Chapter 438 Find a new way
After returning to Beijing from Shanghai, the leader of the Fourth Ministry of Machine Building immediately met with Wang Deming and told him the good news with a smile.

"Comrade Deming, the leader agrees with your opinion!"

"Most Hong Kong compatriots are patriots and are willing to share their advanced technology and management methods with domestic joint ventures, which will be of great help to the development of our chip and computer industries!"

"The leadership's opinion is that we can use the North China Electronics Factory in Jiuxianqiao, Beijing, as a joint venture entity to cooperate with Global Electronics."

"The shares of both parties are 51% each of North China Electronics and 49% of Universal Electronics. The management will be allocated to three directors on the Hong Kong side. What do you think?"

Wang Deming frowned and said, "Leader, if this is the case, Global Electronics may not agree."

"It doesn't matter if we have the majority of the shares, but we can't let Xiangjiang interfere in the management. They won't agree to that."

Wang Deming's original plan was for Global Electronics to take the lead.

After all, he has decades of experience in his previous life, so he is somewhat confident about the development path of the chip and electronics industries.

If we can influence the development direction of the domestic chip industry and electronics industry through Global Electronics, it is still feasible to catch up with the world's best.

In this era, although our domestic chip industry and electronics industry are somewhat backward, the situation is not significant.

Especially in the field of chips, whether it is lithography machines, packaging plants, integrated circuit boards, etc., China's accumulation is very deep.

The leader was a little unhappy when he saw Wang Deming hesitate to speak.

"Comrade Deming, you should know that we have very favorable tax policies for foreign-invested enterprises."

"Besides, our domestic electronics industry is so huge, how can Global Electronics catch up? The North China Electronics Factory alone has tens of thousands of employees and a dedicated research institute."

"If it wasn't your proposal, the leader might not agree."

Wang Deming did not argue with his leader. "Leader, I will go to Hong Kong right now and have a good talk with the people from Universal Electronics."

"Ah."

"Leader, I wonder how the progress is going on with the several integrated circuit boards and color displays that Global Electronics commissioned to be produced domestically?" Wang Deming directly shifted the topic to OEM.

The integrated circuit boards and displays that Global Electronics currently purchases are all purchased from Britain and the United States. In fact, those from Japan are the cheapest, but at this time, Japanese products have a huge impact on the American industry.

Not only in the automotive industry, but also in the electronics industry.

Therefore, if Universal Electronics purchases its main components from Japan, trade between Britain and the United States will be strangled.

Although electronic components from Britain and the United States are nearly 1% more expensive than those from Japan, in order to win the British and American markets, Global Electronics can only purchase chips, integrated circuit boards, and displays from Britain and the United States.

Or it could be a processing plant directly opened by Britain and the United States in Hong Kong.

When Wang Deming mentioned this, the leader frowned and said, "It's difficult."

The leader sighed and said, "I was just about to talk to you about this. The first batch of goods was sent to Hong Kong but was returned."

"Huh?" Wang Deming was very surprised. The integrated circuit boards that are now outsourced to domestic manufacturing have chips purchased from Texas Instruments.

Part of the integrated circuit architecture is a patent purchased from Japan, and part is developed by the R&D center in Hong Kong.

Based on his understanding of domestic technology, there should be no technical difficulties in OEM?
He was planning to start dispatching research projects to domestic scientific research institutions next year, so how come he failed the first hurdle?
The leader said slowly: "It's a problem of standardization."

"In our opinion, there is no problem with this batch of OEM goods and they can be used normally."

Wang Deming didn't say anything, waiting for the leader's next words. Sure enough, the leader said "but".

"However, Hong Kong refused to accept the goods because we did not produce them according to standardization." "The other party said that if the integrated circuits cannot be standardized, Hong Kong will not be able to assemble them quickly."

This is also a problem. Wang Deming had known about it a little before. China’s industry initially learned from the Soviet Union.

One of the biggest features of Soviet products is that they are big, black and crude, or in other words, they are just good enough.

Therefore, many domestic factories do not pursue standardization too much in production.

Wang Deming remembered that when Volkswagen's Santana car was launched in Shanghai, there was an article saying that the country couldn't even provide screws?
Later, with the continuous care of senior leaders, domestic standardization construction was carried out bit by bit, starting from the assembly of complete vehicles.

From the initial 0.83% of free products in the country to the final complete replacement, this road took nearly 20 years.

"Comrade Deming, can you talk to Xiangjiang and ask them to accept this batch of goods? Otherwise, these factories will not be able to continue production."

"Okay, boss, I will discuss this issue with Global Electronics."

The information industry is the third industrial revolution and it cannot be overemphasized.

Wang Deming is well aware that China is stuck in the chip field, importing at least 4000 billion US dollars a year, but still cannot buy the best chips.

If Huawei had not gone against the current, the domestic chip industry and electronics industry would really be in danger and would have had no choice but to bow their heads.

Therefore, even if there are still some problems with the current domestic OEM, Wang Deming will not give up.

After the National Day, the first thing Wang Deming did when he returned to Hong Kong was to gather the designers and engineers of Universal Electronics to inquire about domestic OEM matters.

The chief designer of Universal Electronics came from Texas Instruments.

When talking about Texas Instruments, we have to mention Taiwan's TSMC.

The founder of TSMC was the vice president of Texas Instruments. He brought a group of people back to Taiwan and then developed it into the world's largest chip processing company.

At this time, Intel in the United States was not the best in the field of chips and electronics.

The best are Motorola and Texas Instruments.

"Mr. Smith, is it really a question of standardization?"

Smith nodded. "According to our Texas Instruments standards, these products would only have a 10% yield rate at best."

Without waiting for Wang Deming to ask, he continued to explain: "If we accept integrated circuit boards from the mainland, it will be difficult for our assembly workers in Hong Kong to assemble the final radios and electronic watches."

"It's difficult, but it's possible?"

Smith was stunned and nodded. He quickly said, "Boss, but this will delay our production."

"Besides, even if we produce it, the US may not accept it, and then we will suffer even greater losses!"

Wang Deming smiled and waved his hands, "Who said I want to sell this batch of products to the United States?"

Everyone was stunned.

Wang Deming pointed to the north and asked, "Do you know what's the most popular thing in the mainland right now?"

"Has anyone of you been to Chung Ying Street?"

(End of this chapter)