Chapter 298 The New Era of Glory
Chapter 298 The New Era of Glory
"Didn't they say there was no rush?"
He looked at Lin Bin, his face full of disbelief.
Lin Bin's face was also very grim. He was looking at the news feed on his phone, one after another, all about Transsion building a factory.
"Mr. Lei, this is a tactic that's forcing us."
If their factory goes into production first, they will have a greater cost advantage than us, which will make our position in the Indian market even more difficult.
However, there's one point we're unsure of: whether this is a smokescreen or something real.
Lei Jun stood up in a panic and paced back and forth in his office.
The carpet was thick, and his footsteps made almost no sound, but Lin Bin could sense his inner anxiety, after all, he was moving too fast.
"He should know by now. There's no way he wouldn't know about such big news."
Before the two could finish speaking, Annie called.
"Mr. Lei, Transsion is going to build a factory in India. It will produce 2000 million units per year."
Anil's voice wasn't as relaxed as usual; for the first time, it carried a hint of panic.
"Our factory must accelerate. The Java market in India must be handled by a joint venture, not by a treacherous manufacturer!"
Lei Jun's expression finally relaxed a little. Yes, this is the real advantage of rice: the armed faction in India is on their side...
"Mr. Anil, what are your plans for the new factory?"
"The original plan was 1000 million units. Now, we need at least 2000 million units to compete with Transsion."
2000 million units, double the original plan.
Lei Jun did some mental calculations: the investment for a production capacity of 20 million units would have to at least double, from 200 million US dollars to 400 million, and that was just an estimate.
The next steps will require doubling the investment in factory buildings, equipment, and manpower.
"The investment needs to be doubled," Lei Jun said.
"Funding is not a problem; I have already secured a policy for you."
Anil's tone carried a pride unique to the locals.
"The funds needed to build the factory were all covered by local banks. We didn't need to pay a single penny. The loan to us was interest-free."
However, there is one condition: the technology licensing fee will be doubled.
Indian factories need more technical support for rice production.
Lei Jun's heart sank instantly; he was starting to doubt the plan.
After all, this wasn't an interest-free loan; it was an interest-free loan obtained by exchanging their patents.
"System testing solutions, supply chain integration solutions, and... packaging and testing processes."
Lei Jun frowned. The encapsulation ultrafiltration process is one of DaMi's core technologies; this process was developed by DaMi in collaboration with MediaTek over two years and at a cost of tens of millions of US dollars.
It involves a series of key processes, including chip manufacturing, packaging, testing, and yield control.
If the license is granted to Rice India, it would be tantamount to exposing our hand to Anil.
"Mr. Anil, the packaging and testing process does not belong to us alone, and we cannot license it."
Lei Jun's tone was very firm.
There were some sounds of discussion coming from the other end of the phone, as if they were confirming something, but after receiving an unpleasant answer, his attitude turned much colder.
"Mr. Lei, how can we build a factory without packaging and testing?"
As far as I know, Transsion's factory is a complete set, a truly complete set.
If they can do it, why can't we?
Lei Jun sneered, "The factory of Transsion is a complete set?"
Anil can fool most people, but trying to fool him...
Transsion's factories in the African market, even those in Nigeria, Adebayo's hometown, are simple assembly plants.
Later, they attacked him in the Indian market, giving him the whole package... even including chip packaging... Anil would never dream of doing something like that.
"Mr. Lei, we're partners. The factory uses rice-based technology, and the mobile phone technology is licensed to the joint venture, not to Xinshi. What are you afraid of?"
Lei Jun did not speak.
What he feared was whether Anil could obtain the technology from this joint venture without going through the rice trade.
"I'll think about it." Lei Jun hung up the phone.
He looked at Lin Bin and explained Anil's request. Lin Bin smiled after hearing it.
"It seems that Transsion's plan to build a factory in India is indeed a bluff, or perhaps it's just a show they put on in conjunction with the Indian government?"
Lei Jun shook his head; he wasn't entirely sure about it!
"Old Lin, we can't make peace with them, and we can't have any illusions. After all, Shenyang Aircraft Corporation has a lot of questionable practices."
"Regarding the system, we could consider licensing out a stripped-down version of the system."
As for the supply chain integration plan, this is our lifeline, and we absolutely cannot delegate it.
"I know."
Lei Jun sat back down on the sofa.
"I'm considering just how likely it is that Transsion will actually get involved."
If they really do enter the market, with twice the production capacity and lower costs than us, what are the chances of that happening?
"Very negligible."
If we give it to them, Anil might replicate our technology and make his own phones in the future.
After they finished speaking, they both fell into deep thought, a thought that would determine the survival of rice.
"Mr. Lei, is there any way we can provide the technology while preventing Anil from (making underhanded moves/stealing core technologies)?"
That way, the factory's speed will definitely be fast.
Lei Jun thought for a moment: "There really is."
The production line equipment is purchased from our designated suppliers, and the parameters are set by our engineers.
Anil's people cannot access the core parameters.
The yield rate adjustments on the production line were all handled by the rice engineers; the Indians were only responsible for operation and assembly and were not allowed access to the parameters.
Lin Bin nodded: "Can Anil accept this proposal?"
"You have to accept it, whether you like it or not; that's the bottom line."
Two days later, Rebus finally picked up the phone and called Anil.
"Mr. Anil, here's the latest list of licensable technologies. We can licens most of the processes."
The person on the other end of the phone wasn't very happy. After all, Anil wasn't stupid. He could clearly see that although the higher-ups had authorized many core technologies, they all shared a consensus: to guard against him.
Finally, he said, without a trace of emotion, "Okay."
The rice factory in India started construction after the contract was signed, and Anil's timeline was for it to start production in February 2013.
……
But just as Lei Jun was feeling happy, a Weibo post from the official Huawei terminal account on October 18th brought Sima Qian a new surprise.
Huawei Terminal: "Welcome Zhao Ming to the Honor team as Honor brand product manager."
A new journey, new glory, stay tuned.
The accompanying picture is of Zhao Ming, who is in his thirties, wearing glasses, with a gentle smile, giving him the air of a scholar-general.
But people in the tech industry know that this guy is no pushover.
Zhao Ming worked at Huawei for over 10 years, rising from a junior engineer to vice president of the Western European region. He was one of the most capable people under Yu Dazui.
There had been some rumors circulating before, but for some reason, it was put on hold...
His return to Honor indicates that Huawei is serious about the low-to-mid-range market.
Now, a hundred schools of thought can contend.
bookbashuk