Rebirth in 1989: Building a Chinese Technological Empire

"Yes, but Director Luo, for confidentiality, this new product can only be seen by you. And after seeing the new product, you must keep it confidential, because this product is the next strategic product of our company."

Xu Huasheng said seriously. Seeing Xu Huasheng's serious expression, Luo Xiangyu suddenly became very curious.

What kind of product can make this amazing young man so serious?

"Where is the product?"

Luo Xiangyu asked curiously.

"Director Luo, in my home..."

Xu Huasheng said with a smile, Luo Xiangyu nodded, and then the group drove directly to Xu Huasheng's home.

However, when they got downstairs, Luo Xiangyu asked the driver to wait downstairs, and Xu Li, Xu Dabao and Luo Xiangyu went upstairs.

When they got home, Xu Huasheng entered his room and took out the hand-rubbed VCD.

Looking at the VCD, Luo Xiangyu's face was full of confusion. This thing, he really had never seen it before.

"Director Luo, this device is called a VCD player. It is a disc player that can be directly connected to the TV. Compared with traditional laser projectors, it is not only small in size, but also cheap, and more suitable for home use..."

Xu Huasheng introduced while connecting the VCD to his TV to start playing.

"Director Luo, the core component of this device is the video decoding chip, which is a real high-end semiconductor chip. In terms of technical content, the technical content of VCD is far better than that of the air fryer, and the premium ability is also stronger..."

"We are currently registering patents worldwide, and we will consider launching this product only after the patent registration is completed. Director Luo, the production of this product is much more difficult than the air fryer, especially the production of decoding chips, which requires high-end equipment such as lithography machines. As far as I know, there is currently no company in our country that can manufacture this chip..."

At Xu Huasheng's home, Luo Xiangyu was stunned.

Looking at the movie playing on TV and then looking at this DVD player, Luo Xiangyu didn't know what to say for a while.

High-tech products, absolutely high-tech products. Moreover, it is the world's first product with a global patent registration.

"How is the profit of this VCD? How is the market?"

Luo Xiangyu couldn't help asking. He didn't dare to make a judgment easily now. It was really because Huasheng Electronics brought him too many shocks today.

"Director Luo, VCD can be sold for at least 500 US dollars in Europe and the United States. And our cost will not exceed 200 US dollars, and this is the price of chips found by foreign manufacturers. If we produce chips ourselves, the price will be lower. As for the market, VCD is a super large market. In China alone, there may be a market of tens of billions of RMB. And if it is a global market, it will be even more..."

Sucking cold air, Luo Xiangyu really sucked cold air this time. This market is much more awesome than the air fryer market.

"Are you so confident?"

Luo Xiangyu couldn't help looking at Xu Huasheng, and this made Xu Huasheng laugh.

"Director Luo, the air fryer is the best example. Good products will never have trouble selling. Compared to the air fryer, VCD is like a TV. Once it becomes popular, it will be fashionable. Think about it. Other people have VCDs at home and can watch movies and TV series at home. We feel that $500 is very expensive, but in developed countries such as Europe and the United States, it is only half a month's salary. If you spend half a month's salary to buy a VCD, would you buy it?"

Xu Huasheng's words made Luo Xiangyu laugh.

Yes, if it were me, would I buy it?

If I can afford it, I will definitely buy it. It's just like the TV at home. In recent years, the hot sales of Huaxia TVs, washing machines, and refrigerators are the best examples. Who doesn't want to make their quality of life better?

And if VCD, this magical product, really becomes popular, it will probably be the same.

This is not the most important thing. There are almost no patents for TVs, washing machines, and refrigerators. Anyone can produce them. There is a lot of competition and many manufacturers.

But for VCD, Huasheng Electronics has a global patent, which is unique to Scorpion Shit. Without Huasheng Electronics' authorization, foreign big brands dare not produce it.

"Xiao Xu, this decoding chip, can't we really produce it in China?"

Luo Xiangyu suddenly thought of the decoding chip. Xu Huasheng said that this decoding chip is the core of this VCD. If we can produce it ourselves, the premium ability will be higher.

"It's not that we can't produce it..."

Xu Huasheng lowered his head and thought about it, and said, which made Luo Xiangyu's eyes light up immediately.

"Director Luo, the biggest difficulty in chip manufacturing is actually the problem of the industrial chain. To produce chips, we must first have wafers, which can still be solved in China. The second is lithography., if you want to do lithography, you must solve the process problem. At present, my country's ability in this regard is very weak. However, the process problem is actually a problem of burning money. As long as there is money and time, it can be solved. In fact, the biggest problem facing chip manufacturing is the attitude problem? "

Xu Huasheng said seriously, which made Luo Xiangyu frown.

"Attitude problem?"

Luo Xiangyu was a little confused.

"Yes, it is not the attitude of the enterprise. It is the attitude of the country. Does the country attach importance to the semiconductor industry? Is it willing to build a complete semiconductor industry chain? Is there the determination and courage to impact high-end manufacturing? Is there the courage to burn the boats? Without these things, it is difficult to rely on only one company, because the entire industry chain involves too many things. The rise of the semiconductor industry in the United States and Japan is also vigorously promoted by their countries behind the scenes..."

Xu Huasheng began to popularize the knowledge of the semiconductor industry to Luo Xiangyu, as well as how the semiconductor industry in Japan and the United States developed.

After listening to Xu Huasheng's words, Luo Xiangyu's expression became completely serious.

"Xiao Xu, what do you need our country to do for you? "

Luo Xiangyu took a deep breath and asked.

"Director Luo, we need production capacity. We need to prepare a large amount of inventory in the early stage. When the time is right, we will advertise on a large scale around the world for marketing, and then quickly launch our products to recover funds and make more money in the shortest time. Although we have global patents, once our products appear on the market, no one can guarantee that there will be companies that avoid patents and develop similar products, so the best way is to prepare a large amount of inventory, and then take advantage of the market to eat the biggest piece of the pie. Even if there are companies that develop similar products in the future, we can still kill them with price wars..."

Xu Huasheng said fiercely that if there are companies that really avoid his patent barriers, it will be more exciting at that time. Those companies will find that the products they have worked hard to research cannot be sold at all.

Because at that time, Huasheng Electronics has already made the price very cheap by relying on large-scale production and China's cheap labor.

The selling price of Huasheng Electronics' VCD is lower than their cost price, how can they play? This is a common phenomenon of the winner taking all in the semiconductor industry.

Xu Huasheng stated his needs, which is also the purpose of Xu Huasheng inviting Luo Xiangyu.

Only people with Luo Xiangyu's status can report to the higher level.

Once the country pays attention and mobilizes resources to help Huasheng Electronics coordinate production, then China's institutional advantages will be The potential can be brought into play.

The problem of chip production can be solved more easily.

What is VCD now? Is it an ordinary household appliance?

No, this product can be said to be a business card in the field of Chinese science and technology. It is a weapon for Chinese companies to earn foreign exchange.

If it is sold at 500 US dollars per unit abroad, if it can really sell tens of millions of units abroad, that is 5 billion US dollars in foreign exchange.

You should know that the country's foreign exchange reserves are only this number now. As for the cost, the cost materials can be purchased with RMB. There is no shortage of RMB in China. What the country lacks now is foreign exchange.

What if it sells for 20 million or 30 million? And the patent period is 20 years. How much money will this product make in 20 years? How many companies can it drive to profit? How many Chinese people can benefit from it?

Thinking of this, Luo Xiangyu became excited.