Three days later.

As agreed, Jiang Xinlu led the company's management and technical team to Shanghai Capital. In the conference room of Xingchen Technology, Boss Jiang met many familiar colleagues in the industry.

Fenghua, Sanhuan, Torch, Shunluo, Aihua, Jianghai, and the bosses of these manufacturers were found by Luo Jia. Most of them were large factories, but there were also several small factories that were not very famous.

In order to get up the team as soon as possible, Luo Jia relaxed the entry standards for partners. There is no way to find too many powerful manufacturers in semiconductor-related fields. Most of the time, Xingchen Technology has to face the difficult situation of fighting alone.

"Mr. Liu, long time no see."

"Yes, I haven't seen you for more than half a year."

"Well, the last time should be the same time at the end of last year, in Chengdu."

They are all people in the industry, and everyone is familiar with each other and soon started chatting.

The peers are enemies. Although the bosses are fighting lively, they seem particularly sincere today because the giant Star Technology is about to enter the passive components field. The past grudges have been eliminated. In the future, everyone will follow Star Technology to work, and the future is exciting.

People from the Ministry of Administration and the Ministry of Commerce were busy greetings and distributed tea and drinks to everyone.

Not long after, Luo Jia came to the conference room. This time An Ran did not appear. Since Senior Qi Mengzhou became pregnant, An Ran has been running at both ends of her family and has become very busy.

The one who came with Luo Jia was Shen Lang. He just celebrated his thirteenth birthday and is now a full member of the Brain Storm Group. He has a position in the company and is Luo Jia’s personal assistant.

Shen Lang receives salary and bonuses from the company every month. At a young age, he is already a typical golden-collar class. His monthly salary is more than his parents in one year. His parents and family are also very happy about this. He said that letting Shen Lang go to Xingchen University was the most wisest decision in his life.

"Hello everyone, please sit down." Luo Jia nodded and greeted everyone.

So everyone sat down one after another, and Luo Jia walked onto the podium and said to everyone who came from afar with a smile: "Welcome to Xingchen Technology. I am a person who doesn't like nonsense. Let's go straight to the point and invite you to visit. There is no other meaning, just to concentrate everyone's strength and take down the field of passive components for him!"

"Everyone is an expert, so I won't keep it a secret. Passive components are a relatively small branch in the semiconductor field, but they are very important. How important is it?"

"In every mobile phone, every computer, and every car, there are thousands of passive components, but consumers often don't know much. They are more concerned about CPU, memory, and communication baseband."

"However, we are very clear that without passive components, no matter how powerful CPU is, it cannot run. Take Apple's iPhone 7 generation as an example. Each iPhone 7 phone has 890 mlcc capacitors, 149 resistors, 27 chip inductors, 17 winding inductors, 212 electrodes, 15 duplexers, 51 zero-pass filters, 38 saw filters, 13 baw filters, and 8 power amplifiers."

"And the iPhone7 is already an old model. The new mobile phone with more powerful functions has more passive components installed. As of 2018, the global sales of mlcc type capacitors alone have exceeded 4 trillion!"

"This is an amazing number, equivalent to seven billion people around the world, each of which consumes 571 ceramic capacitors. If you tell this number to the melon-eating crowd that doesn't know the truth, many people will be stunned."

Everyone was not surprised when they heard Luo Jia's words, but just chuckled twice.

As practitioners in this industry, they have long known the data that in this world, the consumption of passive components is much more than people think. Simply put, as long as it consumes electricity, no matter whether it is an electric bicycle or an electric vehicle, an electric *** or an electric aircraft cup, after disassembly, there are a large number of passive components inside.

At this time, Luo Jia took out a PCB board, pointed to the dense capacitors and resistors on it and said: "The PCB board is what the public usually calls a circuit board. There are a large number of circuit boards installed in mobile phones, computers, TVs, and washing machines."

"So far, the cost of passive components has accounted for 80% of the PCB board. With such a huge sales and market, it should be quite profitable to use passive components, and the fact is that the profits in this industry are not low, but unfortunately the profits have been made away by foreigners."

"According to the data in 2018, the two passive components, Neon Murata and TDK, all had sales exceeding 7 billion US dollars, while the highest sales in my country was Fenghua Hi-Tech, which made 400 million US dollars, Jianghai Electronics made 1600 million US dollars, Yuyang, Fenghua, Torch, you all only had tens of millions of US dollars."

"This gap really makes people feel inspiring. In this industry, all mainland manufacturers can probably match one Wanwan Province Guoju Electronics, and all Wanwan Province manufacturers can barely match one North American Wiser. Adding two North American manufacturers, Wiser and Kimei, can match one Korean Samsung, and four Samsungs can match one TDK, while Neon TDK ranks second in the world."

"Let's take a look, this is the gap. In front of neon, South Korea is a slag. In front of South Korea, North America is a slag. In front of North America, Wanwan Province is a slag. In front of Wanwan Province, we are a slag."

"Of course, Samsung's passive components production line is just a small part of them. This Korean giant is really too powerful. It has been fighting with us for several years and is still alive. Its vitality is really tenacious."

Everyone was still laughing just now, but now they really couldn't laugh. It was very embarrassing to be said by Luo Jia.

Many things in the world are afraid of comparison, especially those like Luo Jia, who directly compare sales.

In fact, there are many passive parts made in China, but they cannot withstand poor quality and low price. Murata's capacitors are sold for one cent, and domestic ones are sold for twenty, so the gap comes out. Domestic manufacturers usually promote merchandising volume and do not compare sales, because if calculated based on sales, it is too ugly and has no shame to see people.

Luo Jia said lightly, "Xingchen Technology is determined to develop the semiconductor industry, but the difficulty is much greater than what we expected. To be honest, passive components are not considered core semiconductor technology, but only peripheral auxiliary systems, but even peripheral auxiliary systems need to be demolished and rebuilt. This is to remind us that there are too many pitfalls in semiconductors and it is not that easy to do."

"However, it's not OK to do it, because the opponent has told us with practical actions that, even if the passive components are just small things, they can kill themselves at critical moments!"

"Because we cannot grasp the initiative in the field of passive components, the competitors were raising prices wildly throughout 2017, and the initiator was not Neon manufacturers or Samsung, but Wanwan Province, which is separated from us."

"First, Guoju Electronics, the largest manufacturer in Wanwan Province, announced a price increase of 5%. Then in March 2017, the three major manufacturers of Wanwan Province, Haosheng, Wangquan and Huaxin, immediately announced their follow-up."

"On April 19, 2017, Guoju Electronics raised its price for the second time by 10%. In May of the same year, not only did the Wanwan Provincial peers follow the price increase, but also the neon manufacturers followed."

"On June 19, 2017, Guoju Electronics raised its price for the third time, with an average increase of 25%, and international giants followed up."

"On September 8, 2017, Guoju Electronics announced its price increase for the fourth time! The price was raised by another 25%, and international giants still followed."

"On December 1, 2017, Guoju Electronics raised its price for the fifth time in a year! And on the subsequent January 10, 2018, April 1, 2018, the sixth and seventh price increases! International giants still chose to follow up."

"Of course, Murata simply announced on March 2, 2018 that the old mlcc product line was suspended by 50%, forcing everyone to buy the high-priced new generation passive components. TDK and Sunsuidian saw that Murata had suspended production by 50%, and immediately raised its factory price by three times!"

"In short, after all, after a lot of operations from 2017 to 2018, the prices of passive components have been fully increased. The financial statements of major manufacturers are very good, and I also understand one thing. The peers in Wanwan Province are also unreliable, and only by doing it themselves is the most reliable."

After hearing Luo Jia's words, everyone couldn't help but look at each other. The price increase in the past two years was really tragic. In theory, domestic manufacturers could also gain some benefits from the price increase.

However, the prices of mid-range and high-end passive components soared, while domestic manufacturers are making low-end goods. They are not on the same competitive platform, so Fenghua Hi-Tech has made a little money, and other manufacturers continue to live a hard life.

But then again, if domestic manufacturers have the ability to create mid-to-high-end goods, it would be strange if the Wanwan people and Neon people dare to raise prices. It would be similar to the price war between domestic manufacturers.

Luo Jia drank a cup of tea, took a break, and continued: "Anyway, we have understood the situation clearly, we know your difficulties, and we also know where our current needs are."

"We have made certain technical improvements to the capacitors, inductors, resistors, and filters that were used extensively before. The samples have been shown to you. The specific technical details will be distributed to you after the contract is signed. In terms of grade, it should be higher than Murata, which is currently the best technology in the world, and will increase by about 20%.

"Increase 20%? Wouldn't it be possible to make mlcc to more than 600uf!?"

"It's one step closer to the limit of solid-state capacitors!"

"Muranda and Sunset's limit is only 500uf!"

Everyone suddenly became very excited. Everyone in this industry believed that mlcc, that is, ceramic capacitors, belong to the future, and the rest of the tantalum capacitors, aluminum capacitors, and solid-state capacitors are all facing the fate of being eliminated.

The only problem is that although the ceramic capacitor is very good and powerful, the limit technical indicators are a little worse. Solid-state capacitors can easily achieve 1000uf, while ceramic capacitors can only achieve 500uf.

If Xingchen Technology's technology is 20% stronger than the highest level on the market, giant companies like Murata will probably be tortured to death due to the production costs of Chinese companies.

However, just as everyone was excited about getting the technical support of Star Technology, Luo Jia suddenly said lightly: "Well, you will be responsible for traditional passive parts in the future, and we will solve the problem ourselves."

What the hell is the next generation?

In an instant, the conference room was silent.

"Mr. Luo, what happened to the next generation of passive parts?" A boss asked curiously.

Luo Jia opened a sealed box beside him and took out a black one, about the same size as a rice grain and similar to a capacitor.
Chapter completed!