The Millennium Semiconductor Survival Guide

"Is this product similar to the definition of luxury, focusing on high-end consumer goods for electronic brands?

If you can succeed, you are better than Sony and Samsung. Their products are luxury goods in China, but ordinary commodities in developed countries.

Therefore, we have always advocated the importance of technological research and development. Only when breakthroughs are made in technological research and development can our masses afford good industrial products.

In the 1980s, refrigerators, air conditioners, and televisions were luxuries at that time. With the development of technology, these commodities have now dropped a level. "

Zhou Xin: "That's right, Matrix is ​​a high-end brand that focuses on consumer electronics. Maybe in the future we will be a mid-to-low-end brand that sells volume, but Matrix will only be defined as a high-end brand."

This is also the idea of ​​learning from Huawei. Huawei takes the high-end route, and Honor takes the mid-to-low end.

"Only high-end consumer electronics brands can have sufficient profit margins, and only sufficient profit margins can carry technology research and development."

The other party retorted: "Comrade, I disagree with you on this point. It's not that we don't want to make products that are profitable enough, but we don't have the conditions.

First of all, we do not have unique technology. Secondly, our national image and the growth stage of Huaguo enterprises determine that we cannot create high-end electronic brands.

Neon, Koryo, and Lion City have all gone further than us on the road of economic development. Even for them, their consumer electronics brands are still mainly low-end.

High-end products require high costs from research and development to production to marketing, and our company cannot afford this cost.

What I disagree with is that only high-end brands can have sufficient profit margins. Once the volume of low-end and mid-end brands increases, the profits will also be considerable.

R\u0026D can gradually increase investment, how much money you can eat, and products that focus on low-end brands will naturally climb to the high-end when the technology has accumulated to a certain level.

This is a process, and our country needs such a process.

Because you became famous in American, from the perspective of the general public overseas, the Chinese is just one of your many identities that is not so conspicuous. In contrast, people in Silicon Valley have a more identifiable identity in their minds.

The production, manufacturing and marketing of Matrix are all in American. Even if you are the founder, it is not a Huaguo brand. "

What the other party said is also the strategic strategy that Huaguo has always adopted. No matter what industry it is, I will take over it first. As long as there is profit margin, even if it is just a little, I will do it.

This is how the white goods industry started and gradually mastered the core technology.

Zhou Xin said: "If we only talk about matrix keyboards, most of the production is in China, and the research and development and marketing are in American.

Your words also gave me some inspiration. At the same time, from my perspective, it is true that the low-end and mid-end manufacturing industries can generate enough profits to feed back R\u0026D once their profits reach a certain level.

One of the problems is that in the low-end manufacturing industry, there will be many companies that can undertake these businesses, which means that the low-end manufacturing industry in each industry will be allocated to different companies.

Take the refrigerator industry as an example. Huaguo has many brands producing refrigerators. After fierce competition, a few large companies may survive in the end, forming an oligopolistic situation.

However, in the process from competition to oligopoly, there is not much profit to invest in the R\u0026D process. After the oligopoly situation is completed, the surviving oligarchs will gradually increase their investment in R\u0026D.

However, Huaguo lacks a mechanism to form a positive circular ecology of industry, education and research between the industry and R\u0026D.

I didn't think of a good solution for industry-university-research.

Speaking of matrix, the manufacture of matrix keyboards is located in Huaguo. Our internal matrix mobile phone project has been approved and is now in the research and development stage.

As for the core chips of Matrix mobile phones, as long as Huaguo enterprises can meet the requirements, I will allow Huaguo enterprises to enter the supply chain of Matrix.

For example, the storage products and logic circuit products of Hua Hong Semiconductor, as well as the mobile phone chips manufactured by Huaguo Enterprises in the future.

I will try my best to consider Chinese enterprises, and at the same time, I will also promote the proportion of Chinese enterprises in the entire industrial chain.

I personally grasp chip design and lithography machines. Huaguo has memory chip manufacturing and DRAM manufacturing. We will incubate upstream and downstream companies in the entire semiconductor industry.

Simply put, matrix will become a market-oriented carrier. Such a high-end brand not only has enough room for profit.

More importantly, it is to help Huaguo's semiconductor companies to endorse. They cannot only supply for the Matrix brand. If they want to become bigger and stronger, they must supply to other companies at the downstream integration end of the supply chain.

For companies such as Nokia, Motorola, Sony, and Samsung, their status as matrix suppliers will be of great help in entering the supply chain systems of these companies. "

This is the same as being able to become a member of the fruit chain in future generations, and getting twice the result with half the effort if you want to enter the supply chain system of other mobile phone brands.

After Zhou Xin finished speaking, the other party nodded frequently: "I understand what you mean, matrix is ​​equivalent to the chain owner of the supply chain.

Taking advantage of its dominant position in the entire supply chain, it has a strong influence on the allocation of most enterprise resources in the entire supply chain.

At the same time, use this influence to promote the growth of Huaguo enterprises in turn. "

The concept of supply chain chain owner can often be seen on government affairs websites twenty years later, and the concept of chain owner frequently appears in official newsletters of powerful cities such as Shenhai, Pengcheng, and Hangzhou.

What drives the supply chain of the industrial chain to become stronger together, and many companies in Shenhai broke out of the cocoon and became the chain masters. What is it to build a strong chain and create ten key industrial chains with a level of 100 billion.

At the turn of the century, the term chain owner was also often seen in the news.

At that time, the media paid attention to which home appliance company could become the chain owner, and put forward specific concepts:

In the integration of the supply chain, the coordination of interests should be prioritized over the transparency of information. When controlling and integrating supply chain resources, enterprises that can find new profit growth points can often become "chain owners".

Zhou Xin said: "Your understanding in the electronics industry is much deeper than I thought, including the precise use of these terms, I only knew after doing matrix."

The other party smiled slightly: "This is an old-fashioned concept, if I remember correctly, this concept existed more than ten years ago.

My information receiving channels are much more than what the outside world imagines. If I don’t know such an old concept abroad, what kind of industrial development are we talking about?

Including the chain owner, in June this year, I saw an article on the internal * reference about this matter. Changhong and the others signed a monopoly supply agreement with the eight major color tube factories at the end of last year.

Color tubes, also known as color picture tubes, are the core components of color TVs. Changhong controls the upstream core components on one hand, and cuts prices sharply on the other hand. In April, it lowered prices in an attempt to defeat all other competitors.

Originally, Changhong was the owner of the chain, otherwise the eight major color tube factories would not have signed a monopoly agreement with him.

They want to further become the only chain owner of the entire chain.

The internal reference asked me what to do, and what I approved was that it is not recommended to take administrative measures to intervene in market behavior.

In the end, Changhong did not succeed. They missed two things. One was the color tubes in the second-hand market, and the other was the credit problems of the color tube companies.

Now that Changhong holds a large number of color tubes, it is estimated that there will still be a price war. "

Zhou Xin listened with gusto.

"I think there is no problem with your strategic vision, but there is a problem with the implementation.

How can you guarantee that matrix will be successful? "

Zhou Xin said: "Our mobile phone is expected to launch the first batch of products in the fall of next year, and I use the results to prove it.

Regarding the support I hope to get for the development of the supply chain driven by the matrix, I will talk about this after there are results.

Because if you don’t succeed next year, you will succeed one day in the future.

But regardless of whether Matrix will be successful or not, I will put these two companies in Huaguo for lithography machines and chip design. "

One chapter will be updated today, and another chapter will be added tomorrow morning.