Rebirth 99 to become a car giant.

Chapter 690 Falling out? everything is profit

After the new product launch conference of Honor mobile phones was held, related products immediately began to be sold in various flagship stores.

Needless to say, HONOR2 and HONOR 3G are as popular as ever.

The one that everyone is looking forward to the most is HONOR 3. Although the price is higher, the demand has become even higher.

Because the yield rate of the mobile phone chips produced by Nanshan Semiconductor needs to be improved, the output will not continue to increase until after the year.

As a result, HONOR 3 becomes hard to find.

"Lao Lao Lao, can you get HONOR 3?"

This is not the first time Lian Zhijian has received a similar call.

The high-end HONOR 5999, which sells for 3 yuan, has been sold by scalpers at a price increase of 1000 yuan.

There have even been price increases of 2000 yuan in some areas.

As it is, you may not be able to buy it yet.

The more in demand something is, the more popular it becomes.

So many people are starting to think of ways to buy HONOR 3.

Those who have classmates, friends, or relatives in Nanshan Group will naturally ask if they can get HONOR 3.

People don't want discounts, they just want to buy this phone at the normal manufacturer's guide price.

But few people can handle such a request.

"I'm really sorry. I wanted to exchange for HONOR 3 but never had the chance."

“In the past, internal employees could get a 2% discount when purchasing HONOR 3 or HONOR G.”

"Let alone discounts now, there is no internal sales channel for HONOR 3 at all."

Lian Zhijian didn't mean to show off his unwillingness to help his classmates, it was because the company policy did not support it.

Just like the employees of some car companies, they never go to their friends to promote car purchases.

Because you won’t get a penny discount when buying a car from him, so naturally you will be embarrassed to sell it.

"Can't you increase production?"

"Isn't it said online that there are hundreds of thousands of people in your group?"

"Why can't you even finish the production of HONOR 3?"

Obviously, as a layman, Lian Zhijian’s classmates did not know that HONOR 3 is currently manufactured by BYD.

He doesn't even know that increasing production is not something you want to increase and you can immediately increase it today.

Any industrial product requires the use of a variety of equipment to produce.

This is especially true for mobile phones.

It takes time to add new equipment, and it also takes time to add equipment if your parts supply is not ready.

No matter what the situation is, as long as there is a problem somewhere, it will be impossible to handle.

When it comes to the automotive industry, this situation is even more obvious.

An OEM has hundreds of suppliers. If any supplier goes on strike, it will soon cause the OEM to stop production.

Because current OEMs basically don’t have much parts inventory, and many parts don’t even have a day’s inventory.

In this case, if one manufacturer cannot handle it, the car will not be produced.

Not only will it directly lead to the suspension of production of the main engine factory, the supply of hundreds of suppliers in the entire industry chain will be affected to a greater or lesser extent.

It is conceivable that under the influence of this industrial chain, OEMs will have higher requirements for supplier selection.

As long as any factory that can serve as a first-tier supplier to automobile manufacturers is still at a decent level.

In China's industrial system, it is still in the top 10%.

"I'm really ashamed. HONOR 3's technology is relatively advanced, and the production of many parts is difficult. It will take some time to increase production capacity."

"It will probably be much better next year. You may have to wait a little longer."

Faced with the complaints from his classmates, Lian Zhijian definitely wanted to comfort them.

After all, this is also a potential customer.

Of course, there was nothing he could do except comfort.

Fortunately, he has received several calls like this. He has experience in what to say and how to say it better.

Similar things have happened to many employees of Nanshan Group.

……

"Mr. Cao, the yield rate of Nanshan Semiconductor is a bit slow, which is delaying the sales of HONOR 3."

As the general manager of Honor Mobile, Xia Qingqing is naturally very worried about the shortage of HONOR 3.

There are consumers willing to buy, but you have nothing to sell.

How depressing would it be to turn around and buy an Apple or Samsung mobile phone?

Although something like this may not happen, it is enough to make Xia Qingqing depressed.

Zhang Jing, the general manager of Nanshan Semiconductor, is also the deputy general manager of Honor Mobile, and Xia Qingqing is very familiar with him.

So at the Honor Mobile meeting, Xia Qingqing complained to Cao Yang directly in front of Zhang Jing that Nanshan Semiconductor was not doing its job well, which also made Zhang Jing a little embarrassed.

However, expressing dissatisfaction directly is better than complaining secretly.

"Mr. Cao, this is the first production of 28nm process chips for us. Whether it is some improvements in process or equipment, they are being made every day."

"We are also constantly poaching people from companies such as TSMC and Intel, and strive to solve the problem of yield rate as soon as possible."

Without confidence that it can be done in a short period of time, Zhang Jing would definitely not dare to promise anything casually.

At this time, you can only show the strength of your hard work.

"Nanshan Equipment can improve the efficiency of intelligent detection of defects in every link."

“At the same time, engineers who contribute to yield improvement can also be given heavy financial incentives.”

"I will also go to the production site with you for a few days and work together to find ways to improve the yield rate."

Insufficient production capacity can fully utilize hunger marketing tactics.

But if you don't make money, if you don't occupy the market, this is uncomfortable.

"In fact, can we consider guiding consumers to buy HONOR 2 and HONOR 3G first, and then guide them to buy HONOR 3 after the yield rate increases next year?"

Mi Ying put forward her own suggestions from the side.

After all, it’s not that Honor phones have no products to sell, it’s just that the 3nm process chips used on HONOR 28 are in short supply.

These things are not suitable for publicity everywhere.

"This is a good idea. HONOR 2 is quite competitive. Even if it competes with the iPhone 4S, it will hardly fall behind."

"If we can increase the sales of HONOR 2 to more than 500 million units per month, then the goal of mobile phone sales exceeding million will not be difficult to achieve."

"Coupled with the sales of PAD, more than 10 million products will be sold every month, and the influence of the entire Honor mobile phone in China and even the world will rise rapidly."

Large companies with sales of hundreds of billions have huge influence at any time.

Even for a foundry like Foxconn, when its turnover reaches hundreds of billions, its influence is very scary.

The number of workers under their banner has exceeded many people's imagination.

In addition to making money, it also plays a huge role in promoting employment and other aspects.

"I try my best to get the sales department to work in this direction, but if the production capacity of HONOR 3 cannot be increased, I'm worried that things will be reversed by then, which will not be good for its reputation."

Xia Qingqing also knew that Nanshan Semiconductor did not deliberately fail to work hard to increase production capacity. In fact, since the beginning of this generation of chips, the technical level has improved a lot.

It will still take some time for the 28-nanometer chip factory that Nanshan Semiconductor has just put into production to quickly increase the yield rate.

Just when the Nanshan Group was worried about the shortage of HONOR 3, a conspiracy against the Nanshan Group was coming.

"Pat, there is feedback from ASML that China's Nanshan Semiconductor has mastered the 28-nanometer chip production technology and can now produce high-end mobile phone chips on its own."

"The next step is that they will produce their own computer CPUs, which will have a huge impact on our company's core business."

"What do you think about this matter?"

After Intel President Otellini heard the content shared by ASML reported to him by the procurement center, he immediately called CTO Pat to the office for communication.

As the world's leading company in computer CPUs, Intel has lagged behind its competitors in mobile phone chips. Now it definitely doesn't want to see anyone challenge itself in computer CPUs.

One AMD is enough for them. If a new competitor emerges from China, it will be a bit troublesome.

After all, if Nanshan Semiconductor can make Asmer so afraid, it must have two tricks.

"I know Nanshan Semiconductor quite well, and I have been paying attention to their news over the years."

"Although the other party has not officially announced relevant information, I think Asmer's judgment is correct."

"Their current chips are mainly supplied to Nanshan Auto Parts and Honor mobile phones, especially Honor mobile phones. Their smartphone and PAD businesses are developing very fast."

"There is word that they are preparing to produce laptops."

"Nanshan Group is the most active company in China in promoting localization. For their products, they hope that 100% of their parts will be purchased domestically."

"Once Honor mobile phones start producing computers, it will be inevitable for Nanshan Semiconductor to start producing computer CPUs."

When Pat said this, Otellini's face became much more serious.

It seems that this time, I really want to communicate with everyone on how to kill this potential opponent.

Otherwise there will be a lot of trouble in the future.

"Many of Nanshan Semiconductor's chip production equipment are purchased from China, and we have no way to suppress their development by restricting equipment sales."

"do you have any good advice?"

Intel has not participated in suppressing some Chinese semiconductor companies in the past.

Basically, various chip companies put pressure on equipment manufacturers not to sell advanced equipment to Chinese manufacturers.

Over the years, the results have been very good.

But now this road seems to be dead.

"Otellini, actually I think we don't need to be at the forefront of this matter, we just need to follow and do something." When Pat said this, Otellini immediately asked: "Who do you think is better for us to be at the forefront?"

"Qualcomm!"

When Pat said this, Otellini understood immediately.

As an invisible giant in the mobile phone chip industry, Qualcomm’s influence is absolutely huge.

Although there are actually many conflicts between Intel and Qualcomm, everyone has the same interests in dealing with Nanshan Semiconductor.

Nanshan Semiconductor currently mainly produces car-grade chips and mobile phone chips. The technical threshold of the former is relatively low. Intel and Qualcomm are basically not involved, so it is not the focus of everyone's attention now.

But mobile phone chips are different. This is the lifeblood of Qualcomm.

In the past, Nanshan Semiconductor produced some low-end mobile phone chips, and Qualcomm might be able to tolerate it, but it is different now.

Nanshan Semiconductor, which can mass-produce 28-nanometer chips, has begun to threaten Qualcomm's dominance.

In this case, Qualcomm will definitely jump out to suppress Nanshan Semiconductor.

"I will communicate with the president of Qualcomm immediately to see if they have any good suggestions."

After thinking about this clearly, Otellini didn't talk nonsense anymore.

At this time, it is business to take action quickly.

However, before he called Paul Jacobs, the president of Qualcomm, the other party took the initiative to find him.

"Otellini, China's Nanshan Semiconductor has now destroyed the global chip landscape. I think it's time to start solving this matter."

Although the relationship between Paul and Otellini is not good, as they are competitors after all, they often meet on various occasions and are quite familiar with each other.

Therefore, when making phone calls, we go directly to the topic without beating around the bush.

Originally, Otellini was planning to communicate this matter to Paul, but now that he saw the other party taking the initiative to bring it up, he naturally stopped putting on airs.

"I have also heard about Nanshan Semiconductor and Nanshan Equipment. The other party has mastered 28-nanometer chip technology and has applied this technology to high-end mobile phone chips. This is a big deal for everyone. A challenge.”

"If we let them continue like this, our losses will be huge in the future."

"However, do you have any specific preparations, and how are you going to deal with Nanshan Semiconductor?"

Otellini felt that since the other party called him, he must have some ideas.

Before you figure out what to do, it obviously doesn't hurt to listen to Qualcomm's point of view.

"Didn't Nanshan Semiconductor acquire Nvidia before and have been in litigation with the Ministry of Commerce for the past two years? Didn't they agree to give up Nvidia's shares?"

"I think there is no need to wait now, just push it directly and force them to sell Nvidia shares."

"Other Silicon Valley companies acquired by Nanshan Semiconductor can also adopt similar methods to completely decouple Nanshan Semiconductor from American technology."

"In this way, even if they have mastered 28-nanometer technology, it will not be so easy to make further improvements in the future."

Paul has already discussed the plan to deal with Nanshan Semiconductor internally, so when Otellini asked, he said it.

Of course, this is not all Qualcomm’s tricks.

Otellini took the initiative to help Paul raise another point, saying: "Qualcomm has a lot of patents on 3G mobile phones and 4G mobile phones."

"Honor mobile phones now use a large number of chips produced by Nanshan Semiconductor. I think it needs to be investigated carefully to see if there is any infringement of Qualcomm's patents."

"Even regardless of whether they have infringed Qualcomm's patents, you can sue them."

"Anyway, as long as we file a lawsuit, everyone will selectively think that Nanshan Semiconductor made a mistake."

Otellini hopes that Qualcomm will be at the forefront of dealing with Nanshan Semiconductor, so naturally he also proposes something that can make Qualcomm take action.

Otherwise the ball will fall into his hands by then.

Intel has a lot of interests in China, and he does not want these interests to be lost.

"This is indeed a good idea. Aren't they afraid of lawsuits?"

"Then give him a good fight first."

"At that time, I will contact Apple and ask them to apply to ban mobile phones using chips from Nanshan Semiconductor from being sold in the United States."

"We even tried to find ways to further impose sanctions on Nanshan Semiconductor and not allow them to have any cooperation with American companies."

Although Paul also knew that Otellini's plan was a bit uneasy and well-intentioned, since he chose to deal with Nanshan Semiconductor, he definitely didn't mind using more methods.

As long as one of these measures is effective, it will be enough for Nanshan Semiconductor to drink a pot.

It may even directly cause Nanshan Semiconductor to stop production or reduce production levels.

The contents of their discussions soon began to be implemented.

Over in China, as soon as Cao Yang went to work, he saw the Minister of Legal Affairs, Xiang Wei, waiting for him at the door of the office.

"Mr. Cao, Qualcomm sued Nanshan Semiconductor and Honor Mobile, requiring us to pay them a patent fee of 5% of the sales price of each mobile phone."

"And first of all, more than $12 billion in patent fees that have not been paid in the past must be paid."

"At the same time, Qualcomm has joined forces with Apple to request the U.S. Department of Commerce to ban Honor mobile phones and mobile phones using mobile phone chips produced by Nanshan Semiconductor from being sold in the U.S. market."

"Based on what we know so far, the latter condition will be implemented as soon as this year. By then, it will be illegal for our mobile phones to continue to be sold in the United States."

Xiang Wei told Cao Yang the bad news with a worried look on her face.

Nanshan Group has fought many lawsuits in the United States, but the impact in the past was not as great as this one.

Honor Mobile and Nanshan Semiconductor are both business units that Cao Yang cares about, and Xiang Wei knows this very well.

If we lose the lawsuit and really lose the U.S. market and even demand compensation, that will be troublesome.

“Qualcomm and Apple took action together?”

Although the news was very bad, Cao Yang did not panic.

Today's international situation has not yet reached its worst point, and there is still some room for wrangling in this kind of lawsuit.

Even if the situation is really unfavorable, at most it will lose the American market.

As for the patent fee issue, just take your time wrangling it.

Nanshan Group has registered many patents in recent years. Qualcomm can say that Nanshan Semiconductor has infringed its patents. Nanshan Group can also find some cases of Qualcomm infringing its patents.

Similar situations in the past were often resolved through negotiation.

If you are really at loggerheads, then let’s continue the lawsuit.

"Yes, I suspect that this time it may not be Qualcomm and Apple taking action together, but all major chip companies in the United States are participating."

"Even ASML, Samsung, TSMC and other chip-related companies have something to do with this matter."

"Even if it doesn't matter until today, they may jump out to deal with us together in the future."

"Chip is an industry that the United States attaches special importance to. Now that we have broken their blockade, there will definitely be more and more troubles."

Xiang Wei is naturally very clear about the group's business situation.

Nanshan Group has offended many people in recent years. Fortunately, Cao Yang has been pushing for 100% localization of the products of each business unit.

Although up to now, everything has not been truly made in China, but it is not that easy for others to get the neck of the Kananshan Group.

The cost of even getting stuck would be so high that the other party wouldn't dare to use such a method easily.

After all, those international giants would definitely not be willing to do something that would hurt the enemy eight hundred and damage themselves a thousand.

"Mr. Cao, there is a problem with the first batch of mobile phones we declared for customs."

While Cao Yang was still discussing things with Xiang Wei, Xia Qingqing also came over.

As soon as she said it, it was bad news.

Obviously, companies in the United States moved very quickly this time.

Qualcomm, Apple, Intel, TI...

Each of these are giants in the American technology industry, and behind them stand Wall Street and other figures who can influence many American policies.

Nanshan Semiconductor has broken through the 28nm chip technology and begun to use it extensively in high-end mobile phones.

In the future, it will be further expanded to all fields such as computers.

This is definitely something they cannot accept.

"The export of Honor mobile phones to the United States has been temporarily suspended."

"Then you arrange people to do publicity and publicize the fact that Apple has used all kinds of dirty tricks to deal with us in order to suppress the Honor mobile phone."

"Our mobile phones cannot be sold in the United States, and Apple's mobile phones cannot be sold well in China."

Cao Yang knew that he could not change the situation in the United States in a short period of time, but that did not mean that he could not do anything.

Whether Qualcomm or Apple, they all have a lot of interests in China.

As long as the Nanshan Group harms their interests in China, it will be the most direct revenge.

"The appearance of Apple's mobile phones has always been similar to our HONOR 3G and HONOR 2. Can we continue to make a fuss about this matter?"

"In the United States, there is no way to use this reason to sue Apple, but in China I think we can try harder."

"At that time, there will be no way for Apple mobile phones to be sold in China."

Xia Qingqing is going to be furious now.

The situation in the American market had just begun to open up, and something like this happened.

This was hard for her to accept.

If Honor Mobile wants to become the leader in the global mobile phone industry, it must not give up on overseas markets.

Whether it’s Nokia, Samsung, Apple or Honor, everyone sees it this way.

Nokia's achievements that year were the result of success in overseas markets.

Same goes for Samsung.

Now it's Apple and Honor's turn to seize their respective overseas markets, and the competition will naturally become more intense.

"Okay, Xiang Wei, please make arrangements to make this battle a big one."

"The days when our Chinese companies allowed themselves to be bullied by the United States are gone forever!"

(End of this chapter)