Jia's statement, Tang Zimu is naturally understandable.

Even he thinks that the procurement of OEMs should know this truth.

But in the end, the price given by Nanshan Group to the main engine factory has indeed decreased, which will put other competitors there!

The price reduction is not, and it doesn't seem appropriate not to reduce the price!

Of course, Cao Yang will definitely not care about the depression of these competitors of United Electronics.

Even the more depressed Nanshan Group's competitors are, the better Cao Yang's mood will be.

"This logic is clear to us in the industry, the cost of chips in Nanshan Semiconductor is definitely much higher than that of manufacturers such as Infineon, even if it is sold to brother companies such as Nanshan Auto Parts at cost price, the final price will not be low."

"Unless Nanshan Group dedicates some funds to subsidize these parts, it will not be possible to have any cost reduction effect."

When Tang Zimu said this, Li Jia did not directly refute it.

However, this matter is not something that he can decide as a sales director himself.

So soon, he officially reported the matter to the upper echelons, and also communicated with Bosch.

As the main supplier of Mercedes-Benz, BMW and Volkswagen, Bosch will naturally take some corresponding actions after they know the relevant news.

"Mr. Liu, is there still no plan to buy chips in Huaxia at the headquarters?"

"Now many customers are looking to us to investigate the source of the chips."

"The purpose should be to promote the localization of chips."

As the sales manager of Bosch, Ren Cai is naturally the most aware of the first-hand requirements of the OEM.

However, she didn't have the means to make any decisions about these requirements, so she still had to take them back and discuss them with Liu Zhenbo, the sales director.

Bosch now regards Huaxia as its most important overseas market and attaches great importance to its development.

Even under the influence of the financial crisis, Bosch's expansion in China has not stopped.

Therefore, the requirements of the customer, Ren Cai also attaches more importance to it.

"Our chips are either produced by ourselves or purchased from Infineon, and it is impossible to achieve localization of either one."

"This kind of investigation by the customer has no practical significance."

Liu Zhenbo's statement, Ren Cai naturally understood.

But she understands that it is useless, and that the customer must also understand.

"Mr. Liu, I have already explained to the customer, but the other party still wants to know our chip model, supplier and other information, and hopes that even if we have no way to localize it now, we will also list the localization plan in the future."

Ren Cai explained a little depressed.

If a few years ago, the customer made such a request to Bosch, Ren Cai would not have paid attention to it.

But now the situation in the Huaxia auto parts industry has begun to change, and many things can no longer be simply in accordance with the strong approach of the past.

Bosch, which has never regarded itself as Party B, is slowly adjusting its attitude towards OEMs.

Otherwise, Ren Cai would not have reported this matter to Liu Zhenbo at all, and he would have refused.

"Do you understand why customers are suddenly asking for these things?"

"Our quotation method has always been a fixed price, and we do not provide quotation details, which was the case before, is the same now, and will be the same in the future."

"It's not that those customers don't know."

In the automotive industry, OEMs must hope that the supplier's quotation is as detailed as possible.

It is best to have a specific breakdown of material costs, specific calculation methods for processing costs for each process, and specific conditions for various purchased parts.

There is also an accounting process for various factors such as packaging costs, transportation costs, and development costs.

Generally speaking, weaker suppliers can only honestly listen to the words of the main engine factory and submit these detailed information.

But for most auto parts giants, they are not used to OEMs.

My parts quotation is a fixed price, even if it is for you to split, it is just a simple split, it is impossible to have such a detailed content.

It's not that they can't split it, as a parts giant, the internal cost management must be in place.

It's that they simply don't want to tell the OEM so much information.

In particular, the price of some parts is more outrageous, and once it is split, there will definitely be some unclear prices.

For example, if you use an ordinary JSC270C steel plate, the amount is 1 kilogram, but your material cost quotation is dozens of yuan, and you can't tell why it's so high.

So these giants simply don't split any details, you don't like to use them.

Because suppliers at the same level basically adopted similar methods to deal with OEMs, a strange and not surprising situation was finally formed.

Within the same OEM, the level of detail in the quotations provided by different suppliers is completely different.

"Mr. Liu, I also inquired, this matter should be related to Nanshan Group."

"Even because Nanshan Group put forward a plan for the localization of chips, what is said to reduce costs and ensure supply, it is reporting to many customers."

"Taking this opportunity, the customer naturally hopes that more manufacturers can follow the practice of Nanshan Group to provide relevant chip details and localization plans."

"Even many customers have taken this measure as a policy to reduce prices this year."

As soon as Ren Cai explained this, Liu Zhenbo probably understood what was going on.

However, it is clear that Bosch will not provide this information to OEMs.

To put it mildly, some parts are bought directly from the German headquarters and resold to the OEMs.

The information about the components of these parts is not clear even to Bosch Huaxia.

Even if it is a domestic part in Huaxia, many of the component information is only known to their production plants.

There is no relevant information about the sales department.

Thinking of this, Liu Zhenbo felt that he had found a reason to explain.

Just throw this pot at headquarters.

If you have the ability, you should go to the Bosch headquarters, anyway, there must be information at the headquarters.

If the headquarters is willing to provide it, it has nothing to do with him.

……

Just when many OEMs began to discuss the localization of chips with parts companies, Yu Yu, as the general manager of Autohome, also felt that he needed to exert a little influence on this matter.

The semiconductor business is the focus of Nanshan Group's future development, and it has invested tens of billions of yuan so far, and it will further expand its investment.

In this case, Autohome must find a way to make a little contribution to the development of this business.

"He Ling, you specially arranged for a few people to go to Nanshan Semiconductor to learn about the production process and application scenarios of chips."

"Then we will do a special topic, focusing on popularizing chip-related knowledge and the development of the chip industry at home and abroad."

"Through this topic, we want to make everyone realize that although the domestic automotive industry is already the world's largest market, 99% of the chips installed in our cars are still imported."

"We are a big automobile country, but there is still a long way to go from the automobile power, and there is still a distance of 108,000 miles from the chip power."

"In the special article, we have to find a way to guide everyone to support the chip localization plan."

"It is best to be able to interview experts and scholars from some ministries and commissions to promote some incentive policies related to chip localization."

"I also give the OEM an early warning and deduce what will happen in the market in case of a chip crisis."

"Maybe the chips that can be bought for 5 yuan now will not be available for 500 yuan at that time."

"I believe that the OEMs do not want to see such a scene."

Yu Yu quickly found an entry point.

Although this report will make everyone feel Autohome's support for Nanshan Group's semiconductor strategy, the content of the report is speechless.

After all, people are telling the truth.

You can't refute it even if you want to.

The most important thing is that Autohome is also standing on the moral high ground this time, and it is not afraid of refutation at all.

It's even better if a few celebrities jump out against Autohome's point of view, and everyone should debate it and raise the heat on the topic.

"The localization rate of chips is so low that even many cars do not have a chip that is produced domestically."

"This situation is estimated that many OEMs were not aware of it before."

"After all, there are no such parts as chips in the parts list they manage."

"Even the drawings they issued are not detailed to the level of the chip model."

"I have seen the TCU drawings of Nanshan gearbox before, and it will only introduce some of the shells and main units of the TCU, and then stipulate some of the main detection indicators."

"There are many other things that you can't see on the drawings."

"For example, what model the chip is used and which supplier it is purchased from, this information cannot be seen."

"Because there have been no problems with the supply of chips in the past so many years, the procurement of OEMs has not been paid attention to this situation."

"After we throw this topic out, then it is for show, and there should be some actions on the part of the OEMs."

Regarding Yu Yu's arrangement, He Ling can also understand the situation very well.

There are so many parts on the car, and there are not many that are actually designed by the OEM.

Most of the functional parts are drawn by professional suppliers, and then the design is recognized by the OEM, which is considered the final drawing.

In this case, the procurement of the main engine factory is certainly not familiar with the specific composition of the parts and components.

This is especially true for things like chips.

"yes, that's what we want."

"Even if it's for show, it's a good thing for Nanshan Semiconductor."

"At least the OEMs will not always be so resistant to the chip change plan proposed by Nanshan Group."

With a simple mention of herself, He Ling can understand what needs to be done and know the purpose of this matter, which makes Yu Yu feel very comfortable.

If a person can be trusted by leaders in the workplace, he often needs to have He Ling's ability to observe words and colors.

Otherwise, the leader needs to worry about everything, and unless you have a strong background and the resources that the leader needs, don't expect to be reused.

With the action of Autohome, in the Huaxia automobile industry, a discussion of chip localization has slowly been set off.

Even because of Autohome's report, many people suddenly realized that the domestic chip industry is so weak.

More than 10 million chips used in automobiles almost all need to be imported.

Last year, the news that the import amount of Huaxia chips exceeded that of crude oil was also turned over.

This topic naturally quickly became a hot search.

"Mr. Park, I think that in addition to investing in the production of memory in Huaxia, the company can also arrange the production lines of some vehicle-grade chips in Huaxia."

"Now Huaxia seems to be more enthusiastic about the localization of vehicle-grade chips, and the process of these chips is actually not so high."

"So we don't need to worry about the advanced technology being stolen after production in China."

As the person in charge of Samsung's first semiconductor factory in Huaxia, Lee Jae-lin naturally hopes that the business he is responsible for can develop and grow.

If the advanced chip production line is placed in Huaxia, then there will definitely be a lot of controversy.

But it doesn't matter what is relatively backward.

"Although the process of automotive-grade chips is not very high, many of them are still using 200nm processes."

"There's really no risk of leakage here."

"However, automotive-grade chips have many unique places, and these technical thresholds are not mastered by many companies in China."

"If we put the automotive-grade chips in Huaxia for production, maybe other chip companies in Huaxia will soon be able to break through the threshold of automotive-grade chips."

Park Chung-hee voiced his concerns.

The focus of automotive-grade chips and the chips used in consumer electronics is completely different.

The temperature range in the engine compartment is -40°C~150°C, so the vehicle chip must meet this large temperature operating range, and the consumer chip must only meet the operating environment of 0°C~70°C.

In addition, the vehicle will encounter more vibration and impact when driving, and the environmental humidity, dust, and erosion in the car are far more than the needs of consumer chips.

In addition, the life cycle of mobile phones is generally 3 years, and the maximum is not more than 5 years, while the design life of automobiles is generally about 15 years or 200,000 kilometers, which is much greater than the life requirements of consumer electronics.

As a result, the product life cycle of automotive chips is required to be more than 15 years, and the supply cycle can be as long as 30 years.

In such a situation, how to maintain the consistency and reliability of the chip is the first problem to be considered by the automotive chip.

There's a lot of know-how.

In addition, the death of the mobile phone chip can be shut down and restarted, but once the car chip goes down, it may cause a serious safety accident, which is impossible for consumers to talk about.

Therefore, in the design of automotive chips, it is necessary to first put functional safety at the beginning of the architecture design to become an extremely important part of the automotive chip, adopt the design of an independent safety island, and have various data verifications in key modules, computing modules, buses, memory, etc., including the entire production process of the automotive chip to ensure the functional safety of the automotive chip.

"Your concerns are justified, but automotive-grade chips have never been good at our company before, and even basically did not involve much in the production of automotive-grade chips before."

"Taking the opportunity of the localization of chips in the Huaxia automotive industry, I think it is the best time for Samsung Electronics to officially enter the automotive-grade chips."

"At this time, Huaxia's OEMs' requirements for vehicle-grade chips should be relatively low, as long as we can produce them, some OEMs dare to try them."

"If you go to car giants such as GM and Ford to sell automotive-grade chips, it is estimated that it will not take five or six years to complete various verifications and then finally install them on the car."

Lee Jae-lin can be regarded as mentioning one of Samsung's weaknesses.

For a long time, companies such as NXP, Texas Instruments and Renesas Semiconductor have been the giants of automotive-grade chips.

For example, the well-known chip companies such as Intel, Samsung, and Qualcomm are rarely involved in the production of automotive-grade chips.

Of course, with the advent of electrification and intelligence, these manufacturers are all aiming at automotive-grade chips and want to get a piece of the pie.

Now because of the chip localization boom that emerged in advance of the Huaxia automobile industry, it can be regarded as bringing some additional touches to Samsung.

"What you said also makes sense, you can go back to the headquarters with me next week to report on this plan."

"Let's see if we can pick this peach planted by Nanshan Group!"

Park Chung-hee knows very well who started the wave of chip localization in the Huaxia automotive industry.

If Samsung doesn't end up, maybe Nanshan Semiconductor can eat the biggest piece of cake.

But now that Samsung is ready to play, Park Chung-hee feels that the situation is naturally about to change.

(End of chapter)