Chapter 424 Sun God Chip
"Why is Dongda so efficient?" Ron hurried back to Suer Electric.
"Yesterday they sent an email saying that the chip has been successfully taped out."
"A cell phone chip, not a pager chip?"
“Yes, it’s from the phone.” Ashish nodded.
"So powerful?"
Ron calculated carefully and found that less than a year had passed since he first came into contact with Huazi.
When did mobile phone chip design become so simple? It gave him the illusion that "I can do it too."
"Boss, I've inquired. Mobile phones these days have relatively simple functions. Chips are primarily based on a 'baseband + RF' separation design. They're not highly integrated and don't require complex calculations, so the difficulty isn't too great."
"That's also amazing. At least India can't do it." Ron said with some emotion.
He knew that in the era of feature phones, mobile phone chips did not require high computing power, and the processing technology was at the micron level, far behind the nano-level technology that had already emerged.
But it is a chip after all, representing the highest wisdom of human technology.
"I heard that their company had already established a wireless chip team and was developing 3G chips before cooperating with us. This commission was completely incidental, and they didn't even need to reorganize the team."
"What does that mean now?"
"The prototype chip is undergoing reliability verification and the results are expected soon."
"Does that mean it can be mass-produced?" Ron's eyes lit up.
"In theory, if we pass the test, we can. They asked us when we expected to board the plane."
"What's the meaning?"
"Huazi is only responsible for design, but the processing requires another manufacturer. Now there are two options. One is to take it to Wandao, where the technology is mature and can be put into production immediately.
Another option is to outsource production to a local factory in Dongda, but that would take longer. The factory there has just been established, and mass production will likely begin around February next year.
"What's the difference between the two choices?" Ron's eyes flashed.
"Based on a million pieces, the price quoted in the Bay Area is $12 per piece, while in China it's $8."
"Chips really are extremely profitable," Ron said with some emotion.
Texas Instruments sold them chips with similar functional parameters for $40 each, but after they developed their own chips, the price plummeted.
It is less than one-third of the price of American products, which shows the profit margin.
"Boss, what do you think?" Ashish asked.
"We can afford the four-month wait for production at Dongda. At $8, we've reduced the cost fivefold!"
If Sur phones want to really sell well, their prices must be close to the purchasing power of Indians.
If we can cut the chip cost, there is real hope of getting it down to Rs 6,000.
"They asked us how many chips we planned to produce and they will follow up promptly, including providing technical support."
"Let's sign a contract for one million chips, delivered over two years. We want to keep chip costs to a minimum; the larger the volume, the cheaper it will be."
"Boss, isn't that too much? Mobile phone sales in India aren't very high right now."
Ashish is very cautious. Take the Sur mobile phone as an example. It has been half a year since its launch, and the total shipments are only 150,000 units.
Even this is still through the contract phone channel. It would be good if they can sell a small amount on their own.
One million units in two years means shipping 500,000 units every year, which puts a lot of pressure on Ashish.
"Don't worry, mobile phones will definitely become more and more popular. Our product has just been launched and it will take time to develop. 500,000 units is definitely not a problem.
Moreover, after using our own chips, the price of Sur phones will drop, and more and more people will buy them.”
"Okay, boss, I hope Indians will buy more domestic products." Ashish shrugged.
"Let Huazi continue developing the next generation of chips. We haven't used up our $100 million yet."
"So urgent?" Ashish was puzzled.
"We can't slack off on this kind of thing, otherwise the gap will only get bigger in the future."
Ron originally promised Huazi $100 million for research and development expenses, but of course it was not to be paid in one lump sum.
He initially provided a start-up fund of 10 million US dollars, and Huazi would add more funds based on the progress of the subsequent research and development process.
From the time the chip was formed to the time it was taped out, Sur Electric paid the other party a total of US$30 million.
Ron knew that the price was definitely inflated.
But compared to the $8 cost and $40 purchase price, it's money well spent.
After the new chips are installed next year, a million units will be no exaggeration. India is large enough that a few major cities alone can absorb most of the demand.
Now that there is still a balance of the promised $100 million, Ron must strike while the iron is hot.
"We don't need them to come up with a plan immediately. We can accept a year to a year and a half."
"Then I'll contact them later."
"By the way, what's the name of this chip?"
"It seems to be called K3V1 in the email."
"What a lousy name! From now on, we'll call it the Sun God Chip within Sur."
"Yes, boss!" Ashish also felt that this name was more impressive.
After all, it was a joint research and development, so Ron took the naming rights of India without hesitation.
"By the way, do they have any plans to enter the mobile phone business?"
"I don't think I've heard of it."
"I estimate it will only take two years." Ron was very confident.
If it weren't for the cooperation with Sur Electric, Huazi would probably focus on its own communications market first.
But now that we have the mobile phone design and the chips, there is no reason for them to let it go.
This is almost like eating ready-made food, they can make the finished product anytime they want.
The most important thing is that according to the original agreement between the two parties, the overseas copyright belongs to Suer Electric, and the Dongda copyright belongs to Huazi.
There is no conflict between the two, and the market has been divided in advance.
The reason why Huazi is not taking any action now is probably because it wants Suer Electric Appliances to conduct market verification first.
After all, it is the first generation of products, so there will be some bugs. After several iterations, various designs will become mature.
As we all know, Huazi’s new products are only really worth buying from the third generation onwards.
In addition, they probably haven't reached an agreement internally on whether or not to enter the mobile phone market.
Ron doesn't care. For India, bugs and the like are just minor problems.
What’s important is the hype of being the first domestically produced mobile phone, which is in line with Bharat’s philosophy, isn’t it?
"Don't worry about the shipment of mobile phones. I will seek help from New Delhi."
“New Delhi?” Ashish perked up.
"Yes, after all, Sur phones represent the highest level of Indian manufacturing. Isn't it right for them to support them?"
"Wow! This is great, more effective than all the ads." Ashish was excited.
"Soul phones are more than half the price of imported ones. There's no reason to sell them at this price. People are just skeptical about domestic phones, and New Delhi's endorsement will shorten the process of building trust."
"I will ask the production line to increase output and prepare the goods two months in advance." Ashish said immediately.
"Yes, mobile phones are very important to Suer Electric."
This is not only a symbol of the technological strength of a leading enterprise, but also related to Ron's layout in the telecommunications industry.
Kavya took Agalon back to her parents' home. There have been big moves in Tamil Nadu recently.
That’s right, her aunt Jayalalithaa has successfully driven the DMK out of power, and the position of Chief Minister has changed hands again.
Just as Ron had discussed with her, Jayalalithaa actively contacted BJP representatives in Tamil Nadu after she was released from prison.
With Ron's mediation, the two sides hit it off and immediately formed a party alliance.
The BJP has long been unhappy with the Tamilization advocated by the DMK. They oppose teaching Hindi and clamor for Tamil independence and autonomy.
This is a naked provocation to the BJP, which leans to the right.
The political landscape in Tamil is very clear, with only two parties, DMK and AIADMK, having relatively large influence.
Since there is a conflict with the DMK, then just unite with the AIADMK. They happen to be sworn enemies.
At that time, the national election had not yet begun, so Jayalalithaa had already taken sides.
The rich political rewards came when the BJP won the general election in March.
After half a year of political struggle, she successfully formed a new Tamil government with the help of New Delhi.
Kaavia is going to take Agallon back to help her aunt, and Ron has to deal with the matter of Sur Electric Appliances first.
When he has time later, he will go to Tamil in person. As an international metropolis, Chennai must have a Sunshine Smart City.
There are also telecommunications licenses, all of which must be obtained.
It is said that many industry insiders have suggested to New Delhi that the current mobile communications zoning system should be reformed and that each city should no longer be limited to two operators.
It would be best if the whole of India could have the same system and the entire subcontinent could have the same system. At the very least, telecommunications services should be carried out in the form of states.
Ron strongly supported this approach and even called New Delhi.
They did not give a clear response, but hinted that relevant policies will be introduced next year at the latest.
This news is good for Sur Mobile, and it is also the reason why Ron is confident that he can ship 500,000 mobile phones every year.
Isha and little Ravi are still in Mumbai, and Ron took time out to spend more time with them.
Ravi's small body was growing very fast. One morning, he stood up and put his hands on the sofa.
Ron should have expected this. Ravi had barely slept the previous two nights, had a fever, and his coughs were earth-shattering, yet this morning he found him in their large bed.
He had climbed up on his own, and Ron carried him back to the ground, but he climbed up again, unyielding.
Then came the second signal: Ravi stood up directly from the bed from his sitting position.
Ron carried him off the bed again. He stood by the sofa, loosened his grip, and watched the teething stick in his hand roll out.
He looked at the stick not far away, turned sideways with his back to the sofa, first crossed his left leg in front of his right leg, then moved his right leg in front of his left leg, and like this, he came to the teething stick step by step.
He had no idea how remarkable he had been, how he had defied gravity so casually, perfectly, and inconspicuously that his first steps seemed like an accident.
He didn't stop celebrating at all. Instead, he bent down and sat down on the ground, grabbed the teething stick and stuffed it back into his mouth.
But Ron and Isa both saw it: their baby, Ravi, could walk!
Ron has never liked working from home, complaining about the constant interruptions from his children.
But at that moment he was so glad that he was at home. He witnessed his child take his first step in his life. Ron would remember this scene for the rest of his life.
Only after becoming a father will that kind of delicate thought gradually take root.
Amidst the warmth, Chopra called again.
(End of this chapter)
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