Chapter 26 Where is Huayao's way out?
Chapter 26 Where is Huayao's way out?
Huayao had no other choice but to do this.
If there are no chips, Huayao’s mobile phone sales may drop to zero immediately.
This can no longer be described as a heavy loss or a cliff-like drop.
Huo Jiangting added: "Although Huayao's main business is communications, Huayao's mobile phones already account for the majority of its profits. If Huayao's mobile phone business plummets, the company will be hit hard."
Hu Yingxiang nodded: "That's right, Mr. Huo, you are right, then we will help Huayao buy chips."
As he spoke, Hu Yingxiang looked at his son Hu Wenxin and asked, "Ah Xin, is there any way to buy chips?"
Hu Wenxin hesitated for a moment and said, "Well... Dad, I don't think this way will work."
"What's the problem? Why doesn't it work? Can't we buy the chips by spending money?"
"It's really not available. Even if you can buy it, there won't be many and the price will be very high."
"…What do you mean? Ah Xin, why is this happening?"
Hu Wenxin sorted out his thoughts and explained, "Dad, you know that the West is paying more attention to this aspect. It is really difficult for companies in China to buy advanced chips, unless we find companies in the Middle East to act as middlemen and make some moves, but the cost will be higher."
Huo Jiangting nodded: "That's true. It would be more appropriate to find companies in the Middle East and Southeast Asia to do this."
Hu Yingxiang pondered for a moment and said, "It doesn't matter how much it costs. As long as we can buy the chips, then let's do it. We can't delay any longer. Huayao probably doesn't have much time left."
Hu Wenxin opened his mouth, but hesitated to speak.
In fact, Hu Wenxin felt that doing so would be of no help.
Buying advanced chips for Huayao in advance can indeed solve the urgent problem, but how many can be bought?
At most, there are only a few million chips.
Given the size of Huayao Mobile, it cannot last long, and the price it pays is exponentially higher.
It's simply not worth the gain.
Hu Wenxin does not have as strong national sentiment as Hu Yingxiang. He has a typical businessman's mindset and can calculate costs and benefits very clearly.
Hu Yingxiang asked: "Ah Xin, do you have any other questions?"
"Well... Dad, to be honest, I think we still need to think about it again."
"What else is there to think about? We don't have time to think about this."
Hu Wenxin looked determined and finally said, "If the cost of the chips we buy is too high, how much should we sell them to Huayao? Can they afford such a high cost?"
With a "bang", Hu Yingxiang's hand slammed heavily on the armrest of the chair.
"You want money? Why do you want money!?"
Hu Wenxin was stunned: "Ah, Dad, what do you think? Don't you want money?"
"Of course not! How can we ask Huayao for money in this situation? They have so many places to spend money!"
Hu Wenxin glanced at Huo Jiangting again.
Huo Jiangting also remained silent, seeming to agree with Hu Yingxiang's point of view.
Hu Wenxin said: "How can this be possible? This is not a small amount. Chips are very expensive. It may cost tens of millions, no, hundreds of millions of Hong Kong dollars."
Hu Yingxiang seemed to not care at all and said, "We can afford this amount of money, so we'll invest it first. We're not going to have to worry about making ends meet yet."
Hu Yingxiang seemed to have made up his mind to give the chip to Huayao for free.
Even Hu Jiangshan secretly admired him, thinking that this was truly treating money as if it were nothing.
Although the Hu family is a wealthy family in Hong Kong, it would be a lie to say that they have no pressure when they have such a large sum of money.
Hu Wenxin said, "Dad, this is not a long-term solution. We can't buy too many chips. Once we use them up, they're gone. Huayao still can't recover." "We have to buy them, as long as we can delay. Besides, we don't have to buy them alone, so we can always get a certain amount together."
What Hu Yingxiang said is not wrong. There are indeed several companies helping Huayao purchase chips from outside, but it is difficult to say how many they can purchase.
Hu Yingxiang is very angry now. He didn't expect that his son would be so petty.
Huo Jiangting advised: "Mr. Hu, actually what Mr. Hu said makes some sense. This is indeed not a long-term solution."
Hu Yingxiang said: "What is the long-term solution? Can we build a chip foundry?"
Huo Jiangting smiled bitterly and said, "It would be great if we could do it, but unfortunately we can't."
Hu Wenxin also said: "There are not many companies in the world that can manufacture chips, not to mention that Huayao's chip requirements are very high. As far as I know, there are only two or three companies in the world that are capable of accepting Huayao's chip orders."
Hu Yingxiang said: "This doesn't work, and that doesn't work either. So what should we do?"
Hu Wenxin remained silent. He really couldn't think of a solution, but he also didn't think that hoarding chips now was a good idea.
Perhaps Huayao’s fate has been determined, either it will be dismembered or go bankrupt.
Another possibility is being acquired.
Who acquired it? Of course, there is no doubt that it must be the other side of the ocean.
Just when everyone was silent, another person spoke.
"Actually there is...another option."
Everyone looked in the direction of the voice and found that it was Hu Jiangshan who spoke.
Hu Wenxin frowned: "Let's discuss the business, don't talk nonsense."
"I'm talking about serious matters."
Hu Yingxiang waved his hand and said, "Let Jiangshan speak."
Hu Jiangshan said: "I have a friend who is engaged in semiconductor manufacturing."
Hu Wenxin was stunned. He had indeed heard Hu Jiangshan talk about this some time ago.
Hu Jiangshan said that he had a friend who was engaged in semiconductor manufacturing, but Hu Wenxin didn't take it seriously.
Hu Wenxin thought that his son was just bragging and talking nonsense, and that it was not true at all.
Even if this is true, it is a low-end semiconductor manufacturing company.
Why did Hu Jiangshan bring up this matter again now? And in such a serious occasion?
Hu Wenxin said: "Let me tell you, the chips Huayao needs are not the same as the semiconductor manufacturing you mentioned."
Hu Jiangshan shook his head: "That's one thing. My friend can do advanced chip manufacturing and should be able to manufacture chips for Huayao."
When everyone heard this, they were all stunned.
What's happening here?
Hu Wenxin immediately retorted: "How is that possible? Do you know what kind of technology is needed to manufacture chips for Huayao? The threshold is too high! Ordinary semiconductor companies simply cannot meet the requirements."
Hu Jiangshan said: "Ah, I know what I am talking about, he can really do it."
Huo Jiangting looked confused and a little bewildered. It took him a while to understand what Hu Jiangshan meant.
"Jiangshan, what you mean is that you have a friend who founded a semiconductor manufacturing plant that can manufacture chips."
"Yes, Uncle Huo, that's exactly what happened."
(End of this chapter)