Chapter 329: Scaled Development of Honor Electronics
Chapter 329: Scaled Development of Honor Electronics
"Twins, a boy and a girl? That's great." Bai Yushan's mother was overjoyed when she heard it.
Yang Wendong asked, "Doctor, are the adults and children all right?"
"It's okay, Mr. Yang, please rest assured." The doctor replied, "It was just that the mother spent a lot of energy during the birth because the fetus had the umbilical cord wrapped around the neck. Although it's not dangerous, it still took a lot of energy from the mother. You must be careful during the next month of confinement."
"That's no problem." Yang Wendong said.
Although there were no confinement centers at that time, Yang Wendong had already brought such facilities home.
The doctor then said, "You can go check on the baby now, but the mother has just fallen asleep, so be gentle."
"Okay." Everyone agreed.
The two children are very cute and have fallen asleep. Their little hands, which are slightly larger than grapes, are actually holding each other. I don’t know if it was like this in the belly.
After taking a few photos, Yang Wendong and his family left.
Outside the door, Yang Wendong said to an assistant, "Put away these photo negatives and develop them."
The assistant agreed: "Okay, I'll go right away."
"Well," Yang Wendong continued, "Also, arrange for someone to check the international medical market to see if there is a device called B-ultrasound, which uses ultrasound to examine the inside of the human body. I remember that this technology already exists, but I don't know if there is a corresponding device."
Ultrasound has been around for a long time, and there is also the theory of using it to examine the internal structure of the human body or other objects, but Yang Wendong is not sure whether the equipment has been developed.
If so, he could consider building such a small hospital in Hong Kong to provide auxiliary medical examinations, pre-pregnancy examinations, etc. He himself needs it, and many wealthy people in Hong Kong also need it, so there is definitely a market for it.
Besides, safety is not just about safety in daily behavior. We also need to protect ourselves from possible diseases and have various physical examinations. Building a professional hospital in Hong Kong is very meaningful just for myself.
"Okay, I'll arrange for someone to check it out right away." After the assistant agreed, he said goodbye.
The next morning, Bai Yushan woke up, and the two children also woke up several times to drink milk, but they soon fell asleep.
Everyone was together, either playing with the children or chatting, and everyone was very relaxed at this moment.
Yang Wendong also often looks at the two children. Even when they are just sleeping, they are still so cute.
Another two days passed, and the assistant who was assigned to go out to look for information came back to report: "Mr. Yang, I have found out that some large hospitals in Europe and the United States now have B-ultrasound equipment. Some medical companies in Europe and the United States can also produce this equipment, such as General Electric and France's BioMérieux. They all produce it."
"Okay." Yang Wendong said, "Let Li Haoyu make an appointment with the Hong Kong government's health department and tell them that my Changxing Group wants to apply to build a private hospital, mainly for physical examinations and obstetrics and gynecology."
Hospitals also have biases, even the super-large hospitals in the past life in China, even though they have various treatment departments, they all have their specialties;
Most private hospitals are specialized hospitals, such as the common dentistry, ophthalmology, etc.
The assistant agreed: "Okay, I'll let Mr. Li know right away."
Li Haoyu is one of the heads of the Changxing Group’s headquarters office. He holds a doctorate in law and is responsible for coordinating various matters with the Hong Kong government.
A few days later, after confirming that there were no health problems with Bai Yushan and her children, they returned home.
After Yang Wendong accompanied her for a few more days, March 3th soon arrived.
On this day, Yang Wendong came to North Point, Hong Kong Island:
Wang Zhiqun of Honor Electronics brought his boss to an empty area and said, "Mr. Yang, this is the site I chose for our future TV factory. Negotiations with the Hong Kong government are almost complete. This piece of land is 30 square feet (3 square meters), which is enough for the production line in the United States that will produce 50 TVs."
Yang Wendong looked around and asked, "There are some houses here, how many households are there?"
"There are 26 households in total." Wang Zhiqun replied: "But this has little to do with us. The Hong Kong government will be responsible for demolishing them and compensate them, and then we will ask the Hong Kong government to buy the land."
Yang Wendong nodded and asked, "Has the land price been confirmed?"
Wang Zhiqun said: "Not yet. The Hong Kong government wants 6.8 yuan per square foot, which is basically the price of nearby industrial land. But the area is so large this time, so I want to lower it to 6.2 yuan. We are still negotiating the price."
"Well, what about the American equipment?" Yang Wendong asked.
Wang Zhiqun replied: "This has been negotiated. Together with the patent, commissioning costs, and the cost of guidance from several American engineers for half a year after production, the total is 42 US dollars. We are just waiting for your signature and the deal will be done.
Once the agreement is signed, the TV assembly line will be dismantled and shipped by sea, and it will take about three months to reach Hong Kong."
Yang Wendong asked, "Three months? There's no factory here yet? Is it in time?"
Wang Zhiqun smiled and said, "Don't worry, Mr. Yang, as long as the land is purchased, the speed of the factory construction will be very fast. As long as we, Party A, have the money in place, Party B can work 24 hours a day.
The production line in the United States will be assembled first. Since the black-and-white cathode ray tubes have higher technical requirements, they will continue to be produced in the United States for a period of time. I will send 30 people to learn, and then ship the production line over after half a year.
The assembly line is very simple, there are not many requirements, just need to prepare the water, electricity and gas.”
Yang Wendong asked again: "Then the early cathode ray tubes were also imported from the United States?"
"Yes, this is the only way in the early stage." Wang Zhiqun explained: "If there are not enough technicians, and we directly buy a cathode ray tube production line, I am afraid that the products produced will also be unstable;
In addition, if there are no problems with the initial cathode ray tubes, it will also allow the technicians and quality control personnel on the assembly line to become familiar with them, and it will be easier to control quality when production is carried out in Hong Kong in the future.”
Yang Wendong nodded and said, "Okay, then we should take over this piece of land as soon as possible. As for the price, we can offer a reasonable discount. With the current trend of land prices and industrial development in Hong Kong, delaying too long may be disadvantageous to us."
In 63, housing prices in Hong Kong continued to rise, commercial auctions hit new highs, and the same was true for residential properties. Industrial land would naturally be affected as well.
In addition, Hong Kong's industry is also developing rapidly, and the demand for industrial plants is increasing, which may lead to an increase in the overall price of industrial land.
"I understand. I will go to negotiate with the Hong Kong government's Lands Department about this piece of land tomorrow." Wang Zhiqun agreed.
"Hmm," Yang Wendong thought for a moment and asked, "Is there any problem with transportation?"
Wang Zhiqun smiled and said, "Don't worry, Mr. Yang. North Point is an important industrial base on Hong Kong Island. It started to develop in the 30s. There is no problem with transportation. The road is directly connected to Taikoo Pier. We only need to build a road of several hundred meters to connect the entrance of our factory and the main road. The Hong Kong government is also responsible for this."
"Okay, then it seems that there is no big problem." Yang Wendong nodded, and then said: "In terms of personnel, in addition to the people who are going to the United States, ordinary workers also need to be prepared in advance, and appropriate preliminary training is also necessary."
"Okay, don't worry, we are well prepared." Wang Zhiqun agreed.
"Okay, that's it." Yang Wendong thought for a moment and asked, "Is our transistor factory also nearby?"
Wang Zhiqun replied: "Yes, it is about 1.5 kilometers from here."
"Then let's go and take a look." Yang Wendong also said.
"Okay, then let's take a bus there." Wang Zhiqun replied.
Ten minutes later, several people arrived. Wang Zhiqun and several senior executives of the transistor factory took Yang Wendong for a walk around the factory.
Yang Wendong couldn't understand many of the processes. Even with the introduction, he was still vague about them. However, at the end of the production line, he could still see a large number of finished transistors.
Afterwards, everyone came to the office in the front building, and Yang Wendong asked, "Is our annual transistor production capacity now fully utilized?"
Wang Zhiqun replied: "Yes, it is already at full capacity. Last month, we produced about 120 million transistors. The maximum production capacity of this production line is 1500 million per year."
"Well, then it's mainly for export?" Yang Wendong asked again.
Wang Zhiqun said: "Yes, 7% is exported, including to Japan, the United States, and Europe, and % is used in Hong Kong. However, judging from the trend in the past six months, the demand in Hong Kong is also getting higher and higher because there are many more electronic factories."
Yang Wendong said with a smile: "It's normal. The global electronics industry is producing rapidly. Hong Kong is also a global foundry. In addition, we have lowered the price of transistors. With so many entrepreneurs in Hong Kong, they will definitely find ways to enter the electronics industry."
When any industry is just developing, its technology is simple and the entry threshold is low.
The same is true for the current electronics industry. In addition to complex home appliances, many small products can be assembled and matched with transistors.
In the past, transistors exported from Japan were very expensive, but now the price has dropped, so the entire electronics industry will develop faster.
Wang Zhiqun said: "Yes, there are more and more electronic companies in Hong Kong now. Many electronic products may require dozens of transistors, which is also good for us."
Yang Wendong then asked: "I want to buy another new production line? What do you think?"
Wang Zhiqun replied, "Mr. Yang, I have also considered this, but now there is an emergency. Fairchild Semiconductor from the United States is preparing to invest in a transistor production line in Hong Kong. It is said that the expected production capacity is 1.2 million transistors."
"Are you worried that they will steal our market?" Yang Wendong asked with a smile.
He also knew about Fairchild's huge investment.
As early as the early 60s, when a large number of cheap transistors from Japan entered the US market, the domestic transistor industry in the United States had to prepare to move to other places because it could not control costs.
Mexico was too chaotic, and Japan refused Fairchild's investment in order to protect its local companies. In the end, Fairchild Semiconductor chose Hong Kong and invested heavily in a transistor factory.
This was also a golden opportunity in Hong Kong's history to develop the electronics industry, but it was a pity that Fairchild Semiconductor later ruined itself.
Wang Zhiqun said: "Yes, they will not only seize the domestic market, but also our export market."
Yang Wendong said: "That's true, but I think the market for transistors is infinitely large. There are too many electronic industries developing now, and all of them need transistors.
Take television for example. Do you know that there are still billions of people in the world who don’t have television? As long as the economy develops, these people will buy televisions. And a television requires dozens of transistors. How big is this market? "
Before the development of the chip industry, transistors were the core of all electronic industries. Even cheap household appliances had many transistors inside.
This demand is almost endless. As long as the product is cost-effective, we can build a super large factory, which may be even larger than Changxing Industrial’s factory.
Wang Zhiqun said: "Yes, but in terms of technology, we are still not as good as Fairchild, and this is what I am worried about."
"If the technology is not good enough, then we can only learn more." Yang Wendong said with a smile: "So it is better for Fairchild to invest in Hong Kong, because they will bring more technical personnel, experience, and train many Chinese people. This is actually a good thing for us.
Otherwise, if we independently support Hong Kong's transistor industry, we will face many difficulties and will be easily eliminated by high-tech in other global markets.
Moreover, Hong Kong’s transistor production capacity is large enough, which can reduce the cost of the industrial chain and improve the cost performance of our products.”
Many factories in the same industry come together to form economies of scale, because although there will be competition in the market, this also means they are working together to expand the market.
"Mr. Yang is right. I only look at what is in front of me." Wang Zhiqun said quickly.
"It's okay. As a professional manager, you should also consider various risks." Yang Wendong nodded and said.
He is a time traveler and knows the future, but how can normal people today think that far? As a professional manager, it is good enough for him to be able to see what the market will be like five years from now.
Controlling risks and ensuring business operations are actually the most important strategies for many companies.
Many times, we cannot only look at the radical winners, because behind them, there are actually tens of thousands of failures.
Wang Zhiqun added: "Then I will send people to Europe and the United States to find a suitable transistor production line."
"Okay, but don't buy second-hand ones. If you want to buy something, buy the latest one." Yang Wendong said, "Things like transistors require massive cost reduction and large-scale production lines. As long as the cost is reduced, there will be no shortage of markets."
In many industries, like LCDs and chips, the larger the scale, the lower the cost and the higher the market share. This is a barrier that is more powerful than patents.
Even civilian products are the same.
"Okay." Wang Zhiqun agreed, "I'll let you know when there's a result."
(End of this chapter)