Reborn since 1993

Chapter 394: The Money Devouring Beast and the Money Tree

Over the past few years, Li Dongling has invested in and held shares in a number of companies. These companies must be needed to work for Dongling Hi-Tech, and they must be put to good use. They cannot be kept for nothing.

Dongling Hi-Tech has a software department, and Tianya.com is basically the software department of Dongling Hi-Tech.

But when it comes to developing functional software, including mobile phone functional software, computer software, electronic dictionary functions, etc., and even the future development of mobile phone systems, EDA software, etc., Kingsoft is definitely better at it, and Qiu Bojun and Lei Jun are both experts in this field.

Another point is that Li Dongling hopes to support Kingsoft to become a "model" and let the outside world see that it is precisely because of Dongling Hi-Tech, the mentor, that Kingsoft can be saved from danger and attract more software companies and individual developers to join Dongling Hi-Tech's camp and develop products around Dongling Hi-Tech's hardware products!
As for what's the use of this?

Then we have to ask Microsoft, Apple, DJI, Nvidia and other companies, and ask how many companies and developers rely on Microsoft system platforms, Apple system platforms, DJI drone platforms, and Nvidia platforms to make a living.

In the past, DJI was able to raise prices in the Americas. Even if there was an order from Capitol Hill, countless people in America still resisted the pressure and bought DJI's drones. And those who bought DJI drones were not ordinary enthusiasts, but American farmers, police departments, health departments, environmental agencies, and even American soldiers. Why can't they do without DJI?

There are also many manufacturers that make computing graphics cards, including AMD, Google, Intel, Broadcom, Qualcomm and many other manufacturers. However, in this field, the only one that can truly be invincible in the short term is NVIDIA, and the others can only get a piece of the pie.

There are many manufacturers that make drones and computing graphics cards, but in these two industries, the only ones that can really compete are DJI and NVIDIA.

Technology is certainly one aspect. These two companies certainly have top-notch technology in their respective industries, but more importantly, they have spent years building an ecosystem around their respective platforms.

For example, NVIDIA's CUDA platform has more than five million software developers, including a number of companies and individual developers, who all use NVIDIA's CUDA to develop software, and users are spread all over the world.

Conversely, the more software is developed based on NVIDIA CUDA, the more users will use NVIDIA graphics cards. The more users buy, the more revenue NVIDIA can get and develop more advanced computing chips, forming a cycle.

Developers and users are all on NVIDIA's side, turning the former NVIDIA into a software ecosystem company that looks more like one that relies on graphics card chips. It sells not only graphics cards, but also various games and software that rely on these graphics cards.

The same goes for DJI. In the field of drones, DJI’s two most important weapons are a large number of drone patents and various software developed around DJI.

These software can allow drones to conduct agricultural and environmental surveys, film and television shooting and even military operations, and the companies that develop these software can also make profits. These software developers and industry users are DJI's die-hard supporters. Their jobs are at stake. Can this be solved by just saying "forbid them to use the software"?
Li Dongling hopes that he can attract a large number of software development companies and individual developers to develop products around Dongling Hi-Tech's products. These will also become the advantages of Dongling Hi-Tech's products in the future!

"If Kingsoft and Xishanju can develop matching functional software and games for electronic dictionaries, the technical department will be able to launch the two products, the repeater and the electronic dictionary, in the second half of the year!"

Chen Tao said to Li Dongling that he was very confident about the hardware. The technical strength of Dongling Hi-Tech could not be said to be very good overseas, but it was one of the best in China.

The most important departments of Dongling Hi-Tech are basically the Technology Department, Marketing Department, Finance Department, and Production Department. The other departments are of course important, but these few departments can support the entire Dongling Hi-Tech.

Afterwards, the heads of personnel, logistics and other departments also reported, which meant that the year was almost over for Dongling Hi-Tech’s headquarters.

In general, the entire Dongling Hi-Tech headquarters has been in a period of explosive growth this year, with both revenue and staff size expanding rapidly.

When promoting yourself outside, you must definitely promote the good things, but behind closed doors, you must not brag about yourself.

The hot sales of products such as Xiaolingtong this year have also caused a lot of problems for Dongling Hi-Tech, including supply chain problems, production capacity problems of Shougang NEC, which manufactures for Dongxin Semiconductor, insufficient after-sales maintenance points, and logistics chain problems. After all, it is not easy to achieve a shipment volume of more than 10 million.

It's not just Dongling Hi-Tech, the same is true for Nokia. This year, there have been rumors that Nokia's supply chain is facing collapse due to the surge in sales. The supply chain is actually not much different from Dongling Hi-Tech's. The production capacity of component suppliers cannot keep up, and the speed of production expansion cannot keep up with the speed at which the machines are sold!

However, other companies do not have the opportunity to learn from these tuition fees and experiences because sales are too large and the supply chain collapses. This is much better than producing products and then not being able to sell them and letting them rot in the warehouse!

"Dongxin Semiconductor has surpassed Toshiba and Infineon to become the world's largest shipper of landline phone chips. In addition, Dongxin Semiconductor is currently the largest shipper of domestic mobile phone chips in China!" After Hu Zixian, Chen Tao, Zhang Ao and others, the person who stood up was Wu Xinyi, general manager of Dongxin Semiconductor, a subsidiary of Dongling Hi-Tech.

Backed by its parent company Dongling Hi-Tech, Doxin Semiconductor is actually having a pretty good time because it has no shortage of orders!

The reason why those domestic chip and semiconductor manufacturers are unable to survive is because they have no orders.

But for Dongxin Semiconductor, this problem does not exist. Its father has given it too many orders, and Dongxin Semiconductor is unable to finish them.

After the development of the domestic landline chip "Sirius", the price of landline chips around the world was immediately brought down, especially on the Toshiba side, which no longer had a shortage of stock. However, the orders were still snatched away by Doxin Semiconductor.

Up to now, Doxin Semiconductor has the largest shipment volume of landline phone chips in the world. Although it is global, in fact, the world's largest landline phone production base is in China, so Doxin Semiconductor's Sirius chips are actually sold to domestic manufacturers.

The Sirius chip developed by Dongxin Semiconductor has been modified into a variety of chips with different prices. The Sirius chips sold to domestic telephone landline manufacturers are not expensive, but their advantage is that they are available in large quantities.

The mobile phone chip is the Xiaolingtong chip. Today's mobile phones have not yet entered the 2G era. There is no requirement for Internet access. They can only make calls and send text messages. As for mobile phone games, there are no such things. Therefore, the requirements for mobile phone chips are really not high, and there are many companies around the world that can produce them.

It was not until the 2G mobile phone era that the requirements for chip performance increased as mobile phone functions increased. In the era of smart phone chips, baseband chips began to play tricks. To put it simply, this thing is the network card in the mobile phone. Without it, no matter whether the mobile phone costs thousands or tens of thousands, it cannot access the Internet. It is like a brick. It has also become the last straw that broke the camel's back for countless mobile phone chip manufacturers.

Qualcomm drove Texas Instruments, a veteran mobile phone chip manufacturer, out of the mobile phone chip industry by offering a free chip in exchange for buying a baseband. Apple's self-developed baseband chip also failed, and after several years of struggle, it finally had to pay patent fees to Qualcomm.

As for now, the requirements for mobile phone chips are not that high yet. Dongxin Semiconductor has developed it on its own and is shipping them like crazy relying on the Xiaolingtong model.

However, in the next few years, Doxin Semiconductor will also start to fight for baseband chips, because the 2G era is about to come. This battle will continue for more than ten or twenty years, and in the end, there are probably only three or five companies that can sit at the table. However, the only one that has never been absent from the beginning to the end is Samsung, the sixth place.

Moreover, Samsung is the only company that can design, develop and produce baseband chips by itself. Dongxin Semiconductor has to rely on Samsung to cross the river.

"This year, Dongxin Semiconductor's profit is... 2.7 million RMB!"

As soon as Wu Xinyi finished speaking, everyone in the conference room looked at him with shocked expressions, wondering if they had heard it wrongly.

At first glance, this profit is certainly justified. Other semiconductor manufacturers are still making losses, but can Doxin Semiconductor be the same?

Dongling Hi-Tech and its subsidiaries, even its allied companies, have given all chip-related orders to Doxin Semiconductor.

Yes, Doxin Semiconductor only designs chips and does not have chip production lines. After receiving the order, it outsources the production of the chips to Shougang NEC. It actually earns design fees and the price difference, but how many orders does Doxin Semiconductor have this year?
For products such as Shenzhou digital cordless phones, PHS, Silver Marten optical mouse, and Feiyan radios, all orders related to chips and motherboards were given to Doxin Semiconductor. Even if it made a profit from the price difference, it would not be this small. After all, Dongling Hi-Tech headquarters did not lose a penny from it!

Wu Xinyi could feel the eyes of everyone in the conference room looking at him, and his face turned red, but he felt helpless. Outsiders only saw the prosperity of Dongxin Semiconductor, but only its own people knew what was going on inside.

"Dongxin Semiconductor has many projects under development, and most of its revenue is used in computer chips and other projects!"

Wu Xinyi did not go into details, but Li Dongling, Ren Yuefeng, Hu Zixian and others all knew where the money earned by Doxin Semiconductor was spent. The research and development of lithography machines was really too expensive. Doxin Semiconductor made a lot of money, but it was still a bit difficult to support this money-eating beast!

However, Li Dongling is already quite satisfied with the performance of Doxin Semiconductor. To be honest, as long as it does not lose money, it is profitable. It is worth it for Li Dongling to place so many orders for it.

(End of this chapter)