Rebirth 99 to become a car giant.

Chapter 253 Nanshan’s weakness was caught

Cao Yang hopes that Nanshan’s parts can be 100% localized.

This is a grand strategy based on long-term considerations and multiple considerations of cost and supply.

But in 2004, it was unrealistic for all auto parts to be 100% domestically produced.

The simplest thing is, can you buy 100% of those electronic and electrical components from China?

It's not realistic at all!

Therefore, strictly speaking, the localization rate of ECU, TCU, ABS, ESP and other parts produced by Nanshan is less than 50%.

Because the chips, resistors, capacitors, memory, diodes and other components inside are all imported.

Even the PCB boards are imported, which means the assembly is domestically produced.

In this case, there is naturally no weakness at all.

"Ren Cai, you don't have to be so pretentious, tell everyone the plan quickly!"

Li Jia couldn't wait to know what means Ren Cai had to deal with Nanshan.

United Electronics is now fully aware of the potential threat posed by Nanshan.

If something is not done, these potential threats become real threats.

“The components in Nanshan’s control parts are all purchased from abroad.”

"Components such as resistors and capacitors can be provided by suppliers from Japan or elsewhere."

"Not even a single supplier in China can't be found."

"But things like memory and chips must be imported."

"Especially for chips, there are only a few manufacturers in the world that can make main control chips for ECU or ESP components."

"As far as I know, the main control chips for Nanshan's ECU and other parts are all purchased from Infineon."

"As long as we can cut off or restrict their chip procurement, then the development of Nanshan's control parts can be brought to a standstill."

When Ren Cai said this, everyone's eyes immediately lit up.

This plan still sounds very reliable.

In commercial wars, it is also a common method to restrict competitors' access to certain materials or parts.

But it is not that easy for this method to be effective.

After all, not just any company can have this strength.

Obviously, as a German company, Bosch still has considerable influence on Infineon, a chip company also from Germany.

After all, a large part of Bosch's parts use Infineon's chips.

Basically everyone present knew about this situation.

"In the past two years, Nanshan's machine tool CNC system has almost robbed Siemens of its business, and even caused Japan's Fanuc to withdraw from the Chinese market."

"So Siemens must have a strong opinion on Nanshan, and Infineon was previously the semiconductor department of Siemens."

"Although it has been a long time since we became independent, the relationship between the two parties is still very close."

"I feel that if we bring Siemens together to discuss with Inferi and ask them to cut off or limit the supply of Nanshan's chips, then Nanshan's CNC system parts will basically be scrapped in a short period of time."

"Even if they switch to other chip manufacturers in the future, it will require a relatively long process of re-development."

"By then, the situation will be different from now."

After hearing what Ren Cai said, Tang Zimu immediately added his own point of view.

Obviously, he felt that Ren Cai's plan was very good and highly maneuverable.

The key is that as long as this plan is implemented, the effect will be immediate.

"Many of Infineon's chips are now sold through agents. Even if we adopt a plan to restrict sales to Nanshan, they can still buy chips from the market, right?"

Although Li Jia was very moved, he felt that things might not be that simple.

So I told him all the possible breakthroughs I thought of for the other party.

Lest you have time to rejoice in vain.

“Previously, Denso’s ECU main control chip manufacturer used Hitachi Manufacturing Co., Ltd., but at the beginning of this year, when Mitsubishi Electric Corporation’s Semiconductor Division and Hitachi Manufacturing Co., Ltd.’s Semiconductor Division merged independently to form Renesas Electronics, they supplied There was a little problem.”

"At that time, Denso immediately switched the chip to NXP."

"That's when I learned that when Denso was developing parts like ECUs, they would conduct A/B point verification on the main parts from the beginning. They could switch between Hitachi and NXP chips at any time."

"Nanshan is a rather evil company. Is it possible that they have also done this kind of A/B point development?"

"What if we try our best to persuade Infineon to agree to our approach, but Nanshan turns around and immediately uses chips from other manufacturers, that would be embarrassing."

Fang Dongying and Ren Cai are both Bosch sales managers, one is responsible for European and American customers, and the other is responsible for Japanese customers.

There is obviously some competition between them.

So when she saw that Ren Cai's plan seemed to be appreciated by everyone, she naturally had to ask some questions.

“When parts giants like Denso develop parts, they will consider the issue of future supply stability.”

"But this will lead to higher development costs, and not every company will do this."

"I think Chinese companies like Nanshan only compress their schedules and then compress them when developing parts. They shouldn't think so much."

Ren Cai was a little unhappy with Fang Dongying, but she retorted with reason.

"Don't worry about that much!"

"Now we can confirm that Nanshan's control parts and chips are from Infineon, so we must first find a way to get Infineon to cut off their supply!"

"No matter what happens, Infineon will raise their prices to make their costs higher."

"If Nanshan can quickly switch chips to other chip manufacturers, then we will see how to deal with it."

Liu Zhenbo now wants to take action against Nanshan quickly and cause trouble to Nanshan.

As for whether the method is completely effective, he can no longer control that much.

Anyway, no matter how great the effect is, it is bound to bring trouble to Nanshan.

After all, even if Nanshan's parts are developed for point A/B chips, the need to switch chip manufacturers for such an important component must be recognized by the OEM.

At that time, some of Nanshan's weaknesses will be exposed.

If Bosch and United Electronics continue to push behind the scenes, various domestic OEMs will definitely not dare to use Nanshan's control parts easily.

As for international car companies...

Nanshan's parts can't even be produced by domestic manufacturers, so why do they expect to sell them internationally?

"I agree with Mr. Liu's opinion, break Infineon's chip to Nanshan first!"

"Not to mention competing for orders from us, it will be a big problem whether the ECUs and TCUs used in their own engines and gearboxes can be smoothly supplied."

Li Jia from United Electronics strongly supports Liu Zhenbo’s views.

Nanshan has threatened United Electronics this time. Li Jia does not allow such Chinese manufacturers to exist.

Soon, Bosch unified their views, began to contact Siemens, and finally persuaded Infineon to cut off supply.

……

In 2004, the number of chips used in a car was not many, which was not at the same order of magnitude as in later generations.

But if you don’t have more, you won’t have much. After all, there is still something.

Originally, Cao Yang wanted to wait until after the financial crisis to make some money before developing chips.

At that time, there were no obstacles in terms of recruiting talents, purchasing equipment, or funding.

To make chips, the difficulty will be reduced a lot.

But it is obvious that the chip crisis in Nanshan came earlier than Cao Yang imagined.

"Mr. Cao, the chip trader just contacted me and said that they received a notice from Infineon that they are not allowed to sell chips to Nanshan in the next three years. I think this is a bit strange."

Early in the morning, Su Mingxing, director of the purchasing department of Nanshan Group, came to Cao Yang's office.

Things like chips are basically sold exclusively and are highly monopolistic.

However, Nanshan's chip usage has been increasing in the past year, and Su Mingxing has been worried about problems.

As a result, whatever you worry about will happen.

Sure enough, Murphy's Law makes sense.

"Infineon does not allow his agents to sell chips to Nanshan?"

Cao Yang froze for a moment.

This is 2004, not 2020, let alone 2023.

Why do chip supply problems occur?

The chips Nanshan purchased from Infineon were not high-end or advanced products.

In fact, automotive-grade chips do not have very high performance requirements for the chip itself, and they care more about stability.

Only in the era of electric vehicles have the requirements for chips for intelligent network components changed significantly.

Under such circumstances, it is very strange that Infineon does not allow agents to sell chips to Nanshan.

"Yes, I have confirmed this news!"

“Although I don’t know the reason yet, I think it’s our competitors that are causing the problem.”

"But don't worry, Mr. Cao, there will be no problem with our supply in the short term."

"After all, our chips are in stock, and we can also purchase a certain number of designated model chips in the market through other methods."

"But I'm worried that as this matter continues to develop, it will become more and more serious."

When Su Mingxing said this, Cao Yang also realized that something was wrong.

Has Nanshan offended someone again?

Over the years, many competitors have used various tricks to deal with Nanshan.

The current supply of some materials is something Cao Yang has encountered before.

But this is the first time we have encountered this problem of limiting chip supply.

Even though the chip is only as big as a fingernail, even the main control chip is only two fingers wide.

But this thing is really not produced in China right now.

Every passenger car in China has imported chips as long as they are on them.

I can't find an exception!

Even in 2020, 99% of the chips in passenger cars will still be imported or produced in factories in China by international chip giants.

The number of car-grade chips produced by China's local chip manufacturers will slowly increase after China's electric vehicles develop rapidly.

Companies such as Horizon, Xinchi Technology and BYD Semiconductor have their days of success.

"Work with the sales department and immediately arrange for people to investigate through various channels to find out the situation first!"

Although Su Mingxing said that there was no problem with the supply of chips for the time being, Cao Yang felt the crisis.

Nanshan's weakness has been caught!