Chapter 513 Planning of LCD Electronic Watch

Chapter 513 Planning of LCD Electronic Watch

Chapter 513 Planning of LCD Electronic Watch
It was indeed beyond Yang Wendong's expectation that they would enter the heavy industry so early, but the development model of the consortium was like a huge ship that could not stop at all. If they encountered something they lacked and could not buy it outside, they could only make it themselves;

This can be seen from the difference between the Japanese and Korean consortiums and the future Chinese and American consortiums. The first two small places are island countries and do not have a complete industrial chain, so many industries need to be done by themselves, while the latter two are in a complete industrial chain, so many consortiums have adopted a light asset model.

If Yang Wendong were in the mainland of the 21st century, he could easily buy any industrial products his company needed, and the other party would be more cost-effective than the customer's own investment because of the planning effect. Then even if he wanted to build a full industrial chain, he would face many difficulties because it was not cost-effective.
In a small place like Hong Kong, there are so many things missing, so we have to make many things ourselves.

Time soon came to the end of July, Changxing Building:
"You Zheng, take a seat." Yang Wendong greeted the visitor with a smile, and said, "How was your rest at the Four Seasons Hotel last night?"

"Very good, Mr. Yang, your hotel is much better than some in the United States." Lin Youqi smiled and said, "The jet lag from yesterday will be gone after a night's rest."

"Haha, good." Yang Wendong then asked, "How's the cooperation with RCA going?"

There are two cooperation plans with RCA, and the scale involved is not small, so it is naturally impossible to reach an agreement in a few days. After Yang Wendong decided to cooperate with RCA, he handed it over to Lin Youqiang and several people from Honor Electronics.

Lin Youqi said: "RCA's offer for the LCD patent is $80, which includes a small production line and the cost of sending more than a dozen workers to Hong Kong. However, we will be responsible for their accommodation and meals in Hong Kong."

"It's no problem to arrange your daily life." Yang Wendong nodded and said, "Let's talk about the price. I heard that there are also companies in Japan that are purchasing LCD technology. Let's see if we can find some of their data."

"Okay." Lin Youqi continued, "The second thing is the joint venture between RCA and Honor Electronics in Hong Kong. The total investment is 1600 million US dollars to build a production line that can produce 7 high-end color TVs per year.

The equity ratio is 7:3. According to this ratio, we need to invest 480 million US dollars, but we can get discounts in terms of land price, construction and labor. "

"Is there any problem with this price review?" Yang Wendong asked.

Many large companies like to exaggerate the investment price when investing overseas. For example, they will price a second-hand production line as if it were a first-hand one. If it is a wholly-owned enterprise, at most they will defraud the local government of some taxes.
But if it is a joint venture, then it would be a rip-off.

Lin Youcheng glanced at Wang Zhiqun next to him and said, "Sheng Wang has already sent someone to do this, but the price is indeed difficult to calculate. I guess RCA will still take advantage of us a little bit."

"It's normal for joint ventures to cheat each other. This is the case for all businessmen in this world." Yang Wendong smiled and said, "The land prices and manpower here can be considered higher. In addition, we will control the supply of various parts in the future. It's hard to say who will have the last laugh in the end."

In this world, unless you are a family, business cooperation cannot be truly fair and just; even if you are brothers in the family, it is hard to say;
Wang Zhiqun smiled and said, "Yes, as long as his factory comes to Hong Kong, we will have the final say on many matters."

"I still hope for mutual benefit and win-win results. Unless the other party is unkind first, I will not cheat my partners." Yang Wendong asked again: "RCA's TVs are high-end. Can they match our industrial chain in Hong Kong?"

In terms of long-term cooperation, Yang Wendong's principle is that everyone benefits from it. Even if there is a conflict of interest in the short term, as long as it is not intentional, it can be discussed.
But if someone maliciously tries to trick me, or dumps sewage on me like he did in Taiwan in his previous life, I will never let him go.

Wang Zhiqun said: "There will be some problems and the requirements may not be met, but these can be improved. Except for a few parts, it is estimated that RCA will still mainly purchase from the United States in the early stage."

"Localization is also done step by step. It's OK as long as it's reasonable." Yang Wendong added, "The only remaining issue for the patent of the LCD is the price. Then we have to prepare to make electronic watches. Have you made the model of the watch?"

A long time ago, Yang Wendong planned to make electronic watches, which was a brand new and fresh industry. Before the popularization of mobile phones, its global sales were very high;

Therefore, before going to the United States to purchase LCD chips, Honor had already been asked to research electronic watches. The structure of this thing is not difficult, a few transistors are enough. The technical difference is the time accuracy. The good ones may be off by a few seconds a day, and the bad ones may be off by more than ten minutes a day.
Of course, these are not problems, because today's mechanical watches are not as accurate as electronic watches, and truly accurate ones are very expensive.

Wang Zhiqun said: "It is already under development. I specially recruited some people from a Japanese electronics company, and they are currently doing various tests."

"You keep an eye on a Japanese company called Seiko Epson and poach people from them." Yang Wendong suddenly said, "Some business intelligence I have in Japan shows that this company has invested a lot in this area."

Yang Wendong naturally didn’t know how LCD electronic watches were made, and he wasn’t a Baidu Encyclopedia user, but he still knew that the world’s first electronic watch was made by Seiko Epson, which was said to have taken several years, but the investment was not high;
If I can poach their team or core personnel, then the research speed here will definitely be much faster.

"Okay, I'll send someone to Japan to investigate." Wang Zhiqun agreed.

Yang Wendong added: "The electronic watch project should be treated as Honor Electronics' top project. Invest whatever resources are needed. If it's not enough, come to me."

We are about to enter the real electronic age, and the electronic watch is the first product we are going to launch, which can be said to be a weapon to open up the brand.
Otherwise, in the field of traditional home appliances, even if Japan put all its efforts into it, it took 20 years to start beating American brands. Only when new industries emerge and the market is blank, it is very likely to succeed.

Just like Tesla in the automobile industry, if it had not taken the route of electric cars and made fuel-powered cars, Musk would not have achieved any success even if he was ten times more capable.
"I understand, Mr. Yang." Wang Zhiqun agreed.

Yang Wendong glanced at the watch in his hand again and asked, "What is the current level of mechanical watch manufacturing in Hong Kong?"

Wang Zhiqun replied: "There is a certain scale. There are more than 100 watchmaking factories in Hong Kong now, but they are all assembly or OEM. The core movements, gears, and some precision parts are all imported. There is one company that I heard is preparing to import this kind of equipment and then produce precision watch parts in Hong Kong."

"That's quite promising. It's good to have such an idea." Yang Wendong smiled and said, "That's it. If we can't do the research and development of electronic watches here, we can hand it over to the laboratory in the United States. Then we can reach an agreement with RCA as soon as possible so that the color TV factory can be established earlier. It will also be of great benefit to Hong Kong's manufacturing industry."

At its peak, 5% of the people in Taiwan either directly or indirectly or had someone in their family working for the RCA factory. Although the scale of Hong Kong is not as large as that of Taiwan, the population is not as large either.
Moreover, RCA is currently only making a conservative estimate of the Commonwealth market. It cannot be assured of production in Taiwan, since the exports are to the United States after all. If the Commonwealth sells well in Asia in the future, the scale can also be expanded.

This will be of great help in improving their own electronic industry chain. As long as they can produce it independently in ten years and then move the factory to the reformed and opened up mainland China, the Japanese, which are now beating the American electrical appliances, will most likely be beaten by themselves in the future.

Wang Zhiqun agreed: "Okay, then will the factory still be located in Hong Kong Island?"

Yang Wendong said: "Yes, negotiate with the Hong Kong government and buy a piece of land, North Point will be fine. Such a large factory will not give a very good location, and pollution issues must also be considered."

Color TV factories also pollute the environment, but not as much as other big polluters such as papermaking and steelmaking.

"Okay." Wang Zhiqun agreed.

Yang Wendong asked again: "How is the investment in Moore Company going?"

This is also what he is more concerned about. Even if he cannot get any great power in the future of Intel, he can at least get a high return. After cashing out this money in the future, he can also take it back to Hong Kong to develop his own industry.
This is also the easiest place for time travelers to succeed. Even if they cannot compete with many large companies in technology, they can know the direction, make a lot of money through financial means, and then develop their own company.

Lin Youqi replied: "We are still discussing it, mainly because Moore and the other two do not have a detailed plan for their future startup company, so they have no idea how to start it.

As for the price, they don’t ask for much, a few hundred thousand dollars is enough, but no matter what, we have to see their business plan first, and you also need to review it.”

"Okay, let's wait. I also want to see their plan." Yang Wendong nodded and said.

In principle, he naturally didn't need to look at these things, and he didn't know much about the electronics industry;
But since it was an investment, it would be too unreasonable if these procedures were not followed. Moore and the others either thought that Yang Wendong had bad intentions or was a fool.

So some basic normal processes still need to be followed.

After a while, Wang Zhiqun left, and Yang Wendong asked, "How is the funding mobilization in the United States going?"

Lin Youqi said: “Some properties, stocks, and bonds have already been sold off, and all will be cashed out before the end of the year;
I have also made arrangements with Citibank, and they will provide us with a loan of more than $2000 million when needed, and even more if there is suitable collateral.”

"Okay, prepare your funds. The U.S. stock market is getting crazier." Yang Wendong nodded and said, "Also, Watsons is testing the taste of a Red Bull beverage in the U.S. You also need to fully cooperate and contact Walmart to ask them for help."

If you have a good relationship with a local supermarket in the United States, it will be very convenient in many cases. Otherwise, if you send so many drinks there, you can't just stand on the street and feed them to passers-by.

"That's no problem." Lin Youqi added, "But I have another idea. How about selling this drink directly in KFC?

If we can find a drink that users can spend money on, even if we lower the price first, we can truly see which one is the most popular. If we give it away for free to passers-by in the supermarket, we may not be able to get a very accurate answer. "

"Your idea is good." Yang Wendong also thought it made sense: "Okay, let's give it a try, but the number of KFCs is still too small. You can work harder and contact bars in big cities to send Red Bull drinks in at a low price to see the customer experience;

Our drinks are refreshing, and many people stay up late at the bar, so we can try the taste and energizing effect of Red Bull together.”

"Mr. Yang, your method is still the best." Lin Youqi said with a smile.

"We can try this method when we have new drinks in the future." Yang Wendong added, "But there is one more thing. I need you to collect the contact information of various bars in the United States step by step and write it down. It may be very useful in the future."

"Mr. Yang, is Watsons planning to make wine?" Lin Youqing asked.

"No, I may have other uses for me, so don't worry about it for now." Yang Wendong said with a smile.

In the electronic age, the first product to generate huge profits was not the computer, but the arcade machine;

However, the cost of early arcade machines was extremely high, so they could only be placed in places with large traffic for everyone to play together, and bars were the most suitable location.

PS: Please give me a monthly ticket
(End of this chapter)