Chapter 883: Before choosing

"It's no wonder that Xiangjiang people are so active in bringing me together to meet with Wang Yongqing. I am afraid they have already known the attitude of the "god of business" on the island of Bay Island towards investing in the semiconductor industry."
When Zhang Weiguan asked about the results of this important meeting, Zhang Zhongmou said.
"Isn't Wang Yongqing optimistic about this industry?"
"To be precise, it is not that Wang Yongqing is not optimistic about the semiconductor industry. He is just not optimistic about the status and development of Bay Island in this industry." Zhang Zhongmou explained to his father with some regrets: "He believes that in the entire electronic products In the industrial division of labor, Wandao should be more realistic and focus its investment in the direction of simpler, smaller investment and faster return, such as the manufacturing of circuit board-level component products and the production of complete consumer electronic products. ."
Zhang Weiguan pondered for a while before saying: "His thoughts sound the same as Mr. Phoebe, the current CEO of Texas Instruments."
Zhang Zhongmou also nodded and sighed, "Yes, father. I felt this way at the time. He also told me that just last year, he invested in a "South Asia Circuit Board Project Team" to implement his ideas, and this project was his first time. Invest in the direction of electronic products."
"Then have you asked him what he thinks of Mr. Li Guoding and the "Wandao Institute of Technology" semiconductor project?"
"Of course I want to ask." Zhang Zhongmou replied, "Father, you should know that besides your health and safety, this is probably the most concerned issue of my trip to Xiangjiang."
"Then what did he say?"
"Wang Yongqing was very frank. He told me that both Mr. Sun Yunyong and Mr. Li Guoding had contacted him and described the "ITRI" semiconductor plan in detail to him. However, he himself had reservations about this, but out of consideration for these two And the respect of the "ITRI", he will invest; if necessary, he will speak out to support this project."
Zhang Weiguan frowned again and thought for a while before saying: "In other words, Wang Yongqing invested in this project, not so much that he is optimistic about the industry prospects, it is better to say that he can spend a sum of money to buy a good one in the current political situation on Bay Island. Living environment?"
"I'm afraid it is." Zhang Zhongmou spread his hands and said helplessly.
The father and son looked at each other, and both saw the sadness flashing in each other’s eyes. The room fell silent again. After a long time, Zhang Weiguan sighed,
It seems that what you just said is right. You met with Wang Yongqing to achieve this goal. They want you to see clearly what the business community of Bay Island really thinks of the semiconductor industry!"
What Zhang Weiguan said is correct.
The economic take-off of Bay Island began in the 1960s. At the beginning, its focus was on people’s livelihood industries with low capital requirements, low technical requirements, and short plant construction cycles. The goal was to replace imports with production on the island to accommodate Consumption level on the island, saving foreign exchange expenses, creating more employment opportunities, reducing employment pressure, and gradually forming agricultural and sideline products processing industries such as sugar, tea, pineapple and citronella oil, as well as cement, glass, wood products, papermaking, Import substitution industries such as fertilizers, textiles, cooking oil, flour, plastic materials and products, man-made fibers, bicycles, sewing machines and household appliances.
However, due to the size and demographic factors of the Bay Island, its internal market is narrow, and the product market for replacing industries with imports quickly becomes saturated, resulting in weak economic stamina. Fortunately, they are also catching up with a historic opportunity.
Europe and the United States are beginning to de-industrialize at this time, and a large number of low-tech manufacturing industries are beginning to be transferred out, and it is East Asia and Southeast Asia including the Japanese countries, the Japanese countries and the "Four Asian Little Dragons" that undertake these industries. As a result, the economy began to take off. Wandao seized the opportunity of the changes in the international division of labor at that time, and took advantage of the international comparative advantages of low wages to vigorously develop the processing export industry to drive economic development. Enterprises shifted from import substitution to export industry and became the main force of economic growth.
During this period, Wandao's industry developed rapidly. From 1963 to 1973, its industrial average annual growth rate was as high as 18.3%, of which the average annual growth rate of manufacturing reached 20.1%, and the proportion of industrial output value in Bay Island’s GDP increased from 26.9% in 1960 to 43.8% in 1973 ; The proportion of industrial products in the export trade volume increased from 32.3% in 1960 to 84.6% in 1973.
However, this economic model of Bay Island is extremely dependent on external raw material supply and product sales markets. The typical process followed by Bay Island companies is: importing production materials from the Japanese country and exporting industrial products to the United States, forming a production dependent on the Japanese country. , The market relies on the triangular trade relationship of the United States.
This has formed a typical Wandao entrepreneurial thinking inertia: in the international division of labor in the electronic product industry chain, their approach should be to import chips and other components from the Japanese or American countries and process them into circuit boards or complete sets of electronic products. Sell ​​it to the United States.
This is the business logic they have followed for nearly two decades, and the logic of their success has been proven countless times by the market and their respective experiences.
Even characters like Wang Yongqing will inevitably fall into this type of thinking.
After all, if you want to invest in the semiconductor industry, you have to challenge the upstream supply chain of the electronics industry, and it will inevitably break the current supply chain pattern. What you have to face is the joint suppression of the other two polarities in the triangle trade relationship in the past.
With the current capabilities of Bay Island, is it qualified to initiate such a challenge?
In other words, in Wandao, where there is not much accumulation in this industry, is it qualified to rush into the "Miwo Semiconductor War" that is now in full swing?
I am afraid that most of the Bay Island entrepreneurs will vote against this.
Wang Yongqing told Zhang Zhongmou without the slightest concealment that the semiconductor plan promoted by the Industrial Technology Research Institute has triggered fierce disputes within Wandao, and the voices of opposition currently occupy the majority.
In fact, even Wang Yongqing himself is an opponent. Although in another time and space, he once appeared as a platform for "TSMC" and led the investment in the company, but as soon as the equity could be traded, he held the company. The shares have been thrown away--this is probably the most wrong of all the major decisions made by the "God of Management" in this life? "
At this moment, in the hearts of the father and son, a question could not help but arise: Is it really the best choice to start the entrepreneurial journey in the semiconductor industry from Wandao?
"Zhongmou, I have to tell you one thing. From my visits in the past few days, Tan Zhenhua has a great influence on the business world of Xiangjiang." After a long silence, Zhang Weiguan finally spoke: "At least in "Yong Within the "Hong Kong Association", his appeal is very strong. Almost everyone has unreserved trust in him. I guess this should be because since he joined the "Yong-Hong Kong Association", he has served everyone in the association. The reason for the huge profits he earned, and so far, he has not had a record of investment failure."
"Father, I understand what you mean. It seems that maybe I should have a good talk with that young man."