The rise of a great power: starting with military industry

Chapter 403 Focus

In addition to the resettlement of workers in the third-line factories, Zhao Guoping focused on the mountain city.

Shancheng is an important town in the southwest, and its geographical location is undoubtedly important.

In 1964, the Beibu Gulf Incident broke out and the Third Front construction began. Shancheng was then identified as the core city of the Third Front construction.

From 1964 to April 1968, more than 4 third-line workers moved from Shanghai, Jiangsu Province, Northeast China and other places, accounting for more than a quarter of the employees in Shancheng's enterprises at that time.

In 1965 and 1979, the Chongqing-Guizhou Railway and the Xiangyang-Chongqing Railway, key railway projects of the Third Line Construction, were opened to traffic one after another. In 1975, the total number of migrant workers who moved to the main urban area of ​​Shancheng for the Third Line Construction was 43.5, accounting for nearly half of the total population of Shancheng.

It can be said that the entire mountain city is mostly populated by outsiders because of the Third Front construction.

In 1983, eight counties in Yongchuan area were incorporated into Shancheng, and Shancheng became the first independently planned city in China to enjoy provincial-level economic management authority.

And just on New Year's Day, the authorities approved Shancheng to take charge of Wanxian, Fuling and Qianjiang areas.

Liu Tao knew that the mountain city would probably not be used and would become China's fourth municipality.

Currently, there are three municipalities in China, namely Beijing, Shanghai, and Tianjin!
There are many factors that led to the mountain city becoming a municipality.

The first is to give full play to the locational advantages of the mountain city, radiate to the southwest, and drive the development of the upper reaches of the Yangtze River. The regional location of the mountain city has obvious locational advantages and economic and political advantages. The economic scale is relatively large, and after being directly under the central government, it will be able to radiate the development of the regional economy.

Secondly, it is conducive to solving the difficulties brought about by Sichuan's excessive population and large administrative divisions in administrative management and development. Sichuan Province is too large and has too many people, with a population of over 100 million. To a certain extent, the jurisdiction is not very adequate. The reasonable planning and jurisdiction of the city directly affects the development of the city.

Furthermore, Shancheng is not the provincial capital of Sichuan, but its comprehensive strength in terms of urban size, population and economic scale is at the forefront. Directly separating Shancheng from the central government will not affect Chengdu's responsibilities as the provincial capital.

Panshan Group’s construction in the southwest is also mainly in Yunnan Province, Shancheng, and Chengdu!
In comparison, there are far fewer in Guangxi Province and Guizhou Province.

This is especially true for the Southwest Ordnance Industry Group Corporation. It has decided from its positioning to use the Southwest, the heartland of China and the safest region in the country, as a military production base to ensure national defense security.

Except for the Yangcheng Shipyard, which manufactures warships and ships, all the military factories of the Southwest Ordnance Industry Group are located in the southwest region.

In the civilian field, Liu Tao focuses on King Long Computer Group, China Automobile Group, China Motorcycle Group, China Semiconductor Group, China Gree Home Appliances Group, etc., because these are flagship products with huge markets, and they are responsible for competing in the international market and making huge profits.

"We plan to acquire shares in Formosa United Microelectronics Corporation, but we have encountered great resistance. Formosa would rather let UMC go bankrupt than accept our investment." Zhang Rujing frowned when he said this.

Since its separation from the Formosa Industrial Technology Research Institute in 1980, UMC has become a self-sustaining business entity and is also the only semiconductor company in Formosa that owns a wafer fab.

If China Semiconductor Group can successfully acquire a stake in UMC, it means it can almost completely control the entire upstream of Taiwan's semiconductor industry.

The wafer industry is an industry with extremely rapid replacement and fierce competition. A wafer fab built with an investment of tens of millions of dollars will lose its technological competitiveness in just four or five years and needs to be replaced again. The investment in building a new generation of wafer fabs will become even higher. This cycle is like a bottomless pit, constantly devouring the profits of semiconductor companies.

Those companies that cannot keep up will soon be marginalized by the market or even go bankrupt.

With Liu Tao's golden finger, China Semiconductor Group has always been at the forefront of the world in technological updates and iterations.

Saving a lot of technology research and development funds has made China Semiconductor Group very competitive. In just a few years, many companies have gone bankrupt. In the United States and Japan, a lot of subsidies can be used to support them even if they make losses.

But it was different in Formosa. UMC’s good days did not last long. It turned into tragedy. In the competition in the international market, it could not compete with China Semiconductor Group.

At this time, China Semiconductor Group had the opportunity to acquire a stake in Formosa Microelectronics Corporation. Although UMC has been engaged in low-end semiconductor business, Liu Tao valued the talents in this area in Formosa Microelectronics Corporation and the strengthening of the relationship between the two parties.

When Liu Tao heard Zhang Rujing say that there was great resistance in investing in UMC, even though he was mentally prepared, he still frowned slightly.

He didn't need to think too much to know that there must be some force exerting pressure.

"I will go back to Beijing to see if we can find a solution to this problem." Liu Tao said, "You must not stop the pace of wafer fab construction. You must keep up the pace and put enormous pressure on your peers. It would be best if they were all bankrupted and eliminated!"

The world is big, but it is also small.

There is no need for so many semiconductor manufacturing companies. In Liu Tao's opinion, the ideal situation would be to have only China Semiconductor Group.

Anyway, there are enough Chinese people, and semiconductor production and manufacturing can fully meet the needs of the whole world, and the price will be much cheaper.

Liu Tao's strategy is very simple, that is, to continuously invest in wafer fabs, suppress the price of semiconductors at the same level, and then continuously update and iterate the semiconductor technology, oppressing the peers, forcing them to continuously spend money on developing new technologies and compressing profits. If they can't keep up, they will be marginalized and eliminated.

This strategy works very well.

At least some companies have been eliminated.

In the end, all other companies are eliminated, and only China Semiconductor Group remains in the world. The pricing power then lies in the hands of China Semiconductor Group.

Although this approach makes people grit their teeth in hatred, it is actually a real conspiracy.

It was also thanks to Liu Tao's promotion that China's electronics industry developed extremely rapidly.

Other companies also have their own things to do. For example, China Motorcycle Group and China Automobile Group have great responsibilities, and they have to develop both the domestic and international markets.

Driven by Panshan Group, cars have been opened to the private sector and ordinary people can buy them. However, except for a few people who can afford them, most people cannot afford them.

In the past year, China Auto sold a total of 1 vehicles in China, of which high-end cars accounted for less than 5%, mid-range cars accounted for only %, and the rest were low-end cars.

Because even those who become rich first are not willing to buy high-end cars.

As for motorcycles, a total of 1000 units were sold in the country in the past year, with prices ranging from RMB 10000 to RMB .

This sales volume is due to the continuous promotion and construction of sales channels by Panshan Group, and the increased publicity. At the same time, it also promotes the purchase of motorcycles and cars, which no longer requires motorcycle industrial tickets or automobile industrial tickets, but only requires payment.

(End of this chapter)