Rebirth 08: Rise from copycat phones

Chapter 631 Car Companies Frenzied for the EYEQ7
The EYEQ project team under Zhiyun Group released the EYEQ7 solution and invited a large number of car manufacturers to watch it. However, this news did not spread... and was only circulated among senior executives within the automotive industry.

After all, the EYEQ project team's clients are not individual consumers, but enterprise clients, so there's no need to hold any public press conferences or other promotional events.

The only official publicity was a news item published on the official website of Zhiyun Group, announcing that our EYEQ project team had successfully developed the EYEQ7 solution... It was quite low-key.

Only a small number of people who pay close attention to changes in the news on the Zhiyun Group's official website will know about it, but the scope of the relevant information is still relatively small.

This is also why the EYEQ project team has left ample room for publicity for major car manufacturers... Many car manufacturers are preparing to 'develop' their own L3 level assisted driving technology, and plan to release it next year.

As a technology solution provider, the EYEQ project team of Zhiyun Group naturally needs to cooperate with these customers to carry out 'independent research and development'.

They won't make a big show of it and then go around shouting that these car manufacturers are garbage, have no independent R&D capabilities, and that the driver assistance technologies they use are actually their own solutions...

Although Zhuyun Group kept a low profile about it, and the general public was unaware of the news, executives from major automakers acted swiftly upon hearing it.

After Zhiyun Group's EYEQ7 passed testing, its sister company, Weiku Electronics Group's Xiaolan Auto, took the lead and signed a cooperation agreement with Zhiyun Group to equip its Xiaolan Auto models with the EYEQ7 technology solution next year. Moreover, it will be a deeply customized version that requires additional payment, and they also requested that the logo on the PX8 chip be removed.

Bluegogo plans to print their own logo on the PX8 chip. They not only want to 'self-develop' L3.9 level assisted driving technology, but also 'cooperatively develop' a five-nanometer automotive-grade computing chip... When they do, they will promote the PX8 chip as a deeply customized and improved version based on the needs of their top-level L3.9 level intelligent driving technology.

Zhuyun Group provides the PX8 chip, and Xiaolan Auto provides the logo... Who dares to say this isn't collaborative research and development?
Even if some people question it, it won't be a big deal. They won't need their online trolls to refute it; a large number of Bluegogo smart terminal users will naturally step in to defend it and insist that it was a collaborative development project...

"Weiku Electronics Group is also Xu Shenxue's core enterprise, possessing strong R&D capabilities. What's wrong with collaborating on the development of a chip?"

"Let alone collaborative research and development, developing a three-nanometer automotive-grade computing chip entirely on our own tomorrow would be a piece of cake!"

The power of fans is immense... Otherwise, Bluegogo would not have been able to sell over 100,000 vehicles in its first year as a newcomer to the industry, with its first new car.

The Xiaolan brand within the Vcool Electronics Group is a brand that has mastered the fan economy, the kind that many manufacturers both despise and envy... It's clearly just an assembly, design, and sales manufacturer with little core technology, yet it constantly portrays itself as second to none, second only to Zhiyun. Therefore, many of its peers actually look down on the people at the Vcool Electronics Group.

But I'm genuinely envious... They've managed to make such a good use of the fan economy, directly impacting sales, profits, and brand appeal... They can even sell tens of thousands of electric cars just by assembling them without any core technology; most companies don't have that capability.

Many people in the automotive industry, after thoroughly disassembling and analyzing Bluegogo cars, come to the conclusion that this crappy car, apart from the logo which is developed in-house by Vcool Electronics Group, has everything else sourced from various suppliers.

Other car factories at least produce some parts themselves, and even develop and produce some core components, such as motors. But Vcool Electronics Group does not do that. Except for the car body frame, which they produce themselves, everything else is purchased.

Their car factories are purely assembly plants.

However, Bai Qiwen and his group at Vcool Electronics Group were proud of this... If the automotive industry weren't so special and not suitable for a pure OEM model, they wouldn't even want to build their own assembly plant, but would completely outsource production to achieve the goal of zero factories.

Because Vcool Electronics Group has always followed a light-asset business model, they focus on design, assembly, and marketing.

This is the only way to control R&D and production costs, and ultimately maintain a good profit margin even with a relatively low product selling price and a relatively low gross profit margin.

In the automotive industry, Vcool Electronics Group is also following this path as much as possible. Apart from setting up an assembly plant to produce the necessary body frames, they do not produce or research and develop anything else...

This is the core idea promoted within the Vcool Electronics Group: "Develop products based on a mature supply chain, and then open up the market with strong design integration capabilities and brand marketing capabilities!"

Of course, it's not just Vcool Electronics Group that does this; in fact, many manufacturers do it too... There are plenty of asset-light companies in the smart terminal industry.

There are even more examples in other industries. Many well-known brands in various sectors, from clothing to toys to other consumer goods, don't actually have their own factories. They all outsource production.

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After Bluegogo, a subsidiary of Vcool Electronics Group, first reached a cooperation agreement with the EYEQ project team of Zhiyun Group, just one day later, Dami, one of Vcool Electronics Group's main competitors, also approached Zhiyun Group for talks and quickly reached a cooperation agreement.

The development of DaMi's smart electric vehicles is nearing completion, and the factory is currently under construction. They expect to launch their first-generation DaMi car to the market next summer.

They originally planned to use the EYEQ6 solution, but now that the better EYEQ7 solution is available, they will naturally use it as well... Otherwise, if Bluegogo cars all have Level 3 assisted driving next year, and their rice cars don't have Level 3 assisted driving, wouldn't they be at a disadvantage?
This won't work!
As fierce rivals with significant business conflicts and similar operating models, DaMi is unwilling to fall behind in both the smart terminal and automotive sectors.

Their new cars must also have the EYEQ7 solution... and solid-state batteries are also a must.

Xiaolan Auto and Dami Auto, two newcomers to the industry, have both entered the market with huge cash flow and brand appeal. Other automakers are no exception!

And they're all in a hurry... mainly because most car companies have decided to use the EYEQ7 solution in their new models next year. However, this driver assistance system solution isn't something you can just buy and use right away.

A large number of experiments and tests are still needed for adaptation... If there is a need for in-depth customization, then some time should be reserved for in-depth customization.

The EYEQ project team at Zhiyun Group also has limited manpower, and the number of technical personnel who can cooperate with car companies for adaptation, optimization, and even deep customization is also limited... With so many customers, there will naturally be a waiting list.

These car manufacturers are now vying for this waiting time!

In order to save time and get Zhiyun Group to arrange technical personnel to carry out in-depth customization or optimization as soon as possible, they didn't even negotiate the price much. They would just make a small discount and sign the contract if it was acceptable.

Although the EYEQ7 system is still the same old algorithm plus chip, plus lidar, camera and other sensors packaged together and sold, the package price is not cheap... However, these car companies do not intend to use this system in low-end models. It is basically intended to be used in models priced above 200,000 yuan.

The price of this car model has room to support the cost of intelligent driving... Not to mention, many car manufacturers also recoup costs by charging in various ways after installing this system in their cars. For example, some car companies offer consumers a one-time sale or monthly payment model to reduce costs.

This is interesting. The hardware for driver assistance systems is already sold to consumers along with the vehicle, but activating the driver assistance mode requires an additional fee...

This is what Bluegogo, Tesla, and many other automakers do...

Hailan Auto is an exception. Its high-end models come standard with or its mid-range models offer Level 4 autonomous driving capabilities as an option, without requiring additional payment or monthly fees.

Don't think that Hailan Auto is doing charity work; in fact, their model is more extreme: they directly include the cost in the vehicle price.

For example, if you want to add the L4.2 autonomous driving function to the Hailan SLMC, you need to pay an extra 180,000 yuan, which is not cheap.

Furthermore, subsequent upgrades also require additional payment. For example, the initial system was L4.0, and upgrading to L4.1 would require an additional payment of 30,000.

Upgrading from L4.1 to the current L4.2 system requires an additional payment of 30,000 to 80,000 yuan.

This is the price in China. In developed countries overseas, the price would be even higher for optional features and upgrades!

The standard L3 in the low-end model is similar; it's called standard, but it seems to be free, with no monthly fees or buyout charges!

However, it was still included in the vehicle's price.

Furthermore, subsequent upgrades will also require additional payment!

Most importantly, the cost of Hailan Auto's L3 level is actually very low. The algorithm technology is outdated technology from many years ago, and the hardware is also a mature but outdated product... The hardware cost is at most a few thousand yuan.

They all use EYQ4 chips, which are several years old and use a 10nm process. Zhuyun Semiconductor has already launched the EYQ6 chip… there's a two-generation gap. Of course, because of the EYQ series chips' inherently special architecture, larger size, and higher power consumption, and because they use 2.5D packaging, even the 10nm EYQ4 still boasts impressive computing power!

Compared to the current PX8 chip, this chip appears to use a 5-nanometer process, but the overall chip area is not large, the cost is relatively low, and the architecture is also somewhat inferior. Its integrated computing power is far inferior to that of the EYQ6, which is also manufactured using a 5-nanometer process... These two are not products of the same level.

It's roughly the difference between flagship products and mid-to-low-end products of the same era... their performance gap is huge.

The L3 assisted driving system used by Hailan Auto uses other components, especially the hardware of sensors, which are mature products. After years of large-scale production, the cost has dropped to a very low level.

However, the EYEQ7 system released by Zhiyun Group is different. Although the sensors are similar, Zhiyun Group adds a markup... They sell it as a package and make a profit from the price difference.

This results in other automakers paying significantly more for the EYEQ7 solution than for Hailan Automotive to use L3 assisted driving—at least double the cost.

The cost of purchasing the EYEQ7 solution from various automakers is not low... However, not a single automaker haggled over the price; they all signed contracts readily in order to adapt the system as quickly as possible.

Within just a few days, first came Bluegogo, then Dami Auto, followed by Huawei Auto – these three smart terminal manufacturers that transitioned to this field. Subsequently, BYD also signed a cooperation agreement with Zhiyun Group. It is worth noting that although BYD signed the contract later, it received a lower price for the goods, and Zhiyun Group will also prioritize sending teams to optimize and adapt the products for them.

Because BYD is large enough and has a larger order volume!
Their new energy vehicles are approaching two million units in annual production and sales... and they are special plug-in hybrid models, with obvious competitive advantages. Their models priced around 200,000 yuan are also selling very well.

While Bluegogo's annual sales of over 100,000 vehicles seem impressive, BYD has several models in the same price range that outsell it...

Not to mention they also have a whole host of models in the price range of 150,000 to 200,000 yuan, which have very high sales volumes...

Meanwhile, BYD is also a core major customer of the EYEQ project team of Zhiyun Group, and has previously provided them with L2-level and L2+-level assisted driving solutions.

Large customers receive preferential treatment... No matter how much Bluegogo boasts, their sales volume is only so-so, so their purchase price is naturally not as cheap as BYD's!

Besides BYD, other domestic manufacturers of new energy vehicles have also approached us to discuss cooperation, but their order volumes are not large...

Among overseas automakers, Tesla was the first to approach them. Although they had previously abandoned the EYEQ solution in favor of their self-developed driver assistance technology, the situation is different now. Anyone with a little inside information in the industry knows that by next year, L3 driver assistance technology will not be ubiquitous, but it will be widely adopted in new energy vehicles priced above 200,000 yuan. Naturally, Tesla will not cling to its own driver assistance technology.

So they went back and signed a cooperation agreement with Zhiyun Group, ordering the EYEQ7 solution to be used in their high-end models, while the low-end models would continue to use their own driver assistance technology.

Needless to say, Fruit Cars also placed an order... They originally planned to use their own hard-won assisted driving technology, but now that they see that Zhiyun Group's EYEQ7 solution has been released, what's there to consider? Ordering a batch for the high-end models is a must, while the low-end models can use their own assisted driving solution.

Tesla and Apple Auto are making similar choices... They plan to use the EYEQ7 solution for high-end models and their own driver assistance technology for low-end models.

Meanwhile, major overseas automakers have a good relationship with Xu Shenxue. Volkswagen Group, which has had many collaborations in the fields of power batteries, auto parts and European factory construction, is the first international gasoline vehicle giant to cooperate with Zhiyun Group on the EYEQ7 solution.

They are also planning a major push next year... Next year, they plan to launch a brand new smart electric vehicle simultaneously in the European, Chinese, and even American markets!
It's worth noting that this major model, which they are still developing, is scheduled to use solid-state batteries from Hailan Battery for its power battery, and the driver assistance technology will use the EYEQ7 solution from Zhiyun Group... These two points are not special; other car companies are basically the same, including Apple and Tesla.

However, their car was actually developed in China using a team from a subsidiary of China. This included the overall vehicle design, interior design, and electronic control system... including core subsystems such as energy management, braking system, electric drive system, steering system, and powertrain system. All of these were developed by the R&D team in China.

Furthermore, most other core components also utilize mature and advanced domestic supply chains…

They chose: If you can't beat them, join them!

The competition in China's automotive market is now extremely fierce. Their overseas teams can no longer keep up with the pace of research and development. Therefore, they have invested heavily in establishing multiple large-scale R&D centers in China and are also conducting R&D in collaboration with joint ventures... and this R&D is still mainly carried out by the domestic team.

The resulting new generation of Volkswagen smart electric vehicles, developed in this way, are hard to categorize as either German or Chinese cars…

It's not just the Volkswagen Group that does this; many international automotive giants do it, and some even did it back in the era of gasoline-powered cars.

Of course, only a very small number of companies can succeed in this endeavor... Most international automakers have failed even when they tried!

Following Volkswagen, many other international automakers have also reached cooperation agreements with Zhiyun Group to purchase the EYEQ7 system, but the scale is not large, and many are just trial projects.

For example, although several Japanese automakers also chose to purchase the EYEQ7 solution, they were very cautious and placed small orders.

They have a huge technological advantage in the field of gasoline-powered vehicles, a stable market, and their sales of gasoline-powered vehicles are even rising globally. Moreover, they still have their sights set on developing hydrogen energy. In addition, their supply chain is very heavy, so there is great internal resistance if they want to transform!

It's not something that can be done simply because a few managers want to get involved in new energy!
Then Hyundai in South Korea is doing something similar, also seeking cooperation, but they don't seem to be in a hurry. They have never paid enough attention to the field of new energy vehicles and have almost no reliable large-scale transformation plans... and the price they pay is a sharp drop in sales in China!
Just four or five years ago, their annual sales in the domestic market were over one million vehicles, but now, their annual sales are only slightly over one hundred thousand vehicles, and they are still declining... Their sales are not even as high as those of Bluegogo.

General Motors and Ford in the US are interested, especially Ford. They are not conservative and also want to develop new energy vehicles, but their own technology is lacking, so they also want to purchase the EYEQ7 solution...

In the past, Xu Shenxue wouldn't have bothered with them at all. Because of a huge conflict in the automotive industry years ago, the other party shamelessly used off-the-ground means to impose a 100% tariff on Hailan Auto in the US market, which angered Xu Shenxue...

I'm not selling cheap cars to the American market. I'm selling high-end luxury cars that start at hundreds of thousands of dollars. I'm not going to touch the lifeline of your low-end and mid-range cars. Are you out of your mind to mess with me?
Xu Shenxue directly retaliated by imposing a 100% tariff on American automobiles and refusing to cooperate with these two companies on any form of new technology!
Starting many years ago, he stopped selling all kinds of new technologies from all his companies to these two car companies... He only sold technologies that were one or two generations behind.

However, Xu Shenxue has recently changed his mindset... He wants to promote the development of intelligent electric vehicles globally and wants to become a core upstream supplier in the global automotive market.

GM and Ford are also major automakers with substantial sales, so this time they've been given a special exception, allowed to purchase the EYEQ7 solution. Ideally, this would allow them to become technologically dependent on their own power batteries and driver assistance systems in the future…

Once they become technologically dependent, don't blame Xu Shenxue for severing their vital arteries with a large cleaver!

Xu Shenxue holds grudges!
When he discovered that the technology blockade couldn't kill the other party, but instead made them actively look for other alternative manufacturers, he decisively switched to technology dumping.

But their determination to kill them remains unchanged!
Sigrún has taught at the Iceland University of the Arts as a part-time lecturer since and was Dean of the Department of Fine Art from -. In – she held a research position at Reykjavík Art Museum focusing on the role of women in Icelandic art. She studied fine art at the Icelandic College of Arts and Crafts and at Pratt Institute, New York, and holds BA and MA degrees in art history and philosophy from the University of Iceland. Sigrún lives and works in Iceland.

While many car companies have successively reached cooperation agreements with Zhiyun Group on the EYEQ7 solution, Xu Shenxue, who is in charge of all of this, has not appeared. He did not even participate in the testing site of the EYEQ7 solution.

He was nowhere to be seen in any of the subsequent collaborations!
After finalizing the overall development plan, he washed his hands of it... The subsequent matters were naturally handled by his senior management team, who ultimately carried out his will: to promote the development of intelligent electric vehicles globally.

After Xu Shenxue formulated his own strategic plan, he shifted his focus... After entering August, Xu Shenxue's work focus shifted to the autumn launch event of Zhiyun Group.

Compared to many future strategies, Zhuyun Group's smart terminal business, especially the S-series mobile phone business, remains a very important cash cow business.

The S series mobile phones are the core products of the smart terminal business, and their revenue, along with the revenue generated by other smart terminals, exceeds three hundred billion US dollars.

This will also drive related software and internet businesses, spare parts businesses, hardware peripherals, etc., which together will generate several hundred billion US dollars in revenue.

The smart terminal business, especially its core S-series mobile phones, is an indispensable and important business segment for the massive Zhiyun Group, and cannot afford to lose it!

Every year, as the autumn launch event approaches, Xu Shenxue personally oversees the production and inventory preparation, supply chain operations, launch event, and subsequent sales of the new S-series mobile phones.

Even from a technical standpoint, current smartphones have fallen into a state of innovation stagnation, with little change in their technical features and no groundbreaking technologies that could ignite the world.

However, in terms of revenue and profit, as well as the overall development of the industrial chain it drives and the millions of direct and indirect jobs it provides, the smart terminal business remains the most core business of Zhiyun Group, without exception!

Xu Shen has always attached great importance to this!
(End of this chapter)