Rebirth 99 to become a car giant

Samsung mobile phones are among the traditional mobile phone giants that have transformed relatively quickly.

Their business model is also quite different from Nokia and Apple.

It can be said that Samsung Mobile is the mobile phone company that uses the highest proportion of parts from its own group.

Even Honor phones can’t compare in this regard.

In recent years, Samsung has obviously increased its emphasis on the Chinese market and its investment in all aspects.

This is true whether it is a computer, a TV, or a mobile phone.

Even in terms of semiconductor components such as memory, Samsung is expanding against the trend and wants to become the king of the industry.

Samsung has naturally noticed the rapid development of smartphones in the past two years. They are even the fastest among traditional mobile phone giants to embrace Android.

Now that Apple mobile phones have begun to enter the Chinese market in a big way, and the sales of Honor mobile phones have begun to explode again, Samsung China has immediately felt the threat.

"Mr. Park, I think the headquarters should completely abandon traditional feature phones, develop more smartphones, and bring them to the market as quickly as possible."

Li Zailin came to Park Chung-hee with a report on mobile phone market research feedback in the past week.

The pace of change in the Chinese market is a bit beyond his imagination, especially the proportion of smartphones that are increasing every month.

Although the overall proportion is still small, if you simply look at the changes in smartphone sales, you will find that it is a steep slope.

If we continue to develop at this rate, within a few years, the situation will undergo earth-shaking changes starting next year.

"The sales of our slider mobile phones have always been quite good. Although there is no increase, it is ideal to be able to stabilize at a relatively high number."

"The headquarters is also designing smartphones, but the production cost of smartphones is relatively high, and the final selling price will definitely be higher."

"How consumers will choose in this case is also a matter full of uncertainties."

"The headquarters will launch a specially designed smartphone this year, and its performance in all aspects will be no worse than Apple phones and Honor phones."

"As for whether to launch more smartphones, the headquarters is also considering it."

"Eventually there will definitely be other mobile phone models launched, but the number cannot be the same as before. There will always be more than ten models on the market!"

As the general manager of Samsung China, Park Chung-hee naturally understands the company's strategic development.

Such a large company needs to invest in all aspects, and it is impossible to spend too much investment in just one area.

On the contrary, small companies tend to do desperate things.

"If it's just one product, wouldn't it be the same route as Apple and Honor phones?"

Li Zailin has always had some opinions on Nanshan Group, especially the other party's large-scale entry into the semiconductor industry, which made him very hostile to the other party.

Because this means that the routes taken by both parties are very similar.

In this case, everyone's competitive relationship will become much more intense.

That will directly affect Samsung's income.

“Currently, in the smartphone market, Apple’s phones are the most successful in the United States, while Honor’s phones are the best in China.”

"In this case, for the sake of insurance, it is the best choice for the headquarters to adopt the same method as them."

When Park Chung Hee said this, Li Zailin understood.

Neither Korean companies nor Japanese companies are very good at innovation.

For them, following the path of successful manufacturers and then finding ways to do it better than others is what they are best at.

In this regard, Japanese companies have done particularly well.

When the development of the entire industry is very slow, their approach is very appropriate and can significantly reduce R\u0026D costs and gain benefits.

But when the industry develops and changes very quickly, they can't keep up.

The most typical one is the electric vehicles of later generations, which are undergoing huge changes every year.

Japanese companies have no way of adapting to that style.

With Samsung also planning to officially launch its flagship smartphone this year, the mobile phone market has undergone tremendous changes throughout 2010.

Although Nokia is still a giant, cracks have begun to appear under its throne.

As the main accomplice in poaching Nokia, Cao Yang now completely ignores this matter.

Because during this period, Nanshan Semiconductor’s four wafer fab projects, as well as the post-process packaging and testing factory projects, all have to hold groundbreaking ceremonies.

It is equivalent to Nanshan Semiconductor investing in four wafer fabs at once, and also launched a simultaneous groundbreaking event for the four major factories.

Although two of the factories are cooperating with Warwick and BYD, this is definitely a big deal.

Many people previously thought that even if Nanshan Semiconductor wanted to build so many wafer fabs, it would definitely be divided into several years.

In this way, the financial pressure and talent pressure of the enterprise can be reduced to the greatest extent.

Who knew that Nanshan Semiconductor did not follow common sense and acted so fast.

According to this rhythm, by the end of next year, Nanshan Semiconductor's wafer production capacity will soar to the second place in China.

Even if it is placed in the whole world, it still has a certain ranking.

For a company that has just been established, this achievement is remarkable.

"Mr. Wang, if the wafer fab project goes into production smoothly this time, more and more of the chips used in our cars in the future will be domestically produced."

"That proves that the concept put forward by Nanshan Group is right."

"This is really extraordinary for our automotive industry."

Liang Chuanqing stood next to Wang Fu and had just concluded the groundbreaking ceremony of the wafer fab built by Chang'an, a partnership between Nanshan Semiconductor and BYD.

Although this is only an 8-inch wafer fab and its scale is not very large, the investment has reached 6 billion yuan.

Nanshan Semiconductor and BYD each contribute 50%, which is equivalent to 3 billion each.

Of course, considering that BYD had no way to come up with so much money at once, it ended up borrowing 3 billion from a bank in the name of a joint venture, and the remaining 3 billion was injected by two shareholders.

In this way, the funds were finally in place.

"I have also been studying Mr. Cao's layout during this period, especially his layout in the semiconductor industry."

“The deeper we study, the more we realize how difficult it is to develop the semiconductor industry.”

"Under such circumstances, Mr. Cao actually dared to boldly enter the semiconductor industry, and he didn't just do it in a small way."

"To be honest, I still admire him very much."

"There should be no company in China that dares to do things like Nanshan Group."

Wang Fu has now slowly given up on competing with Nanshan Group because the gap between them is too big.

According to Nanshan Group's turnover last year, they are already among the top ten giants in China.

Even many central enterprises cannot compare with Nanshan Group in annual turnover.

The most important thing is that Nanshan Group can achieve this step not by relying on administrative means, but by actually carving a bloody path in the market.

The combat effectiveness of this kind of enterprise is very powerful.

"It's true. Nanshan Group's development path cannot be imitated by other companies. It's really unbelievable."

"To a certain extent, they can even be used as a classic case of China's economic development."

"If Nanshan Semiconductor can successfully break the situation in which domestic chips have been dependent on imports this time, then Nanshan Group can really become a god."

"Last year, chips surpassed crude oil and became China's largest imported commodity."

"The business risks involved are quite high, both for the company and the country."

Liang Chuanqing's vision is naturally not bad, and he can understand the importance of the chip industry to a country.

This time, BYD invested heavily in building a wafer fab in a joint venture with Nanshan Semiconductor, and he was a driving force behind it.

Otherwise, there would be a lot of opposition within BYD.

After all, he earns more than 2 billion yuan every year, and he also uses it to invest in various businesses such as foundry manufacturing, batteries, and automobiles.

Now a wafer fab costs 3 billion, is it still worth it?

The most important thing is that these 3 billion yuan may be just the beginning. Who knows if there will be 6 billion yuan projects waiting for them?

Regarding these objections, even if Wang Fu has a high authority, it is still a bit of a headache.

Fortunately, it was not that no one supported this project, and everyone debated it back and forth.

In the end, the Yes camp won.

Otherwise, there would be no groundbreaking ceremony today.

"Our cars need parts using chips. In the future, as long as Nanshan auto parts can be produced, we will go to them to buy them."

"We will wait and see whether Nanshan Semiconductor can successfully domestically produce all domestic automotive-grade chips."

“As long as they dare to use the chips they produce, we dare to install them in their cars.”

For Wang Fu, this supportive attitude is already very obvious.

It is equivalent to BYD Auto becoming the first users of domestic chips.

This also requires some courage.

BYD, a semi-conductor in the semiconductor industry, had such a great response to the construction of this wafer fab. People like Warwick, who have often been in contact with the semiconductor industry, felt even more deeply.

"Mr. Xu, Nanshan Semiconductor is making a big move. The four major factories are laying foundations at the same time."

"The total investment in the cooperation project with BYD is said to be 6 billion yuan, and this project with us is 8 billion yuan."

"As for the two projects they have invested in, one is to produce 12-inch wafers, with an investment of 12 billion."

"Another factory that produces 100,000 8-inch wafers per month has an investment of 10 billion."

"Even if the two factories are joint ventures, Nanshan Semiconductor will eventually need to spend 29 billion yuan."

"Mr. Cao is really very courageous."

Lian Zhitian looked at the planning map of the wafer fab that Huawei HiSilicon and Nanshan Semiconductor cooperated with, and he was filled with emotion.

Warwick had no plans to build its own wafer fab before, but now it can agree to cooperate with Nanshan Semiconductor. Lian Zhitian definitely knows better than most people how powerful this change is.

It is not easy for a company to change its development strategy.

"Mr. Cao is indeed a very courageous person."

"But I'm a little curious about how much money Nanshan Group earned last year."

Xu Jun is not just gossiping, but wants to further judge the future cooperative relationship between the two parties based on Nanshan Group's profitability.

After all, if the opponent is weak, it will definitely have an adverse impact on the development of the cooperation project.

Warwick gave up its original development strategy and now began to cooperate with Nanshan Semiconductor to build a wafer fab. Naturally, it was not a one-time deal.

As long as the project goes well, there can be more joint venture factories in the future.

The two parties have joined forces to create a batch of chips that are scarce in the country.

"According to the most conservative estimate, Nanshan Group's turnover last year was 500 billion yuan."

"Most of their products are products that have mastered core technologies, rely on technology to win orders, and do not engage in price wars with others."

"In this case, the profit margin should be at least 10%, and even 20% is possible."

"That is to say, Nanshan Group earned at least 50 billion yuan last year."

Lian Zhidian quickly gave his speculation.

Anyway, there is no need to take responsibility, just make bold assumptions.

"Even if they have earned 50 billion yuan, it is still very exaggerated to spend 29 billion yuan to invest in the semiconductor industry this time."

"After all, Nanshan Group has a big business. It is not just the semiconductor industry. Other business units also need investment."

Comparing his feelings, Xu Jun felt that if he were sitting in Cao Yang's position, it would be difficult for him to make such a big move.

Of course, there is no way to assume many things, otherwise the world would be perfect.

"Nanshan Group earned 50 billion last year. Judging from the development of the automobile industry in the first three months of this year, the automobile industry will still be in a state of rapid development this year."

"This means that Nanshan Group's turnover will further expand, and it is estimated that its income will continue to expand."

"In this case, spending 29 billion is not an exaggerated figure."

"After all, when money reaches this level, it's just a matter of numbers."

"Mr. Cao doesn't seem to be the kind of person who takes money very seriously."

When Lian Zhitian said this, Xu Jun understood.

It seems that this time Warwick has hooked up with a rich man.

Even if we need to continue to build more wafer fabs in the future, we don’t have to worry about our partners not being strong enough.

Even in the future, Warwick's development can rely on this cooperation to reach a higher level.

Xu Jun is quite confident about this.

For example, for telecommunications products, the profit margin of overseas sales is not more than 50%, but it is 100%. It is simply embarrassing to encourage people to expand their territory.

Among these devices, the main thing that Warwick cannot control is the chip.

As long as this problem is solved, Warwick will be able to better compete with communications giants in the global market in the future.

It is a good thing for Warwick and China.