Rebirth 99 to become a car giant.

Chapter 623 The King of Mobile Phones in Africa, Strategic Cooperation with Nanshan Semiconductor

Big screen, cheap price, Android system, high pixels...

These labels are simply invincible when placed on the copycat phones recently launched by Huaqiangbei.

Whether it’s the iPhone 4, the HONOR 2, or the cheaper HONOR 3G, there is no product below 2999 yuan for consumers to choose from.

But for many people, they still hope to buy a smartphone that costs more than one thousand yuan.

Huaqiangbei's copycat machine satisfies the needs of this group of customers very well.

Their main focus is the price range of 1000 yuan to 2000 yuan.

Prices vary depending on configuration.

If the camera has higher pixels, the memory is larger, and the screen is larger, the price will be close to 2000 yuan.

On the other hand, it is close to 1000 yuan.

There are even some copycat phone manufacturers that advertise smartphones for 999 yuan.

Therefore, in the Huaqiangbei copycat market in the past month, smartphone shipments have rapidly exceeded traditional feature phones.

Among smartphones, products similar to Honor phones and Apple phones account for more than 80%.

Nokia smartphones and Motorola smartphones have become increasingly difficult to sell.

It is estimated that after the inventory is consumed later, only a small number of manufacturers will produce according to consumer demand, and the rest will fully transform and produce new smartphones.

People in Huaqiangbei have already felt this change.

The person who feels the most obvious is Zhang Jing of Nanshan Semiconductor.

"Mr. Cao, the number of smartphone chips and motherboards we sell through our trading company has exceeded 200 million pieces in the past month, and it is still increasing at a very fast rate."

"According to our internal calculations, by December this year, the number of motherboards shipped to Huaqiangbei will exceed the shipments of Honor mobile phones."

"This also means that our strategy has been completely successful."

Nanshan Semiconductor's previous production focus was on automotive-grade chips. The process of these chips is relatively simple. The difficulty lies in the stability requirements.

However, with the launch of Honor mobile phones, the production of mobile phone chips has naturally been included in the plan.

However, the originally planned production line is not enough to produce mobile phone chips that meet the performance requirements of Honor mobile phones, so until now, the chips for Honor mobile phones are still outsourced.

Now taking advantage of the development opportunities of Huaqiangbei's copycat phones, Nanshan Semiconductor first provides these manufacturers with mid-to-low-end mobile phone chips and lets affiliated companies produce motherboards.

In order to comprehensively compete with MediaTek for the chip market.

This strategy seems to be very successful now.

That's why Zhang Jing was so excited.

"I heard that Huaqiangbei's annual mobile phone shipments are as high as Nokia's sales. According to this calculation, it is normal to have to ship at least 1000 million units a month."

"Our smartphone chip business still has a lot of room for expansion."

Although 200 million is already a very good figure, Cao Yang definitely wants to put some more pressure on Nanshan Semiconductor.

The group has invested so much money in the semiconductor industry, so it naturally hopes that Nanshan Semiconductor can become bigger and stronger.

Now that the new wafer fab and supporting chip processing plant are almost completed, it is time for Nanshan Semiconductor to start to exert its production capacity.

Even for the future mobile phone chip business, Nanshan Semiconductor has started the construction plan of a very large wafer factory and supporting processing plants.

It is expected that the construction of this brand new factory will officially start next month.

Unlike several other factories, the main equipment of this factory will use domestic equipment produced by Nanshan Equipment or related partners.

Although there is no way to achieve 100% localization, it is definitely a very important progress.

If we give Nanshan Equipment some more time, the next new factory will hopefully further increase the localization rate.

By then, except for a few parts or raw materials, 100% localization will basically be achieved.

Cao Yang's goal of achieving 2015% localization of chip production equipment by 100 is expected to be achieved ahead of schedule.

"Indeed, some of the smartphones produced by Huaqiangbei are still marketed as smartphones, but they are not actually the kind of smartphones we understand."

"Their chips are still MediaTek chips, even if the performance is worse, but because many manufacturers may have stocked up on them before, some people are still using them."

"But I think this situation should change quickly in a few months."

"The distributors of various knockoff phones are not stupid. Although the prices are similar, the performance of the phones is obviously different. They will definitely choose products that use our chips and motherboards."

Zhang Jing is still full of confidence in the next development of Nanshan Semiconductor.

This is the first domestically produced mobile phone chip in China, and it is used directly on smartphones.

He has found the entry point of Huaqiangbei very well. If he still can't do it well, he will feel that he is not worthy of the salary.

"Put some pressure on agents and give them some incentives to do their best to promote our mobile phone chips and motherboards."

"We can definitely take advantage of MediaTek's business."

Nanshan Semiconductor’s mobile phone chip business will use high-end chips on Honor phones in the future, and even within a certain period of time it will only be used on Honor phones and will not be sold externally.

But mid- to low-end products can be sold freely.

As Huaqiangbei, which is comparable to mobile phone giants, there is no room for failure in this market.

He even knows that some legendary mobile phone brands will be born in Huaqiangbei in the future, and their popularity in the country may not be very high.

But its popularity overseas is not low at all.

These mobile phone brands are all target customers of Nanshan Semiconductor.

These changes in the Huaqiangbei smartphone market certainly affect more than just Nanshan Semiconductor.

As a newly emerging chip and motherboard trader, Hu Yingang has been extremely busy during this period.

Of course, he was absolutely blissfully busy.

"Gangzi, are you sure this data is correct?"

"A net profit of 2000 million yuan was made in one month. This is much faster than starting an industry."

Guo Shuyin was quite surprised when he looked at the beautiful Hu Yingang in front of him.

At first, I lent money to Hu Yingang to set up a trading company, specializing in Nanshan Semiconductor-related agency business.

Although he is also optimistic about the future of this company, he is willing to directly turn the loan into investment.

But he didn't expect to see the money so soon.

Even at this pace, his investment will almost be recovered within this year, and it will be pure profit from now on.

He was surprised by how quickly the money came in.

Although the Huaqiang Group has a big business, the 4S store business is very profitable this year, but the profit margin of the parts business led by Guo Shuyin has never been particularly high.

That’s roughly enough to earn 20 to 30 million a month.

But this cannot be compared.

Their hot stamping factory is already the largest factory in China, with customers all over the world.

That is the result of many years of hard work, and we have achieved our current results.

But these achievements actually seem so insignificant compared with Hu Yingang's trading company.

No wonder many people are reluctant to engage in industry.

"Cousin, let me tell you, this is the data after controlling the profit. Otherwise, if I am more sinister and increase the price of each motherboard, I estimate that the profit can be doubled."

"Of course, Nanshan Semiconductor will definitely not allow us to increase the price too much, otherwise it will affect the sales of terminals."

"The sky in Huaqiangbei is going to change this time."

When Hu Yingang said this, he couldn't hide the complacency on his face no matter how hard he tried.

Choice is more important than hard work.

At this moment, he had a deeper understanding of this sentence.

"It seems that Nanshan Semiconductor's strategic transformation this time is more than half successful."

"Many automotive-grade chips from Nanshan Auto Parts have also begun to be replaced by products produced by Nanshan Semiconductor."

"Now there are breakthroughs in mobile phone chips. It is estimated that Honor mobile phone products will also use the group's own chips in the next step."

"For so many years, no company in China has been able to truly achieve chip independence. Nanshan Group is likely to be able to accomplish this thing that no one has been able to accomplish in the past."

"No wonder the higher-ups attach so much importance to Nanshan Group. They are really very impressive."

When Guo Shuyin said this, he was secretly glad that he was closely following the development of Nanshan Group.

Otherwise, we wouldn’t have achieved what we have today.

Even investing in Hu Yingang's trading company is essentially following the development pace of Nanshan Group.

This choice has not been wrong in the past, and it is not wrong now, and it is necessary to make it firmly in the future.

"It is indeed very powerful. For so many years in Huaqiangbei, no mobile phone has been able to use domestic chips. Now Nanshan Semiconductor can change this situation. The meaning behind it is extraordinary."

"In the future, more and more companies will definitely consider entering chip products, which will also be very beneficial to the development of China's entire industry chain."

"Gangzi, I think your next step, in addition to continuing to expand the Huaqiangbei market, can also consider selling Nanshan Semiconductor's chips overseas."

"Both MediaTek's chips and Qualcomm's chips are not cheap."

"There must be some overseas markets that have their own demand for low-priced chips. If you can help Nanshan Semiconductor expand the market, they will definitely not treat you badly in the future."

"Otherwise, there are other trading companies that can take goods from Nanshan Semiconductor at any time and replace your current position."

Being prepared for danger in times of peace, Guo Shuyin is not the kind of person who likes to rest on his laurels.

The more glorious the situation, the more we need to consider the crisis we are facing.

Obviously, Hu Yingang's trading company actually lacks core competitiveness.

Although it is very profitable now, but because it is very profitable, there will always be others who want to take its place. After all, in Huaqiangbei, there are definitely a lot of people like Hu Yingang, not to mention a handful.

"You are right. We really need to find a way to make Nanshan Semiconductor have more confidence in us and continue to leave relevant business to us in the future."

"However, I guess they won't just ask our family to do it."

"Now it depends on how big of a market we can open up first. In these markets we have opened up, they should still seriously consider changing traders."

Hu Yingang was not stupid, so he naturally knew that what Guo Shuyin said made sense.

After all, everyone knows that when buying something through a dealer, there will definitely be a price increase.

If the quantity is relatively large, why not find the manufacturer directly to avoid the cost of intermediate links?

As if to confirm Hu Yingang's concerns, while he was chatting with Guo Shuyin on this topic, a conversation was going on inside a mobile phone company in Huaqiangbei.

"Mr. Zhu, we have found out that the chips and motherboards sold by Yingang Trading are all produced by Nanshan Semiconductor, and the quality is quite good."

"Our company's mobile phone sales are constantly rising. I think we can find a way to directly find Nanshan Semiconductor and communicate with us about in-depth cooperation in the future."

“There is no need to purchase through a trading company.”

As the head of research and development of Transsion mobile phones, Chen Minbo specially arranged personnel to conduct various tests on Nanshan Semiconductor's chips during this period.

For the latest copycat phones that use chips from Nanshan Semiconductor, they are also paying close attention to some after-sales feedback.

The era of smartphones is coming, and they have also felt the impact of this trend, and naturally they hope to make a difference.

As mobile phone chips and motherboards are very critical parts, Transsion naturally hopes to achieve domestic production.

Otherwise, there is no way to fully reflect the cost advantage.

Transsion positions itself as a mid- to low-end mobile phone, so its requirements for chip performance are not that high.

As long as the quality is decent, low cost is what they care more about.

Obviously, as long as parts can be produced domestically, there is hope that the cost will be the best in the world.

This is why Chen Minbo wants to consider in-depth cooperation with Nanshan Semiconductor.

"Nanshan Semiconductor is a star company in China. Nanshan Group must have invested tens of billions of yuan in it in recent years."

"We, a mobile phone manufacturer that everyone calls copycat, come to us to seek cooperation. Will they be interested?"

Although Transsion's sales are not low, it is still a copycat mobile phone in everyone's eyes.

Zhu Zhaohai has a relatively clear understanding of this.

After all, when it was founded, he wanted to rely on a unique path to find a way to survive among the mobile phone giants.

So far, Transsion Mobile’s performance proves that his choice was correct.

"Since Nanshan Semiconductor promotes its smartphone chips in Huaqiangbei through Yingang Trading, it shows that they are very interested in copycat mobile phone manufacturers here."

"Although we are not the manufacturer with the largest sales volume, our influence in Huaqiangbei cannot be underestimated."

"In this case, if we contact Nanshan Semiconductor, the other party's reaction may be better than we imagined."

Chen Minbo is more optimistic.

As a person engaged in research and development, he is very aware of the special characteristics of mobile phone chips.

There are too few domestic manufacturers who dare to engage in such things.

And once you make up your mind to do it, you naturally want to do a good job in the business.

Mobile phone giants such as Nokia will definitely not give Nanshan Semiconductor an opportunity easily. Chip giants such as Qualcomm and MediaTek are also eyeing it. They do not want local chip companies in China to truly rise and threaten their status.

In this case, any customer who can increase sales is worthy of attention.

"According to Nanshan Semiconductor's current mobile phone chip shipments, their production capacity should be a bit tight, right?"

"I heard that someone at Yingang Trading has started to pay in advance in order to get more chips."

"Even if you pay for the goods in advance, there is no guarantee that you will be able to get the chip quickly."

"I'm worried that Nanshan Semiconductor's attitude will be more arrogant. After all, they have survived the most difficult time."

It's not that Zhu Zhaohai is afraid of running into trouble, but that no matter what he does, he hopes to be able to analyze the situation clearly before taking action.

In the early years, when he was working at Bird Mobile, he had already witnessed the rapid collapse of China's largest mobile phone manufacturer, so he thought more about problems.

Either don’t do it, or do it successfully.

Although Transsion's current sales are not low, its fundamentals are not stable and cannot withstand the hardships.

"This is the case now, but Nanshan Semiconductor has four wafer fabs and supporting chip factories under construction this year, and these factories will be put into production soon."

"By then, the production capacity of various types of chips will increase rapidly, and mobile phone chips will naturally be no exception."

"Even if the production capacity is insufficient, Nanshan Semiconductor can further build more factories to meet market demand."

"Not all of our current mobile phones use smartphones, and the demand for chips should not affect the supply of Nanshan Semiconductor."

Chen Minbo's words gave Zhu Zhaohai a little more confidence.

Soon, they found a way to contact Nanshan Semiconductor.

However, Zhang Jing did not directly agree to this request from Transsion Mobile.

After all, it is the company's established policy to carry out preliminary business through agents in Huaqiangbei.

Of course, he didn't completely ignore this matter, but mentioned it casually when reporting the new factory plan to Cao Yang.

It was okay if he didn't mention it. Cao Yang became interested immediately when he mentioned it.

"You said that a Huaqiangbei copycat manufacturer called Transsion Mobile wanted to cooperate directly with us, and also boasted that it would buy millions or even tens of millions of mobile phone chips and motherboards from our company every month in the future?"

Although Cao Yang is not a professional in the mobile phone industry, he has heard about the excellent performance of Transsion mobile phones in Asia and Africa in its previous life.

As the mobile phone brand with the largest market share in Africa, Transsion is actually not well-known in China.

Most people don’t even know that China actually has such a powerful manufacturer besides Huawei, Xiaomi, OPPO, and VIVO.

Although Transsion is taking a low-end route, the products of a semiconductor company also require a full combination of medium, high and low structures to be perfect.

The existence of Transsion will be able to take over the Huaqiangbei market in the future.

After all, although the shipments from Huaqiangbei are growing rapidly, Cao Yang knows that this situation cannot continue forever.

On the one hand, copycat mobile phones are more or less infringing, and there will definitely be no way to get official support from Shenzhen in the future.

On the other hand, with the rise of new domestic smartphone brands such as Xiaomi mobile phones, the prices of smartphones will continue to decline.

The existence of these branded mobile phones will further crowd out the market for copycat phones.

Just imagine, you can buy a Xiaomi smartphone for 1000 yuan, so who is willing to spend 1000 yuan to buy a copycat phone?

No matter how good the reputation of copycat mobile phones is, they cannot be better than those of these branded mobile phones.

"Yes, it's called Transsion Mobile. Because they were the first copycat manufacturer to directly bypass Yingang Trading and come to us, so I'm quite impressed."

Zhang Jing didn't quite understand why Cao Yang cared about the appearance of a copycat manufacturer.

However, he didn't think that much.

"You arrange for someone to contact the people at Transsion Mobile again, and I'll take the time to chat with them."

After Cao Yang said this, he immediately added another explanation, saying: "I have heard other people tell the story of Transsion mobile phones before. I am quite interested in some of their ideas to see if they really have prospects."

"If the team of this company is aggressive, has ideas, and has a promising future, then it is not impossible for us to cooperate directly with them."

"After all, the situation in Huaqiangbei cannot continue like this forever. Sooner or later, we will need to consider other plans."

Following this conversation between Cao Yang and Zhang Jing, Zhu Zhaohai and Chen Minbo finally had the opportunity to formally meet and chat with Cao Yang.

"Mr. Cao, our Transsion Mobile phone mainly provided OEM services for mobile phone brands in Southeast Asia and Tianzhu."

"Because our mobile phone products are low-priced, full-featured and reliable in quality, they have been welcomed by customers, and Transsion's business has begun to pick up."

"However, I find that the African market seems to have more potential, and I am ready to fully enter the African market..."

“Although most mobile phones today are still traditional feature phones, there is no doubt that the development trend of smartphones is there.”

"We at Transsion also hope to provide customers with smartphones that are affordable and of reliable quality."

"This requires us to have more affordable chips and motherboards, and even products such as batteries and cameras."

"In the past, these products mainly relied on imports, and the situation in terms of batteries and cameras was better."

"But I feel that only by fully realizing localization can we truly minimize the cost."

"We at Transsion are willing to have in-depth strategic cooperation with Nanshan Group to open up more markets for Nanshan Group's mobile phone components."

Zhu Zhaohai was quite eloquent, and he sketched a relatively big blueprint with Cao Yang from the very beginning.

He has said similar words to many people within the company.

So there is no pause in talking about it today.

"no problem!"

"Nanshan Semiconductor can form an in-depth strategic cooperation with Transsion!"

"Even Nanshan Group can cooperate with Transsion in other aspects such as batteries and cameras."

"But Transsion must promise to purchase 100% of the parts that Nanshan Semiconductor can produce from Nanshan Semiconductor at a price no higher than that of other manufacturers!"

After Zhu Zhaohai finished speaking, Cao Yang directly gave an affirmative answer!

This made Zhu Zhaohai very surprised!

When he came to visit today, deep down in his heart, he did not expect to achieve any in-depth cooperation immediately.

It is a very ideal result for Nanshan Semiconductor to be able to directly trade with Transsion.

Unexpectedly, the situation turned out to be better than the best outcome he thought!

(End of this chapter)