Movie God: Starting from Rose

Chapter 86: Connecting Loongson and Starlight Mobile Phone

"Mr. Zhang, you have worked hard during this period, but you should also make sure to rest," Li Xuan reminded.

"Zhang Jing also knew that he had been suffering from a lot of hardship during this period, so he said: Mr. Li, you will be fine after you get through this period."

Mr. Li, I will take you around the workshops first, and then we can sit down and talk slowly in the office. After that, Zhang Jing led Li Xuan to the chip manufacturing workshop, where various chips were being manufactured on the assembly line.

"Mr. Li, these chips are all 128 nanometers. Now 128 nanometer chips are the most widely used," Zhang Jing began to introduce to Li Xuan.

"How many nanometers are Intel's chips? Li Xuan asked the key question directly."

"56 nanometers," Zhang Jing answered without any hesitation. "After all, this is an established fact."

"That means Intel's chips are only one generation ahead of ours."

"No, Mr. Li, the 56 nanometers I'm talking about are already in mass production at Intel. Intel can already make 28 nanometer chips, but it's just not able to achieve mass production due to yield issues."

"What is the yield rate of the chips we produce now?" Li Xuan asked again.

"Mr. Li, at this stage we are about 30%. Although this yield rate is a bit low, we are trying to find ways to increase it."

When Li Xuan heard 30%, he felt it was a bit low, so he asked, "Is our production cost very high?"

"Mr. Li, this is the case. Compared with similar foreign products, the cost of our products is about 27% higher. Of course, this is based on our labor cost advantage," Zhang Jing directly gave a more accurate figure.

"What about the price?"

"Mr. Li, this is also our advantage. The price is 25% cheaper than similar products, but this is based on the premise that our net profit is only 3%."

When Li Xuan heard the data, he already had a rough estimate in his mind. After all, the 3% that Zhang Jing mentioned refers to the chips that can already be mass-produced. As for those chips that are under development, a lot of money will definitely need to be invested!

But Li Xuan is not short of money at all now. When he invested in the chip company, he had already prepared for a long-term battle.

Even if a chip company does not make a profit within 10 years, it has to find a way to make better chips. These are also some of the changes Li Xuan has to make when he travels to this world.

In this way, in the future, not only can the domestic market be satisfied, but also it can be sold abroad. Li Xuan also has the same ambition. He also wants domestic chips to make money from foreigners.

I have traveled through time and space recently, so I have to make some changes.

Li Xuan then raised another question, which is, Mr. Zhang, can the chips we produce now meet our needs for mobile phones?

"Mr. Li, it's like this. High-end phones definitely won't work. Nowadays, high-end phones from both Nokia and Motorola use the best chips. But our ordinary models won't have much of a problem."

Li Xuan was still okay with this answer. After all, he also knew that this was a long-term strategic issue. For the French at this stage, what they need most is ordinary models. How many mobile phone chips can be produced in a year? Li Xuan asked another question.

"Mr. Li, at this stage we can almost meet the demand for 3,000 million mobile phones," Zhang Jing said immediately. In fact, he was very familiar with these data. After all, he had not been busy in vain during this period.

"3,000 million units? This may not be enough, Mr. Zhang, you still have to find a way to increase production capacity. It would be best if the output could be one year to meet the demand for 1 million mobile phones." Li Xuan made the decision directly!

"Mr. Li, did I hear you correctly? You said 1 million units. Zhang Jing was a little stunned at this moment."

"Yes, Mr. Zhang, you heard me right. I was talking about one."

Zhang Jing responded quickly and came over and said:

"Mr. Li, at present, the annual sales volume of the entire Chinese mobile phone market is only about 1000 million units. At present, our Loongson Technology has achieved a production capacity of 3,000 million units, which in my opinion is enough to meet the needs of the entire mobile phone market."

"What's more, many of these mobile phones use products from other chip companies. Even if the Loongson 1 we provide has a cost-effective advantage, its sales volume will not be too high, right?"

Li Xuan said confidently: Mr. Zhang, we at Tianyu Capital expect that starting from the end of this year, domestic mobile phones will emerge as a dark horse and quickly seize the Chinese mobile phone market. If nothing unexpected happens, the shipment volume of the entire Chinese mobile phone market will definitely exceed 1 million units next year.

"This is why I'm here to remind you the key to increasing production!" Li Xuan confidently stated the report of Tianyu Capital.

Of course, Zhang Jing would not be defeated by Li Xuan's report. He still said: Mr. Li, to be honest, I can't believe this number no matter what. After all, even if a mobile phone is priced at only 2000 yuan, most people will not buy it!

When Li Xuan heard 2000 yuan, he laughed and said: 2000 yuan is indeed a bit expensive, but what if it is 1000 yuan!

"1000 yuan, Mr. Li, are you sure you are not kidding? This price is already far below the cost price. This is a loss-making mobile phone company that will definitely not do this. Zhang Jing's voice has increased a lot."

Zhang Jing's sudden increase in volume made the busy workers in the workshop couldn't help but look over.

"Mr. Zhang, let's go to your office to talk. Li Xuan has certainly noticed this situation."

"Then Li Xuan followed Zhang Jing's lead and arrived at his office."

At the same time, Zhang Jing's assistant prepared the tea as soon as possible.

"Mr. Zhang, to be honest, I recently invested in a domestic mobile phone company. The company is currently going all out in research and development, and is striving to design 50 new models by the end of the year. These new models will then be produced in batches, and the demand for chips will be very high."

I believe you also know that the two mobile phones under our Tianyu Capital are Starlight and Star Glory. This time we want to make progress in both high-end and low-end models.

Moreover, all our low-end mobile phones will use Loongson 1. After all, domestic mobile phones must use domestic chips.

Zhang Jing was very happy after hearing what Li Xuan said. "Mr. Li, if this is true, that would be great. With the new drug company as a big customer, we don't have to worry about the chips we produce not having a market."

Zhang Jing was really surprised at this moment. After all, he didn't expect that Li Xuan would invest in him and the mobile phone industry, and even in computers. What's more amazing is that Li Xuan connected all of these together.

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