Seeing Xing Baohua's absolute stance, Director Min gently advised, "Mr. Xing, why don't we have another good talk with Philips and Motorola? We can't let all our previous efforts be wasted after just one talk. To be honest, I've also participated in negotiations with foreign companies before. Talking about these things is like pulling a saw; after a few rounds, we finally reach a conclusion."
Zhang Lanbo from the Investment Bureau of China Merchants Group waved his hand and interjected, "I feel that President Xing is right. There's no point in continuing the negotiations. Unless we hit them where it hurts, they definitely won't give us many concessions. Thirty machines, twelve hundred employees, from installation to production, it's all his people. Our people can't learn anything just by watching."
Xing Baohua nodded and said, "Yes, you have to be able to operate the machine to learn how to use it, and you also need to undergo simulator training on a computer before you can start working. So, Philips' decision is twofold: to make more money and to protect their secrets. The previous six machines were old and were just for training. The current ones are different; they're world-leading. If it were me, I would do the same."
"Then next..." Director Min asked, needing to get something tangible so he could report online! Also, he had listened to Xing Baohua's advice not to publicize it too much, otherwise it would be truly embarrassing.
"The next step is to focus on domestic production, which will be much more difficult. We are indeed far behind others in chip design. That's why I reached a verbal agreement with IBM to buy their chip design patents. We will manufacture them independently, and then we can take on orders for contract manufacturing once we have the technology."
"Actually, the follow-up plan was quite good, it's just that Philips messed it all up," Xing Baohua said with a wry smile.
Director Zhang, who was sitting on the sofa, leaned over, reached out and patted Xing Baohua on the shoulder, saying, "Only by daring to think can you dare to act. On behalf of the Investment Promotion Bureau, I support your decision. We don't lack money, we lack technology. Although we lack talent, we don't lack the people they provide. So self-reliance is the only way forward."
Xing Baohua nodded slightly to Director Zhang and said, "Thank you!"
Director Min asked, "Should the shareholding situation be changed?"
"I went to two companies, and gave IBM an extra half portion, which I ate all of."
Director Zhang quickly waved his hand to stop them, saying, "Don't try to take it all for yourself! The Investment Promotion Bureau may not have much else, but it has plenty of money. We want half of it too."
With a wry smile, Xing Baohua said, "Director Zhang, it's almost a done deal, why are you still going to continue?"
"As long as you don't die, we'll follow you." Director Zhang said, laughing heartily.
The three of them then established a wafer fab in Shanghai, primarily focused on the domestic lithography machine project.
Shanghai-listed lithography machines are used to produce chips, primarily through design and patent acquisition.
The main product manufactured by the Tongcheng Chip Factory in Guizhou Province is replica chips, which are primarily exported to Russia and North Korea.
To distance himself from the situation, Xing Baohua planned to transfer ownership of the Tongcheng chip factory. Didn't he owe CIC International Trust a favor? He'd have them appraise it and buy it.
As for the staff there, they brought the students out and then withdrew.
I believe Poly will handle this very well.
That day, Director Min went to the city to report to the main leaders on the sudden changes at the wafer fab.
The China Merchants Group also submitted a report. As for the foreign guests, Xing Baohua only discussed some matters with the IBM executives.
The Philips and Motorcycle representatives ignored them.
Philips has two offices in Shanghai, and the company mainly conducts inspections at the other two joint ventures. Motorola took this opportunity to conduct a consumer survey of the Shanghai telecommunications market.
The foreign affairs comrades accompanied Henry and his assistants to several large shopping malls.
The marketing team at Motorcycle Motorcycles really values the domestic market, especially given China's large population and steadily increasing per capita economic conditions. They conduct very thorough research.
Of course, motorcycles also attach great importance to marketing in mainland China, but after visiting several shopping malls, I saw that the pitiful motorcycle counters only had a few samples on display.
The counter next to it sells R-series products, with a wide variety of styles and vibrant colors. They even have mobile phones and pagers.
Philips has a slightly more complete selection, plus telephones and cordless phones.
The most outrageous item was rice; instead of a counter, it was displayed in a dedicated section.
The lights are the brightest and most eye-catching. Inside, there are not only counters but also open display cases for customers to experience.
The entire range of rice products is displayed here. What's most infuriating is that they even offer a trade-in program for members.
Looking at all this, Henry didn't know what to say. He wasn't from a sales background, but he knew how dependent customers were on the trade-in program.
Customer loyalty to the brand.
Whenever a new product comes out, customers who want to switch can simply spend less money to experience the new model and new features.
In terms of innovation, rice is indeed ahead of them. As for the European and Japanese models that followed later, motorcycles have fallen behind.
Outdated machines, and expensive.
The machine was clumsy and heavy, and also expensive.
Even with second-generation digital cellular technology, they're still selling analog phones for more than digital ones.
Why is it expensive? The investment in motorcycle research and development hasn't been recouped yet.
After Henry finished surveying the market, he returned to the hotel and to his room, where he began to think seriously.
Their former pride has been trampled underfoot; what do they have left to show for themselves?
Even though motorcycles don't make money from mobile phones, who would complain about not having enough money!
The mobile phone division needs to be reformed; as for many technologies, they can be bought with rice.
With this idea in mind, Henry arranged to meet with Xing Baohua.
Xing Baohua thought Henry had invited him to talk about the wafer fab.
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