Rebirth of Cyber ​​Hegemony

Vol 3 Chapter 725: : Come out, Lizi phone

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"Wu Kai, add 20 sets of mobile phone production lines to me."

"Group 20, I'll go, Mr. Chen, are you hitting chicken blood?"

"Brother, don't have the guts?"

"It's not that I don't have the courage, but 20 sets of production lines are too risky."

After signing OEM contracts with major mobile phone manufacturers, Chen Yu called Wu Kai over.

He had always been in charge of the foundry business before.

It's just that Chen Yu said that adding 20 sets of production lines scared Wu Kai.

"How can we build our foundry business without taking risks, and how can we fight Foxconn without taking risks."

Huanyu Technology has always had foundry business before.

But most of the time, Huanyu Technology produces it for itself.

As for foundry, the amount is not particularly large.

For example, it was OEM for Huawei at that time.

Except for Huawei, most companies basically produce and manufacture by themselves.

This model is called IDM internationally.

IDM is called an international integrated component supplier. To put it simply, it means doing everything by itself.

Design, manufacture, encapsulate, test, and ultimately sell the downstream end consumer products.

The advantages of this model are obvious.

Because everything is done by yourself, it is much better to control product quality than OEM.

At the same time, it can also be integrated and utilized in terms of resources and possesses technological advantages.

In addition, the profit is relatively high because of doing both.

Of course, the most important thing is that your own manufacturing will not be controlled by other manufacturers.

However, such a model also has disadvantages.

It makes the enterprise large in scale, and the management and operating costs are very high. And because all aspects of entry require a lot of investment, the rate of return on capital is relatively low. It also seems that you can do everything yourself, but when you actually do it, you find that any piece is not well done, but it is done very generally.

In the market environment, electronic products must go through four stages.

Design, manufacture, test, marketing.

The least profitable is manufacturing and testing.

The most profitable is design and marketing.

To put it another way, if you are solely responsible for design and marketing, you can undoubtedly save costs.

The reverse is also true for Huanyu Technology's electronic foundry business. Although it seems that among the four links, Huanyu Technology is the least profitable, but because the foundry technology is the most advanced, this also greatly improves the efficiency of the entire mobile phone manufacturing. You may not see much when the quantity is small, but the quantity is large. There are huge advantages in cost control.

After Chen Yu took so many orders, he wanted to maximize his entire scale immediately.

As long as the scale of the entire foundry goes up, the manufacturing cost of Huanyu Technology will be lower.

The lower the manufacturing cost of Huanyu Technology, the greater the dependence of other mobile phone manufacturers on Huanyu Technology.

In this way, even if the crisis of domestic mobile phone manufacturers is overcome in the future, many mobile phone manufacturers may have to consider whether they really want to take it back and do it on their own.

Therefore, Chen Yu told Wu Kai to have 20 production lines.

Only facing 20 production lines, Wu Kai was also intimidated by Chen Yu's big move.

"Foxconn, do you want to fight Foxconn?"

"is it not OK?"

"We don't seem to have this strength."

"There is no right now, not necessarily in the future. We have to accumulate the ability to challenge Foxconn now."

Although Foxconn's technology is far inferior to TSMC.

And anyone can do the foundry business.

However, when your foundry business achieves a certain amount and monopolizes more than 50% of the global market.

Then, you have a huge say in it.

A series of products manufactured by you, many times have to look at your wink.

This is also a layout that Chen Yu intends to pinch against European and American technology giants in the future.

"Well, you are awesome, I can't match your vision. But we have no money."

Wu Kai spread his hands and said that even if he wanted to build so many sets of production lines, there was nothing he could do.

For production lines like electronic products, each group is tens of millions.

Of course, there are also small workshop-style production lines, which you can handle with hundreds of thousands.

But these hundreds of thousands of production lines can't produce a few mobile phones a day.

Adding up to the 20 groups, Wu Kai estimated that at least another 500 million would have to be invested.

This can be a real investment of money.

"Money is indeed a problem."

In order to purchase two major home appliance supermarkets, Chen Yu was hollowed out.

Although Chen Yu is not really unable to spend hundreds of millions now, after some time, Huanyu Technology has made a lot of funds into the account.

But this kind of digging is very detrimental to the company.

If the entire group is often in short supply of funds, if something goes wrong, it will be completely ruined.

Chen Yu did this once before, and Chen Yu would not do it a second time.

It's just that although funds are tight, this is not impossible.

"Wu Kai, don't worry, we are a little nervous, but some people are not nervous."

"Ask someone to borrow?"

"Which other person is willing to lend you hundreds of millions at once, or ask your father?"

"My father went bankrupt and couldn't make up 500 million cash flow."

"Forget it."

"President Chen, who else has money?"

"Stupid, we have no money, Wang Xuehong has money."

Chen Yu patted Wu Kai, and Wu Kai suddenly woke up.

Huanyu Electronics is not the company of Huanyu Technology. At that time, he also introduced the htc from Taiwan, which is Hongda Electronics.

It is also the addition of Hongda Electronics that makes Huanyu Technology's foundry technology to a higher level.

Now the entire business is advancing by leaps and bounds, leaving all opponents behind.

Chen Yu may have no money, but for Wang Xuehong, the daughter of the **** of business, this is a super rich woman.

However, Chen Yu thought that Wang Xuehong was not asking Wang Xuehong to pool the money.

Although it stands to reason, generally such business expansion is to pool money in proportion to the shares.

If you don't make up, sorry, then dilute your shares.

Chen Yu thought of Wang Xuehong, but wanted her Hongda Electronics to cover the entire account.

In other words, Chen Yu did not plan to scrape a penny.

As for if you don’t get together, you have to dilute the shares?

How can this be.

As the major shareholder of Universal Electronics Holdings, who dilutes Chen Yu's shares?

As for not wanting to pool money and not wanting to sell shares, how could Wang Xuehong agree?

It depends on Chen Yu's flicker skills.

"Don't tell me, Wang Xuehong is really rich."

Wu Kai also showed a smile.

"That's it~www.wuxiaspot.com~ I will go to Taiwan tomorrow. By the way, how are our Pear phones doing?"

Before, Huanyu Technology has made low-end mobile phones, and also made ultra-low-end mobile phones.

Of course, I have also made low-end mobile phones.

But I have never made mid-to-high-end or even high-end mobile phones.

It's not that I didn't want to do it before, but because the conditions were immature before, and time didn't allow it.

If you want to make your own mobile phone brand, high-end and high-end mobile phones are the only way for any mobile phone brand.

It can even be said that no matter how good your mobile phone sells, if there is no mid-to-high-end, especially high-end mobile phone brand, then in the eyes of ordinary consumers, you are just an ordinary mobile phone brand. You will never be able to compare with Nokia, Sony, Samsung... these giants.

For this reason, Universal Technology has been silently researching and developing for this period of time.

The Lizi mobile phone is the most high-end mobile phone of Huanyu Technology to be launched by Huanyu Technology so far.

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