Since 1979 I have been in the tide of the times

Chapter 505 Comparison
Guangdong Province is the base camp for the production of induction cookers, washing machines, refrigerators, rice cookers, and televisions. There are hundreds of such enterprises, large and small.

If Xiangyang Electronics starts production of low-end Igbt in Foshan, it will not worry about market sales at all.

Now those factories almost all import igbt from abroad, the price of importing from formal channels is high, and buying parallel imports in large quantities is scary.It is best if you can buy locally produced ones.

After seeing the second-hand production line, Wang Weidong negotiated with Chairman Arakawa on the price of purchasing the production line.

Chairman Arakawa proposed to use their second-hand igbt production line to become a shareholder of Xiangyang Electronics, so that Fuji Electric became one of the shares of Xiangyang Electronics.

Wang Weidong did not directly reject Chairman Arakawa's request.

"Now we at Xiangyang Electronics mainly produce two aspects of products. One is the decoding board and movement for VCD machines. There is also a factory producing electronic tubes. The economic benefits of these two aspects of production are now very good, and the output value is also very high. Even if we agree to invest in Xiangyang Electronics with this second-hand production line provided by Fuji Electric, your Fuji Electric’s shareholding in Xiangyang Electronics will be very low and you will not have any right to speak.” Wang Weidong said.

Compared with Xiangyang Electronics, which has billions of assets, this production line accounts for a very small proportion.

"Because I am in Japan, I can see the development of video technology more clearly. From next year, DVDs from several Japanese companies will enter mass production. Compared with DVDs, VCD players have no way in terms of clarity and disc capacity. Compared with DVD players, VCD players are destined to be eliminated. The decoding boards and movements produced by Xiangyang Electronics have no future!" President Arakawa said.

"I don't know how much a DVD player costs, but I know the cost of a VCD player, a few hundred yuan is enough! And I am sure that the price of a VCD player will be much cheaper than a DVD player! Today's Chinese consumption The level is still very low, even if DVD players are introduced to the Chinese market, they can’t afford them. So VCD players can still sell well in China for at least many years!” Wang Weidong said.

Although Wang Weidong, Song Yu, Ou Xiaojun and Ou Xiaoyang decided to stop the production of vcd decoder boards and cores after two years when they held the board meeting, they would never say anything about it outside.

What I said outside is that I firmly believe that VCD has the opportunity to occupy the mainstream of the Chinese market for a long time!

This kind of rhetoric is the only way to convince someone like Chairman Arakawa.For example, use the reasons that China is very backward and the consumption level of Chinese people is very low.As long as such words are spoken, they will believe them, because this is what China really looks like in their hearts.

In fact, the actual situation is indeed the case. It is not entirely because of the DVD that defeated the VCD player in the end.The popularization of the Internet, the improvement of network speed, the sharp reduction in the price of hard disks, and the popularity of a large number of download software such as eDonkey Thunder have pushed VCD players into history.

"If Fuji Electric is willing to take out the most advanced igbt production line to cooperate with us, I would like to consider letting Fuji Electric take a stake in Xiangyang Electronics." Wang Weidong continued.

Undoubtedly, President Arakawa immediately rejected Wang Weidong's words.Almost all Japanese companies will only bring out technologies that are two or three generations behind to cooperate with Chinese companies, and it is absolutely impossible to bring out the most advanced technologies.

In the end, Chairman Arakawa proposed on behalf of the entire company that he was willing to sell this second-hand Igbt production line at a price of US$1500 million, including equipment installation and commissioning and employee training.

"Chairman Arakawa, I will go to Saitama County to negotiate with the people of Sanken Co., Ltd., and only after careful comparison can I finally decide which company's production line to buy." Wang Weidong said.

Wang Weidong did not mean to provoke the two companies by saying this, because he knew that doing so was of little significance.

It rarely happens among Japanese companies that if you sell one yuan, I will sell it for [-] cents, if you sell it for [-] cents, I will sell it for [-] cents. In the end, they would rather lose money than beat their competitors.

To put it a little sadly, such things often happen between Chinese companies, but rarely seen among foreign companies.

Wang Weidong went to Niiza City, Saitama County the next day.Compared with Fuji Electric Co., Ltd., Sanken Electric is more focused on the development of semiconductor technology, and the various groups under Fuji Co., Ltd. have many production categories, and the scale is much larger than Sanken.

The second-hand igbt production line in Xinzuo City was put into operation by Sanken Electric in 1970, and it has been more than a quarter of a century now.

However, it is still no problem to use this production line to produce low-end igbts.

Wang Weidong proposed the same conditions as he had negotiated with President Arakawa of Fuji Electric, and hoped that Sanken Electric would be responsible for supervising the installation of the production line and the training of employees, and the contract would not be finalized until the yield rate of the products reached more than 80%.

Of course, even after the production line is put into production, Xiangyang Electronics guarantees to purchase wafers and other related supporting production materials from Sanken Electric.

Chairman Kotani of Sanken Electric finally decided to sell the production line for $1200 million.

The most uncomfortable thing for Wang Weidong to come to Xiaoben this time is that there is no one. He originally wanted to find some experts from Chinese universities to go to Japan with him for investigation.

However, the electrical knowledge that Chinese experts and scholars learned in the university in the 60s and [-]s is almost all about electron tubes. Even if it involves a certain amount of transistor knowledge, it is far from the level of Cpu and igbt production.

When semiconductors advanced by leaps and bounds in the 60s, it was the time when the country was in a closed state.

Many teachers in universities now sell their knowledge of advanced semiconductors, computer languages, and networks, without any practical experience at all.

"Miss Li, how do you compare the production lines of these two companies?" Wang Weidong asked.

"Boss, I know you don't care about spending a little more money, what I hope is that they can provide better technology and technical guidance." Li Yueshi said.

"Fuji's reputation in Japan and the world is much greater than that of Sanken. But Sanken Electric focuses on the production of semiconductors, and its technology in semiconductors is by no means behind Fuji. Although the production line that Fuji Electric wants to sell to us is more advanced than Sanken Electric's The production line is a few years later, but the technical level should be the same. Since the technical services they provide are also the same, I think it is better for us to buy the production line of Sanken Electric." Li Yueshi continued.

"Actually, I also think so in my heart. The bigger the company, the easier it is to bully people. The big shop bullies customers. After the production line is completed, purchasing the same amount of production raw materials may not be a big deal for Fuji Electric. But for Sanken Electric, we are their undoubted big customers!" Wang Weidong said.

(End of this chapter)