Reinventing the Millennium.

Chapter 567 President Fang Persuades Head Ni (Two in One)

The leaders of Anhui Province and Luzhou are very satisfied with the progress of the ice core trial production as scheduled or even ahead of schedule.

The inspection originally scheduled for February 2 was first postponed indefinitely, and then brought forward to February 15. This kind of lost and recovered made the roller-coaster mood of the leaders even more... more enjoyable.

Anhui Province intends to let Luzhou win the position of a "semiconductor base" from above this year. It needs ice cores to have normal production capacity and ice cores to have a certain scale and achievements.

Luo Minghua did not tell Fang Zhuoming about this before, but it is not difficult to understand the implication of the application.

Fang Zhuo took the administrative factor into consideration, even if it didn't take the first place.

Now, as Ice Core has the capability of small-scale mass production, not to mention catching up, normal mass production will be a scene that satisfies all parties, including shareholder institutions such as Goldman Sachs and IDG.

One family of ice cores touches the hearts of several families.

After the cordial inspection by the leaders, they settled the accounts together at the reception luncheon.

The planned production capacity of Ice Core's production line is to produce 3W wafers per month. If it can be fully loaded...

The ex-factory prices of wafers in different fabs are different. For a 12-inch wafer, TSMC has the highest price in the industry, about US$1300+. Other manufacturers are lower than this price, and the average price is US$1000.

If the monthly production capacity is fully loaded, it will be 3000 million U.S. dollars. If it is fully loaded in December a year, the annual revenue will be 12 ​​million U.S. dollars.

Of course, production capacity cannot be completed in one step, nor can orders be completed in one step.

Fang Zhuo just had fun with the leaders and mentioned the prospects of the semiconductor business.

As a comparison, he also mentioned the data of SMIC last year. Its annual revenue in 2004 was around US$10 billion, which was the result of the successive production of the three factories.

——One self-built in Shencheng, one acquired by Motorola MOS17 in Tianjin, one started production in Beijing.

There is also the capacity expansion of the production line in the middle.

"Secretary Sun, we want to develop an industrial chain in our city and increase our attraction to related companies. This is not my selfish intention based on Bingxin."

"This is something that really benefits everyone."

"Including when I called Secretary-General Luo and said to let Mr. Hu's company come to our city and give him the best preferential policies. This is not because I want to bring Professor Hu here for the ice core, but because the upstream and downstream can bring him here. The value of wafer fabrication expands."

"Take Lao Ni's TV as an example."

"He bought a chip from Philips for $125, and our ex-factory price for a wafer is $1000. How many chips can one wafer make?"

"Considering the yield rate, we count as 450 chips per wafer, and the total revenue of the chips it packages is 125*450=56250 US dollars."

"We sold a wafer for 1000 US dollars, and the chips that were re-cut into 5.6 US dollars, which is a 56-fold increase."

"So, our city has a long-term vision. Don't be afraid to give policies. If people don't come, it's nothing."

At the end of the luncheon, Fang Zhuo made another value calculation.

This calculation made Sun Ruolong's eyes red.

He almost grabbed Mr. Fang's arm: "56 times? Then why doesn't Bingxin earn this money by himself? It's better than Bingxin earning it by himself!"

"56 times is considered less. If it is a higher process, from the factory to the customer, it will be at least a hundred times." Fang Zhuo said with a smile, "Ice cores have to have this ability to make money, which one? It’s not easy at all.”

Sun Ruolong added some industry knowledge: "Isn't this wafer manufacturing the most difficult? Bingxin has even done this, and the others are not easy to develop?"

"Wafer manufacturing is not the most difficult thing, the most difficult thing is continuous research and development and the pursuit of the most advanced manufacturing process." Fang Zhuo shook his head, "Let's do a good job of what we can do first, and then look at other things. It is better to learn from SMIC, which is also the first Improve the production capacity, and then start packaging."

He continued: "As far as I'm concerned, it's not that Ice Core has to do everything. If there is a good packaging factory coming to Luzhou, we can invest. It's good to ensure that the goals of each other are the same."

"Anyway, we just study hard, make progress every day, and strive to pay the tax to our city as soon as possible."

Sun Ruolong still took Mr. Fang's arm, and made a statement: "Mr. Fang, let's work hard together. What is missing in the ice core, you must say it. Don't be bored in your heart. Everyone is picking up firewood, and I am a cobbler. Zhuge Liang, the boss above, can't do any big things!"

Fang Zhuo readily agreed, it doesn't matter who Zhuge Liang is, it's best if the flames are high.

Ice Core's holiday will end on February 2, and there will be a rotation of technical backbones after that. From now until the end of February, Ice Core's actions to promote yield will be outlined. Contact upstream manufacturers.

Morningstar Semiconductor from Formosa did perform well, but Changhong also needs to re-evaluate the situation of its inherent partners before making a final decision.

But even so, Morningstar Semiconductor still followed their nanny-style service and began to station a research and development team in Luzhou, intending to optimize the design for Changhong's products.

"What if Changhong didn't choose you in the end?" Fang Zhuo asked when he received a call from Morningstar Marketing Director Wei Boyun.

Wei Boyun sighed first, then smiled: "It's going to rain, and my mother is going to get married, so there's nothing we can do about it. We just think of it as accumulating experience."

Fang Zhuo felt that the attitude of Morning Star Semiconductor was quite in place.

The contact in this aspect still needs to be further weighed. Fang Zhuo’s return ticket to Shanghai is booked on February 2th, and he will return to Shanghai with Su Wei, the vice president of Yike. A small vacation to Tokyo to accompany my parents, by the way I visited Sony.

The last thing Fang Zhuo did before leaving Luzhou was to hold a meeting with Ni Runfeng, Zhang Xuebin and other senior executives from Changhong and Meiling.

Just looking at their identities, the composition of the members of this meeting is quite strange. Fang Zhuo neither holds shares in Changhong nor has a shareholding relationship with Meiling, but he just convened such a discussion meeting.

"Mr. Ni, Mr. Zhang, I am an outsider in the TV industry. I don't understand some things, but I may see some things more clearly."

"Whether it's Changhong or Meiling, the current second-tier and third-tier domestic TV companies are not optimistic about their competitiveness, not to mention TCL, or Konka."

"Ni is always the chairman, and Zhang is always the president. When we look at a company, we look at the industry trend and the company's strategic direction."

Ni Runfeng smiled wryly, already knowing what President Fang was going to say again.

Zhang Xuebin paid attention, it was the second time he met Mr. Fang today, and he was still curious about the opinion of the richest man in the mainland.

Sure enough, it's still a cliché.

"Domestic TV panels account for 70% of the cost, chips account for 10%, and up to 80% of the parts have to be purchased from Japan, South Korea, the United States and Europe. This kind of control is controlled by others, and we must investigate and guard against it."

"It is precisely because there is no core technology, which one of your Changhong, Meiling, Konka, Skyworth, and TCL is not a price war?"

"Mr. Zhang, you are from Skyworth, tell me, is that so?"

Fang Zhuo knew that Old Ni was "stubborn", so he started chatting with the "Prince" this trip.

Zhang Xuebin nodded slowly: "This is generally the case, but there are good and bad price wars. Team building and channel control can make the price wars of different companies have different effects."

"Yes, Skyworth is good in this regard. This is Mr. Zhang's experience. But now that you have come to Meiling, our domestic price war is not one round, but several rounds of price wars. As a result, home appliances are in a sea of ​​red, and Meiling is also Dying, otherwise Changhong would not be the largest shareholder now." Fang Zhuo said.

Zhang Xuebin still nodded, the home appliance industry is like this today.

"This kind of red sea competition, even if it becomes the market leader, is not nourishing. I believe that many companies can see this situation. So far, I have only seen TCL make a strong response." Fang Zhuo gave an example, "TCL Last year, it acquired Thomson Electronics in France to expand overseas."

"TCL Li Dongsheng, when he saw this situation, he went abroad to engage in a market that has not yet completely become a red ocean in foreign countries, in order to break through in terms of scale."

Fang Zhuo tapped the table with his finger: "But this can't solve the core problem. The core parts of the industrial chain will never work. What's the use of TCL's temporary expansion? If Thomson Electronics is profitable, it will not be sold to TCL."

Last year, TCL and Thomson Group, a French consumer electronics giant, established a joint venture company TCL-Thomson, which caused quite a stir.

Because Thomson once committed himself to the world-renowned CEO Jack Welch, but was eventually abandoned due to failure to revive.

When Welch came to China, he also met Li Dongsheng. The two talked on the same stage. Welch said, "General Electric failed to turn Thomson into a profit. Mr. Li is now taking on a major challenge with global significance." Many people applaud TCL.

Li Dongsheng confidently gave a time limit - 18 months, and it will take 18 months to turn Thomson into a profit.

All the executives here today know about such a thing. Hearing Mr. Fang's tone, Zhang Xuebin asked curiously, "Mr. Fang, are you not optimistic about TCL's acquisition of Thomson's TV business?"

"It's still the same sentence, the core that is subject to others can't solve it. If you want to rely on scale to reduce costs, TCL has little room to move around in Europe." Fang Zhuo shook his head and gave a clear view, "Moreover, the form of domestic channels is different this year. .”

He said earnestly: "Suning and Gome are listed, and capital promotes the development of domestic electrical appliance stores."

"Dazhong Electrical Appliances was taken over by E-buy, and it will be the Amazon of the East."

"Soon, you will know what channel is king."

"Domestic electrical appliance stores will gather more and more together. You TV companies without core technology will not only be impacted by foreign brands, but also be manipulated by channels."

Fang Zhuo looked at Ni Runfeng: "So, old Ni, what is really worth doing is not to expand the scale outward, but to seek the core technology of the industrial chain inward. Without this thing, it will be futile."

Ni Runfeng didn't look at Mr. Fang, and sighed at Zhang Xuebin.

Zhang Xuebin felt that Mr. Fang's words made sense, but Meiling definitely didn't have the money to make panels now, and Changhong might be able to move left and right to create some budget.

"Mr. Fang, this is not the first time you have told me about face..." Ni Runfeng opened his mouth.

Fang Zhuo interrupted: "Mr. Ni, this should be the third time I have chatted with you. Today I am not just chatting with you. I am chatting with Mr. Zhang, Changhong and Meiling. Some things require determination and courage. If you know what you have to do, you have to do it.”

"I've advised you these three times, and I won't mention it next time."

"But no matter what, the production capacity of Ice Core and the filing of Morningstar Semiconductor, I think it is still good news. It can solve 10% of the cost dependence for domestic companies such as Changhong. What do you think?"

What else could Ni Runfeng say other than nodding.

President Fang's words had come to this point, and he was even a little angry.

He couldn't help but think of what Mr. Fang said last time—forcibly implementing the panel investment strategy at the end of his term of office, but this is not something that can be done in one go.

The meeting didn't last long. In addition to talking about the dependence of domestic TVs on imported devices, Fang Zhuo also talked about the future prospects of online B2C. He hoped that they could cooperate well with each other.

Zhang Xuebin has made a more proactive statement on this point, thinking that Meiling can increase its bet on online channels, and he is willing to believe in the development of this industry.

Having said that, Changhong can still be regarded as a second-tier brand, while Meiling is more of a local brand, and it is already a bit elevated as a third-tier brand, and it does not have much bargaining chips.

On February 2, Fang Zhuo and his team boarded the flight to Shanghai, and chatted with Xiao Su about the process of yesterday's meeting on the way.

Su Wei asked curiously: "After three times of persuasion, this panel must be done?"

Fang Zhuo said flatly, "I lied to Lao Ni."

"Oh?" Su Wei waited for the next sentence.

"Although I have persuaded you three times, I will talk to him next time if there is a suitable opportunity." Fang Zhuo shook his head and said, "For a period of time, the better Changhong is, the more the capacity of the ice core can be filled. Look at the Morning Star Semiconductor , what did they do for the order."

"Ice cores also need orders from now on, and a large number of orders are needed, because their own process technology is not dominant."

"Changhong is a good comrade in arms, I hope it can be better."

"I'm also leaning towards Morningstar Semiconductor now. Its growth potential is very good. If Bingxin is an OEM for Philips, it would be better to challenge Genesis' market position with Morningstar."

Fang Zhuo said thoughtfully.

Su Wei smiled and said: "No matter what, this year's Spring Festival is not in vain squatting to guard the ice core. The risk trial production is completed, and it will soon be on the right track, right?"

Fang Zhuo nodded, although there is still a good rate, but it is indeed on track.

"You're going to Tokyo at the end of the month, what about our e-buy going online?" Su Wei asked about her own affairs.

Fang Zhuo asked strangely, "What should I do?"

"You, the big president, are not hosting in China, so there is no momentum for e-buy to go online on March 3." Su Wei was half-joking and half-serious.

Fang Zhuo was stunned: "With Mr. Su here, I don't worry. It will go live as soon as it goes online. I will pay attention in Tokyo. The Sony matter will not drag on for too long. I will be back soon."

Su Wei glanced at Boss Fang: "Don't blame me if you mess up."

Fang Zhuo smiled slightly: "I believe in President Su, I believe in Xiao Su, the one who inserts the bid and sells the head, Xiao Su is not easy to catch."

Su Wei stretched out her hand to grab Mr. Fang's wrist, and smiled coquettishly: "Sure enough, Mr. Fang didn't lie."

Fang Zhuo shrugged his shoulders: "Putting bids to sell the first, willingly, that's all."

(End of this chapter)