I am a master in India

Chapter 424 Sun God Chip

"How come Dongda University is so efficient?" Ron hurriedly returned to Suer Electric Appliances.

"They sent an email yesterday saying that the chip has been successfully taped out."

"A mobile phone chip, not a pager chip?"

“Yes, it’s a cell phone.” Ashish nodded.

"so smart?"

Ron did the math and realized that less than a year had passed since he first met Hua Zi.

When did mobile phone chip design become so simple? It gave him the illusion that "I could do it too."

"Boss, I've inquired about it. Modern mobile phones have relatively simple functions, and the chips are mainly designed with 'baseband + radio frequency' separation. The integration is not high, and there is no need for complex calculations, so it's not too difficult."

“That’s still quite an achievement; at least India can’t do that,” Ron said with a touch of emotion.

He knew that in the era of feature phones, mobile phone chips did not require high computing power, and the processing technology was at the micrometer level, far behind the nanometer-level technology that had already emerged.

But it's still a chip, after all, representing the pinnacle of human technological wisdom.

"I heard that their company had already formed a wireless chip team and was developing 3G chips before they started working with us. This commission was just a side project; they didn't even need to rebuild the team."

"What does that mean now?"

"The prototype chip is undergoing reliability verification, and we expect to have results soon."

"So that means it's ready for mass production?" Ron's eyes lit up.

"Theoretically, we should be able to get on the plane after passing the test. They asked us when we expected to be able to use the machine."

"What do you mean?"

"Hua Zi is only responsible for the design, but the manufacturing needs to be done by another manufacturer. There are two options: one is to go to Taiwan, where the technology is mature and production can start immediately."

Another option is to outsource production to the local factory at the University of Tokyo, but that will be slower. The factory there is newly established and is expected to begin mass production around February next year.

“What’s the difference between the two options?” Ron’s eyes gleamed.

"The price is $12 per piece in Taiwan, and $8 per piece in Taiwan, based on a million-piece quotation."

"The chip industry is indeed extremely profitable," Ron remarked with some emotion.

Texas Instruments sold them similar products for $40 each. After developing their own, the price immediately plummeted.

It's less than a third of the price of American goods, which gives you an idea of ​​how small the profit margin is.

"Boss, what do you think?" Ashish asked.

"We can afford to wait four months to produce it at the University of Tokyo. $8 a month—that's a five-fold reduction in costs!"

For Suer mobile phones to achieve significant sales volume, their prices must be close to the purchasing power of Indian consumers.

If we can cut chip costs, there's a real chance of reaching 6,000 rupees.

"They asked us how many chips we planned to produce this time. They will keep track of it and provide technical support."

"We'll sign a contract for one million chips, to be delivered over two years. We want to keep chip costs to a minimum; the larger the volume, the cheaper it will be."

"Boss, isn't this too much? Mobile phone sales in India aren't that high right now."

Ashish is very cautious. Take Suer mobile phones as an example. They have been on the market for half a year and have only shipped a total of 15 units.

Even with contract phones, they'd be lucky to sell even a fraction of the units themselves.

Two years to one million films, that means shipping 500,000 films every year, Ashish is under tremendous pressure.

"Don't worry, mobile phones will definitely become more and more popular. Our product has just been launched and needs time to gain traction, but selling 500,000 units is definitely not a problem."

Moreover, using their own chips will lower the price of Suer phones, leading to even more buyers.

“Okay, boss, I hope Indians will buy more domestic products.” Ashish shrugged.

"Let Huazi continue developing the next generation of chips; we haven't used up our $100 million yet."

"So soon?" Ashish asked, puzzled.

"We can't slack off on this, otherwise the gap will only widen in the future."

Ron initially promised Huazi $100 million in research and development funds, but of course, it wasn't paid in a lump sum.

He initially provided a seed funding of ten million US dollars. Hua Zi will provide additional funding as needed during subsequent research and development.

From chip fabrication to tape-out, Suer Electric paid a total of $30 million to the other party.

Ron knew perfectly well that the price was definitely inflated.

However, considering the cost of $8 and the purchase price of $40, this money was well spent.

With the new chips installed next year, a million units are not an unrealistic expectation. India is large enough that its major cities alone can absorb most of the demand.

There's still a surplus of the promised $100 million, so Ron naturally wants to strike while the iron is hot.

"We don't need them to come up with a solution immediately; a year to a year and a half is acceptable to us."

"I'll contact them later."

"By the way, what's the name of this chip?"

"It seems to be called K3V1 in the email."

"What a terrible name. From now on, we will refer to it as the Sun God Chip within the entire Suer organization."

“Yes, boss!” Ashish also felt that the name sounded more impressive.

Since it was a joint research and development effort, Ron unceremoniously took over the naming rights from India.

"By the way, do they have any plans to enter the mobile phone business?" "I don't think so. I haven't heard anything about it."

“I estimate it will happen within the next two years,” Ron said with certainty.

If it weren't for the partnership with Suer Electric, Huazi would probably have focused on its own telecommunications market first.

But now that they have the phone design and the chip, there's no reason for them to let it go.

This is practically like eating what's readily available; they can make a finished product whenever they want.

Most importantly, according to the original agreement between the two parties, the overseas copyright belongs to Suer Electric, and the Dongda copyright belongs to Huazi.

There is no conflict between the two; the market has already been divided up in advance.

The reason why Huazi hasn't taken any action yet is probably because it wants Suer Electric to test the market first.

Since it's the first generation of products, there will inevitably be some bugs. It will take several iterations for the design to mature.

As we all know, Huazi's new products are only truly worth buying from the third generation onwards.

Furthermore, they probably haven't reached an internal agreement on whether or not to enter the mobile phone market.

Ron didn't care; for India, bugs were minor issues.

The key is the hype surrounding the first domestically produced mobile phone, which aligns perfectly with Balat's winning strategy, doesn't it?

"Don't worry about the phone shipments, I'll get help from New Delhi."

"New Delhi?" Ashish perked up.

"Yes, after all, Suer mobile phones represent the highest level of Indian manufacturing, so isn't it only right that they support them?"

“Wow! This is great, more effective than all the ads.” Ashish was excited.

“Sul phones are more than half the price of imported ones, so there’s no reason for them to be sold at such a low price. People just have doubts about domestically produced phones, and New Delhi’s endorsement will shorten the process of building trust.”

“I will have the production line increase output and prepare inventory two months in advance,” Ashish said immediately.

"Yes, mobile phones are very important to Suer Electric Appliances."

This is not only a symbol of the technological strength of a leading enterprise, but also related to Ron's strategic layout in the telecommunications industry.

Kavia has taken Agalon back to her parents' home; there's been a lot of activity in Tamil Nadu recently.

That's right, her aunt Jayalalita has successfully ousted DMK, and the position of Chief Minister has changed hands once again.

Just as Ron had discussed with her, Jayalalita actively contacted the BJP representatives in Tamil Nadu after her release from prison.

With Ron's mediation, the two sides quickly reached an agreement and formed a political alliance.

The BJP has long been unhappy with the DMK's advocacy of Tamilization. They oppose the teaching of Hindi and clamor for Tamil independence and autonomy.

This is a blatant provocation for the right-leaning BJP.

The political landscape in Tamil is very clear, with only the DMK and AIADMK parties having significant influence.

Since we're at odds with DMK, let's team up with AIADMK, since they're mortal enemies anyway.

At that time, the national elections had not yet begun, and Jayalalita had essentially chosen sides in advance.

When the BJP won the general election in March, the rich political rewards followed.

After nearly half a year of political struggle, with the help of New Delhi, she successfully formed a new Tamil government.

Kavia is going to take Agalon back to support her aunt, while Ron needs to deal with the Suer Electric Appliances matter first.

When he has time later, he will personally make a trip to Thamel. As an international metropolis, Chennai should at least be designated as a "sunshine and smart city."

We also need to acquire telecommunications licenses.

It is said that many industry insiders have suggested to New Delhi that the current mobile communications zoning system be reformed, and that the limit of two operators per city be lifted.

Ideally, the entire Indian subcontinent should operate as a unified entity; at the very least, telecommunications services should be provided on a state-by-state basis.

Ron strongly supported this approach and even made a phone call to New Delhi.

They did not give a clear answer, but hinted that relevant policies would be introduced by next year at the latest.

This news is good news for Suer Mobile, and it's also why Ron is confident in shipping 500,000 mobile phones every year.

Isha and Ravi remained in Mumbai, and Ron made a point of spending more time with them.

Ravina's small body really grew very fast. One morning, he stood up and put his hands on the sofa.

Ron should have expected it. Ravi had barely slept the previous two nights, had a fever, and coughed violently every time he did so. Yet this morning, he found him in their big bed.

He climbed up on his own, and Ron carried him back to the ground, but he stubbornly climbed up again.

The second signal came immediately: Ravi stood up from his seated position on the bed.

Ron lifted him off the bed again, and he stood by the sofa, letting go of him as the teething toy rolled away.

He looked at the stick not far away, turned his back to the sofa, first crossed his left leg in front of his right leg, then moved his right leg in front of his left leg, and in this way, he gradually came to the teething stick.

He was completely unaware of the incredible thing he had done, so casually, perfectly, and effortlessly defying gravity, making his first step seem like an accident.

He didn't stop celebrating at all; instead, he bent down and sat on the ground, grabbed the teething stick, and stuffed it back into his mouth.

But Ron and Isa saw it: their child, Ravi, could walk!
Ron has never liked working from home, complaining that his children are always interrupting him.

But at that moment, he was so glad he was home. He had witnessed his child take his first steps in life, a sight Ron would remember for the rest of his life.

Only after becoming a father will that delicate sensitivity gradually take root and sprout.

Amidst the heartwarming moment, Chopra called again.

(End of this chapter)