I asked you to save a bankrupt factory and you became the richest man in the world.

Chapter 383 067-068: Matebook, are you sure you want to play like this? (5000 words today)
Why does Gao Huaijun dare to play like this?

With a PE ratio of 25 times, not many companies dare to do so in the financial market of the United States, a country that extremely pursues high-end technology and new technologies.

What does 25 times PE mean?
This means that, converted into annual returns, the average return on investment in this company is 4%.

This number doesn't seem low.

However, even for bank deposits, it is easy to negotiate a yield of more than 2014% for large-denomination certificates of deposit with a term of more than five years in 5.

China's national debt can basically reach around 3%.

What does it mean if your company’s average return is only 4%?
It took 25 years to get back the investment!

This is illogical from the perspective of the capital market.

A little bit higher than the national debt. I bought your stocks, which only proves one thing: I am a smart person!
Then there is only one possibility for buying your stocks, and that is, there is a very high probability that your stocks will rise in the future.

So what are the reasons and motivations for the rise?

Gao Huaijun has actually given the answer.

One is the Internet of Everything, and the other is Artificial Intelligence!
He is very clear about Hillhouse's future development advantages.

Among them, the most critical is artificial intelligence.

From the perspective of strong artificial intelligence, OpenAI and Sora are on the wrong path.

why?
Very simple.

Because the computing power of a graphics card exceeds that of a human brain, why do you need to stack so many graphics cards? Because you are taking the wrong path.

Can 10,000 bicycles piled together turn into a car?
It was not a problem of computing power from the beginning, and their solution was to mindlessly pile up computing power?
The reason why AI became so popular in later generations is because the economy of the United States was about to collapse, and they had to come up with something to tell a story, so they were forced to do something.

The most basic logic of technological revolution and industrial revolution is to improve production efficiency and reduce production costs.

Look carefully, it’s production!
Therefore, the industrial revolution must take place in the largest industrial country. This is a historical law and an inevitable result. The underlying logic determines this.

So whether it is the Metaverse or GPT, which have become old stuff.

Or the so-called sora video generation.

May I ask, what effect does it have on improving production efficiency and reducing production costs?
Videos are not physical objects. Real production refers to physical objects, and only physical objects have value.

Virtual value is based on physical objects and is a distribution of resources rather than real value.

All the AI ​​hyped by the United States has basically nothing to do with production. The reason is very simple: they only have a few factories. What do you want them to do?
He can only keep rushing down this wrong path, struggling to maintain the stock market and confidence through propaganda weapons until the day of the explosion.

Any AI development that has nothing to do with improving productivity is just another toy and has nothing to do with the Industrial Revolution. As long as you understand this point clearly, you will not be led by the trend.

So from a high-level perspective, Gao Huaijun is in charge of the overall situation of artificial intelligence, and combining it with industry is the key point.

His artificial intelligence department is already planning smart driving technology, large models, etc.!

As for whether the stock market will buy it, it depends on Huajian Investment's ability.

If Huajiantou can't hold on, he doesn't mind replacing people directly.

. . . . . .

Just when Gao Huaijun finished the listing preparation meeting at Freeport, something unexpected happened.

"What's going on?" Gao Huaijun asked.

Min Weiguo on the side briefly introduced the specific situation.

The competition in electronic technology products is extremely fierce now. Hillhouse has launched a new generation of flagship model mate9, but its competitive advantage in the market is not as great as before.

The core reason lies in the successive attacks from Pingguo Company, Zhongwei and the recently emerging Coarse Grain Mobile Phone.

From the perspective of product strength, the product strength of mate9 is not as far ahead as before.

"The coarse grain factory and Zhongwei Company!" Gao Huaijun repeated subconsciously, but there was not much surprise in his tone.

In later generations, these three companies are all TOP5 level.

In a few years, the mobile phone market structure will probably be pretty much the same as before.

Now, companies like HTC and Lenovo have improved their product strength compared to their previous lives, but their performance is still pretty much the same.

Therefore, it is not surprising that Zhongwei stands out due to its size, and coarse grains stand out due to their marketing!
On the other hand, Zhongwei has strong R&D capabilities, so it is normal for it to produce a product that is slightly similar to Mate 9.

It’s pretty good that Hillhouse has been able to reap the benefits of R&D information gap for several consecutive years!

"The reason is that Hillhouse's chips are inferior!"

"This means that our phones are not clearly differentiated from those of our competitors."

"We still use Qualcomm and Sansang chips for our mobile phones, which have problems."

"The highest chip specification of Hillhouse chips is still 20nm?"

Gao Huaijun asked Li Zonglin, the head of Hillhouse Chip, who was standing nearby.

"Yes, we have been catching up with the current level of 20nm chips." Li Zongli said without hesitation.

Gao Huaijun nodded silently.

Chip research and development is not as simple as finished product research and development.

He is not a chip expert, so at most he can only give some guidance.

Moreover, due to Hillhouse Technology's own sales growth rate, it will not grow fast enough to elevate Hillhouse chips to the top level.

Qualcomm provides chips to so many companies every year, while Hillhouse only uses a few chips a year.

Years of losses have created a huge pit.

Hillhouse Chip now basically has losses of several hundred million yuan every year.

In other words, Gao Huaijun kept the money through internal transactions.

But even so, the management of companies like Hillhouse Technology and Hillhouse Vehicle still have many complaints.

After all, Hillhouse's internal purchase price of chips has been higher than that of mass manufacturers such as Qualcomm for many years.

At that time, Sansang said that the supply would be cut off, but it wasn’t cut off!

Therefore, from an economic perspective, the existence of Hillhouse chips does more harm than good.

But now, Hillhouse Technology's sales volume has begun to come under pressure, and a number of executives have begun to talk about the benefits of Hillhouse chips.

"Right now, Hillhouse Chip is too short of chip feed!"

"The current situation of Hillhouse Mate9 will become increasingly difficult in the future."

"How about this, Gaoling MateBook, start using Qinglong 501 from the first product."

Gao Huaijun did not hide anything and spoke directly.

All the executives present, including Li Zonglin, were stunned.

What the hell!

No!
Gao Huaijun is really adventurous!
Why has Qinglong Chip been in a loss-making state?

Just can’t increase the quantity.

The reason why it cannot be mass-produced is that only Hillhouse’s mid- and low-end mobile phones will use it.

Honor magic series and nova series.

In addition to the Hillhouse Smart Screen, due to its large size, it uses derivative products of Hillhouse chips.

For the sake of sales, other products have chosen to purchase high-grade chips from outside.

It's not that they don't want to, it's that they can't.

In this highly competitive environment, and without a company like China that has a solid foundation, if you use immature chips in your main machine, you are risking your life!
Why has Culiang never dared to develop its own chips? Doesn’t he know that developing its own chips is cheaper?
One is that Qualcomm does not give it this opportunity, and the other is that it cannot afford the risk.

If the mobile phone business collapses, his business will be doomed.

But it is different for Zhongwei. The mobile phone market is originally an experimental market. If it works, it works. If not, I still have communication products to support my main business.

In fact, Hillhouse is now a large company and dare not be as aggressive as when it first started its business. This is for the sake of conservatism.

This also leads to the fact that the amount of chips used in each Qinglong series cannot cover the R&D costs.

If it weren't for Gao Huaijun's determination to support Hillhouse Chip.

This chip branch company has long been sold off!

It can also be seen from this that chips are not something that an ordinary company can handle.

"This...will you reconsider it?" Min Weiguo on the side said anxiously.

"It's not that I don't believe Mr. Li, it's just that the Gaoling MateBook product is too important to us. It is the pioneering work of laptops. We dare not take such a big risk."

"How about trying it out with matepad first?"

He saw that Li Zongli on the side looked quite unhappy, so he quickly made a patch and said.

The Qinglong chip was once tried in a small amount in the Mate series, but the effect was not good. All subsequent products used products from the mature series.

Now that there is a shadow from the past, he really doesn't want anything to happen at this critical juncture when Hillhouse Technology is about to go public. He owns options equivalent to 0.2% of Hillhouse Technology's shares!

Half a year after Hillhouse Technology went public, he, as a small non-profit shareholder, was able to exercise his rights.

Both publicly and privately, no one wants Gao Huaijun to be too radical.

"What is matepad trying to do?"

“Is Matepad as big as Matebook?”

"Which is more suitable, MateBook or MatePad? Don't you know better than me?"

"The mobile phone market is changing rapidly now. We need to install the Qinglong chip in the Mate series of mobile phones next year. This is the real challenge!"

"As the CEO of Hillhouse Technology, have you been too busy these days?"

"What on earth are you thinking about?"

Gao Huaijun frowned and scolded.

Hillhouse Group can be cautious, but not conservative.

Gao Huaijun doesn't care so much about absolute profit maximization.

Gao Huaijun does not want Hillhouse to gradually become a pseudo-tech company like Pingguo in the future, with only a few changes in the notch screen.

Apart from the change in name, it is a very similar product to the iPhone designed by Steve Jobs around 2010.

Such a company has no other fate except to slowly face death.

The importance of Hillhouse chips is not just because of mobile phones.

Later large-scale artificial intelligence models will all rely on Hillhouse’s high-end chips.

Min Weiguo and others nodded in a daze at first, then came to their senses, but were shocked!
What?

Will Hillhouse’s flagship phone also use the Qinglong chip?

Brother, your stimulation is really too intense!

The mate and P series must use 14nm or even 10nm chips.

Are you sure the products obtained by Qinglong chip can be used?

"As for the Qinglong chip for the Mate series, we will discuss this further after a systematic document and plan is formed."

"But it is a foregone conclusion that MatePad and MateBook will use this chip."

"Honor Magic and Nova both have mature solutions."

"It's not difficult to use it on tablets and laptops. You just need to get the product running."

“Only when we get going can we have room for continuous improvement.”

"Only then can we prepare for our mate to get on the horse Qinglong."

"Otherwise, Qinglong will never be able to launch a flagship model."

Gao Huaijun said sternly.

Now that Sansang has agreed to provide a stable supply of chips, Qualcomm has to continue to supply them with reluctance.

As Hillhouse Technologies grows into a behemoth, its size is not something that these two companies can ignore.

The feeling of having your neck choked is really uncomfortable.

Therefore, the sooner Qinglong launches its flagship model, the better.

However, this will at least require us to wait until Hillhouse's MateBook and MatePad products have been tested and stabilized before we can continue to launch the high-end series and complete the internal circulation of the products!

"Boss Gao, this Qinglong Shangma mate series is still very difficult for the time being."

"Let's launch the MateBook first and then give it a try."

Li Zongli, who was standing by, was busy patching the wall and said:

In later generations, HiSilicon, as a fabless design company and the strongest IC design company in China, is roughly the size of all other chip design companies in China divided by 3 to 4.

Compared with HiSilicon, other domestic chip design companies can only be considered guerrillas at best.

But, this but. Compared with the top 10 chip companies in the world (including IDM), such as Intel and TI, the gap between HiSilicon and them may be 10 times or even larger.

Compared with HiSilicon at that time, Hillhouse Capital is now just a small shrimp.

So Li Zongli didn't want to take too big a step.

With a snap, pull the eggs!
Nowadays, we are not familiar with 20nm chips.

If you ask him to rush directly to 14nm, or even the higher-level 10nm, wouldn't that be the end of him?
The higher you go in chip design, the more difficult it becomes and the more money it requires.

Generally speaking, it costs about 28 million U.S. dollars, or nearly 5000 million Chinese yuan, to design a 4-nanometer process chip.

The 16/14nm process will cost just over 1 million US dollars.

The 10nm process will cost about 1.8 million US dollars.

Moreover, this does not involve the costs of tape-out, IP, EDA tool licensing, etc.

At the same time, the wafer fab investment, wafer manufacturing and related equipment costs involved in chip manufacturing will also be shared into the overall chip cost. The more advanced the process, the higher the cost.

After adding these in, according to Hillhouse's volume, another 20-30% of costs will have to be added.

Chips are really not something that ordinary companies can handle!

It is with the support of Hillhouse Honor Magic, Nova and Hillhouse vehicle automotive chips that Hillhouse chips have stumbled to where they are today and are becoming more and more stable.

Now with Hillhouse MateBook and MatePad, the development situation will definitely get better and better in the future.

"Let's design the chip for the MateBook first."

"We also need to keep up with the development of Tianshenghuihua software. It will be launched in a few months, so there should be no problems."

Gao Huaijun warned.

Min Weiguo nodded quickly.

He knew clearly that Hillhouse Technology's listing would inevitably be after the listing of Hillhouse MateBook, taking advantage of the hot sales momentum.

Min Weiguo naturally did not dare to slack off because of this shock.

Although the design of a thin and light laptop is very difficult based on current technology, the general direction is OK, so we just need to move forward.

. . . . . .

After seeing off a group of senior executives, Gao Huaijun stood alone in his office. After offering incense to the Manjushri Bodhisattva in front of him, he stood aside in silence.

In a small corner next to Manjushri Bodhisattva, there is a secret door. In addition to the deity's throne, there are also the thrones of the ancestors of each generation of the Gao family.

Gao Huaijun's family moved to Hui'an from Nanyue Province very early, so they have preserved this tradition relatively well.

Gao Huaijun looked at these people. Some of them lived a mediocre life, some of them started a career and founded Hillhouse, and some of them made wrong decisions and almost ruined the family.

He didn't know why, but he inexplicably wanted to know how his descendants would view him if he entered this place in the future.

Perhaps I can turn the tide, pull the teeth out of the jaws of outsiders, and create a foundation for reopening the family tree.

Just like the eternal boss Xu Jiayin, he wanted to be remembered for all eternity, but ended up in jail, with no hope of recovery.

Or is it that after Hillhouse reached the peak of its development, its golden finger disappeared at some point in time, and then it slowly declined?
Tang Ying, who was outside, saw that Gao Huaijun had not made any move, so she slowly walked in. After a long silence, she finally spoke, "Starting a business is really stressful. If I were you, I would feel weak in the face of those decisions."

"Each of these decisions involves the transfer of hundreds of millions of yuan in funds, and you made the decisions so firmly, without any hesitation at all."

"Don't even mention other people. My former boss didn't have your kind of decisiveness."

She saw the content of the discussion between Gao Huaijun and other senior executives, which made her shudder with fear.

These decisions may only take effect after a year or two.

However, those who make these decisions basically determine the success or failure of this work when they make the decision!

One wrong step may lead to irreparable loss.

This is really not something that ordinary people can play!

It really tests one's psychological endurance.

"Hahaha!"

“In this world, people only see the glory of successful people, but not the bitterness behind them.”

"When it comes to betting, the margin for error is higher than you think. Things haven't gotten better or worse. The results are all within my tolerance."

"To put it another way, Hillhouse Capital is not going to die just because of the failure of the first launch of a laptop computer!"

Gao Huaijun nodded, looked up at the sky, and muttered to himself.

Tang Ying seemed to be hesitant to speak. She held a special position in Hillhouse Group and there were some things she could not say or ask.

As for why Gao Huaijun did some incredible actions.

She didn't dare to say it, and she didn't dare to ask!
(End of this chapter)