Technology: Start by selling mobile phones

YELLOW STORAGE TECHNOLOGY LIMITED.

At eight o'clock in the morning, Li Zhi came to the office early to start his day's work.

Huanghe Storage has been established for a short period of time, has insufficient technical personnel, and even fewer experienced employees. He has to personally handle almost everything.

but.

The production process has been streamlined a lot recently, and now how to improve "capacity utilization" has become his biggest headache.

As the founder who personally built "Yellow River Storage", he naturally hopes more than anyone else that "Yellow River Storage" will become more and more efficient and that employees can earn more and more.

But the current situation is,

The order given by Nietzsche can only be regarded as a minimum guarantee, just for food and clothing. If the factory really wants to develop and expand its operations, it must find a way to get other orders.

"It's time to go out and do business and get some orders."

Li Zhi sighed inwardly and made plans secretly.

soon,

When the time came to nine o'clock, employees came to the company one after another.

After arranging today's production tasks and preparing to go out to visit customers, suddenly the office lady knocked on the office door.

"Mr. Li, the security guard downstairs called and said that two people want to talk to you about business. Do you want them to come up?"

"Oh? Talking about business?"

Li Zhi was slightly startled.

In the two months since the company was founded, many people have indeed come to visit us, but most of them are here to sell products.

"What company is the other party?"

"Um... the security guard didn't seem to ask clearly. He just said he was looking for you to discuss business cooperation."

After thinking for a moment, Li Zhi nodded.

"Forget it, let's meet!"

"You go to the reception room and make two cups of tea. I'll be right away."

"good."

After a while, Li Zhi came to the reception room. As soon as he reached the front door, the security guard led two men in.

"Take a seat, you two."

Li Zhi greeted them lightly, and then the back office lady placed the brewed tea in front of the two of them.

After a moment, he looked at the two people and asked:

"Which company do you two come from?"

"Well, we are from NetEase. You should have heard of NetEase Strict Selection, right?"

NetEase?

NetEase carefully selected?

Li Zhi's eyes suddenly froze, and he suddenly stood up from the sofa after a moment.

"Ouch! Two distinguished guests, please wait a moment."

With that said, he walked out of the reception room quickly, and then rushed to get a can of beautifully packaged tea from the office.

With a smile on his face he said:

"Try this, the new tea that just came out this year."

After a while,

Li Zhi personally brewed two new cups of tea, and sure enough, the tea was fragrant.

He then sat back on the sofa and asked enthusiastically:

"How do you call us two distinguished guests?"

"Luo Zebing, this is my colleague, Xiao Xiao."

The answer was none other than Luo Zebing from NetEase’s Strict Product Selection Department.

After the last meeting, he began to collect information on Nietzsche's "Jinghong" memory card and "Yellow River Storage".

After some research, he was surprised to find that the "Jinghong" memory card produced by "Yellow River Storage" has a really good reputation on the Internet, and there are almost no negative reviews.

This undoubtedly meets the basic requirements for strict selection.

So today I flew to Chengdu with my colleagues to discuss OEM cooperation with "Yellow River Storage".

Thinking of this, he took out a red TF memory card from his bag and placed it on the coffee table.

"Mr. Li, you should recognize this 'TF memory card', right?"

Li Zhi's eyes narrowed,

Isn't this a self-produced "Jinghong series" memory card?

"I know, of course I know. This is the 'Jinghong Series' TF memory card we made for Nietzsche."

"Well, that's right!"

Luo Zebing nodded and said:

"To tell you the truth, we at NetEase Yanxuan are also preparing to launch a 'TF memory card' recently, and are now looking for OEMs to cooperate with."

"We saw that the memory card you made for Nietzsche is good. If it's suitable... we can talk about cooperation and entrust you with the OEM."

"Okay, okay! It's absolutely okay!"

Li Zhi was overjoyed and almost jumped with excitement.

He didn't expect that Nietzsche's "Jinghong Series" memory card would bring such a publicity effect, and even NetEase Yanxuan would come to visit him.

"You two, please rest assured that we have the most professional technical team and can definitely provide you with the highest quality OEM services!"

"Now, what are your company's ideas? How do you want to cooperate?"

"ODM mode."

Luo Zebing has already negotiated OEM cooperation for several products and is familiar with the process.

"You are responsible for all aspects of design, raw materials, and manufacturing. In the end, you only need to put our 'strictly selected trademark' on it and we will sell it."

"Of course, we have requirements in terms of production cost and performance, you can take a look first."

With that said, Luo Zebing took out a plan from his bag and handed it to Li Zhi, and then continued:

"The 'Jinghong Memory Card' you manufactured for Nietzsche has a capacity of 32GB, and the read and write speed standard is U3 level, which is a high-performance card."

"But based on cost and market considerations, we plan to produce a slightly lower grade, that is, U1-level TF memory cards that can reach 10MB/S read and write speeds."

"These are some of our specific requirements. Take a look and quote a price if it can be done."

When it came to business, Li Zhi's face lost the flattering smile just now.

He quickly analyzed the various requirements in the plan in his mind.

NetEase's strict selection team proposed to produce memory cards with three capacities: 8GB, 32GB and 64GB.

This is not a problem.

But they proposed that their own "Yellow River Storage" provide U1-level product solutions, which is a bit troublesome.

He knows very well that the current "Huanghe Storage" is only a company that can provide OEM models.

simply put,

It can only be manufactured according to the production plan provided by the brand. There is no product design team and no plan design capability.

We are able to produce Nietzsche's "Jinghong Series" only because Mr. Mo Ranmo provided a complete set of "U3 high-speed memory card production solutions."

Now if you want to take over NetEase Yanxuan's ODM business, you have to find a main control chip manufacturer that can provide "U1 level" solutions and purchase corresponding product solutions.

But in this case, the cost will be a bit high.

However, before he could finish the calculation, Luo Zebing on the side suddenly said:

"How about it? Can it be done?"

"Okay! No problem at all!"

Li Zhi immediately responded without blinking.

Although "Yellow River Storage" currently has no design capabilities, how could he run away with the orders that came to him!

After a moment, he continued to ask:

"Then how much quantity does your company need to produce? We can quote you a suitable price based on the quantity."

"It's not a lot. The first batch of orders is about 500,000 yuan."

500,000 yuan!

Li Zhi's heart tightened suddenly, and the corners of his eyes twitched.

You must know that Nietzsche's first batch of orders was only 200,000 yuan, and the monthly output was only 70,000 yuan, which could not even meet 50% of the monthly production capacity of "Yellow River Storage"!

If we can get this order of 500,000 yuan, we can fully utilize the remaining production capacity of more than 90,000 yuan per month.

By then, not only will the original capacity utilization rate of 42.1% be increased to 100% or even 120%, but there will also be no need to worry about orders for the next six months!

Thinking of this, his expression became even more attentive.

"You two came here early in the morning. Have you had breakfast?"

"If not, I will personally take you two to try Chengdu's special breakfast, which is not far downstairs."

"You're too kind, Mr. Li, we've already eaten."

"Then I'll accompany you to see our production workshop first... We'll discuss the price later."

"also!"

…

It was already two o'clock in the afternoon when Mo Ran learned about this.

Li Zhi saw Luo Zebing off in person, and then called Mo Ran to report the matter.

Ten minutes later, Mo Ran came to "Yellow River Storage."

"NetEase Yanxuan probably saw the 'Jinghong series' memory cards we produced, so he came to visit us."

"I have quoted a price to them in accordance with industry standards. U1-level 32GB capacity is 35 yuan, and 64GB is 45 yuan."

"After calculation, our gross profit margin is about 15%, and our net profit margin is about 10%."

Mo Ran sat on the sofa and took a sip of tea. When Li Zhi introduced the profit situation, he nodded slightly.

For orders received from outside, it is naturally impossible to leave 20% gross profit and 15% net profit for "Yellow River Storage" like Nietzsche.

"Then what do NetEase Yanxuan say?"

"good."

"They still agree with the quality of our products, but I guess they still have to talk to us about the price."

"I have already thought about it. 12% gross profit is my bottom line, but in this case, the net profit will only be about 7%."

Mo Ran couldn't help but shake his head.

"Profits are getting lower and lower."

"There's nothing we can do about it."

Li Zhi also sighed helplessly, picked up the tea and moistened his throat.

"That's what OEM companies are like."

"Our 'main control chip' and 'flash memory particles' are all purchased. Even the 'U1-level product solution' proposed by NetEase Yanxuan this time, we have to spend money to purchase it."

"Now we can only earn the hard-earned money from OEM manufacturing, unless..."

"Unless we can expand our scale to create economies of scale, we can then obtain lower-cost 'main control chips' and 'flash memory particles' from suppliers, thereby increasing profits."

"Either... just like Samsung and Hynix, we can produce our own 'main control chips' and 'flash memory particles'. The cost of self-produced and self-sold products is lower."

Mo Ran couldn't help but sit up straight.

"You're right, tell me briefly how to do it."

"The first step to expand the scale is to improve the quality of the OEM. Through quality control and cost reduction, we can get more orders, thereby attracting more manufacturers to find us..."

"No...that's not what I'm talking about."

"What I'm talking about is briefly talking about how to produce 'main control chip' and 'flash memory particles'."

Um?

Li Zhi was stunned for a moment and glanced at Mo Ran in surprise.

But seeing Mo Ran's serious look on his face, he had no choice but to continue:

"The main control chip, like most other chips, is divided into two major parts: design and manufacturing."

"You can understand the relationship between 'Qualcomm' and 'TSMC' in the mobile phone industry. Qualcomm is responsible for design, and then turns to TSMC for production and manufacturing. Both are very important and indispensable."

"For example, 'Deyiwei', 'Huirong Technology', and 'Phison Master' on the market are all large-scale main control chip manufacturers. They are similar to 'Qualcomm' in the mobile phone industry. They have design capabilities but no manufacturing capabilities. "

"They will design 'main control chips' with different performances and different products, and then hand them over to the manufacturing chip companies for OEM, and finally they will sell the products to customers."

"Of course, the design difficulty and production difficulty of the main control chip are completely different from those of mobile phone SOC chips... The process requirements do not need to reach 3 nanometers, 7 nanometers, 32 nanometers or even 64 nanometers are enough."

Mo Ran immediately grasped the key point and said sternly:

"So... if we want to produce the 'main control chip', we need at least a 64-nanometer photolithography machine!"

"That's right."

"Only photolithography machines, etching machines, various chip production equipment and a 'super clean workshop' can produce the 'main control chip'."

"Do you still remember Mr. Bao from our 'Moisture Factory'?"

"Mr. Bao also bought a second-hand photolithography machine through a relationship with a Taiwanese enterprise, and now he has entered the 'main control chip' foundry industry."

Mo Ran didn't answer immediately.

In fact, he doesn't know much about the chip industry.

But he clearly remembers why he insisted on producing "TF memory cards" by himself and established "Yellow River Storage" because he hoped to enter the chip industry through the "TF memory card" layout.

Because he knows what kind of crisis the domestic chip industry will encounter in 2018, and there will be a huge outlet by then!

Now that the TF memory business of "Yellow River Storage" has been carried out normally, we can also learn about the upstream industry.

After thinking for a moment, he slowly asked:

"How much does it cost to buy a photolithography machine?"

"Forehead……"

Li Zhi was stunned, and then said with some uncertainty:

"I'm not sure about this... The more sophisticated it is, the more expensive it will be. And you can't just count the photolithography machine but you also have to buy other equipment. It's at least several hundred million, right?"

After the words fell, Mo Ran suddenly smiled and shook his head.

"Forget it, let's not talk about this anymore. The lithography machine is a bit far away from us."

“Let’s talk about ‘flash particles’ again.”

Mo Ran's smile instantly relaxed the atmosphere.

Li Zhi also laughed, took a sip of tea, and said with a smile:

"It's really a bit far."

“But ‘flash particles’ are even further away.”

"Flash memory particles are actually chips, which are storage chips."

"The design difficulty and manufacturing difficulty are much higher than those of the main control chip. General manufacturers are simply unable to deal with it. Today, there are only a few companies in the world that can produce it, and we are still blank in our country."

Mo Ran shrugged.

Of course he remembered that he had received a patent on "3D NAND (multi-layer storage flash memory type)" during the previous lottery.

But to have patented technology, you must at least have a technical team, production equipment, and a photolithography machine.

"Okay, let's not talk about these two, let's go back to the orders carefully selected by NetEase."

"According to what you said, if there is only 12% gross profit and 7% net profit, it is indeed too low. Try to find ways to increase it."

Li Zhi hummed.

"Well, I will compare the prices of the mainstream solutions in the market and then choose the best one."

"correct……"

Speaking of this, Li Zhi suddenly raised his head and looked at Mo Ran.

"Mr. Mo, wasn't the 'Jinghong Series' memory card you provided before customized by the solution provider you found?"

"If you can, give me your contact information and I'll ask them about the price there."

Mo Ran couldn't help but froze for a moment.

The design plan for the "Jinghong Series" was drawn by him through the system.

But when he thought about it, his eyes suddenly narrowed and he thought of the points mall in the system.

Logically speaking, design drawings like "TF memory card" should be sold in the points mall, right?

He coughed slightly.

"In this case...I will ask you personally."

"It's a complete package for U1 level, right?"

"Well! Thank you, Mr. Mo!"

…

PS: Thanks for the 500 coins from Time Fishing!

The update will be done during the day, and then we will find a way to fix it at a certain time.