Rebirth in 1989: Creating the Chinese Technology Empire

"Yes, but Director Luo, in order to keep it confidential, this new product can only be seen by yourself. And after seeing the new product, you must keep it secret, because this product is the next strategic product of our company."

Xu Huasheng said seriously. Looking at Xu Huasheng's serious expression, Luo Xiangyu suddenly became very curious.

What kind of product could make this magical young man so serious?

“Where is the product?”

Luo Xiangyu asked curiously.

"Director Luo, at my home..."

Xu Huasheng said with a smile, Luo Xiangyu nodded, and then the group drove directly to Xu Huasheng's home.

But when they got downstairs, Luo Xiangyu asked the driver and others to wait downstairs while Xu Lizi, Xu Dabao and Luo Xiangyu went upstairs.

When he got home, Xu Huasheng entered his room and took out the hand-made VCD.

Looking at the VCD, Luo Xiangyu's face was full of doubts. He had never seen this thing before.

"Director Luo, this device is called a VCD player. It is a disc playback device that can be directly connected to the TV. Compared with traditional laser projectors, his is not only smaller but also cheaper, making it more suitable for home use. …”

As Xu Huasheng introduced it, he connected the VCD to his TV and started playing it.

"Director Luo, the core component of this equipment is the video decoding chip. This is a truly high-end semiconductor chip. In terms of technical content, the technical content of VCD is several miles ahead of the air fryer, and the price premium is also stronger..."

"We are currently registering patents around the world. We will only consider launching this product after the patent registration is completed. Director Luo, the production of this product is much more difficult than the air fryer, especially the production of decoding chips, which requires photolithography. Machines and other high-end equipment. As far as I know, there is currently no domestic company that can OEM such chips..."

At Xu Huasheng's house, Luo Xiangyu was shocked.

Looking at the movie playing on the TV and then looking at the DVD player, Luo Xiangyu didn't know what to say for a while.

High-tech products, absolutely high-tech products.Moreover, it is the first product in the world with a global registered patent.

"How is the profit of this VCD? How is the market?"

Luo Xiangyu couldn't help but ask. He didn't dare to judge easily now.Huasheng Electronics really shocked me too much today.

"Director Luo, VCDs can be sold for at least 500 US dollars in Europe and the United States. Our cost will not exceed [-] US dollars. This is the price of OEM chips from foreign manufacturers. If we produce the chips ourselves, the price will be even lower. . And the market, VCD is a super big market. In China alone, there is probably a market worth tens of billions of yuan. And if it is a global market, it will be even more..."

Sucking in the air-conditioning, Luo Xiangyu really took in the air-conditioning this time.This market is much more powerful than the air fryer market.

"Are you so confident?"

Luo Xiangyu couldn't help but look at Xu Huasheng. These words made Xu Huasheng laugh.

"Director Luo, the air fryer is the best example. Good products can be sold easily. Compared with air fryers, VCDs are like TV sets. Once they become popular, they become fashionable. Think about it, other people have VCDs in their homes. , you can watch movies and TV series at home. We think 500 US dollars is very expensive, but in developed countries in Europe and the United States, it is only half a month’s salary. Spend half a month’s salary to buy a VCD. If it were you, you would buy it ?"

Xu Huasheng's words made Luo Xiangyu laugh.

Yes, if it were you, would you buy it?

If I can afford it, I will definitely buy it.This is just like the TV set at home. In recent years, Huaxia TV sets, washing machines, and refrigerators are the best examples. Who doesn’t want to make their quality of life better?

And if this magical product VCD really becomes popular, I'm afraid it will be the same.

This is not the most important thing. There are almost no patents on televisions, washing machines, and refrigerators, and anyone can produce them.There is a lot of competition and there are many manufacturers.

But for VCD, Huasheng Electronics has a global patent, which is unique to Scorpion.Without the authorization of Huasheng Electronics, foreign big brands dare not produce it.

"Xiao Xu, can we really not produce this decoding chip in China?"

Luo Xiangyu suddenly thought of the decoding chip. Xu Huasheng said that the decoding chip is the core thing of this VCD. If he can produce it himself, the price premium will be higher.

"It's not like we can't produce..."

Xu Huasheng lowered his head and thought for a moment before saying. These words made Luo Xiangyu's eyes light up immediately.

"Director Luo, the biggest difficulty in chip manufacturing is actually the problem of the industrial chain. If you want to produce chips, you must first have wafers, which can be solved domestically. The second is photolithography. If you want photolithography, you must solve process problems. At present, our country Our capabilities in this area are very weak. However, process problems are actually money-burning problems that can be solved as long as you have money and time. In fact, the biggest problem facing chip manufacturing is an attitude problem?"

Xu Huasheng said seriously, which made Luo Xiangyu frown.

"Attitude problem?"

Luo Xiangyu didn't understand.

"Yes, it is not the attitude of the company. It is the attitude of the country. It depends on whether the country pays attention to the semiconductor industry? Is it willing to build a complete semiconductor industry chain? Does it have the determination and courage to impact high-end manufacturing? Does it have the courage to burn everything? Without these things, just relying on It is very difficult for an enterprise because the entire industry chain involves too many things. The rise of the semiconductor industry in the United States and Japan is also driven by their countries..."

Xu Huasheng began to popularize knowledge about the semiconductor industry to Luo Xiangyu, as well as how the semiconductor industry developed in Japan and the United States.

After listening to Xu Huasheng's words, Luo Xiangyu's expression became completely serious.

"Xiao Xu, what do you need our country to do for you?"

Luo Xiangyu took a deep breath and asked.

"Director Luo, we need production capacity. We need to prepare a large amount of inventory in the early stage. When the time is right, we will launch large-scale advertising and marketing around the world, and then quickly launch our products to collect funds and make more money in the shortest time. .Although we have global patents, once our products appear on the market, no one can guarantee whether there will be companies that avoid patents and develop similar products, so the best way is to stock up in large quantities and then take advantage of the market's uniqueness. One portion, eat the biggest piece of cake. Even if some companies develop similar products in the future, we can still kill them with price war..."

Xu Huasheng said fiercely that if there are companies that really avoid their own patent barriers, it will be even more exciting.Those companies will find that the products they have worked so hard to research cannot be sold at all.

Because at that time, Huasheng Electronics relied on large-scale production and China's cheap labor force to reduce prices to cabbage prices.

The selling price of Huasheng Electronics VCD is lower than their cost price, how do they play?This is a common winner-take-all phenomenon in the semiconductor industry.

Xu Huasheng expressed his needs, which was also the purpose of Xu Huasheng inviting Luo Xiangyu.

Only people with Luo Xiangyu's status can report to the superiors.

Once the country pays attention to it and mobilizes resources to help Huasheng Electronics coordinate production, then China's institutional advantages can be brought into play.

Problems in chip production can be solved more easily.

What is vcd now?Is it an ordinary household appliance?

No, this product now can be said to be the business card of China's science and technology field.It is a powerful tool for Chinese enterprises to earn foreign exchange.

If one unit sells for US$500 abroad, and if tens of millions of units can be sold overseas, that would be US$50 billion in foreign exchange.

You must know that the country’s foreign exchange reserves are now only this amount.As for the cost, cost materials can be purchased in RMB.There is no shortage of RMB in the country, but what the country is lacking now is foreign exchange.

What if it sells for 2000 million or 3000 million?And the patent period is 20 years. How much money will this product make in 20 years?How much corporate profit can it drive?How many Chinese people can benefit from this?

Thinking of this, Luo Xiangyu became excited.