Wang Yi continued,
"Whether it's Huawei, Meizu, Xiaomi, or our Xingyi Technology, all the smartphones we make have to use foreign components!"
"For example, the newly released Xiaomi phone costs 1500 yuan, and he sells it for 1999 yuan, earning only a few hundred yuan in profit. Most of the remaining 1500 yuan is taken by foreign supply chains!"
"Are you saying that our domestic mobile phone brands are all working for foreign suppliers, making money for them?"
Director Qin's expression turned grim.
Wang Yi nodded,
"That's right."
Director Qin didn't say anything more, but his expression became very displeased.
Wang Yi sighed and continued,
"There's no other way. Smartphones are just starting, a part of our domestic industry chain is blank, and another part is too backward, so everyone can only use imported ones!"
"For example, screens are too far behind domestically, so we can only use Samsung, Sony, Sharp, JDI, and others. Chips can only be Qualcomm or Samsung. Lenses and the like are the same."
"Even if we want to use domestic products, setting aside whether their performance can catch up with foreign giants, the problem is that many components simply cannot be produced domestically!"
"Therefore, we can only watch helplessly as all the money is taken by foreign supply chains! Our domestic brands still have to humbly curry favor with them, eagerly send them money, and beg them to sell components to us!"
These words from Wang Yi were heartfelt.
Leibus is the best example!
For the supply chain, Leibus ran everywhere, begging everywhere.
Even in 2015, when Xiaomi grew large, because a certain senior executive offended a Samsung senior executive, Samsung choked them, and they couldn't get Samsung's flagship screens, Xiaomi phones had to be delayed.
In the end, it was Leibus who found several influential friends to be lobbyists, flew personally to the kimchi country, drank many self-imposed penalty cups, and repeatedly apologized, before Samsung agreed to supply!
Moreover, it was two years later that AMOLED screens were supplied to Xiaomi!
So much so that the Xiaomi 8, released by Xiaomi in 2018, was the first to use a Samsung AMOLED screen!
For many years thereafter, all of Xiaomi's high-end phones used Samsung screens, never daring to offend them again!
There was no choice; Samsung had a monopoly on flagship screens, domestic production couldn't keep up, and there were no alternatives, so they could only humble themselves.
It wasn't just screens; Qualcomm processors were also the same.
Every time Qualcomm released a new processor, a host of domestic brands would collectively repost, endorse, and rush to be the first to launch Qualcomm's new processors.
Even if they knew it overheated severely and failed, they still had to bite the bullet and use it.
For example, the Snapdragon 810 in 2015, dubbed a generation's "Fire Dragon"! It failed so badly that it was not as good as the previous generation.
For this reason, Samsung phones directly abandoned the 810, and all its series switched to their own Exynos.
But domestic brands had no choice but to bite the bullet and procure large quantities...
There was no other way.
If they didn't procure the flawed 810 this year, they could forget about the 820 next year!
Being controlled by others in the supply chain, they could only be passive everywhere.
Director Qin frowned deeply and let out a long sigh:
"Wang Yi, you are very right! The domestic mobile phone supply chain cannot always be controlled by others; the hidden dangers are too great, and the profits cannot all be taken by foreign giants! So, you want the Management Committee to step in and take the lead in promoting the development of the domestic smartphone supply chain?"
"Director Qin, you are wise. Such a difficult and great undertaking can only succeed if the Imperial Capital takes the lead."
Wang Yi took a deep breath:
"If the domestic supply chain is not supported, and no companies use it, it will not develop. The gap with foreign countries will only widen. We will also always be controlled by others, with most of the profits being taken by foreign giants. At that time, even if our domestic mobile phones become number one globally, we would merely be working for foreign giants!"
"On the contrary, only by building our own domestic supply chain can we keep profits in the country as much as possible! Only then can we drive the development of our industry chain, drive our economic development, create jobs for us, and create GDP!"
"Good, excellent, very good!"
Director Qin said "good" three times in a row:
"I can't believe that at such a young age, you possess such vision and foresight! Very good, excellent!"
"This matter is big and difficult, but it must be done. We have this obligation, and this responsibility. But how exactly do we do it? Do you have a plan?"
"Yes!" Wang Yi immediately opened his bag and took out a document:
"Director Qin, please see, this is what I prepared earlier. I was just wondering how to find an opportunity to submit it."
Director Qin said nothing, but took out his glasses and read it carefully:
[Research Report on the Development of Domestic Smartphone Industry Chain]
Processor: extremely high technological content, greater difficulty in mass production, difficult for domestic production to break through.
RAM memory, ROM storage: relatively high technological content, significant investment in key technological breakthroughs, expected to achieve domestic breakthroughs.
Screen: high technological content, BOE (Jingdongfang) is progressing rapidly, with continuous investment, expected to achieve breakthroughs!
Battery: general technological content, support excellent domestic brands, such as Pisen, Nuo Xi, Feimaotui, Baseus, etc., can fully achieve domestic substitution.
Camera: high technological content, continuous support, Sunny Optical, Chenrui Optical, O-Film, etc., can achieve domestic substitution in the future.
Cooling module, charging module, vibration motor, earpiece, microphone, speaker, sensor: most can be replaced by domestic products.
[Support Methods]
Drawing lessons from Feishi's strategy of investing in and supporting BOE (Jingdongfang), major cities will provide one-on-one assistance to high-quality supplier enterprises within their cities, promoting the development of the industry chain, forming industry cluster effects, driving employment, and stimulating the economy...
[Production and Sales Cycle]
Encourage domestic mobile phone brands to actively adopt high-quality domestic components, and promote the growth and strengthening of the domestic industry chain.
For enterprises with a high proportion of domestic components used, provide support such as tax incentives.
[Xingyi Mission]
Xingyi mobile phones will adopt some high-quality domestic components, genuinely supporting the domestic industry chain!
And invest 50 million in 2012 to research and develop a mid-to-low-end phone with all domestic components, to be launched in 2013!
[Ultimate Challenge]
Processor chip research and design issues are difficult, and manufacturing issues are even harder.
It involves wafer fab processes, high-end lithography machines, and a solution is truly unimaginable...
...
After reading, Director Qin fell silent.
After a long while, he took a deep breath and said,
"Wang Yi, you are excellent. The entire report is well-analyzed and well-reasoned, with prospects, plans, development, and solutions! I will submit this report of yours shortly! On behalf of the Management Committee, I state that we will strongly support what you have proposed. If you need anything in the future, contact me directly!"
As he spoke, Director Qin and Wang Yi exchanged contact information.
Wang Yi understood in his heart that this matter had a chance!
The authorities definitely want to achieve domestic production of smartphone components, and promote the development of the domestic supply chain!
Wang Yi's proactive proposal elevated the matter's significance.
And his initiative to propose the research and development of a phone with all domestic components was a concrete fulfillment of this responsibility!
It was impossible not to be supported.
Previously, Wang Yi had wanted the authorities to strategically deploy lithography machines and semiconductors, but as an individual with little influence, it might not have been useful.
Even if he brought in Beihang and a group of academicians with the same vision, it might not have been enough.
But now, Wang Yi had changed his approach!
He directly put it into practice, proactively proposing the research, development, and production of phones with all domestic components, to promote the development of the domestic supply chain!
Naturally, he would gain deep trust from the authorities, and by then, bringing up the chip problem would be more convincing.
More importantly, when other smartphone components achieve domestic production, and technological challenges are resolved, only the chip remains, which lithography machines cannot solve!
Wang Yi wouldn't even need to say it; the authorities would find a way to solve it themselves!
After all, without chips, the entire domestic supply chain cannot form a closed loop!
All other nodes have been broken through, so should all previous efforts be wasted just because of the final chip problem?
This certainly wouldn't do.
Some matters, by changing the approach, become easy to solve.
Lithography machine and chip problems, Wang Yi couldn't solve them, and they had to be left to the authorities.
But using domestic components in Xingyi phones, to promote the development of the domestic supply chain, that's still fine.
As long as the domestic industry chain develops, there will be no need to be controlled by others everywhere!
Wang Yi made up his mind that for the first generation of Xingyi phones, core components such as screens, processors, RAM, and lenses would still have to use those from foreign giants.
But for motors, batteries, earpieces, and so on, domestic products would suffice.
For example, for batteries, the first generation of Xiaomi initially used Desay batteries, which had unstable voltage and frequent shutdowns.
Later, they all switched to Feimaotui, and there were no problems.
For Wang Yi's Xingyi phone batteries, there's no need to shamelessly beg Sony and Samsung, or insist on using Sony and Samsung batteries; Pisen or Feimaotui would be fine directly!
As for lenses, current domestic lenses are still not good enough; Japanese and Korean ones must be used.
In a few more years, even iPhones will start using lenses from Sunny Optical and O-Film!
Next year, another low-end phone will be developed, similar to Huawei's Enjoy series and Honor series, and Xiaomi's Redmi series!
All using domestic components, for volume, scale, and to completely promote the development of the domestic supply chain!
Originally, Wang Yi didn't plan to make low-end phones, but to promote the development of domestic components, it had to be done!
At that time, just create a sub-brand.
As for whether it would lower the brand positioning of Xingyi phones?
It wouldn't!
Just like Huawei in 2013, launching its sub-brand Honor, the Honor 3C was priced starting at 599 yuan, directly competing head-to-head with Redmi!
And it didn't lower Huawei's brand image.
And later, both Honor and Redmi also sold in the 3000-yuan price range!
In 2011, domestic smartphones were just starting, whoever acted first, whoever captured more users, would succeed!
Only doing high-end, not low-end, would not result in a very high user base.
In these times, he who gains users gains the world.
Users of thousand-yuan phones now are mostly university students and young people.
In a few years, when they start working, they will become the main consumer force!
During their student days when their pockets are tight, give them a thousand-yuan "youth-friendly" product, and after they start working, with higher incomes, they will also support Xingyi Technology's high-end brands!
"Director Qin, you flatter me; these are just some immature ideas of mine,"
Wang Yi said with a smile.
"Hehe, your ideas are very mature, more authentic than what many experts see! All of them are far-sighted!"
Director Qin praised him profusely.
To be able to propose such a broad perspective in 2011 is truly not simple.
Especially for a freshman in university!
Could it be that in this world, there truly are geniuses?
Wang Yi waved his hand:
"It's not mature at all. For the most crucial chip, I can't think of a solution at all. Here, we still have to rely on experts. After all, chips are the core of smartphones. If we keep relying on foreign countries, as soon as they choke us, we're done for!"
"That serious?"
Director Qin was startled.
Wang Yi nodded:
"To give an example, suppose in ten years, Xingyi phones are fortunate enough to grow strong, surpass iPhones, and seize iPhone's market share and profits. What will happen?"
Director Qin thought for a moment:
"The empire will step in and ban us?"
"Precisely! The empire cannot stand by and watch domestic mobile phones become number one globally! Even less can it stand by and watch the largest profits from smartphones be monopolized by domestic enterprises.
They will definitely take action to suppress Xingyi phones. As long as they restrict the export of high-end chips, Xingyi phones will be finished. Because we can't produce high-end chips!"
Wang Yi sighed, merely giving an example.
But Director Qin fully understood.
This kind of thing is very likely to happen.
In other fields, we have all encountered such blockades and suppression; it's too familiar!
"Alright, Wang Yi, I'll have my secretary take you to the industrial park to handle the subsequent handover."
"Okay, Director Qin, please go ahead with your work."
Afterwards, Wang Yi followed Secretary Xiao Zhang, and Jian Ziyan, and went to the industrial park together.
Director Qin, meanwhile, returned to his office, hesitated for a moment, took out a pen, wrote down the small example Wang Yi gave on a piece of paper, and then put it into the analysis report.
Then he left in a hurry, taking Wang Yi's research report on the development of the domestic mobile phone industry chain, and headed to the Management Committee.
After a brief meeting, this report was submitted layer by layer.
It immediately attracted great attention from senior leadership, who swiftly organized experts for research and analysis.
Conclusion: The content of the report is completely feasible and must be taken seriously.
And the case Wang Yi cited about Xingyi phones growing big in the future and being banned, was also taken seriously by the senior leadership.
Seemingly a casual example, but it couldn't be more true!
Subsequently, the authorities quickly established a special team, began in-depth research on this report, formulated plans, and resolved a series of problems.
For example, Wang Yi proposed drawing lessons from Feishi's method of investing in and supporting BOE (Jingdongfang), to support other industry chain giants in making technological breakthroughs!
This was also regarded as the most important solution!
Completely practical and feasible!
Moreover, BOE's current achievements are already very impressive!
After some discussion, several major cities, provincial capitals, etc., were assigned to assist enterprises, and set technological breakthrough targets.
For example, Shenshi's goal is to support O-Film, and fully tackle optical lens technology!
Whether it's poaching talent for R&D breakthroughs, or acquiring Sony technology, it must be broken through!
The other cities also had their own goals.
If this continues, apart from chips, breakthroughs in all other areas will only be a matter of time.
In addition, a meeting was held regarding Wang Yi and Xingyi phones...
As for the outcome, it was no longer something Wang Yi needed to worry about.
Man proposes, Heaven accomplishes!
He had done all he could, and proposed all that could be proposed.
Next, it was up to future developments!
A quarter of an hour later, Wang Yi and his group arrived at Qianghui Electronics Industrial Park.
The vast industrial park now had very few people.
Only the security personnel left by the Management Committee were watching over the industrial park, to prevent theft by burglars.
Secretary Zhang handed the keys and a series of documents to Wang Yi:
"Boss Wang, from now on, this industrial park is yours. I will have the security personnel continue to stay until you have recruited people to take over, then they can leave."
"Thank you for your hard work, Secretary Zhang!"
Afterwards, Secretary Zhang took Wang Yi, checked the assets one by one, confirmed there were no issues, and then bid farewell and left.
Looking at the vast industrial park, Wang Yi sighed:
"Time to recruit people again, what a headache!"
Another day of missing Song Sining!
If Song Sining were here, he wouldn't have to worry about these things at all!
Song Sining would handle them all herself!
But now, Song Sining is in Jizhou; distant water cannot quench immediate thirst.
As for transferring Song Sining here?
That wouldn't work.
Without Song Sining overseeing Meiyou headquarters, Wang Yi would not be at ease.
Wang Yi's trust in Chen Chuanqing was not as great as in Song Sining!
Besides, with so many matters at Meiyou now, Song Sining simply couldn't leave.
Wait, if Song Sining isn't here, isn't there still someone else?
Thinking this, Wang Yi looked at Jian Ziyan.
Although Jian Ziyan wasn't suitable to be a professional manager, serving as his secretary and filling in temporarily would still be acceptable.
Once Xingyi Technology's framework is established, things would be stable.
Jian Ziyan's cheeks flushed slightly, feeling a bit embarrassed by the gaze:
"Junior, what's wrong?"
"Senior, would you like to join Xingyi Technology?"
"Join? I can!"
Jian Ziyan's face lit up with joy.
She was originally thinking how she could shamelessly cling to Wang Yi's leg.
Unexpectedly, he brought it up himself!
How great.
"Junior, no, Boss! I will definitely work hard and never let you down. As for salary, you can just give me an intern's salary first. No, not even that, just provide meals!"
Jian Ziyan said with a smile:
"I will prove my worth and definitely not let the boss down!"
Looking at Jian Ziyan's serious expression, Wang Yi smiled:
"Xun Ge put it well: an employee who doesn't ask for a salary is not a good subordinate!"
"???"
Jian Ziyan was taken aback:
"Xun Ge said that?"
"That's not the point."
Wang Yi waved his hand:
"From today onwards, you are Xingyi Technology's legal counsel, and President's secretary!"
"Okay!"
Jian Ziyan readily agreed.
Anyway, being a legal counsel was her professional specialty.
As for President's secretary, that was just a part-time role; there shouldn't be much work, right?
But what she didn't know was that secretary was her main job, and legal counsel was the part-time role...
"As for compensation, let's start with a monthly salary of ten thousand yuan!"
"Ah, so much!"
Jian Ziyan was startled.
Freshly graduated law students first work as legal assistants, interning for two years, before they can obtain their license.
During these two years, they usually only get a basic salary of two thousand yuan.
How much commission they get depends on whom they follow and how many cases they handle.
But most legal assistants only earn a few thousand yuan a month.
Only after obtaining their license two years later, do they become lawyers!
At that time, their income level still depends on the number of cases (clients) and their performance...
She was still a student, yet Wang Yi was offering a monthly salary of ten thousand yuan, which was truly very, very high.
Even in the Imperial Capital (Beijing) in 2011, it was an absolutely high salary!
"Don't worry, you're worth it!"
Wang Yi said with a smile.
"Thank you, Boss, I will do my best."
Jian Ziyan nodded:
"So what should I do first?"
Wang Yi surveyed the entire industrial park:
"First, you need to recruit people. HR department, cleaning department, security guards, maintenance workers, finance, etc., recruit for all! Just recruit at normal salaries."
"Okay,"
Jian Ziyan responded.
"Also recruit mobile phone R&D engineers, offering salaries 30% higher than average. Also recruit software development engineers, offering salaries 20% higher!"
"Okay!"
"Oh, and also recruit female-oriented web novel editors!"
"Also recruit clothing store manager trainers!"
With the industrial park, with a building area of 200,000 square meters, there was ample office space.
In contrast, the two office buildings in Jizhou were too small, and simply not enough.
Wang Yi planned to designate a section of the industrial park as Meiyou's Imperial Capital (Beijing) branch!
Locating Meiyou Novels in the Imperial Capital branch would also make it easier to recruit and poach talent.
Coincidentally, Chunjiang Literature's headquarters are in the Imperial Capital, so their editors and core senior management, if poached, could directly come to work at the industrial park, wouldn't that be easier than poaching them to Jizhou?
In addition, a Meiyou store manager training camp could also be set up in the industrial park.
Anyway, the current industrial park has plenty of buildings!
Just find a conference room, remodel it, and it can serve as the training camp base.
Wang Yi explained all these matters in detail to Jian Ziyan.
Jian Ziyan noted everything down, feeling a bit bewildered:
"Boss, aren't I legal counsel? How come none of the tasks I'm doing are related to legal work?"
Wang Yi smiled and said earnestly:
"The 21st century needs versatile talents; your perspective is too narrow!"
"Oh."
Jian Ziyan seemed to understand, yet not quite.
Wang Yi patted her shoulder:
"Legal work is your foundation; it determines your baseline. What you are doing now, on the other hand, is your development, and will determine your ceiling! Do you want to be a small lawyer your whole life? Or do you want to go further and become a female manager who understands legal matters?"
"This... I want to be a female manager!"
Jian Ziyan's eyes lit up.
Wang Yi nodded in satisfaction:
"Very good. Work hard, don't miss this opportunity to refine yourself. When you truly grow, and your capabilities reach a certain level, there will still be a chance for you to step out of the legal profession and become a female manager!"
"Yes, I'll go back to school now, immediately post recruitment information, and recruit overnight!"
Jian Ziyan nodded repeatedly, the pie Wang Yi drew was big and round, fragrant and enticing!
She didn't even have a thought of doubt!
"Very good, go!"
Wang Yi nodded with satisfaction.
"Don't worry, Boss, I will definitely do a good job!"
Jian Ziyan was full of fighting spirit, she trotted away, hailed a taxi, and headed straight for the school, eager to recruit people immediately and start working!
Just like a fresh graduate, full of energy and high spirits!
Wang Yi shook his head:
"My 'pie-drawing' (promising things) skill has improved again!"
"Alas, I eventually became the big boss I once disliked!"
Regarding Song Sining, Wang Yi had sufficient understanding, and a bond from a previous life, absolute trust in her ability and character, which is why he directly let go, allowing her to be the president of Meiyou Technology, a professional manager.
But for Jian Ziyan, Wang Yi's understanding was limited.
Although he felt she had no major character flaws, he wouldn't let her be Xingyi Technology's professional manager.
She wasn't Song Sining, and not the type to start from scratch and become a female president.
So Wang Yi had Jian Ziyan work as legal counsel, also serving as secretary.
Currently, there was truly no one else available, so letting her dabble in HR, responsible for recruiting and interviewing, could also be considered a form of training.
If Jian Ziyan performed well in the future, Wang Yi would consider letting her be a small manager.
But becoming the president of Xingyi Technology, that was impossible.
The CEO and President of Xingyi Technology, Wang Yi prepared to take on both roles himself.
Yang Yan and other elites recruited later, would be Vice Presidents in charge of different businesses!
Afterwards, Wang Yi called Yang Yan:
"What are you busy with?"
"Boss, I'm having coffee with a friend, the former product manager of HTC!"
"Former product manager of HTC?"
Wang Yi became interested:
"We've acquired the industrial park. Do you want to bring your friend to come and take a look?"
"Acquired it!"
Yang Yan's face lit up with joy:
"Yes, we'll go now."
"Zhongguancun, Qianghui Electronics Industrial Park!"
"Okay, Boss, arriving shortly!"
Yang Yan was excited, truly excited, as happy as a ten-year-old child.
"What's wrong? So excited?"
Zhu Changlin, across from him, was speechless.
He picked up his coffee and took a sip.
"Drink what, drink what! Let's go, I'll take you to meet my boss!"
Yang Yan pulled Zhu Changlin up and started walking out.
"Hey, what's the rush?"
Zhu Changlin was quite speechless, but still followed.
Yang Yan said excitedly:
"The boss's efficiency is too high. When he recruited me yesterday, our company didn't even have an office space."
Zhu Changlin: "..."
"The entire company was just me and the boss!"
Zhu Changlin: "..."
"But I still resolutely joined!"
Zhu Changlin: "..."
For a moment, Zhu Changlin was speechless.
He touched Yang Yan's forehead:
"Are you alright? You just joined a 'pirate ship'? Isn't that too impulsive?"
"Being impulsive is exactly right!"
Zhu Changlin: "..."
"Boss Wang is very capable, has great vision, and decisiveness. As soon as I joined, he put me in charge of a core department, giving me all the power."
Zhu Changlin nodded:
"That's not bad. What about the compensation?"
"It doubled compared to before!"
"!!!"
Zhu Changlin gave a thumbs up:
"That's generous enough!"
"These are small matters. Boss Wang participated in a judicial auction today, won an industrial park, to be the company headquarters!"
"What?"
Zhu Changlin was no longer calm:
"Bought an entire industrial park to be the company headquarters? What a massive move!"
Yang Yan nodded:
"Boss Wang's way of doing things is decisive, daring to think and act. Do you want to join? Miss this village, and you won't find this shop again!"
"Yes! Definitely!"
Zhu Changlin was completely swayed.
Originally, he did quite well at HTC, personally participating in the R&D of several mobile phones, gaining considerable experience and capability.
Therefore, he was highly regarded by a senior executive at headquarters, who personally named him to take the lead in developing a new generation of mobile phones.
He was on the verge of getting results, achieving performance, and steadily rising through the ranks.
However, that senior executive from headquarters flew over, and became the project manager for the new phone!
Although he was still heavily relied upon, it was clearly to steal his credit and take his achievements!
This kind of injustice, the technically-minded Zhu Changlin couldn't endure.
He had planned to threaten the senior executive with resignation to demand the treatment he deserved!
After all, the new phone was developed under his leadership; there was no reason for someone else to take the credit!
Unexpectedly, headquarters readily approved, and directly let him resign, without even severance pay!
Remembering this, Zhu Changlin wanted to curse.
That was incredibly unscrupulous!
It wasn't until later that he understood: that leader saw he had ability, which is why he was made to lead the R&D of the new generation of mobile phones.
The results and achievements were all the leader's!
And he was just a tool, an object of exploitation!
If he didn't resist, he might still get some benefits and be somewhat reused.
Now that he resisted, everything was gone!
In comparison, Wang Yi's side offered significantly better treatment and style.
Soon, the two arrived at the industrial park.
Looking at the enormous industrial park, both were stunned.
The industrial park in Zhongguancun, located on the Third Ring Road, was not an ordinary factory building, but a new type of office complex!
It included office buildings, R&D centers, non-polluting production units, conference centers, catering services, and employee apartments...
Coupled with its location on the Third Ring Road, the surrounding facilities were extremely comprehensive.
(End of this chapter)