Steal the enemy's base at the start and build a technological empire.

Chapter 364 Xinghuo Group Strategic Meeting

On April 15, 2000, at 9:00 a.m., a meeting of senior executives of Xinghuo Group was being held in the conference room of Jinan.

Ling Yun sat in the main seat, with Ni Guangnan to his left and Chen Zhongming to his right. Further along were Ma Baoguo, Wang Jianguo, Li Mo, Zhao Weiguo, and Chen Lingling. Several branch office managers sat in the back row. Fiona sat in a corner, a notebook open in front of her, a pen in her hand taking notes.

Ling Yun glanced at the clock on the wall; it was exactly nine o'clock. He cleared his throat and said, "Let's begin our group's strategic direction meeting now."

The meeting room fell silent. Ling Yun stood up, walked to the whiteboard, and picked up a marker. He wrote eight characters on the whiteboard: "Based in the domestic market, deeply rooted in independent development." After writing, he turned around and looked at everyone.

"Today's meeting will set the direction for the next few years." He paused. "You all know about what's happening in the US; I've sold all my shares in Star Technology. But domestically, we still have the final say. We'll decide how we proceed from here today."

He walked back to his seat and sat down. No one spoke in the conference room. Ni Guangnan picked up his teacup and took a sip, while Ma Baoguo flipped through the documents in front of him without looking up.

Ling Yun looked at Ma Baoguo and said, "Director Ma, you go first."

Ma Baoguo stood up, holding a folder in his hand. He opened to the first page and began to read: "Let me first report on the current situation of Xinghuo Electronics Factory. Last year, Xinghuo Electronics Factory's revenue was 3.2 billion yuan, and its profit was 700 million yuan. Mouse and keyboard accounted for 60%, and complete computer systems accounted for 40%. Exports are still the main source of revenue, at 60%. The domestic market share is increasing, but the increase is slow."

He paused, then turned to the second page. "We plan to expand production this year; the new factory in Shenzhen is already in operation. But relying solely on mouse and keyboard manufacturing and OEM production will limit growth. We haven't really taken off in the laptop segment."

Ling Yun looked at him and asked, "What's wrong with the laptop?"

Ma Baoguo thought for a moment and said, "Technology. We have no problem making desktop computers; we can handle the motherboards, power supplies, and cases ourselves. But laptops are different. Cooling, structure, and power consumption are all new things, and our team has no experience with them."

Ling Yun nodded and then said, "Contact the aliens. Have them send a few key personnel over to help us set up a research and development team."

Ma Baoguo paused for a moment, then asked, "Aliens? Would they release us?"

Ling Yun replied, "I'll go talk to them. You take care of the rest of the preparations first. When they send people over, you need to be able to retain them and train the newcomers to form a talent pool with different levels and tiers."

Ma Baoguo nodded and sat down.

Ling Yun looked at Li Mo and asked, "Li Mo, have you checked the upstream supply chain?"

Li Mo stood up, picked up a document in front of him, and began to read. "The upstream of mouse and keyboard components mainly consists of just a few companies. Main control chips, optical sensors, switches, and cables. Many domestic companies can produce these, but the core technologies are still in the hands of foreign companies. Taiwan accounts for the majority of main control chips. Japan dominates the optical sensor market."

He turned a page and continued, "The computer side is even more complicated. The CPU, memory, hard drive, and screen all have to be imported. What we can make domestically are low-value-added parts like the casing, power supply, and motherboard."

Ling Yun thought for a moment, then said, "Developing in-house is too slow. We should adopt a merger and acquisition strategy instead."

Li Mo looked at him and asked, "What types of companies are you acquiring?"

Ling Yun replied, "Buy from upstream manufacturers with core technologies if you can. If you can't get a controlling stake, at least get 30% of the shares. You don't need a controlling stake, but you must ensure the security of the supply chain. This includes the main control chips for mice and keyboards, optical sensors, computer screens, batteries, and structural components."

Li Mo asked him, "Where will the funds come from?"

Ling Yun looked at Ma Baoguo. Ma Baoguo thought for a moment and said, "The electronics factory still has over 200 million yuan in cash. This year's profit is projected at 1.4 billion yuan. But we also need to invest in the laptop business..."

Ling Yun interrupted him, saying, "Focus on the acquisitions first. I'll handle the laptops from the group."

Ma Baoguo nodded and sat down. Li Mo also sat down.

Ling Yun looked at Wang Jianguo and said, "Mr. Wang, there's an arrangement regarding the software."

Wang Jianguo stood up and adjusted his glasses.

Ling Yun nodded and said, "Spark Technology's business is a bit too diversified now. There's the maintenance of the Starry Sky system, the development of new features, as well as databases and cloud storage. So we're splitting Spark Technology into two companies."

He wrote two lines on the whiteboard: Spark System Technology, Nebula Technology.

"System Technology, under the leadership of General Manager Wang. Continue the maintenance and development of the Starry Sky system. Focus on desktop and server applications, stabilize the domestic market, and build the ecosystem."

He then wrote down a few more words: cloud computing, database, cloud storage.

"Jiang Feng is in charge of Nebula Technology. They develop cloud computing, cloud databases, and cloud storage, targeting enterprises and developers. This market will be huge in the future, so we need to start laying the groundwork now."

Wang Jianguo nodded and sat down.

Ling Yun looked at Li Mo and continued, "Li Mo, you're in charge of the lab."

Li Mo stood up. Ling Yun walked to the whiteboard and wrote a few more lines: Mobile communication, low-power chips, wireless transmission, battery management.

He turned around and said, "Mobile communication will be a major trend in the next ten years. Mobile phones, laptops, and all kinds of mobile devices will need to be connected to the internet. Power consumption, signal strength, and battery life are all issues. The lab breaks down these challenges and distributes them to partner labs at various universities. Whoever takes on a task reports on their progress regularly. Rewards are given when milestones are reached. Those who successfully overcome these challenges can receive a house, a car, or money."

Li Mo asked him, "How are the reward criteria determined?"

Ling Yun thought for a moment and said, "It depends on the difficulty. A small breakthrough, tens of thousands of yuan. A big breakthrough, a house. You come up with a plan first, and I'll approve it."

Li Mo nodded and sat down.

Ling Yun looked at Ni Guangnan and said, "Mr. Ni, it's your turn to work on the chip."

Ni Guangnan stood up. He didn't take any documents; he just stood there. He glanced at the words written on the whiteboard, then turned to look at Ling Yun.

"At Qilu Microelectronics, we invested 200 million US dollars last year. The design team has been set up, and the process team has also been established. But the progress is too slow. With just this amount of money, it is difficult to achieve results in a short period of time."

Ling Yun looked at him and said, "I'll give you ten billion US dollars."

Ni Guangnan held up one finger and said, "."

The conference room fell silent instantly. Ni Guangnan was stunned. Ma Baoguo's pen fell to the table with a thud. Wang Jianguo's glasses slipped, and he adjusted them.

Ling Yun continued, "Ten billion sounds terrifying. But do the math, how much does Intel invest in R&D every year? Seven or eight billion US dollars. How much does TSMC invest every year? Two or three billion. If we want to catch up, we have no choice but to invest. And now is the perfect time. The internet bubble has burst, and those chip companies are all short of money. Equipment is cheaper, and talent is easier to poach. If we miss this opportunity, we won't get another one."

"This 10 billion should be enough to last three years. Within three years, we can get the high-performance chip design running smoothly. As for the manufacturing process, we can buy second-hand equipment and modify it ourselves."