Technology: Start by selling mobile phones

"Thank you for your hard work, Lao Wang. Sit down and talk."

Wang Fugui not only came to report in person, but also brought a thick stack of information.

He put the compiled information on the coffee table and said:

"Boss, you asked me to learn about the TF memory card industry before. In the past month, I have asked many friends and also went to Shenzhen City to learn about it on the spot. I have basically understood it."

"If you follow your previous ideas, it will not be difficult to produce a TF memory card of our own brand."

While listening, Mo Ran calmly poured a full cup of tea for Lao Wang.

"Well, what should I say?"

"This starts with the internal structure of the 'TF memory card'."

"We all know that the 'TF memory card' is very small and thin, and its internal structure is relatively simple. It mainly consists of two important components.

One is the 'main control chip' and the other is the 'flash memory chip', also called 'flash memory particles'. "

"The main control chip is actually the central brain of the 'TF memory card'. It is mainly responsible for controlling the data transmission speed and load to ensure that the 'flash memory chip' can transmit data smoothly."

"Simply put, the main control chip determines the reading and writing speed of the 'TF memory card'. The better the main control chip, the better the reading and writing speed, and the greater the potential of the 'flash memory chip'."

Mo Ran nodded.

"What about 'flash chips', or 'flash particles'?"

Wang Fugui took a sip from the teacup and explained:

"'Flash memory particles' is the name of Taiwan Province. They are much ahead of us in semiconductor technology, so we also use their name here."

"'Flash particles' are storage media. All data is transmitted through the 'master chip' and ultimately stored in the 'flash particles'."

"Of course, the quality of the 'flash particles' also determines the transmission speed, service life, etc. of the 'memory card'."

"Once you have the 'main control chip' and 'flash particles', you only need to assemble the two together, and then perform program debugging and design on the 'main control chip' to produce a qualified 'TF memory card'!" "

"Now all the so-called 'TF memory card' manufacturers in our country actually follow this model!"

After hearing what Wang Fugui said in one breath, Mo Ran couldn't help but nodded again.

It sounds like the difficulty of production is really not that big.

After thinking for a moment, he continued to ask:

"So, the quality of the 'main control chip' and 'flash particles' determines the quality of the 'TF memory card'?"

"Yeah, that's right."

"Then tell us about the situation of these two chip manufacturers."

"Mr. Mo, please take a look at the information here."

Mo Ran looked down and Wang Fugui introduced:

"Let's talk about the main control chip first."

"The best companies in the world right now are SanDisk, Samsung and Lianyun. You should also know that SanDisk and Samsung can make 'main control chips', but their main control is never sold out. For your own use only.”

"Lianyun is our domestic brand, but it is a brand owned by Hikvision and the price is very expensive."

"Other than that, the only other options we can choose are the main control chips from Taiwan Province's Huirong, as well as main control chips from other second-tier foreign brands."

Moran frowned slightly.

"There are no more domestic ones?"

"Yes, yes, but they are all at the third-tier level. If they use domestic chips, their chip design and data processing capabilities will be inferior to those of major manufacturers. In the end, there may be some gap in the performance of the memory card."

So that's it.

After a moment of silence, he exhaled slightly, softened his tone, and said:

“Let’s talk about ‘flash memory particles’. Which specific manufacturers are there?”

“There are even fewer options for ‘flash particles’.”

Wang Fugui flipped through several pages of information, then pointed at the information and said:

“Currently, there are only five companies in the world capable of producing ‘flash memory chips’, that is, ‘flash memory particles’: Samsung, Hynix, Western Digital, Kioxia (Toshiba) and Micron.”

"They sell 'flash memory particles' to the outside world, and now all manufacturers in the world that produce solid-state drives, TF memory cards, and SD cards will purchase 'flash memory particles' from them and then process them."

"certainly,

In addition, they will also produce finished products themselves, such as producing 'TF memory cards', 'solid state drives', etc..."

"Samsung, Hynix, Western Digital, and Toshiba are all the world's top memory manufacturers."

Mo Ran carefully read the information to the end, and his brows became more serious.

“We don’t have any domestic enterprises?”

A wry smile suddenly appeared on Wang Fugui's face and he shook his head.

"No."

Mo Ran was silent.

To be honest, he didn't know much about the "storage chip" industry before, but he never expected that even a small, seemingly low-tech "TF memory card" would have the most important material inside and out. Foreign companies have a monopoly.

In other words, if Nietzsche wants to produce a TF memory card, all raw materials, whether memory chips or flash memory chips, must be imported from foreign manufacturers!

"Why doesn't anyone do it?"

"Um?"

Wang Fugui was a little surprised and shrugged.

"No domestic manufacturer has such strong technical capabilities, and no manufacturer is willing to invest a lot of money in research and development."

“Currently, domestic manufacturers’ thinking is all about investment and mergers and acquisitions, acquiring overseas companies to obtain technology, and very few are actually engaging in research and development.”

After saying that, Wang Fugui smiled.

"Besides, isn't everything globalized now? Countries have different divisions of labor and different priorities. Can't we just purchase whatever chips we need?"

"It doesn't matter whether there are domestic companies doing it, right?"

Mo Ran shook his head.

After a moment, he asked:

"What if foreign companies don't sell to us?"

"Then our business has stopped directly?"

"This...can't be true!"

Wang Fugui showed a bit of surprise: "Don't they still make money if they have money? Besides, if one company doesn't sell, won't other companies also sell?"

"Is it possible that there will still be a trade blockade?"

Mo Ran shook his head and said no more.

Now is 2016, a time when global trade is at its peak and global industrial division of labor and cooperation are at their peak.

Don't say Wang Fugui doesn't believe it. I'm afraid even the world's top bosses can't imagine that globalization will come to an abrupt end in two years.

certainly.

He knew exactly what would happen in more than a year.

Thinking of this, Mo Ran retracted his thoughts and slowly exhaled.

These things are a bit far away from me, so I still have to do the things I do now.

After a moment, he looked at Wang Fugui and said:

"Okay, I have a general understanding of the 'TF memory card' industry."

"So Lao Wang, how much would it cost to set up such a 'TF memory card' factory?"

"In terms of production equipment, the investment cost is about 10 million."

Ten million is not too much.

Moran nodded slightly, but at this moment, Lao Wang sighed softly, with hesitation on his face.

In the end, he couldn't help but persuade:

"Boss, why don't we consider finding another manufacturer to manufacture it? Once it's produced, it will be considered our product if it's labeled with ours."

"Although we at Nietzsche do have a need for 'TF memory cards', as you just understood, even if we produce 'TF memory cards' ourselves, we actually purchase 'main control chips' and 'flash memory chips' from other manufacturers. We are just a foundry."

"Although our costs will be lower, we don't have to invest so much money in purchasing equipment, renting space, hiring labor... Just like we outsource our mobile phones and TVs, why not do it?"

"Now it feels like we made dumplings for a dish of vinegar or a few TF cards, and they were stuffed with seafood!"

Mo Ran glanced at Lao Wang with a smile, and his eyes were quite pleased.

He could completely understand Lao Wang's position.

If we simply look at Nietzsche today, a mobile phone and TV company spending a large amount of money to produce TF memory cards is obviously not prioritizing and unnecessary.

But Mo Ran also thought about this matter for a long time.

Just like Wang Fugui just answered why no domestic manufacturer makes "flash memory particles\

,"Why don't you make "flash particles" and "main control chips"?

It’s not that I don’t want to, it’s that I have no choice.

First, without a large amount of funds continuously invested in research and development, the technology will inherently lag behind that of foreign companies.

two is,

Even if they are barely produced, their competitors will be the world's first-tier brands, such as "Samsung", "Micron", "Hynix" and so on.

In this case,

The quality and technology itself is inferior to others, so the price will naturally not go up.

If prices don’t go up, profits won’t go up. The less profitable it is, the less companies will be willing to invest in research and development!

If things go on like this, the entire industry will naturally be monopolized by foreign companies.

But now Nietzsche has this advantage to close the loop.

For example, "TF memory card\

,"Moran does not need many customers to buy the "TF memory card" produced by Nietzsche, nor does it need it to compete with other brands. It can even bear the higher cost price of the "TF memory card".

As long as Nietzsche can enter the "storage chip" industry and slowly accumulate experience, he can slowly develop in the fields of "TF memory cards", "solid-state drives", and even "mobile phone flash memory chips" in the future.

You must know that "flash memory chips" are now needed on mobile phones, "flash memory chips" are also needed on laptops, and even "flash memory chips" are still needed on TVs.

There are so many places that are needed!

In the future, Nietzsche will definitely produce more mobile phones, TVs and even laptops!

Besides,

Mo Ran also knows very well that chips will inevitably become the biggest trend in the next two years. Now is undoubtedly the most appropriate time for Nietzsche to find a way to enter the "chip industry"!

TF memory card is already the simplest and most entry-level branch of "storage chips".

And "storage chips" and "IC chips" are the simplest types of chips among all chips!

For a company without strength like Nietzsche, entering the market with TF memory card is undoubtedly the most correct choice.

"Old Wang, you don't have to persuade me anymore, I have my own plan."

"Well, then I have to trouble you to contact the equipment manufacturer. If appropriate, we can order the production equipment first."

"Why!"

Wang Fugui shook his head and sighed softly.

Mo Ran's firm tone told him that this matter was almost impossible to reverse, and he had no choice but to say after a moment:

"In fact, I have found a company that produces 'TF memory cards', and they are selling a complete set of production equipment recently!"

"What a coincidence?"

"Speaking of which, this company is quite large."

"Their company not only has production equipment for 'TF memory cards', but also OEMs for 'SD cards', 'U disks' and solid-state drives."

"oh?"

Mo Ran was stunned for a moment, a little curious, filled a cup of tea for Lao Wang, then filled it for himself, and took a sip.

"Then why are they selling the equipment?"

"They said they wanted to invest in other new projects, but I guess... it's not very profitable to manufacture 'TF memory cards', so they just packaged and sold them as a whole."

Having said this, Lao Wang couldn't help but want to persuade Mo Ran again. Now that TF memory cards have been monopolized by Samsung and other manufacturers, the market is not big, and you really can't make much money by relying on OEM.

But when he saw Mo Ran's expression, he swallowed it back.

Mo Ran became interested.

“How much did they quote?”

"Twelve million!"

"According to them, the eight-story production line is new. I asked about the new equipment costing about 16 million, which is a 20% discount, but I guess I can still tell."

Now Mo Ran's mind became completely active.

After a moment, he asked:

"where are they?"

"In Shenzhen City, Longgang."

"Go and have a look."

…

Wang Fugui did not expect Mo Ran to act so resolutely. That night, the two of them took a flight from Chengdu to Shenzhen and arrived in Shenzhen.

At around nine o'clock the next morning, the two came to an inconspicuous industrial park in Longgang.

According to the communication with the other party, the company they came to specifically was here.

After a while, an eye-catching brand appeared in front of us - [Runfa Electronic Technology Co., Ltd. 】

"Runfa, what a good name."

"Well, that's it."

Mo Ran whispered and prepared to walk in. Unexpectedly, several people suddenly walked out of the door, and behind them, there was a staff member wearing a white shirt.

If you listen carefully, everyone seems to be discussing "production equipment".

The two of them couldn't help but looked at each other for a moment. Could it be that someone came to see the equipment so early?

It is indeed a Shenzhen city.

That's it.

The young man in the white shirt, the staff member just now, also spotted Mo Ran and Lao Wang.

"Both of you?"

"We came here specially from Chengdu and have contacted Li Zhi from your company on the Internet. We want to see the equipment you sell."

The man was stunned, then reached out his hand enthusiastically and said with a smile:

"Hello, hello, Mr. Wang, right? I'm Li Zhi."

Wang Fugui was also a little surprised. After greeting him, he quickly introduced:

"This is our boss, Mr. Mo."

"Hello, Mr. Mo."

Li Zhi glanced at Mo Ran and was a little shocked, but after a moment, he still smiled and extended his hand to greet him warmly.

Mo Ran nodded.

"Hello, I would like to see the equipment first, okay?"

"Yes, you can take a look at the equipment first, and then we can discuss the specific price after our boss comes."

Mo Ran looked up.

"good."