Technological Hegemony

three days later.

According to the agreement, Jiang Xinlu took the company's management and technical team to go north to Shanghai. In the conference room of Xingchen Technology, Boss Jiang met many familiar industry peers.

Fenghua, Sanhuan, Torch, Sunlord, Aihua, Jianghai, the bosses of these manufacturers were recruited by Luo Jia. Most of them were big factories, but there were also a few small factories that were not very famous.

In order to pull up the team as soon as possible, Luo Jia has no choice but to relax the entry criteria for partners. In the field of semiconductors, there are really not many capable manufacturers. Most of the time, Xingchen Technology will face the difficult situation of fighting alone.

"Mr. Liu, long time no see."

"Yeah, I haven't seen you for more than half a year."

"Well, the last time should have been at the gathering in Chengdu at the end of last year."

They are all people in the industry, and everyone is familiar with each other, and they chatted quickly.

Colleagues are enemies. Although the bosses usually fight lively, today they seem extraordinarily sincere, because the giant Xingchen Technology is about to enter the field of passive components.

People from the Administration Department and the Commerce Department were busy greeting everyone and distributing tea and drinks to everyone.

Not long after, Luo Jia came to the conference room. This time, An Ran didn't show up. Ever since Senior Qi Mengzhou became pregnant, An Ran's family and work have become very busy.

The one who came with Luo Jia was Shen Lang. He had just passed his thirteenth birthday, and now he is an official member of the Brainstorming Group. He has a staff in the company and his position is Luo Jia's personal assistant.

Shen Lang receives wages and bonuses from the company every month. At a young age, he is already a typical gold-collar worker. His monthly salary is more than his parents' annual salary. His parents and family members are also very happy about this. To put it bluntly, letting Shen Lang go to Xingchen University was the wisest decision in his life.

"Hi everyone, please sit down." Luo Jia nodded and greeted everyone.

So everyone sat down one after another, and Luo Jia walked up to the podium, smiled and said to the people who came from afar: "Welcome everyone to Xingchen Technology, I am a person who doesn't like nonsense, let's cut to the chase and invite everyone to be guests, there is no other way." The meaning is that I want to concentrate everyone's strength and take down the field of passive components for him!"

"Everyone is an expert, so I won't make a joke. Passive components are a relatively small branch in the semiconductor field, but they are very important. How important is it?"

"In every mobile phone, every computer, and every car, there are thousands of passive components, but consumers are often not clear about it. They pay more attention to CPU, memory, and communication baseband. .”

"However, we are very clear that without passive components, no matter how powerful the CPU can run, take Apple's iPhone 7 as an example, each iPhone 7 has 890 capacitors, 149 resistors, and 27 chip inductors. , 17 winding inductors, 212 electrodes, 15 duplexers, 51 zero-pass filters, 38 SAW filters, 13 BAW filters, and 8 power amplifiers."

"Besides, the iPhone 7 is already a very old model. There are more passive components installed inside the new mobile phone with more powerful functions. As of 2018, the global sales of capacitors alone exceeded 4 trillion!"

"This is an astonishing number. It is equivalent to 7 billion people in the world. Each person consumes 571 ceramic capacitors. If this number is told to the people who don't know the truth, many people will be dumbfounded."

After hearing Luo Jia's words, everyone was not surprised, but chuckled twice.

As practitioners in this industry, they already know the data. In this world, the consumption of passive components is many times more than people think. Simply put,

As long as it is a power-consuming thing, no matter if it is an electric bicycle or an electric car, an electric gun or an electric masturbation cup, after disassembly, there are a lot of passive components inside.

At this time, Luo Jia took out a PCB board, pointed to the densely packed capacitors and resistors on it, and said: "PCB boards are what the public usually refers to as circuit boards. No matter in mobile phones, computers, TVs, or washing machines, a large number of them are installed. circuit board."

"So far, the cost of passive components has accounted for 80% of the PCB board. With such a huge sales volume and market, it should be quite profitable to engage in passive components, and the fact is the same. This The industry’s profits are not low, but it’s a pity that the profits are all taken away by foreigners.”

"According to the data in 2018, the two heroes of passive components, Neon Murata and TDK, have all exceeded 7 billion U.S. dollars in sales, and the highest sales in my country are Fenghua Hi-Tech, which has made 400 million U.S. dollars, and Jianghai Electronics has made 400 million U.S. dollars. 160 million US dollars, Yuyang, Fenghua, Torch, you are all only tens of millions of dollars."

"This kind of gap is really frustrating. In this industry, all the manufacturers in mainland China combined can probably equal the size of Yageo Electronics in the Bay and Bay Province, and all the manufacturers in the Bay and Bay Province can barely equal the level of North American manufacturers. Vishay, combined with the two North American manufacturers, Vishay and Kemet, can top a Korean Samsung, and the four Samsungs can top a TDK, and Neon TDK ranks second in the world."

"Let's take a look, this is the gap. In front of Neon, South Korea is scum, in front of South Korea, North America is scum, in front of North America, Wanwan Province is scum, and in front of Wanwan Province, we are scum."

"Of course, Samsung's passive component production line is just a small part of them. This Korean giant is really too powerful. It has been fighting us for several years, and it is still alive. Its vitality is really tenacious."

Everyone was still laughing just now, but now they really couldn't laugh anymore, it was embarrassing to be told by Luo Jia.

Many things in the world are afraid of comparison, especially like Luo Jia, who directly compare sales.

In fact, there are a lot of passive parts made in China, but they can’t bear the poor quality and low price. Murata’s capacitors sell for one cent, and domestic ones sell for one cent and twenty pieces, so the gap comes out. Domestic manufacturers usually advertise Sales volume, do not compare sales volume, because if it is calculated by sales volume, it is too ugly and shameless.

Luo Jia said lightly, "Star Technology is determined to develop the semiconductor industry, but the difficulty is much greater than we expected. To be honest, passive components are not considered the core technology of semiconductors, but only peripheral auxiliary systems, but they are peripheral auxiliary systems. It also needs to be overthrown and rebuilt, which is a reminder to us that there are too many pitfalls in semiconductors, and it is not so easy to deal with.”

"However, it doesn't matter if we don't do it, because our opponents have already told us with practical actions that even though passive components are just small things, they can be fatal at critical moments!"

"Because we can't grasp the initiative in the field of passive components, rival manufacturers have been raising prices crazily throughout 2017, and the instigator is not neon manufacturers or Samsung, but Wanwan Province, which is across the river from us."

"First of all, Yageo Electronics, the largest factory in Wanwan Province, announced a 5% price increase. Then in March 2017, the three main factories in Wanwan Province, Health and Health, Wangquan, and Huaxin immediately announced follow-up."

"On April 19, 2017, Yageo Electronics raised its price by 10% for the second time. In May of the same year, not only its counterparts in the Bay and Bay Province followed the price increase, but even neon manufacturers followed suit."

"On June 19, 2017, Yageo Electronics raised prices for the third time, with an average increase of 25%, and international giants will follow up."

"On September 8, 2017, Yageo Electronics announced a price increase for the fourth time! The price has been raised by another 25%, and international giants are still following up."

"On December 1, 2017, Yageo Electronics raised prices for the fifth time within a year! And on January 10, 2018, April 1, 2018, the sixth and seventh price increases! International giants still Choose to follow up."

"Among them, Murata simply announced on March 2, 2018 that 50% of the old product line would be discontinued, forcing everyone to buy a new generation of expensive passive components. TDK and Taiyo Yuden saw that Murata had stopped production by 5% Ten, immediately increase your ex-factory price by three times!"

"In a word, after the operation from 2017 to 2018, the prices of passive components have risen in an all-round way, and the financial statements of major factories are very good-looking, which also made me understand a truth. Yes, the only way to do it yourself is the most reliable.”

After hearing Luo Jia's words, everyone couldn't help but look at each other. The price increase in those two years was really tragic. It should be said that domestic manufacturers can also benefit from such things as price increases.

However, the prices of mid-end and high-end passive components have skyrocketed, while domestic manufacturers produce low-end products that are not on a competitive platform, so Fenghua High-Tech has made a little money along with it, and other manufacturers continue to live a miserable life.

But having said that, if domestic manufacturers are capable of producing mid-to-high-end products, it would be no wonder if those Wanwan people and Neon people dare to raise prices.

Luo Jia drank a cup of tea, took a break, and continued: "In any case, we have already understood the situation clearly, we know everyone's difficulties, and we also know where our current needs are."

"For the capacitors, inductors, resistors, and filters that were used in large quantities before, we have made certain technical improvements. The samples have been shown to you. The specific technical details will be distributed to you after the contract is signed. In terms of grades, it should be It will be higher than that of Murata, which has the best technology in the world, by about 20%.”

"Twenty percent increase? Wouldn't it be possible to make it more than 600uF!?"

"One step closer to the limit of solid capacitors!"

"The limit level of Murata and Taiyo Yuden is only 500uF!"

Everyone became very excited at once, and everyone in this industry believed that, that is, ceramic capacitors belonged to the future, and the rest of tantalum capacitors, aluminum capacitors, and solid capacitors were all facing the fate of being eliminated.

The only problem is that although the ceramic capacitor is very good and powerful, the limit specification is not good enough. The solid capacitor can easily reach 1000uF, while the ceramic capacitor can only reach 500uF.

If the technology of Xingchen Technology is 20% stronger than the current highest level in the market, with the production cost of Chinese enterprises, giant enterprises such as Murata may be tossed to death.

However, when everyone was excited about getting the technical support from Star Technology, Luo Jia suddenly said lightly: "Well, you will be responsible for the traditional passive components and the next generation of passive components in the future. We will solve it ourselves."

What the hell is the next generation?

In an instant, there was no sound in the conference room.

"Mr. Luo, what did you say about the next generation of passive components?" A boss asked curiously.

Luo Jia conveniently opened a sealed box beside her, and took out a black one, about the size of a grain of rice, similar to a capacitor.

"This is it, the next generation carbon crystal capacitor." Luo Jia said lightly.