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

Chapter 556: 417-418: Facing the Core Crisis! (4000 words)
The Hillhouse driverless project, which has sparked heated discussions, can be said to have brought unprecedented shock to people in Xicheng and the world.

It cannot calm down for a long time.

However, Hillhouse is still in a self-imposed environment, and the overall social environment is becoming increasingly worse, so Hillhouse is actually on edge!
Because now it has been a year since Xida fired Hillhouse.

The Mate series and P series SOC chips manufactured by Taiwan Electronics have been used up.

The sales of two mobile phone products have officially stopped!
These two chips were originally supposed to last only half a year, but now, due to the slow progress of Hillhouse's self-produced high-end chips, they have only lasted for more than a year.

At the beginning, all flagship stores could sell the top-of-the-line flagship phones of the Mate series and P series.

Later, it gradually developed to the point in the past six months that only the top-level Hillhouse self-operated flagship stores and high-end ecological stores began selling Mate and P series mobile phones.

Fortunately, dual-folding and triple-folding mobile phones are still in unlimited supply.

In the past, people were scrambling to buy Moutai and concert tickets, but now there are a few more items on scalpers’ list of items to scramble for, including Hillhouse mobile phones, Hillhouse tablets, etc. Almost everything is up for grabs.

As a result, many official stores are hard to find. Since the official supply is insufficient, there is room for price increase in the secondary market.

This also forced customers who were used to using Hillhouse mobile phones to scramble for Hillhouse mobile phones, making Hillhouse's Mate and P series mobile phones basically become electronic Moutai, and became scarce products that can be shown off.

This also makes Hillhouse's mobile phones high-end products that are eagerly awaited in all Hillhouse stores.

Basically, getting the machine in cash is like giving away money.

Due to the current shortage of Hillhouse products, Hillhouse’s own offline flagship stores have increased the price of this product to a certain extent.

Basically, a top-level Mate series and P series mobile phone requires an additional price of about 1000 yuan.

The price of a three-fold mobile phone will increase by about 3000 yuan.

It is almost a situation where there is a price but no market.

Hillhouse produces such a large amount every year, naturally

There is no way, demand equals value.

This also allows Hillhouse's products to reach a new level with the support of Hillhouse's driverless taxis.

But this is not a solution!
The Mate series and P series have annual sales of hundreds of billions. How could they be simply ignored?

Gao Huaijun was also secretly anxious about this.

We urgently contacted the heads of Hillhouse Chip, Hillhouse Technology, and Hillhouse Chip Factory and held a special meeting.

"Hillhouse is in a critical moment now. Hillhouse Technology, please tell us about the difficulties you have encountered." Gao Huaijun said with a serious face.

"The sales of our Mate and P series phones have been hit hard. The remaining small amount of high-end Qinglong chips produced by TSMC can only be used to produce foldable screen phones first. After all, the premium rate of these two types of mobile phone products is higher."

"The Mate series and P series phones have been gradually discontinued and are expected to be discontinued next month."

Speaking of this, Min Weiguo's words were somewhat heavy.

The Mate series is Hillhouse's oldest mobile phone product. So far, thirteen generations of mobile phones have been produced.

And now, thirteen years later, this product will temporarily be unable to be produced, which is naturally a huge blow to Hillhouse Technology.

It is foreseeable that if this situation continues for too long, it will have very adverse effects on Hillhouse Technology.

"How long can Hillhouse Technology last without support from the group company and without large-scale layoffs?" Gao Huaijun asked directly without any hesitation.

"Hillhouse Technology's sales in the first half of the year are still 50% less for the Mate series and P series than in the first half of last year. However, since the products sold are all top-end products, the profit level of these two products is only 30% less."

"But the gap in the second half of the year cannot be made up."

Having said this, Min Weiguo couldn't help but pause.

It can be seen that the atmosphere at the scene is somewhat solemn.

This suspension is not as simple as Hillhouse Technology losing two heavyweight products.

This means that Hillhouse's chip division has lost a large amount of the most critical design fees!

The relationship between Hillhouse Chip and Hillhouse Technology is actually that of partners.

Although they are brothers, they settle accounts clearly.

Basically, after Hillhouse chips are processed in Taiwan and abroad, after deducting the manufacturing costs, wafer processing fees, R&D costs, taxes and other costs, a profit of 20%-30% will be added.

This is determined based on Hillhouse Technology’s sales volume.

Although the profit is much less than that of Qualcomm and Texas Instruments.

Oh no, it should be a lot less.

Qualcomm and Texas Instruments basically increase prices without increasing quantity. In a coarse grain factory's mobile phone, the profit of a chip is higher than that of your mobile phone.

However, these two are third-party companies, and they need to carefully maintain their relationships with mobile phone manufacturers.

Hillhouse chips are simple. They only need to complete the tasks assigned by Hillhouse Technology and Hillhouse Vehicles and meet the performance indicators they require.

It can be said to be very simple and efficient.

But now there is a problem.

Your Hillhouse Mate and P series products are gone.

Then my corresponding sales volume of nearly 10 million SOC chips is also gone!
Originally, Hillhouse Chip was doing very well, as it could earn money as soon as it developed a product.

Now, sales have completely disappeared, and I still have to maintain a large high-end chip R&D team.

Then how do I play later?
It went straight from profit to huge loss!

Should the team be maintained?
How to set up a R&D plan?

What will be the rules in the later stage?
All of these require Gao Huaijun to make the final decision himself!
"No need to stop, keep talking!" Gao Huaijun glanced at the CEOs with different expressions and asked Min Weiguo to continue.

"If we have no support from the group, we can hold on for half a year. Considering extreme situations and appropriate layoffs and cost cuts, we should be able to hold on for a year." Min Weiguo gritted his teeth and answered directly.

The executives present couldn't help but gasp.

This so-called consideration of extreme situations can be very detrimental.

This means that Hillhouse Technology will have to lay off at least one-third of its employees.

After hearing this, Gao Huaijun was also speechless.

Hillhouse Group can provide support to Hillhouse Technology, but this support is also limited.

At most, it can only hold out for a few more months.

Hillhouse Vehicles is about to go public, and part of the listing funds can be used here.

However, Hillhouse Vehicles and Hillhouse Technology are two different listed companies. Listed companies have their own rules and regulations, and it is impossible to just give money to them.

Hillhouse Technology can also issue bonds itself.

However, the issuance of convertible bonds, at a time when Hillhouse is in the process of self-destruction, is naturally like a lamb to be slaughtered, and the interest is certainly not comparable to that of the money that would be earned if it were not in the process of self-destruction.

As for borrowing money from banks...

This is indeed possible.

But the government is not so easy to talk to. If Hillhouse Technology wants to borrow money, it is not just 10,000 or 20,000 yuan, but tens of billions or even hundreds of billions.

It is only natural for the government to take this opportunity to ask for more say.

After all, the most important principle of state-owned asset management is that state-owned assets cannot be lost.

How is it possible that you borrowed so much money without paying any price?

Delivery date is delivery date, and business is business!

This is only Hillhouse Technologies.

What about Hillhouse chips?
That's also a huge cash flow pit.

If it cannot be properly resolved, it will be another big problem.

Moreover, Hillhouse chips are more complex than Hillhouse Technology.

Hillhouse Chip's high-end chip R&D personnel are high-end talents that Hillhouse has worked hard to accumulate for more than ten years.

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To be honest, Gao Huaijun was reluctant to let this group of people disperse.

After Hillhouse Capital's self-fired, China is now experiencing a whirlwind of independent industrialization.

During this period, a large number of chip and semiconductor companies were established one after another, and chip talents have gone from being ignored to being in great demand.

In just one year, many low-end chip tracks have become extremely crowded.

It's easy for such a group of people to disperse, but it's difficult to bring them together!

In other words, Hillhouse has the first-mover advantage and has accumulated such a large group of people.

It will be very difficult for other companies to catch up.

but. . .

How could Gao Huaijun take the step he least wanted to see before the last moment?

Without waiting for Li Zonglin and others from Hillhouse Chip to speak, Gao Huaijun said, "Are you done? Then let me say a few words!"

"Hillhouse Technology and Hillhouse Chip have grown to their current scale and influence because of the joint efforts of all of you!"

“However, past success can only serve as a monument to the past, but it cannot stop future progress!”

"so..."

"We must and will win this battle of suicide this time!"

"This time, even if our opponent is Xida, we must win!"

Gao Huaijun looked at the executives present.

Liang Mengsong, head of R&D at Hillhouse Chip Manufacturing, who was listening to Gao Huaijun speak in the audience, also looked at Gao Huaijun with a strange expression.

He didn't have much contact with Gao Huaijun.

But from the few words of the employees nearby.

I have a very good impression of Gao Huaijun.

What impressed me most was his attitude towards employees.

Hillhouse's treatment,
The position in the world is another contrast.

no way,
People like Gao Huaijun, who are in this position now, have an inexplicable social responsibility surrounding them, which makes people feel his strong personal charm.

It is hard to imagine that this is the situation of a young boss who is only in his thirties.

Just for this situation, it is worth fighting for!

It’s funny when you think about it!

As a Taiwanese and my wife is from Korea, I find it incredible that I am working so hard for a mainland company that has nothing to do with me.

But seeing the executives around him, none of them were backing off and were full of interest, everything seemed natural.

“It’s been more than a year since we were self-destructed by Xida.”

"We should be well prepared for this."

"Hillhouse Chip Factory, are the second-hand manufacturing lines that you bought from the market ready?"

Gao Huaijun asked Liang Mengsong who was standing beside him.

"We have bought it. We have built a new chip manufacturing plant in the imperial capital, and we are using second-hand wet ASML lithography machines."

"Plus, China's photolithography equipment supporting project has already achieved some results, so it can be put into operation."

Liang Mengsong said with emotion.

These second-hand lithography machines were secretly purchased and brought back to China through overseas channels by Hillhouse before its suicide. They were basically moved back to China like Xiaomi moving house.

Of course, there are many imperfections.

However, getting it running is not a big problem for the people at Hillhouse Chip.

"very good!"

"With these wet ASML lithography machines, I hope you can debug them within half a year and produce a batch of 12nm chips!"

"This process is the minimum requirement for Hillhouse Technology's Mate and P series, and it can't be any lower!"

Gao Huaijun said lightly.

12nm!

Liang Mengsong, who was standing below, was shocked and couldn't help but smile bitterly.

When he first came, Hillhouse could only mass-produce 20nm chips. Then, not long ago, it broke through the technology of 14nm chips.

In other words, he now needs to reach 12nm within half a year, which is not easy at all, but extremely difficult!
The smaller the chip, the harder it is to make.

It's like an exam, it's easy to improve from 20 points to 60 points.

But if you want to improve from 60 points to 80 points, that would be very difficult.

"Yes, not only that, our Hillhouse chip department has also specially designed a product that uses the latest stacking technology to stack 12nm technology, so that the performance of this product can reach 10 nanometers, or even higher chip levels!" Li Zongli on the side couldn't help but add.

This product is very important for Hillhouse Chip.

It can almost be said that this represents the future of Hillhouse Chips.

The 12nm process chip is indeed a bit smaller for the Mate series.

But if stacking technology is used, it will not be much worse than the latest 7nm technology!

Although the cost of stacking technology is higher, Hillhouse now has a chip research and development company and a big shot like Liang Mengsong in charge, so the cost pressure is not as great as imagined!
Now it depends on whether the people at Hillhouse can fight it out.

(End of this chapter)