Chapter 696 Be the first in the world and drive the development of the industrial chain
If the chips used in cars rarely attract everyone's attention, then the chips on mobile phones are different.
Similar to computers, many mobile phones will focus on how well their chip technology is.
This is especially true in the age of smartphones.
Objectively speaking, the quality of mobile phone chips is indeed closely related to the performance of mobile phones.
Now Nokia has fallen, Sony Ericsson is not good, and Motorola has sold its mobile phone business.
In this case, it means that the era of smartphones has fully arrived.
The importance of mobile phone chips is naturally getting higher and higher.
"Mr. Cao, our latest Yangcheng factory can be put into operation this month, and we can release all production capacity next year."
"At that time, the chips used in our mobile phones can be produced in our own factories."
"At the same time, the chips we produce for various copycat mobile phone manufacturers in Huaqiangbei are also increasing."
"Next year, we will be the largest semiconductor company in China."
Zhang Jing has been very busy in the past year.
The pace of construction of Nanshan Semiconductor's new factory has not stopped for a quarter of an hour.
Since Nanshan Group's own automobile industry and mobile phone industry can consume a large number of chips, there is no need to worry about the capacity of the new factory not being able to utilize.
This is actually a very important thing for a new chip company.
After all, at the beginning, your chip production cost will definitely not be comparable to those old chip giants.
Although the price of a chip is not necessarily very high, the difference is not necessarily very large.
But for buyers, there are mature, stable and cheap products, why use your new stuff?
However, it is different within the group to use it on its own.
Whether it is Nanshan auto parts or Honor mobile phones, they have the ability to digest the price difference of those chips.
Besides, many chips on the market are not sold directly by semiconductor companies, but are sold through trading companies or agents.
In this case, the chips purchased by Nanshan Group are not necessarily lower than the cost price of Nanshan Semiconductor.
"In recent years, the development of mobile phone chips has been very fast, and dual-core chips have also begun to be used."
"As a first-echelon mobile phone brand, the performance of the chips used in our Honor mobile phones must not be worse than those of Apple and Samsung."
"In this regard, Nanshan Semiconductor must pay full attention to it, and report to me in time if there are any difficulties."
Samsung and Apple, in Cao Yang's view, will be the biggest competitors of Honor mobile phones in the world.
However, the chip design capabilities of both of them are quite strong, and it is easy to surpass Honor mobile phones.
This is unacceptable to Cao Yang.
Honor phones can't rely solely on the advantages of appearance to win, that is certainly not enough.
After all, everyone's appearance is actually quite good now.
Only when other aspects are also done well, the appearance advantage can be fully played.
"We at Nanshan Semiconductor have now formed a three-level existence."
"The low-end is mainly supplied to those copycat manufacturers in Huaqiangbei, and the high-end is mainly used by ourselves."
"The current sales of the mid-range are not very good, and we are ready to focus on communicating with some domestic mobile phone brands to see if they are willing to use them."
"Although our price advantage is not particularly obvious now, with the full utilization of the production capacity of each factory, our cost will also be reduced very quickly."
"After all, most of our production equipment is purchased from China."
"The amortization cost in this area is much lower than that of other manufacturers."
Zhang Jing knows that Cao Yang attaches great importance to the development of the chip industry, and he himself hopes to build Nanshan Semiconductor into the world's top chip company in the future.
This is of great significance to him personally and to the company.
"I still say that before 2015, Nanshan Semiconductor did not set a profit target."
"What you need to do is to improve the technology, train the talent team, and expand the production capacity."
"After 2015, I hope that Nanshan Semiconductor will be competitive enough in the world, and its products will not only be sold to our group's own customers, but also sold all over the world."
"When the time comes, I hope that you can wrestle with Samsung, not only in the chip foundry business, but also in the whole industry chain."
Cao Yang's words can be regarded as once again giving Zhang Jing a reassurance.
Nanshan Semiconductor has burned a lot of money in recent years, but it has not brought profits to Nanshan Group.
To say that he is not stressed at all is to say that it must be false.
Looking at the eyes of people from other business divisions looking at Nanshan Semiconductor, he can also think of many things.
After all, the treatment of Nanshan Semiconductor's employees is among the best in the entire Nanshan Group.
In terms of profitability, it is the last one.
After finishing the report with Cao Yang, Zhang Jing quickly made relevant arrangements internally.
And as if it was a coincidence, in fact, it was an inevitability, and Zhang Jing soon heard a good news.
"You're saying that the DIGMA phone over there is going to buy a lot of our phone chips?"
Facing the dusty Hu Yingang, Zhang Jing was quite surprised.
In the polar bear market, Honor mobile phones are also developing, and the situation is not bad.
But I didn't expect Yingang Trading to make a breakthrough in this market.
In Zhang Jing's understanding, the other party has always been only responsible for Huaqiangbei's copycat customers.
Now there is such a surprise all of a sudden, which is really a bit of a surprise.
Although DIGMA is only a local brand of polar bear, the sales volume will certainly not be particularly high.
But for Nanshan Semiconductor, it still has a different meaning.
After all, this is the first overseas mobile phone manufacturer to adopt Nanshan Semiconductor's chips on a large scale.
"Yes, DIGMA originated in England at the beginning, entered the polar bear market in 2005, and is now a local brand of polar bears."
"Although they are not well-known internationally, few people in China have heard of this name."
"But ask the international students who go to the polar bear, they all know the brand."
"They sell millions of mobile phones a year in polar bears."
"Although this data cannot be compared with us, and it is not ranked at all in the world, it is a very good performance in the local polar bear."
"After all, it is not easy for the international mobile phone giant to occupy a relatively high market share in the case of polar bears, and DIGMA can still have millions of sales."
Hu Yingang knew that Zhang Jing definitely didn't know much about DIGMA's situation.
So explained a little bit on the side.
This is the main harvest of his polar bear journey, and it can be regarded as the first stop of the silver gang trade to open the international market.
As long as it is done well, it is entirely possible that Yingang Trading will become the most important agent of Nanshan Semiconductor in overseas markets in the future.
After all, as a semiconductor company, whether it is Nanshan Semiconductor, or Infineon, STMicroelectronics, NXP and other giants, they are generally looking for agents to help them expand the market.
Otherwise, there are too many customers to face, which will waste a lot of energy of semiconductor manufacturers.
This is one of the reasons why the order cycle for semiconductor parts is often very long.
"If DIGMA can have a certain market on the polar bear side, can it also expand its business in Central Asia?"
Only when the sales of their own customers go up, can their own business follow.
So while being happy, Zhang Jing's thinking began to diverge.
In that place in Central Asia, it is very difficult for Honor mobile phones to expand and inspect.
On the contrary, the polar bear enterprise has its own unique advantages.
"I think so too, and I can communicate with the other party again when the time comes."
"This time, we successfully let DIGMA use our mobile phone chips, and the next mobile phone memory and camera and other parts may also be purchased from Nanshan Group."
"And we at Yingang Trading will also make full use of this opportunity to recommend our products to other local mobile phone brands of Polar Bear."
"We will try the same approach in Southeast Asia and South America."
Hu Yingang is now full of energy.
The business expanded, which meant that the scale of Yingang trade became larger, and the money he earned also increased.
The most important thing is that this kind of business can better reflect the meaning of the existence of Yingang Trading.
Otherwise, it is simply a resale of products in Huaqiangbei, which is a little too substitutable.
……
The good news of the silver gang trade seems to have brought a good start.
Within a few days, Zhu Zhaohai, who returned from Africa, also brought good news to Nanshan Group.
"Our monthly sales in Africa have exceeded 2 million units, and it is estimated that we can break the 3 million monthly sales mark next year."
"Don't look at the overall income level in those places in Africa, but the demand for smartphones has always been there."
"This time we launched a $150 smartphone, which was well received by many people."
Zhu Zhaohai was in a very good mood at this time, and Transsion's strategy of focusing on the African market was off to a good start.
Although there is still a long way to go, the start is going well, and many things are easy to do.
"Small profits but quick sales are also a way, so low prices, it is difficult for other companies to compete."
"I don't think it's possible to say 2 million, even if it goes to 10 million a month in the future."
"After all, the entire African continent still has a very large population."
Regarding Transsion's performance, Cao Yang was not surprised at all.
Zhu Zhaohai was able to smoothly make Transsion bigger and stronger in his previous life, but now with the help of Nanshan Group, there is no reason to do worse.
"Indeed, the market prospects over there are more worth looking forward to, the key is that there are many countries, many brands feel that it is very troublesome to enter this market, and they are not willing to spend energy to develop some models for this market."
"We are the first to eat crabs, and the development speed in the next few years is worth looking forward to."
"Now 100% of our mobile phones use domestic parts, and most of the high-value parts are produced by Nanshan Group."
"If you can really achieve monthly sales of 10 million units, then the parts industry that can be driven every year is also worth looking forward to."
Zhu Zhaohai knew what Cao Yang was most concerned about.
So when he reports, he will put his foothold in these places.
Whether it is a chip or a camera, these are all parts that Nanshan Group is focusing on developing.
That is, a small number of parts such as screens, which Nanshan Group does not produce.
However, qualified suppliers can also be found in China.
This is an important reason why Transsion's mobile phones can make the price very low.
The domestic market is particularly competitive, and Transsion avoids this market and works hard in Africa, an area that many people look down on, and the final harvest is likely to surprise everyone.
……
The vigorous development of the smartphone industry has a huge driving effect on the entire industrial chain.
As the foundry of Honor mobile phones and Huawei mobile phones, BYD's number of workers is also growing rapidly.
In recent years, domestic labor costs have also been rising, especially in first-tier cities.
So BYD will naturally have other ideas.
"Mr. Cao, we are preparing to build a large-scale mobile phone production plant in Hunan Province to prepare for the next step of capacity demand."
"At the same time, it can also alleviate the rising labor costs and avoid the impact of price increases on Honor mobile phones."
When it comes to the change in the production location of Honor mobile phones, Wang Fu personally called Cao Yang to communicate.
At present, the OEM business of Honor mobile phones is second only to automobiles within BYD.
Although the money earned is not necessarily a lot, it is better in terms of large scale and relatively stable profits.
This is obviously very meaningful to Wang Fu, who wants to let BYD enter the world's top 500.
When a lot of people look at a company, they tend to look at the size of the company and then look at other things.
For example, Wal-Mart, if you have to let it compare itself with others with things like the level of technology, isn't that embarrassing?
However, people rely on turnover and can sit firmly in the first position of the world's top 500.
"The business environment in different regions is different, have you all communicated and considered?"
Where to produce Honor mobile phones, Cao Yang doesn't particularly care, as long as the quality and quantity are guaranteed.
In that place in Shencheng, the labor cost is indeed higher than that of Hunan Province, and BYD wants to change places, which is acceptable to him.
"We have already communicated with them, and a large number of workers in the original factory came from Hunan Province."
"This year, the leaders of Hunan Province came to attract investment, and it just so happened that we also had the idea of further expanding production capacity."
"So I went over to investigate, and now all aspects of the problem have been communicated."
"This foundry will solve the employment problem of a large number of people at that time, and the overall output value is still relatively high."
"It can be said that this is a relatively important project in Hunan Province, and there is no need to worry about the business environment."
Wang Fu told the truth, there is nothing to hide.
For small and medium-sized enterprises, the differences in business environment in different places are very large.
But for very large enterprises, the business environment is good everywhere.
After all, people have the confidence not to pay attention to the harassment of those small fish and shrimp.
Many people are also self-aware and know that these companies are not something they can provoke.
"Since BYD has already thought about it, we naturally support it."
"Next year, our monthly sales will have the opportunity to cross the 10 million mark, and it is indeed necessary to prepare for relevant production capacity in advance."
Nokia has fallen, and smartphones are now in full swing.
The Honor mobile phone is destined to be the biggest piece of cake that can be eaten.
The overseas market is now also starting to exert force, although it is not as good as the domestic market, but the growth rate is also very worth looking forward to.
COUPLED WITH THE LAUNCH OF HONOR PAD, AS WELL AS LAPTOPS AND OTHER PRODUCTS UNDER DEVELOPMENT, THE FOUNDRY BUSINESS OF HONOR MOBILE PHONES WILL BE ON A VERY LARGE SCALE AT THAT TIME.
"Thank you Mr. Cao for your understanding, we will also dispatch a group of skilled workers from Shencheng to develop together with the people of the new factory."
"We will not let the products of Honor mobile phones have quality problems."
Wang Fu naturally knew what Cao Yang cared about.
So even if Cao Yang didn't point it out, he had to take the initiative to make some promises.
Otherwise, it's a bit uninteresting.
And when Wang Fu and Cao Yang were communicating about the foundry in Xiang Province, Xia Qingqing also received a special contact.
Foxconn found her through a relationship and wanted to help Honor mobile phone OEM products.
Looking at this problem from Xia Qingqing's point of view, as long as Foxconn can meet the cost and quality requirements, it is naturally not impossible to hand over some of their products to them.
Even in this way, you can contain BYD, lest one day BYD float in the future, which will have a bad impact on Honor mobile phones.
However, this kind of more important matter must be discussed with Cao Yang in the end.
"Mr. Cao, Foxconn is currently OEM for companies such as Xiaomi and Apple to produce mobile phones, and they also want to cooperate with us."
Xia Qingqing came directly to Cao Yang's office and reported the latest news.
"There is no need to think about Foxconn, the traces of apples on their bodies are too heavy."
"Working with them, I'm worried that they'll sell us to Apple as soon as they turn around."
Cao Yang naturally understood why Xia Qingqing was a little moved.
From the perspective of the stability of the supply chain, normally speaking, it is indeed necessary to hand over part of the OEM business to manufacturers other than BYD for production.
But many things are not absolute.
The cooperation between BYD and Nanshan Group is relatively smooth on the whole, and they will not easily destroy the Great Wall.
On the contrary, on the Foxconn side, people can develop and grow, and the relationship with Apple is also inseparable.
Whether it is Apple's computer, or iPOD and other products, Foxconn helps OEM.
Many international computer brands have also been handed over to Foxconn for OEM production.
On the contrary, some domestic companies have less cooperation with Foxconn.
If there is a choice between Honor mobile phones and Apple, Cao Yang feels that Foxconn will definitely choose Apple.
This is an unacceptable result.
"Foxconn and Apple do have a close relationship, but if our business grows, we may be able to let them produce products from both companies in different factories."
"OR WE CAN HAND OVER SOME OF THE BUSINESS OF OLDER PRODUCTS SUCH AS THE HONOR 3G TO FOXCONN."
"In this way, the production cost may be reduced."
Xia Qingqing felt that there was still a way to solve the problem that Cao Yang was worried about.
So I wondered if I was trying to persuade it.
However, this time Cao Yang's attitude was very resolute.
"If there are no problems with the cooperation on BYD's side, there is no need to consider Foxconn."
"But if Foxconn wants to do OEM business for us, you can find a way to disclose it to BYD."
"You can even do some preliminary contact and investigation."
"In the end, just find some reason or excuse to send it away."
As soon as Cao Yang said this, Xia Qingqing could be regarded as understanding his attitude.
So I didn't explain too much.
……
After listening to Xia Qingqing's report, Cao Yang went non-stop to participate in an activity of the Chip Industry Alliance in the industrial park of Zeng/Cheng.
The new etching machine factory of China Micro Semiconductor was officially put into operation today.
As one of the few manufacturers with better chip production equipment in China, the development of micro semiconductor in the past year can be described as very rapid.
Since the etching machines they produce have been widely used in Nanshan Semiconductor's factory, the current performance in all aspects is very good.
Nanshan Semiconductor's chips have been used in the automotive industry and smart phones on a large scale, which makes other semiconductor companies have great confidence in the technical level of AMEC.
To put it mildly, Nanshan Semiconductor has helped everyone verify whether China Micro Semiconductor is good or bad.
Now that the results are very good, people naturally don't want to continue to spend high prices to import etching machines from overseas.
The equipment parameters are better, the price is cheaper, and the quality is no problem.
As a result, the orders of AMEC immediately increased rapidly.
Whether it is SMIC, other semiconductor companies have begun to take the initiative to use the etching machine of China Micro Semiconductor.
In this way, the second phase of the factory of China Micro Semiconductor was officially born.
"Mr. Yin, congratulations, the current etching machine of China Micro Semiconductor is in short supply."
When Cao Yang saw Yin Zhiqiang, he naturally wanted to bless him first.
Today he is not the protagonist, he must have sat on the side in a low-key manner during the commissioning ceremony.
But before the ceremony began, it was natural to have a brief chat with Yin Zhiqiang.
"This is all thanks to the blessing of Nanshan Semiconductor, so that China Micro Semiconductor is what it is today."
"If you hadn't given so many opportunities to use it, other manufacturers wouldn't have dared to buy our etching machines at all, and we wouldn't have the funds to continuously invest in technology research and development."
"Now the situation has entered a state of benign development, and our new generation of etching machines is already under development, and it will be ready for mass production next year."
Yin Zhiqiang's mood is very good.
When he returned from the United States to start a business, he was ready for a protracted battle.
I didn't expect it to be a success so quickly.
This kind of sense of accomplishment cannot be brought by being an executive in other companies.
"The main thing is that the technical team led by you is strong enough, Mr. Yin, otherwise we won't be able to use it even if we want to."
At this time, there must be a wave of commercial blowing.
There are also many people from other chip industry alliances who came to participate in the event today.
Their development is closely related to the development of Nanshan Semiconductor, and everyone is revolving around Cao Yang.
He didn't want to take the lead, but it didn't seem like he was up to him.
Fortunately, soon, the commissioning ceremony of China Micro Semiconductor officially began.
The protagonist returned to Yin Zhiqiang, which made Cao Yang breathe a sigh of relief.
(End of chapter)