Liu Cheng brought over the company's latest financial statements, and several vice presidents explained the details. They were very optimistic about the chip market and believed that as long as the mobile phone market expanded, the R&D company would be able to break even.
Lu Feng always listened to what the executives said, since they couldn't possibly tell the boss that the company would go bankrupt in a few years; he needed to discover the problems himself.
"We need to increase our efforts in talent development, recruit as many college graduates as possible, and have the talent reserve center establish a liaison department with the R&D company to facilitate talent transfer. At the same time, the R&D company should also have its own talent reserve center." Lu Feng looked at the report in his hand and said, "Some things are most secure when you hold them in your own hands."
"Once the domestic R&D center is established, we will invite all overseas scientists who are willing to develop in China to come here. We will cover their food, accommodation and airfare. If they want to bring their families, we will also help them with their children's schooling so that they have no worries."
"The core requirement is to hold onto talent tightly, because only with talent can we have a future. Also, from now on, any dealings between the R&D company and other branches within the group must be conducted through formal contracts, and all technology licensing must be shortened to within one year!"
"How much of that two billion US dollars budget has been spent?" Lu Feng asked Liu Cheng.
“That two billion is a three-year budget. The first year they gave us one billion, this year they gave us five billion, and there’s still five billion left.” Liu Cheng thought for a moment and said, “There are still more than two billion US dollars left in the books.”
“It’s already September, and October is just around the corner. What are we waiting for if we don’t spend? If we ‘know how to spend,’ and spend it wisely, no one can say anything against us.” Lu Feng closed the folder and instructed, “My private jet, villa, vehicles, and everything else are all registered under the group. Negotiate with headquarters recently and have them sell them to the R&D company for one yuan.”
Liu Cheng nodded. The executives present all understood that the R&D company would really be independent by the end of the year!
For a moment, no one had any confidence. Since its establishment, the R&D company had been receiving funding from the group headquarters. Without the group, could this company survive for a year?
"We need to use these next few months to reorganize internally and build a sufficiently strong defense line." Lu Feng asked Liu Cheng, "Has there been any trouble in the US lately?"
After pondering for a moment, Liu Cheng said, "They haven't increased their actions against us much. They've just been competing in the markets of neighboring countries. The competition in Japan is really fierce. As far as I know, many executives of Japanese chip companies have been poached, and investigations into Japanese chips are ongoing."
“Various media outlets were spreading news about Japan stealing US technology, and the suppression in terms of tariffs, raw materials, and technology was quite severe. Most importantly, they supported Samsung and TSMC to compete. Under this environment, because our products did not go overseas and the domestic market was not large, we were not targeted much afterward.”
“Since 1985, Japan’s global market share of semiconductor products has been declining. At its peak, it had a market share of 40%. This year, Toshiba is said to be under particularly severe pressure, with a maximum of no more than 15%. Mr. Lu, given the current situation, sticking to the domestic market is the safest option for us.”
Liu Cheng put it very tactfully, but in reality, Jiafeng's current technology can't even leave the country. The technology is all from talent poached from overseas, which means they're just buying technology with money. They haven't iterated on the technology or formed their own R&D path. To the United States, Jiafeng is at best a troublemaker.
During lunch, Lu Feng briefly inquired about the situation of Jiaxun mobile phones. Currently, it has covered six provinces in China, and monthly sales are basically stable. Motorola, Sony, and Nokia brands are also maintaining their usual sales status, and the market is showing signs of calm.
The most threatening device right now is the PHS (Personal Handyphone System). According to inside sources, the PHS will be launched ahead of schedule, with an expected price of 3,000 yuan. This price is a devastating blow to the mobile phone market.
Liu Cheng was very concerned about the PHS phone and brought it up several times at the dinner table. Lu Feng simply comforted him, saying that a mobile phone is a mobile phone and a PHS phone is a PHS phone, and that the technological drawbacks cannot be concealed or replaced.
The main purpose of this meal was to prepare the R&D company to sever ties with the group headquarters several months in advance, while also leaving room for talent reserves.
In the afternoon, Lu Feng convened a meeting with a group of senior executives to discuss research and development directions in areas such as chips, storage, displays, and motherboards, as well as the direction of next-generation semiconductors.
The computer processor has been included in the research and development schedule. Lu Feng's goal is to catch up with this generation of Pentium by 2002, form a strong second-tier brand in the domestic market, and strive to catch up or even surpass it by 2010.
As for mobile phones, the R&D team has also provided direction. SMS technology has already been tested in the laboratory. In terms of storage, major international companies are catching up. Siemens' MMC card is showing promise, and the SD card jointly developed by Panasonic and Toshiba is even basically complete.
These are the two mainstream mobile phone storage technologies in the world today. The development of SD cards is supported by Silicon Valley. The two sides cooperate while competing, and compete while cooperating.
Jiafeng Storage's main R&D focus is now on SD cards, because the leading engineer was poached from Toshiba!
"Can we get the authorization?" Lu Feng asked.
Liu Cheng looked troubled and said after a while, "It will be difficult in a short time, but we have also made technological breakthroughs. After they launch their products, we can try to exchange technology. We still have relatively close ties with some companies in Japan."
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