infodatos Chapter 33: The system was developed in one year, and the chip in two years.
Chapter 33: The system was developed in one year, and the chip in two years.
"I know what you're thinking." Shen Fei looked at the crowd whispering among themselves in shock.
"Transsion doesn't have the capability, the talent, or the funding right now, right?"
No one answered, but the expressions on their faces said it all.
"Therefore, the Mount Tai project is a long-term project, lasting 5 years, 10 years or even longer."
Shen Fei's tone was full of certainty, and a hint of confidence that others didn't quite understand.
Chip design and operating systems are both money-losing ventures, especially operating systems. There are too many and too chaotic operating systems on the market right now, and the market is destined not to be able to support so many systems.
Why did the boss decide to do all this?
"But we have to do it, why?"
A set of data appeared on the big screen: "This is the amount of chip procurement fees paid by Chinese mobile phone manufacturers to Qualcomm and MediaTek over the past three years. The total exceeds 300 billion US dollars."
And this is just the beginning. With the widespread adoption of smartphones, this number will only increase exponentially, eventually becoming a market worth hundreds of billions or even trillions of dollars.
"Look at the operating system. Android is open source, but GMS is monopolized. Without GMS in overseas markets, phones simply cannot be sold."
Transsion will have to face this problem sooner or later if it wants to grow stronger in Africa.
Many people in the audience nodded thoughtfully, wondering why the market they had worked so hard to build would be given away to Google for nothing.
Since everyone is trying to gain market share, why can't we use a telepathic communication system?
Especially in Africa, a region that most foreign manufacturers are unwilling to deal with, Transsion has carved out its own territory.
After scanning the room, Shen Fei said excitedly, "Cooperation is fine, but we cannot hand over our lifeline to others. This is the wisdom our ancestors taught us."
Therefore, we need to build our own technological foundation, even if it's just starting from the very basics.
"But Mr. Shen..." A newly joined head of the technical department raised his hand: "Developing an operating system requires a huge ecosystem."
Even when Apple promotes their iOS, they leverage the influence of their desktop platform.
Transsion's current sales volume is less than 1000 million units, mainly feature phones, which is simply not enough to support an ecosystem.
"So we chose to start in Africa." Shenyang Aircraft Corporation was well prepared for these questions.
"Africa's internet ecosystem is almost non-existent; there is no mature gaming ecosystem and no monopolistic social media software."
Many of these are even using a mobile phone for the first time. This is the perfect test.
He then pulled out an internet report from Africa, which stated that the internet penetration rate was 3.4%, meaning that only about one in twenty people had ever been online.
Of course, there are more advanced aspects, but most of them are at this level, or even worse.
"Based on this situation, we can collaborate with local entrepreneurs and invest in their development of internet software suitable for Africa."
Social media, payments, e-commerce, entertainment… we're gradually building an ecosystem centered around T OS. Once we succeed in the African market, we'll expand to other markets, such as China and Europe.
"What about chips?" the head of the hardware research institute asked. "Chip design requires even more investment, and for the most critical manufacturing stage, we don't have the relevant technology internally and have to rely on outsiders."
"So we need to start with the peripheral chips." Shen Fei rarely gave these technicians such an explanation.
"If we want to capture the African market, we will need to purchase more than 1 million chips every year."
Why not do it yourself if the quantity is so large?
We need to specifically optimize RF chips for the African market, so why not design them ourselves?
These chips have relatively low technological barriers to entry, but are used in large quantities; if made well, they can significantly reduce costs.
Looking at the person in the middle who was thinking, he paused slightly and said: "The core application processor is the long-term goal, but if we can't even make the peripheral chips, let alone the core AP."
"Regarding manufacturing, although we are a bit behind domestically, it is not impossible to catch up. As long as we plan carefully and develop a 10-year plan, we may not be unable to catch up."
The people in the conference room began to think more seriously.
The boss's plan is grand and sounds a bit far-fetched, but it's not a castle in the air; it's indeed possible to achieve it step by step.
The problem is funding, unless that...
"The budget for the Taishan Project this year is 25 billion Chinese yuan," Shen Fei revealed, an astronomical figure that is more than six times the valuation by Transsion.
Of this, 15 billion will be used for the research and development of the T OS system, and 10 billion will be used for the establishment of the chip design team and the accumulation of IP.
The money comes from Huaxin Investment and does not affect Transsion's operating funds.
25 billion! Huaxin Investment made the investment, and the conference room was shaken again, but this time it was a shake of excitement.
This is practically telling them that Huaxin Investment is another of his businesses, and that this investment bank is very wealthy.
They can easily take out at least 25 billion.
The initial worry shifted slightly amidst the immense shock.
"In addition, Taishan plans to operate independently, with deep collaboration between Kaihui and Transsion."
Shen Fei concluded by saying, "The first version of T OS will be commercially available on Transsion's smartphones next year."
For the chip design team, Mr. Huang will help poach the relevant technical experts.
But the first product needs to go into mass production the year after next; I want to see tangible results.
Chen Hai was the first to step forward: "No problem, the R&D department will give it its full support."
The newly established Software Research Institute and Hardware Research Institute, as well as the existing Marketing Department and Strategy Department, all got up one after another.
Seeing this, Shen Fei took a deep breath. These were his team members, and the core personnel for the future.
The Taishan Project is also a core part of the future, and the two must be integrated to unleash their full potential.
Operating systems and chips are the two cornerstones of the smartphone era. Transsion is currently too weak to afford to play these games, but Huaxin Investment can.
It's November now, and the tsunami of the financial crisis continues to expand.
To date, the United States has still not made the right response, and many companies have begun to sell off their assets at bargain prices in order to protect themselves.
This includes Texas Instruments, a giant in chip development.
More than 600 people were laid off in October. These people had been screened by Huang Tianya, and most of them had been lured to Guangzhou by the promise of high salaries...
Chip development is not as slow as expected, but that's not enough; we need to continue expanding.
With this funding, Transsion will definitely be a rising giant in five years, capable of competing with the fruit giants.
But the first step has already been taken today.
After a brief discussion, Shen Fei spoke again: "Meeting adjourned. Department heads, submit your detailed plans in three days."
After they left, Shen Fei started planning the detailed goals for the future, and he still had to win over the terminal department of Huawei.
Just then, his phone rang, and he thought it was Huang Tianya who had made the call.
But when I took it out, it was a message from my father:
"Xiaofei, pick someone up from the airport on the 5th of next month. It's Uncle Zhang's daughter, Zhang Mingzhu. Do your best."