Chapter 99: It’s not just about being the best in China

The mid-1990s was a very special period.

On the one hand, due to the deepening of reform and development, domestic and foreign ideas and technology began to collide with deeper degrees. Chinese people have developed various complex feelings about the coming new millennium, which makes people's hearts seem particularly confused during this period. This can be seen from the performance in the pop music scene.

On the other hand, the changes in the business operation model have led many large foreign enterprises and commercial institutions to enter the mainland and slowly change the lifestyle of Chinese people. This can also be seen as a form of peaceful evolution.

Fan Wubing believes that no matter what method it is to evolve against Chinese people, it is not more convenient to use these things that are most easily accessible in daily life.

For example, kfc, such as some daily necessities under the banner of foreign famous brands, or daily necessities that began to enter China on a large scale, the proliferation of these things not only changed the lifestyle of Chinese people, but also changed some of their inherent concepts, that is, foreigners are also human beings. Since foreigners can live so well, do we also have some areas that need improvement? Where should we improve? How to improve? Will the expected goals be achieved after improvement?

These problems accumulate together in total, and are destined to have a rapid outbreak. Therefore, China's economy will experience a retaliatory rapid rise within three to five years.

For the chip manufacturing industry, this period is the easiest period for everyone to talk about. The vast growth rate is almost unlimited, and it is an irresistible temptation for any company in the industry.

As an industry with rapid development in the international community, the chip industry is called modern money printing machines by foreign economists. The country also planned to build its own chip industry in the early 1990s and started some national projects one after another. However, due to limited national strength and insufficient corporate strength, the domestic chip industry has always been progressing slowly.

Almost all existing chip manufacturing companies in China are foundries, with low process technology, weak independent innovation capabilities, and lack independent products and independent brands.

Due to the export restrictions of Western countries, my country is very serious in chip technology. Almost all the core processing chips used in domestic digital devices come from imports. For example, the three core chips commonly used in digital TVs, reception and demodulation chips, decoding chips, and digital video processing chips all rely on imports.

The chip industry includes pre-design, chip manufacturing, packaging and testing of chips. According to general rules, if the chip itself has a one-yuan output value, it can drive the growth of the relevant electronic information industry by ten yuan.

It is not that the domestic government cannot see such a large market, but because of the various accumulated problems over the long period of time, it is now unable to compete with international chip manufacturing companies. Even if the whole country is working hard, it may not be able to break through the results accumulated by developed countries over the past decades.

What makes people even more worried is that foreigners never sell popular things to Chinese people unless they are finished products.

If you want to develop chip manufacturing technology, you can only rely on your own people.

What Fan Wubing thought was that Taiwan's chip manufacturing industry was also very developed. For example, TSMC, the leader in the island's chip manufacturing industry, surpassed international giants such as Intel in the late 1990s, and its industry scale exceeded that of international giants such as Intel, and its strength was quite strong. Therefore, he believed that even if he could not catch up from the entire industry, it would still be possible to seize one or two of them and work hard, especially in the core chip manufacturing industry of mobile phones, as well as peripheral chip manufacturing industries such as computer memory or graphics cards, he had the ability to make some achievements.

In this way, the domestic chip manufacturing industry will not be blank at least, and when it comes to this industry, the only thing that can be taken advantage of is the introduction of a certain foreign production line. You should know that the production lines introduced later for hundreds of millions or billions of dollars were just technologies eliminated by companies such as Intel. There is really nothing worthy of praise.

Fan Wubing knew that if he didn't grasp the core technology, he would always have to follow someone's butt.

The threshold for chip manufacturing is relatively high. Even in 1993, the cost of building a factory was more than 300 million US dollars, not to mention how many people dare to throw in a lot of money in the uncertain market prospects?

The biggest problem affecting the chip manufacturing industry is not the update of technology, but the grasp of the market trend. After all, most people cannot clearly know the detailed economic trends and the development trends of the chip manufacturing industry like Fan Wubing.

When the market direction is unclear, no one dares to invest all the funds in one research direction. In this way, once a judgment is wrong, it will lead to a terrible result. Therefore, even Intel, the leading industry, often feels troubled.

Because you never know what will be popular next moment?

For example, Intel's business model that dominates the chip industry is to produce more powerful and more complex chips, invest huge amounts of money in research, leaving competitors far behind, which is their usual practice. However, in the mid-1990s, this model was challenged. The functions of PC were very powerful, and many users could even use a small part of the capabilities of high-end Pentium processors. Amd and other companies took advantage of this situation to produce low-end and low-priced chips to seize the market with Intel, which made Intel's situation very bad.

If Intel does not change, it will be another fallen giant, creating wonderful technology that most people do not need but losing customers, and finally having to declare bankruptcy.

However, Intel's CEO Grove decided to adopt an unexpected approach, not only to continue to develop more powerful and faster chips, but also to produce its own low-profit and cheap chips. As a result, this strategy was successful, and Intel's Ceyron processors became one of the most successful microprocessors in history.

For Intel, survival is the result of self-destructive innovation, but many other companies may not dare to accept this pain, so they all fell one by one in the end.

After confirming most of the matters in preparing for the construction of a new factory, Fan Wubing and the other three were preparing to start the site selection.

The preferred address is naturally a place with beautiful environments like Suzhou and Hangzhou. After all, the chip industry should be considered a representative of high-tech industries and an environmentally friendly industry. It requires a beautiful environment and will not cause serious damage to the environment. It is very suitable to occupy these places.

Another one is that Fan Wubing believes that if a factory is built in Suzhou and Hangzhou, the rise in land prices in the future will also bring him a considerable income. The appreciation of land will be far greater than the current investment. Although he will not engage in real estate, he cannot let go of such a thing that can kill two birds with one stone.

After the three people remembered each other, Fan Wubing directly informed Boss Zhu about their plans to build the largest chip manufacturing industry base in China.

Boss Zhu was very excited after hearing this. He knew very well what the situation in the domestic chip manufacturing industry was, and he was also very clear about how much real money international chip giants have to sweep from China every year. Therefore, he was very happy that Fan Wubing was able to raise huge amounts of money to invest in this high-tech industry.

"I'm afraid it will cost a lot of money?" Boss Zhu asked with concern.

"I have to make this industry no matter how much it costs!" Fan Wubing said righteously, "We cannot be stuck by foreigners forever, especially in this rapidly developing high-tech industry. Being stuck by others for a day is equivalent to being controlled by others for the rest of my life! I will try my best to break this international monopoly and bring reasonable and useful products to the Chinese! Instead of the garbage-like third-rate goods that are forced to buy at high prices now!"

"Where are you going to build the factory?" asked Boss Zhu.

Although Fan Wubing was passionate, Boss Zhu was not so easily affected. After hearing him for a while, Boss Zhu began to ask him some specific details, such as the amount of funds invested and the location selection, and even the question of how many job opportunities it can be provided.

"The initial investment will be 300 million US dollars, and it will probably be a lot of investment one after another. It is estimated that it will increase to more than one billion US dollars within five years. This industry is very expensive after all." Fan Wubing did not study this carefully. In short, he is very clear that as long as he can do this in China, it is not a problem to invest. The huge domestic market can provide a lot of business opportunities.

As for the site selection, he said hesitantly, "We want to build the factory in Suzhou or Hangzhou, but we have not made any specific contact yet. I don't know if the local government will welcome us? However, after the first phase of the factory is completed, it will provide about four or five thousand job opportunities. After three years, it will be estimated that 20,000 people will be considered small!"

"You guy is just a little slippery!" Boss Zhu heard Fan Wubing say this, and he didn't know why he came to him. So he said with a wry smile, "Okay, your project is also a major project that is jointly cooperated by China, the United States and Taiwan. The central government cannot help but express support. You can talk about the work of local governments first. We will also exert some influence on them at the appropriate time to get started with this work that benefits the country and the people. What do you think?"

"Of course it's the best!" Fan Wubing happily grinned his mouth on his cheeks, and quickly expressed his ambitions, "Our goal is not just to be the best in China!"
Chapter completed!