A cheap business empire starting from mobile phones

Chapter 134 World Class Company

The black gun chip was officially launched when Lin Shu returned from Wanbei. The project leader was a senior executive poached from Lianfa, the former special assistant to the chairman and the top executive of the mobile phone chip department Yuan Chongwen.

Yuan Chongwen is not as famous as Zhang Rujing and Liang Mengsong, but he is also a strong man in the industry. He has led the development of multiple chips for MTK and is a general under Cai Xinjie, chairman of Lianfa Technology.

They will be poached by Quanmin Technology, mainly because they stand on the wrong team and follow the wrong people.

Being dumped by personnel, transferred out of the core department.

There is nothing to say about professional skills, they belong to top talents.

But even with top talents and complete technology, it took three full months to produce chip samples.

And...Lin Shu touched a small black cube in his hand, and it burned [-] million.

The real deal is [-] million yuan, excluding labor costs, except for material costs.

The chip industry burns as much money as the Internet war, and it can't afford it without big capital.

Technology is too sophisticated, always accompanied by risks, and it is extremely easy to lose everything.

Fortunately, it was built within a limited time, and there were no major accidents.

Now we need to find a foundry to produce it and turn it into profit.

Lin Shu turned his gaze to Huang Jiangbin and said, "Who do you think is better for us to give the production order to?"

Chips belong to the semiconductor industry. The semiconductor industry has developed in China for more than [-] years and has accumulated a lot. Mobile phone chip manufacturing companies include Huaxin International, GigaDevice, TCL Technology, and Changdian Technology. There are no less than [-] choices.

But considering the manufacturing process and quality control level, there are almost none that can be used.

To be honest, there is only one choice for Quanmin Technology to mass-produce black gun chips.

Huang Jiangbin understands this.

But Mr. Lin asked who the production order was handed over to. He didn't understand, and asked, "Mr. Lin, is there any other choice besides Taiwan's electromechanical equipment?"

The production of black gun chips requires a foundry. The black gun chip is a 20-nanometer process and requires a corresponding manufacturing process. Currently, only Taiwan Electromechanical and Sanxin meet the technical requirements, and none of them in China can meet it. Huaxin International, with the best technology, only has 28 Nano can be mass-produced stably (mass production has just been achieved this month), and there are also 20-nanometer and even 14-nanometer production lines, but they are unstable, the yield rate is low, and the loss is added to the cost, resulting in a sharp increase in cost.

Sanxin has strict requirements and does not have a factory in Huaxia, so there is almost no need to think about it. Now the only choice is Taiwan Machinery and Electronics.

Lin Shu also knew that the black gun chip could only be handed over to Taiwan Electromechanical due to cost and mass production considerations, but thinking of some future events, he didn't want to let Taiwan Electromechanical manufacture it.

Shaking his head, he still said: "There is no other choice, I can only hand it over to Taiji Electric. I am wondering if there is any other choice."

Such contradictory words made Huang Jiangbin even more incomprehensible. Taiwan's leading semiconductor manufacturer in the electrical and electronic industry has top-notch technology and excellent credit.

Why is Mr. Lin so hesitant to hand it over to Taiwan Machinery and Electronics? Could it be that!
Huang Jiangbin vaguely had a guess, excitedly said: "I don't want to hand over to Taiwan Electromechanical, domestic fabs can't meet the technical requirements, then there is another way, you can build your own fab."

"Build your own fab." Lin Shu looked at Huang Jiangbin with a smile, "Mr. Huang is not joking."

"I'm not kidding." Huang Jiangbin said seriously: "For consumer electronics, chips are inseparable, and fabs are inseparable in the field of chips. Without a fab with chip technology, there is no way to manufacture them. Our National Technology needs To drive the rise of China's manufacturing, the fab technology must also be in hand, so as to fully grasp the mobile phone industry industry chain."

Huang Jiangbin spoke boldly, but Lin Shu was quite speechless.

If Lin Shu didn't know how to do it, he was really a frizzy senior, and he would agree with Huang Jiangbin's words, thinking that no matter how difficult it was, Huaxia would lead the world in technology.

As long as the Huaxia people work hard enough, there is nothing they can't do.

But he has been in consumer electronics for more than half a year, and he should know all about the inside story. The difficulty of construction in a fab cannot be made with love.

Leaving aside technical issues, it is not enough to invest in science and technology for all.

It is not billions or tens of billions that can be settled, but hundreds of billions or trillions of investment.

And just like chips, success does not come from investment. For example, Huaxin International was established in 2000. After 15 years of development, it has burned hundreds of billions, and nothing has happened.

It's still not a good thing if the technology is beaten by Taiwan's electromechanical equipment.

Huang Jiangbin thinks highly of him too much.

He has system technology, but it is mainly related to mobile phones, and there is no semiconductor technology.

If you want to enter the semiconductor industry from scratch, it is more difficult than finding a woman on the street to confess your love and just agreeing to get married directly.

However, considering the future trend, the fab industry must enter the game again.

How to get in?

Difficult!

Lin Shu didn't have a good solution for the time being, but his tone was not weak: "It's true, the fab should also enter the national industrial chain."

Huang Jiangbin's eyes lit up. If he didn't expect it, after Mr. Lin took out the black gun chip technology, he knew that Mr. Lin must be hiding a big secret and mastering a lot of cutting-edge technologies.

Although the source of the technology is unknown, there is no need to know where it came from. It is enough to know that the result is beneficial to China.

His dream is to make Huaxia Manufacturing famous all over the world. Lin can always realize his dream, and don't care about other things.

Moreover, the unknown source of technology has been exposed for so long, and no special department has arrested Mr. Lin, which also means that this is legal and has official support.

Just follow Mr. Lin's pace.

Huang Jiangbin looked forward to it: "Then when will we open the fab?"

He must participate in the opening of the fab. Nothing excites him more than personally leading China's technological progress.

"Wait a little longer." Lin Shu didn't want to think about this question for the time being, so he changed the subject and asked, "Huang Gong, what do you think the black gun chip should be priced at?"

Huang Jiangbin thought very quickly, thought for a while, and replied: "It's cheaper than Xiaolong, how much cheaper depends on Mr. Lin's decision."

"It must be cheaper than Xiaolong." Lin Shu responded.

The Snapdragon 801 is currently the best mobile phone chip, and most brands of smartphones use the Snapdragon 801.

The price is 1000 soft sister coins. The price of the Snapdragon 811 that will be mass-produced next month has not been determined, but the price will definitely not be lower than 800.

The price of the black gun will be cheaper than that of Xiaolong, how much cheaper, Lin Shu was thinking about it, and asked: "Huang Gong, tell me a number."

"500?" Huang Jiangbin asked tentatively.

When Mr. Lin asked the reason for the price, he understood that he wanted to compete with Snapdragon in the mid-to-high-end chip market.

The Snapdragon 801 is priced at 1000, and the Black Gun 101 is priced at 500, which is also competitive in the market.

Not to mention that the performance, power consumption, and stability of the black gun are better than those of the Snapdragon.

In general, when it is launched on the market, it can be quickly welcomed by manufacturers and eat up many markets of Xiaolong.

Relevant departments have calculated that the chip market will reach 1.2 trillion this year, and black guns can make a lot of money by participating in it.

Lin Shu frowned, but calmed down, and asked, "Is it too high?"

"Too high." Huang Jiangbin stroked his chin, lost in thought.

He remembered that Mr. Lin was not very interested in making money, and he had already left the low interest of money.

Compared with making money, Mr. Lin wants to realize people's happy life in the world.

Considering this, Huang Jiangbin replied again: "30 yuan?"

"Well, this number." Lin Shu was calm on the surface, but was speechless again in his heart.

Does Huang Jiangbin really regard him as a good person?

Starting a company is doing charity, just like playing.

The cost of a mobile phone chip is very low, manufacturing + packaging and testing (chip manufacturing is divided into four steps, design + manufacturing + packaging + testing, design is a technical level, manufacturing is manufactured in a fab, and the manufactured chip must be protected by a shell. Otherwise, it is easy to be damaged. This is called packaging. Manufacturing and packaging are not integrated. It is completed by two companies. The packaging technology content is not high. After completing the packaging and testing performance, it can be shipped to the assembly plant to assemble the mobile phone), and the cost is about 2~4 US dollars ( It is currently 28 and 20 nanometers. If 14 nanometers have to be multiplied by 10), the cost will be lower if the quantity increases.

The cost of the chip is so low, why is it so expensive - the cost is 2 US dollars, more than a dozen yuan, and the price is 1000 yuan.

Because the cost is not in manufacturing and packaging and testing, but in the design process.

If a chip company wants to develop a stable commercial mobile phone chip, it needs to spend a lot of research costs, and this part of the initial investment must be added to the final cost of the product.

In addition, chip companies want to make profits and market monopoly. To be honest, there is no way to sell 2000, and mobile phone manufacturers have to accept it. Historically, chips sold 2000+ in the early days (90+ in the 2000s, what a huge profit, not mobile phone chips) , still being bought out, anyway, the cost is passed on to consumers, and manufacturers will never lose money.

However, the black gun technology is different. The research and development cost of the black gun technology is very low, more than 1 million, not more than [-] million.

This small amount of money is negligible, only considering the cost of manufacturing and packaging and testing. Huang Jiangbin priced it at 30 yuan, and Quanmin Technology also made a profit.

But... You need to know the low-end chip, the price of the Tek MTK is only 135 soft sister coins.

The performance of the black gun chip is so much ahead of MTK, and the price is only one-fifth of MTK.

This is not only to kill the Snapdragon, but also to kill the MTK. It is completely starting a company as a house.

Regardless of the future of the industry.

Lin Shu shook his head: "With a price of 30 yuan, other chip companies don't need to consider competition, just go bankrupt. They won't sell it so cheaply. I need a reasonable price. Even if it is popular with mobile phone manufacturers, it will not cause the chip industry to collapse."

Under such a request, Huang Jiangbin thought carefully, and replied: "280 yuan, twice the price of low-end chips, considering the research and development costs of other chip companies, as well as the cost of mobile phone prices, the price of 280 yuan can significantly reduce the price of mobile phones."

Huang Jiangbin considered Lin Shu's vision of popularizing smartphones. As long as the chip price drops, the current price of 5000 mobile phones can be cut in half to reach the 2000 price point.

Thinking of this, he was stunned, unable to imagine it at all.

Half a year ago, the price of mobile phones of 1 yuan and 2 yuan was reduced to 2000 yuan in just five months.

2000 price mobile phones are basically affordable.

Lin Shu didn't answer immediately.

The price of mobile phones is so expensive, Lin Shu now generally understands the reasons, one is the price alliance, and the other is the monopoly of chips.

The price alliance led mobile phone manufacturers to maintain high mobile phone prices based on tacit understanding, and there were industry punitive measures that he did not know, which made other manufacturers dare not start price competition and cut prices at will.

However, the chip is monopolized, and there is only one company in the industry. That company sets the price of the chip extremely expensive, and must use their patented solution. It needs to charge a lot of patent fees again, which makes the price of mobile phones increase sharply.

Now after the whole people disrupted the situation, the price alliance was broken, and the price war started, and we also learned from the whole people's technology to engage in online sales, and once again cut down layers of channel dealer fees, factory direct sales.

However, most domestic mobile phones use Snapdragon, and the chip problem cannot be solved, and the price of mobile phones cannot be further reduced.

He now has chip technology, the cost is almost equal to zero, can be sold very low, and sold in large quantities to other mobile phone manufacturers, which can promote the price reduction of smartphones again and promote the popularization of smartphones.

But to change the way of thinking, it is also possible not to sell at a very low price, and continue to maintain the status quo, as long as the cost of other mobile phone manufacturers is higher than that of the national mobile phone, and the price is higher than the national mobile phone.

Mobile phones for all people have infinitely high market competitiveness. Basically, you don’t need to do anything, and you can dominate the market by keeping the price low.

Now because of capacity problems, the market share is relatively small. As long as the production capacity explodes again, the monthly output will be [-] million.

With the irresistible low price, for example, the cost of other brands of mobile phones is 1999, and the lowest price is 2000.

The cost for the whole people is only 499, and it will sell for 500. It is absolutely a steal, and it can also achieve the original vision of popularizing smartphones.

But this will lead to a result that other mobile phone manufacturers will lose market share, lose money, and gradually go bankrupt.

In the end, only Quanmin's family remained in the entire mobile phone industry chain, and other costs that could not compete with Quanmin's all died.

This result is harmful to social development, and even a rebel like Lin Shu dare not do so.

Therefore, Lin Shu said: "280 is fine, but this is the price for this year, and 130 next year, so it's decided."

Huang Jiangbin quickly understood Lin Shu's meaning and Mr. Lin's meaning. This year's Heiqiang 101 has just entered the market and is more expensive. Next year's upgraded version of Heiqiang 202, the price of the old model can be reduced.

130 mobile phone chips, which can reduce the price of smartphones to the 1000 price level.

Huang Jiangbin was secretly startled, but also inexplicably revered.

Mr. Lin's brief sentence changed the fate of an industry.

Probably this is the great power of the great man.

Huang Jiangbin is not jealous either, he just wants to see 'Quanmin Technology' as a Chinese brand world-renowned.

Tell the world that China's manufacturing is not "low quality and cheap", but also high quality and high technology content.

This is also his initial intention to join National Science and Technology.

Now it's a step closer.

He was very excited.

There is nothing more exciting than the realization of an ideal.

The price of the chip is determined, and the follow-up is simple.

Lin Shu personally negotiated with Taiwan Electromechanical. This time, unlike the cold reception he received at Lianfa, Shanghai City General Manager Zhao Cheng greeted him in person. That night, Taiwan Electromechanical President Cai Lixing flew from Wanbei to Shanghai City to entertain Lin Shu.

Cai Lixing is the No. [-] figure in Taiwan Machinery and Electronics, second only to Chairman Zhang Zhongmou. Zhang Zhongmou is very old. In fact, Cai Lixing is the helm of Taiwan Machinery and Electronics.

This kind of big man in the semiconductor industry met Lin Shu in person, and his attitude was very polite. He talked with Lin Shu on an equal footing, and praised Lin Shu for his young and promising talents.

This made Lin Shu very puzzled.

I suspect that there will be some traps in it.

I was vigilant in my heart for a day, until the foundry contract was officially signed, and the foundry fee was so cheap that Lin Shu couldn't believe it-it was almost impossible for a new company to match the price with Qualcomm.

Asked Huang Jiangbin secretly, Huang Jiangbin replied with a smile: "Mr. Lin, our Quanmin Technology is now a world-class company, second only to Baidu, Ali, and Tengxu in China Internet, and not weaker than Qualcomm in the consumer electronics industry. It's normal for an apple, Taiwan Machinery and Electronics to be friendly to us."

"And we have disclosed the pricing of the black gun. They understand the significance of this price to the mobile phone industry, and there is hidden value in it."

"It's all about business, and it's also the way crooked people do business."

Only then did Lin Shu realize that their national technology had reached such a high level.

A little unreal.

But immediately he had a real feeling that the black gun chip was going to announce the release plan.

A major event that affects the entire mobile phone industry happened.

(End of this chapter)