Return to 78: Why are all the Americans panicking about doing scientific research?

Wu Ankang lit a cigarette and smoked it silently.

“Do our home appliances really have the capability to compete with those of the island countries?”

After a moment, Wu Ankang put out his cigarette and asked the most important question.

As the head of the Fourth Ministry of Machine Building, Wu Ankang understands the development of the island's national power industry better than leaders of other departments.

As early as more than ten years ago.

The island country has basically achieved that every household has a television.

Refrigerators, washing machines, electric fans and radios have long become common items in island households.

In the mid-1960s, the island nation's home appliance production reached a spurt.

Domestic demand can no longer meet the various home appliances produced by the island country.

From that day on, the island's domestic electrical appliances were exported overseas in large quantities.

Whether it is the international reputation of home appliances or the global export volume.

Island countries are undoubtedly the best in the world.

Lin Kaifeng actually said that he wanted to compete with the island country powerhouse.

More or less, it's a bit sensational.

Lin Kaifeng said seriously: "To be honest, we don't have the ability to compete with the island's national power companies at this stage, but not being able to compete with them in all aspects does not mean that we can't compete with them in some areas."

"Island countries have their own advantages, and we also have our strengths."

Few people can give a clear judgment on Longguo’s current international competitive advantages.

Since the 1950s, Dragon Country's connection with the Western world has been intermittent.

There is a lack of clear understanding of the business environment in the West and even the world as a whole.

All we know is that the island country's home appliances are selling like hot cakes all over the world and have a strong market influence.

But nothing is eternal and unchanging.

Entering the 1970s, the island nation's labor costs began to increase significantly.

The goods produced are no longer of good quality and low price.

In order to reduce labor costs and lower production and development expenses, island companies began to move overseas in large numbers.

Build branches overseas and prepare to set up production companies.

Only the final assembly plant and core technical departments will be kept in the country.

All other production links have been moved abroad.

At this stage, the island country’s home appliance industry is on the eve of transformation.

It is also an important opportunity for the electrical appliance industry of Longguo to come into direct contact with the electrical appliance industry of Taiwan.

"Minister Wu, the advantage I just mentioned is our cheap labor costs. The word cheap doesn't sound good, but it's the reality."

"The labor costs in island countries are dozens of times higher than ours. As labor costs increase, the prices of goods will inevitably increase as well."

"In addition to labor costs, we also have advantages in raw materials that island countries do not have."

"Island countries have poor soil and almost all of their home appliance materials are imported. Many of our production materials can be sourced locally. As long as we can maintain a high level of home appliance technology, our products will surely sell better than theirs."

"If the same product is marked with different prices, everyone will choose the cheaper one."

"It is precisely because of this that Best Buy Group placed a large number of orders with our company."

Lin Kaifeng then told a very true statement.

There is not much gap between Longguo's scientific research and technology and those of Western countries. The reason why it cannot compete with them is mainly due to various internal problems.

Whether it is semiconductor chips or a series of important spare parts, they are almost all produced through planned allocation, and domestic enterprises and units supply them on demand, so manufacturers cannot increase their output.

The lack of motivation to turn science and technology into commodities is the core issue affecting competitiveness.

Wu Ankang said noncommittally: "If the ministry agrees to your application, assigns technical personnel to you, and arranges for Shencheng Electronics Factory No. 5 to assist you in building the semiconductor chip factory, can you solve the competition problem of our domestic electrical appliances?"

"can."

Lin Kaifeng said without hesitation: "Semiconductor chips are the core of competition in home appliances. The better the performance of semiconductor chips, the more advanced the performance of home appliances. The two are closely linked and neither can be missing."

"Northern Machinery Company has accumulated a large amount of funds through repeated foreign exchange earnings. Instead of letting these funds lie dormant in the account, why not use them for more useful purposes?"

"Minister Wu, whether it is for the development of national science and technology or to attract a steady stream of foreign orders and create foreign exchange for national development, building a modern commercial semiconductor factory is imperative."

After completing this production task, the machinery company will have nearly 200 million yuan in funds on its books.

Two hundred million yuan is enough to complete a series of projects planned by Lin Kaifeng.

Lin Kaifeng is responsible for everything including the salaries and bonuses of the technicians assigned to the machinery company.

The Fourth Ministry of Machine Building will never be allowed to spend another penny.

Best Buy placed orders totaling US$120 million.

According to the long-standing regulations, all funds earned from export of foreign exchange goods must first be deposited into the State Administration of Foreign Exchange.

This is equivalent to the foreign exchange earning enterprises selling the foreign exchange funds they obtain to the State Administration of Foreign Exchange.

It is converted into domestic currency through the exchange rate and then returned to the foreign exchange earning enterprises.

The official exchange rate between the US dollar and the Chinese Yuan is 1 to 2.

One hundred and twenty million US dollars can be exchanged for two hundred and forty million Dragon currency.

After deducting the deductible expenses, Northern Machinery Company can earn nearly 200 million yuan.

Subtract production costs, personnel expenses, and miscellaneous expenses.

The remaining money is still enough to support Lin Kaifeng to implement all the projects.

"In order to introduce Western equipment and technology, the country has gradually reduced the funding for scientific research institutions. Our company is willing to take on the task of supporting scientific researchers."

"Please give me this opportunity, Minister Wu, so that our company can try to find a new path for development."

After saying this, Lin Kaifeng bowed deeply.

"Comrade Lin Kaifeng, you should go back and rest first. The department needs to hold a meeting to discuss this matter."

"Tomorrow afternoon, come to my office to hear the news."

After Lin Kaifeng left, Wu Ankang lit another cigarette.

I've lived for decades and have dealt with all kinds of people.

There was some truth and some falsehood in the other party's words. He could deceive others but not Wu Ankang.

Every word Lin Kaifeng said came from the bottom of his heart.

I really want to support these semiconductor experts through Northern Machinery Company.

Increase the production of semiconductor chips through expert technology.

At noon the next day, Wu Ankang personally presided over the meeting.

In addition to the department leaders of the Fourth Ministry of Machine Building, the meeting was attended by dozens of experts and persons in charge from the ministry's semiconductor research institutes and scientific research units.

It is no exaggeration to say that almost all of the country's top experts in semiconductor chip technology gather here.

At the beginning of the meeting, Wu Ankang said slowly: "Comrades, we have called you all here to hold this meeting mainly to discuss the next development of the semiconductor industry."

"You are all industry experts and backbones. What do you think will be the future of the semiconductor industry?"