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

Chapter 418 138-139: Changing history! (4000 words)
Even without Gao Ling's intrusion, China is also undergoing a new round of deep industrialization, and we are the only country in the world doing this. The United States, Japan, Germany, France, Britain, Russia, and India can only watch helplessly. Watching the decline of systems like NATO in despair.

This new round of industrialization is actually intelligent.

After Hillhouse Capital's intrusion, Gao Huaijun made in-depth intelligent transformation of the industrial system and factories. The fashionable word is AI, and artificial intelligence is applied in the industrial field. A large number of dark factories produce high-end industrial products extremely efficiently and cheaply.

In 2015, we were still in the early stages of this deep industrialization. In another ten years, the prices of some of China's most advanced industrial products and most sophisticated weapons will be only one percent or even one thousandth of those in the United States.

I would like to add that the prices of many of China’s cutting-edge industrial products are now only half of those in the United States, Britain, Germany and Japan.

In other words, there is still room for a ten-fold or a hundred-fold decline.

Therefore, although Hillhouse Technology’s development potential has not been fully recognized, in the eyes of these financial giants, it can already become part of the top.

A very important core logic behind the current surge in Hillhouse Technology’s stock price is that the market has already spread the R&D costs.

In Gao Huaijun's previous life, the reason why Zhongwei always had a feeling of dimensionality reduction attack on other technology companies was that a lot of their R&D funds actually relied on the high profits of their products to maintain.

At its peak in 2019, due to the quantity of tens of millions of chips, the cost of each Kirin 990 was said to be able to be reduced to less than 200 yuan, and its performance was at a crushing level compared to Qualcomm's 855.

It also fought back and forth with the later-developed 865.

This is actually the R&D advantage brought by high profits.

When your R&D advantage reaches a certain level, and is matched with China's unique low-cost engineer bonus, its advantages are completely despairing!

The financial industry is keenly aware of this.

Vote for Hillhouse with your feet!
By launching some new mobile phone features that are at least one generation ahead, they can aim for high prices and continue to maintain high profits.

The mid- and low-end products will cut off many of the above functions, and then use the cost advantage of mid-range chips to reduce prices and engage in price wars to seize the market.

This is actually a proven path to success for Pingguo and Sansang.

Hillhouse now just needs to continue!
They can also see that it won’t be long before this Chinese company becomes a rising star!

And the other side.

Qualcomm's chairman Simons was already waiting in his office. After he read a few newspapers with a gloomy face, Qualcomm's general manager Amon arrived as scheduled.

Hillhouse's series of actions were like a loud slap in the face, hitting Simmons' face loudly.

It made him feel a burning pain on his face.

He originally thought that Qualcomm's sales ban would cause Hillhouse Technology to retreat directly, and then he would reward it with two red dates and continue selling Qualcomm chips, which was as it should be.

When doing business, especially this kind of semi-monopoly, it is equivalent to kidnapping the business of other mobile phone manufacturers. This trick is very effective.

Qualcomm did this in the past, and other mobile phone manufacturers also followed its lead like grandsons.

How could he have imagined that Gao Ling was so disobedient!
It would have been fine if he had just disobeyed, but now he is directly overturning the table and trying to snatch food from Gao Ling.

Outrageous!

This is really unreasonable!
at this time.

Seeing Amon, Simmons took off his glasses, rubbed his slightly tired glasses vigorously, and said expressionlessly, "Now Hillhouse has produced its own chips, and the key is that they are selling well. What do you think should be done about this matter?"

How to do?
Cold!

Amon smiled bitterly, not knowing how to answer Simmons.

During this period, Simmons has been troubled by the board of directors.

Hillhouse Technology was the last one to slip through the net, breaking through the blockade and eventually installing the latest high-end chips on its flagship mobile phones.

This means that not only the Hillhouse Mate series will be lost, but even the P series will be lost forever!
This is a big business worth tens of billions of yuan a year!

More importantly, Hillhouse Technology's current approach is equivalent to directly challenging Qualcomm's authority within the scope of the rules of the game.

Chinese mobile phone manufacturers, big and small, ship so many products to Qualcomm every year and pay such high Qualcomm taxes for each phone.

The results of it?
On low-end mobile phones, the profit collected from each phone is higher than the manufacturer’s combined profit!

As for high-end mobile phones, each one is priced very high.

This is how it repays China, its largest manufacturing and sales center in the world.

However, the hot sales of Hillhouse Technology's Mate series will affect more than just Qualcomm.

The annual sales volume of the Mate series alone exceeded 10 million and reached 20 million.

The P series still has similar sales volume to the Mate series.

The total sales volume is tens of millions of units, which is not the millions of units that Hillhouse originally had. In fact, it has completely shaken the market position of other leading companies in China!

Next, Pingguo will cut orders and Sansang will delay the research and development of high-end processes. Their good days are yet to come.

"Hillhouse Technology has entered the market in such large quantities that I cannot assess their impact on Qualcomm's market in China. However, it will be very difficult to maintain the sales volume in China this year at the same level as in 2015." Amon licked his lips, scratched his hair with his hands, and muttered to himself.

He was actually being conservative.

Hillhouse originally planned to buy 60% of Qualcomm, so this part is naturally gone.

And now their flagship models have expanded so exaggeratedly, and we will have to wait until the P series releases new models to become complete.

This will greatly squeeze the market share of Qualcomm's four key customers: the coarse grain factory, the blue-green factory and Zhongwei.

Even the high-end markets of Pingguo and Sansang will be severely torn off.

Do you still want to maintain the market share of 2015 by then?

Want to eat fart!

The complexity of the situation, some of which he himself had not yet sorted out, but some of which he had anticipated.

That is, as sales shrink, these manufacturers using Qualcomm will naturally not be as prosperous as before, and will naturally be forced to negotiate with Qualcomm and ask Qualcomm to directly reduce prices!
If Qualcomm doesn’t cut prices...

Aren’t you afraid that these partners will fall into the arms of Sansang?

Headache!

What a headache! No matter from which angle you analyze it, Hillhouse's failure is very bad news for Qualcomm chip company.

"We can't stabilize our position quickly now, but we can control some unnecessary costs through some methods." Amon pondered for a moment and spoke slowly.

Simmons also stopped worrying at this moment, looked up at Amon, and said, "Tell me what to do?"

"The R&D center in Shanghai is just a vanity project. I don't think it is necessary. Its main job is to do some post-testing related work. But if we tear it down directly, the market will think that we have lost our courage, which is problematic."

"In addition, as the market shrinks, some engineering staff will be vacant and we can lay them off accordingly!"

Amon thought about it and answered directly.

He doesn't want to talk about some of the grand strategic things now, because it's useless to talk about them anyway.

What is increasing R&D expenses to speed up the launch of a new generation of high-end chips.

Reduce the selling price of old chips.

This is the kind of correct nonsense that Simmons knows, but he won't say it directly.

Zheng Zhishang is aware of this.

Amon has worked in Qualcomm for so many years. He has risen from an ordinary salesperson with no background to the second-in-command position. It is simply a miracle. The secret of his continued popularity and advancement can be summed up in eight words: be cautious in big things and careful in small things!

This is just like the ancient ministers who had a fixed way of handling major events.

For example: wherever there is a famine, money is sent for disaster relief; wherever there is a rebellion, troops are sent to quell the rebellion; there are precedents for this, so there is no need to worry too much about it, just do as you are told.

But he was careful about the small things assigned by his superiors!
Because there is no precedent for such a small matter, and the law does not have detailed rules, it is difficult to grasp the intentions of the superiors!

It is very likely that you will be in big trouble!
It’s just a small thing like what Simmons is talking about now!

If you say all that correct nonsense, you're doomed.

Is this what you, a general manager, do?

Don't I know?
So Amon proposed a very important entry point - layoffs!
Laying off hundreds or thousands of people will not actually have any impact on Qualcomm's work efficiency, but it can definitely save a lot of money and prepare for the next general offensive.

At the same time, he also gave other people a direct injection.

Look, if you can't do it well, I will fire you directly!
See if you are doing your job well?

It serves as a warning to others.

At the same time, it also indirectly gave an explanation to the board of directors.

Our management will definitely fight back!

Simmons was stunned for a moment, and instantly understood what Amon meant. Then the corners of his mouth rose slightly, "Very good! You come up with a plan, and we will implement this matter quickly."

"Also, get ready. I'm going to meet a distinguished guest tomorrow!"

Simmons then added.

When Amon heard Simmons' affirmation of him, he couldn't help but feel overjoyed.

Simmons is an old man and boss who is very harsh on his subordinates. It is not easy to get his approval.

And then, when he heard Simmons say the word "distinguished guest", he was surprised again.

"Could it be... that adult?" Amon couldn't help but bend down slightly and asked tentatively.

Simmons seemed very satisfied with Amon's subtle expression. He stood up from the desk beside him, walked to Amon's side, and then casually patted Amon on the shoulder and said, "Of course it's that adult!"

"Now Hillhouse Technology dares to do this, it doesn't take us seriously at all!"

"If we don't punish them in the next step, and other manufacturers follow suit, how can we, Qualcomm, survive?"

Simmons said this with gritted teeth.

At this point, Qualcomm Chip and Hillhouse Capital are in direct conflict!

This is a battle of core interests.

It can even be said to be a life-and-death struggle.

Only one person can survive between the two!

"Hillhouse Group is a Fortune 500 company. Can our counterattack have such a great effect even if combined with other forces?" Amon said worriedly.

"This era is still the era of Ansa!" Simmons did not give a direct answer, but just sighed and said.

. . . . . .

Qualcomm rarely said a single harsh word, as if the Qinglong 10 chip on Hillhouse Technology's Mate 801 did not exist at all.

However, the news from Qualcomm later shocked the entire industry!
Due to its negative expectations for 2016 performance, Qualcomm's China division may lay off employees or close its R&D center in Shanghai!

A company whose performance has been rising in recent years has actually fallen to the point of laying off employees or closing its R&D center in Shanghai?
This is a severe slap in the face of those rational Chinese or simplified Chinese internet colonists who think that the moon in foreign countries is always rounder than the moon in China and that foreign technology is definitely more advanced than Chinese technology.

It also sparked a heated discussion.

"Oracle has withdrawn from the Chinese market. Is this a prelude to Qualcomm's withdrawal from the Chinese market?"

"Qualcomm's domestic R&D centers have very low technical content and in most cases are actually assisting the headquarters. They basically do not involve core technologies or major technologies. Most of these foreign companies' R&D centers in China are for "fooling the Chinese government" and are also a means of defrauding subsidies. Therefore, whether they lay off employees or close their Shanghai R&D centers is not a big deal."

"However, the talents of Shanghai R&D Center are likely to be poached by domestic chip companies. The domestic chip-related industries are in short supply of technical talents."

"Since companies such as Hillhouse, Zhongwei, and Huaqing Unigroup have entered the chip industry one after another, China's chip design industry has indeed risen, but the chip manufacturing industry still has a long way to go, and it has no influence at all in the industry."

"The current development of Hillhouse is really a very positive thing. Among the destinations of Huaqing University's science and engineering graduates, Hillhouse has been one of the largest destinations in the past two years, perhaps only slightly less than the State Grid. This time, Hillhouse survived the chip supply crisis, took a breath, and began to recruit people for research and development on a large scale across the country. Not only that, after the rise of its new energy vehicles, it almost used the power of an industry to pull out of the two major pits of machinery and materials. For example, although Hillhouse Battery is now losing a lot of money, its salary is quite generous. Hillhouse directly recruits graduates from entire majors in many domestic schools, claiming that they can get it for free by clicking on them. In the past era of joint venture cars, can you imagine it? How many R&D and design positions did Fengtian and Dazhong have in China? With such companies, we should be content and grateful!"

"We should be grateful indeed. Do you know why developed countries are developed countries, while other developing countries will always be developing countries? Because other developing countries do not have core productivity at all. Countries like Taiguo may look good on the surface, but in fact they are just large-scale foundries for island countries. The money earned by Taiguo people from screwing in Fengtian factory is passed from the king to the island country. The entire Taiguo is at the bottom of the industrial chain, and the country's original accumulation cannot be achieved. With companies like Hillhouse, at least the money earned from products like Mate 10 and Hillhouse Song is far away from China, and it also provides so many jobs! This is the meaning of such a good company!"

"I agree with the above! Do you think these good companies have anything to do with your 2000 yuan income? A Gaoling battery factory opened in our county last year, and the average salary per person is more than 4000 yuan. The local average salary was less than 2000 yuan, and now it has doubled. Just tell me if this has anything to do with my monthly salary of 2000 yuan?"

(End of this chapter)