Chen Pingjiang handed over the Da Wang Card business to Li Xi.
Before launch, some other applications, such as games, videos, and music, also needed to be added.
Games were easy to resolve, but unfortunately, Renrenwang had not yet started to lay out its entertainment industry strategy, which was also the group's next focus.
In the following days, Chen Pingjiang visited several ministries and commissions, and met with leaders from the Ministry of Industry and Information Technology.
Everyone's attitude was consistent: the three major operators and WeChat should coordinate on their own whether to charge fees or how to charge them; overall, they would not take sides.
Having achieved this much, Chen Pingjiang was satisfied.
Overall, this trip to the capital was quite fruitful.
Currently, Renrenwang's payment system, Caifutong, has reached the testing phase.
Once the first batch of mobile payment licenses is obtained next year, it can be directly embedded into WeChat to develop WeChat Pay.
Subsequently, opening up channels from WeChat Pay to JD and Renrengou would complete a part of the strategic layout.
JD's traffic entrance also needs to wait for WeChat to continue upgrading and develop mini-programs, then JD's mini-program can be placed in WeChat - My Services.
Amap, on the other hand, after reorganizing its board of directors, will withdraw its IPO application and comfortably operate as a wholly-owned subsidiary of Renrenwang.
...
Orange Phone has moved.
Its design, R&D, and management departments have all relocated from Gemini Tower to the Qingshan Lake Terminal Base, a straight-line distance of 12 kilometers away.
The entire Qingshan Lake Terminal Base covers an area of 1200 mu, five times larger than Renrenwang's headquarters.
Wujiang District also made a significant investment; after all, "you can't catch a wolf without sacrificing a pup."
The entire terminal base was built around the lake, with a total area of 900,000 square meters.
This will become Orange Phone's design, R&D, sales, and logistics headquarters.
In addition, Orange Phone's Dongjiang Factory has also settled here.
Phase one was just completed recently.
Qingshan Lake Terminal Base does not have buildings exceeding ten floors, and construction proceeded quickly due to multiple points being built simultaneously.
A portion of the funds Chen Pingjiang cashed out from Renrenwang will ultimately be used to pay for construction costs.
The cost of Phase 1 of the Qingshan Lake Terminal Base alone reached 4.2 billion yuan.
The entire base is divided into four zones.
The northeast direction is the area for design and R&D personnel; the northwest direction is a series of public facilities areas including cafeterias, shopping malls, gyms, football fields, and basketball courts; the southwest is the Dongjiang Factory; and the southeast consists of rows of staff dormitories.
Basically, daily life can be managed without leaving the park; except for the lack of schools and hospitals, there's not much difference compared to living outside.
It's because they came early; Wujiang still has large tracts of vacant land.
Ten years from now, this area would be occupied by developers, and Chen Pingjiang wouldn't have had a chance.
This area is nestled against mountains and beside water, with abundant ecological resources.
To its left is a lake, and a dozen kilometers to its right is the Yangtze River, making its geographical location excellent.
When this plot of land was chosen, Wujiang District had fierce debates; everyone knew selling it would bring huge profits, but to retain Orange Phone, the Wujiang District government pushed through objections and reluctantly gave it up.
In Chen Pingjiang's view, Qingshan Lake might not be worse than the later Songshan Lake Base.
In terms of transportation infrastructure, it also boasts the Yangtze River's golden waterway, and highways are not far away.
According to the plan, the R&D, sales, and value-added services related to Orange Phone and future terminals like PADs, smartwatches, and headphones will all be located here.
This also includes a training center and a mobile software center.
The Wujiang District government estimates that once the base is completed, it will be able to radiate across the entire Yangtze River Delta region, attracting over 70 upstream and downstream supporting enterprises.
"Chairman Chen, Secretary Yan, esteemed leaders. Our factory utilizes ultra-precise MPM dual-track fully automatic solder paste printers, world-leading Camelot dispensing precision dispensers, fully automated robotic arm-controlled complete machine testing, and streamlined equipment composed of six fully automated robotic arms."
"The mobile phone production process includes surface mounting, single board functional testing, assembly, complete machine testing, and packaging. Due to the extremely high precision required on the production line, we must change into dust-proof, anti-static workwear, shoes, and hats before the tour."
Lin Bin personally stood on the platform to introduce as the main speaker.
Accompanying them were not only Chen Pingjiang and Yan Liming, but also a group of Renrenwang executives and officials from the Wujiang District government.
The people from Renrenwang were there for the spectacle; after arriving, they were so envious they didn't want to leave, jokingly accusing Chen Pingjiang of favoritism.
"Mr. Chen, why doesn't our Renrenwang have such a good environment? With mountains and water, building a house here would be incredible!"
"The air even feels better than where we are. Working in a place like this every day must be very pleasant."
Chen Pingjiang rolled his eyes:
"I'm not showing favoritism. Renrenwang is considered a river-view property; aren't you satisfied?"
After speaking, Chen Pingjiang smiled at Yan Liming:
"Secretary Yan, what do you think? It didn't disappoint, did it?"
This was the first time the father-in-law and son-in-law attended the same event.
Their relationship had long been an open secret to the outside world.
Yan Liming nodded in satisfaction:
"With the super factory in operation, we can finally solve Orange Phone's production capacity issues."
After changing into workwear, the group truly entered the phone assembly workshop.
The entire assembly workshop was shockingly bright, with nearly a hundred people bustling about on one production line.
Lin Bin continued to explain:
"The entire production line is 120 meters long. After initial equipment debugging and staff training and adjustment, it is ready for operation."
"On the shelves opposite the entrance of the production line, do you see them? Neatly stacked are the materials for mobile phone production. When a PCB enters the production line, it will first have a barcode laser-engraved onto it, giving it an 'ID card'.
As it flows through the entire production line until it becomes a mobile phone, every component will be scanned by barcode. The upstream supplier of every material used in each phone can be traced. Only through such a rigorous process and strict testing can the quality control of mobile phones be elevated to a high standard."
"A considerable portion of the equipment on the subsequent production lines will be self-developed by us or replaced with domestic brands. Currently, there are 37 production lines in total, capable of producing about 1.5 million mobile phones per month.
Phase two will add another 30 production lines, meaning that if both phases combined are only used for mobile phone production, they could reach 3 million units per month. At the same time, we can also use some of our capacity to produce other terminals such as laptops and PADs."
After leaving the factory, the group arrived at the commercial activity zone.
"This place is well done,"
Yan Liming said with a chuckle.
"Yes, from the very beginning of the design, Chairman Chen requested us to prioritize the physical and mental well-being of our employees. Besides supermarkets, KFC, Miaochao, and other well-known brands that have already moved in, there are four canteens.
They can serve over 20,000 people in the entire park simultaneously. In addition, we also have a swimming pool, gym, indoor badminton courts, a standard football field, and 6 basketball courts."
Don't think 20,000 people is a lot; compared to large OEM manufacturers like Foxconn and BYD, it's already a small number.
Those large OEM factories often have seventy or eighty thousand people.
In contrast, Orange Phone's super factory only has 15,000 people, with the rest in other positions such as R&D and sales.
Everyone has different positioning.
The Dongjiang Factory only produces terminal equipment for itself, and only seeks cooperation with other OEM factories when production capacity is insufficient.
Other professional OEM factories serve many clients.
After passing through the commercial activity zone, the group arrived at the R&D base.
This is where Orange Phone's central laboratory is located.
Yan Liming pointed at the security equipment at the entrance with interest and asked,
"What is this for?"
Lin Bin explained:
"Due to involving scientific research secrets, no photography or videography is allowed without permission. Furthermore, personnel from other departments are not permitted to enter the central laboratory."
"We just came all this way; it's quite a distance from the commercial area to the R&D base, taking about more than ten minutes to walk. Isn't that inconvenient?"
Lin Bin said:
"Actually, it's fine. R&D personnel need to move around after working for a long time. If they really don't want to go out to the cafeteria, they can order meals through our Renrengou mobile app, and our Blue Knights will deliver them. If the distance feels far, free bicycles are available at the entrance, and there are even shuttle buses within the park."
Chen Pingjiang's investment in all aspects of the Qingshan Lake Base reached his personal highest, striving to ensure his employees' comfort at work.
"This is our thermal technology laboratory. Simply put, they are dedicated to solving chip heat dissipation problems. The entire laboratory has around 80 people, one-tenth of whom are foreign employees. Mobile games lag because chips generate heat during operation, and if heat dissipation is poor, the protection mechanism will forcefully reduce the operating frequency, which leads to lagging."
"This is our structural materials laboratory, a type of laboratory almost nonexistent among other manufacturers, primarily researching phone structures. Our internal code names 'Azure Dragon Architecture,' 'Vermilion Bird Glass,' and ceramic bodies are all research directions. Although it's just starting now, once developed, our Orange Phone will be exceptionally drop-resistant."
After leaving the central laboratory, Chen Pingjiang took people to visit the three research institutes: A1, A2, and A3.
Each institute is responsible for a different area.
For example, A1 is responsible for wireless communication technology; A2 for operating systems; and A3 for software R&D and technical services, making it the place with the most software engineers.
Not far from the R&D base is the office base.
Administration, HR, and finance all work here, including Lin Bin.
Orange Phone's staff dormitories are also exceptional.
They are divided into single rooms and double rooms based on employee rank.
Factory employees have slightly less favorable conditions but are in quad rooms, and the area is larger than typical university dormitories.
Inside, they are equipped with washing machines, independent bathrooms, shower rooms, water dispensers, and living balconies.
"Considering fire safety, cooking is not allowed in the dormitories, and the company also advises everyone to dine in the cafeterias. At least four meals are provided daily: breakfast, lunch, dinner, and supper, to accommodate factory employees on two shifts and R&D center employees working overtime."
After completing the tour, Chen Pingjiang couldn't help but sigh that the money was well spent.
A base of such a large area, even if the land purchase was only at a 10% discount, would still amount to an astronomical figure.
Add to that the above-ground buildings, underground parking, commercial facilities, equipment, and production lines.
Calculate it yourself; one calculation will render you speechless.
If Chen Pingjiang hadn't cashed out Renrenwang shares, he really couldn't have afforded it.
Yan Liming clicked his tongue:
"Originally, we estimated that investing five billion over five years would be good, but unexpectedly, you've invested so much in just over a year."
Chen Pingjiang smiled:
"If you only count the factories, production lines, commercial facilities, and staff dormitories, that's about right. The main reason is our substantial investment in R&D. This is also what differentiates our Orange Phone from other manufacturers, as a crucial internal principle for us is 'R&D first.' Otherwise, I would just follow other manufacturers and build a few office buildings and be done with it."
"Mobile phone assembly is always outsourced, and an R&D center isn't needed at all since it's just assembly and branding anyway. But doing it that way, while saving money, will eventually lead to repercussions."
At this point, Chen Pingjiang pointed to a large vacant plot in the distance.
"Do you know what that place is for?"
"?"
"That's the reserved headquarters for a chip design company. Unfortunately, the space isn't quite enough, otherwise I would have put the wafer fab in Qingshan Lake too."
A standing deputy district head, who was listening intently, instantly perked up.
"Chairman Chen, Chairman Chen, insufficient space is a small matter. There's so much vacant land around; just approve a few hundred more mu."
This deputy district head was knowledgeable; upon hearing the words "wafer fab," his heartbeat gradually quickened.
Definitely high-tech!
Zhou Guangping said with a smile:
"In Chairman Chen's plan, a wafer fab is definitely going to happen, but there's no definite timeline yet because it's too difficult and too expensive. Last year, AMD just spun off its own fab, which is a wafer manufacturing plant. Now, fabless semiconductor companies are a popular trend."
Chen Pingjiang nodded and continued:
"Companies like AMD and Nvidia, which we know, are fabless semiconductor companies. These companies focus on semiconductor design, R&D, application, and sales, outsourcing wafer manufacturing to foundries to enhance their core capabilities. Other famous foundries include TSMC, MediaTek, Samsung, and SMIC."
"Even if I wanted to, a wafer fab is truly not simple. A single production line can cost billions of US dollars; the barrier is too high, how can ordinary people afford to invest?
The technological barrier is also high, and this business is winner-take-all; the world cannot accommodate many players. I wouldn't dare say our wafer fab would necessarily be better than Samsung or TSMC. If we spend the money and still mess it up, it would be a complete waste."
The two "foxes," one big and one small, were already complaining, all to negotiate terms with the Wujiang District government.
Indeed, after the deputy district head listened, he thought for a moment and said no more, presumably taking the matter to heart.
Wafer foundry is certainly a good business, and to prevent future bottlenecks, Chen Pingjiang definitely wants to do it.
However, this venture requires a large enterprise that can afford it and possesses sufficient foresight.
If it doesn't succeed, it's a pure loss; if it does, it's like lying down and counting money.
Just consider how a small Taiwan Island reaps huge profits thanks to TSMC, and you'll know how lucrative it is.
Semiconductors are divided into advanced processes and mature processes, with 28 nanometers being the dividing line.
There are only a few companies with advanced processes, but many with mature processes.
But since Chen Pingjiang is building a wafer fab, isn't it precisely to aim for high-end and advanced processes?
If it were just for mature processes, why bother?
Awesome wafer fabs never lack orders; at that level, upstream chip design companies beg you to produce for them.
Owning its own wafer fab can not only guarantee product supply but also help control costs.
Nvidia once complained that TSMC couldn't fulfill all their 28nm orders, so they exerted pressure everywhere and even floated the idea of building their own wafer fab.
Now that TSMC has given them enough capacity, haven't they gone silent?
When you have orders, if the wafer fab cannot produce for you in time, it directly affects your revenue.
Of course, Nvidia only dared to float the idea; if you really asked them to build one, they might not dare even with immense courage.
Under Moore's Law, to maintain competitiveness, wafer fabs must continuously pour money into building new plants and developing new processes.
To have so much money to invest, they must sell more products and maintain high profit margins; otherwise, if the profits aren't enough to cover expenses, this model cannot be sustained, and operations will face problems.
If Chen Pingjiang were a foreigner, he definitely wouldn't bother building his own wafer fab, especially since even Huawei couldn't manage it.
But Chen Pingjiang saw through the mist of the future, knowing how much the domestic market would be blocked in the near future.
He must build a wafer fab early; waiting a few more years might truly be too late.
By floating this idea now, he hopes the Dongjiang municipal government and even the national level can provide some financial or other support.
For terminal equipment like mobile phones, Chen Pingjiang could entirely manage without any support, but a wafer fab is truly different; it's too difficult without national will.
It's very possible that Chen Pingjiang couldn't get it off the ground even if he sold all his Renrenwang shares.
How many years have Samsung and TSMC been around?
Why should a new factory like yours catch up in just a few years?
Even a powerhouse like SMIC couldn't produce 14nm with guaranteed yield until 2019.
And this is a large factory that started production in 2000, relying on Liang Mengsong and Zhang Rujing, both of whom also came from TSMC.
"It would be great if we could poach these two, after all, SMIC is a love-hate relationship,"
Chen Pingjiang sighed.
Master-apprentice grievances and constant internal strife are all its labels.
(End of Chapter)