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In the office, Su Ning looked at the bulky Motorola phone on the table.

This is the latest model that Afu just brought back from Hong Kong. It costs over ten thousand yuan, but its functions are pitifully simple...

It can only make phone calls, the standby time is less than a day, and the signal often drops.

"Is this what mobile phones are like nowadays?" Suning frowned. "Expensive and difficult to use."

“Yes, Master,” Afu said. “This is a simulated signal cell phone; the technology is very outdated. But in China, only wealthy people can afford one.”

Suning put down his phone. "Afu, we need to make phones."

Afu wasn't surprised; he already knew his master had this idea.

“Master, the mobile phone industry is very complex,” Afu warned. “It’s not just about assembly; it involves chips, screens, batteries, software… the entire industry chain. We only have experience with pagers right now, so making mobile phones would be very difficult.”

“I know,” Su Ning said. “So we can’t rush it, we have to take it one step at a time. You should first investigate whether there are any relevant companies in China that we can acquire. Especially those factories that have the strength but lack funds and technology.”

“Understood,” Afu said. “However, Master, making mobile phones requires a lot of capital. Although we have money now, the scale is too large, and the risks are also high.”

“Money is not a problem,” Su Ning said. “Shenzhen-Hong Kong Electronics currently has a monthly profit of 20 million yuan, which is more than 200 million yuan a year. With bank loans, we have enough funds. The key is time.”

“Afu, remember this: if we’re going to do something, we’ll do it big. We won’t just be assembly plants; we’ll build the entire industry chain—from chips to screens, from batteries to software, we’ll do it all ourselves. Acquiring the corresponding factories is essential, as we have existing factory buildings and skilled workers.”

Afu was startled. "Master, this...this target is too big. Even Nokia and Motorola from abroad don't have a complete industrial chain!"

“So they are destined to be eliminated.” Su Ning turned to look at him. “Afu, do you know what mobile phones will become in the future? They won’t just be for making calls, they will be smart terminals—able to access the internet, play games, take pictures, and navigate. If we only assemble them, we will always be following behind others. Only by mastering core technologies can we take the lead.”

Afu naturally understands what a "smart terminal" is, after all, it itself is the pinnacle of smart terminals.

"Yes, Master. I will investigate as soon as possible."

"Let's start with the components," Suning said. "Phone cases, batteries, chargers, earphones... these have low technical barriers, so we can start with those. Then we can gradually move up to screens and chips."

"Chips?" Afu gasped. "Master, chip technology has a very high barrier to entry. There are almost no related companies in China."

“If we don’t have one, we’ll build one ourselves,” Suning said. “Wafer fabs, chip design, packaging and testing… we’ll do it all ourselves. I’m already prepared to use the technology from the space world.”

"This still requires a lot of funding."

“Funding has never been a problem,” Suning repeated. “Afu, you have to understand that chips are the heart of the electronics industry. Without chips, we will always be at the mercy of others. Take pagers, for example; we have to import the core chips, and the majority of the profits are going to foreigners. We can’t let mobile phones continue like that.”

Afu understood his master's determination. "Yes, I will act as soon as possible."

"In addition, we will build a research and development team based on AI robots. At the same time, we will recruit the best engineers and build the best laboratories. We will spend money freely; what I want is results."

"clear."

……

Afu acted swiftly.

He assembled an investigation team, divided into several groups, to conduct investigations across the country.

One team went to Shenzhen to see if there were any electronic component factories they could acquire.

One group went to Guangzhou and Dongguan, where the electronics industry is well-developed and there are many small factories.

One group went to Shanghai and Beijing, where there are research institutes that can recruit talent.

Another group went to Taiwan and Hong Kong to learn about international technological developments.

A month later, Afu returned with the results of his investigation.

“Master, here’s the situation.” Afu spread out the map. “There are three electronic component factories in Shenzhen. They’re not large, but their technology is decent. They mainly make mobile phone cases and batteries, but they don’t have many orders and are struggling to operate. They’re willing to be acquired.”

"There's a charger factory in Guangzhou. They have good technology, but their cash flow has dried up, and they're about to go bankrupt."

"There are several small factories in Dongguan that make headphones and speakers. They are all family workshops, small in scale, but with low costs."

“There is a research institute in Shanghai that specializes in LCD technology, but it lacks funding, and many researchers want to switch jobs.”

“There are a few chip design companies in Taiwan. They are not large, but their technology is good. They want to enter the mainland market, but they don’t have the connections.”

Su Ning listened attentively, nodding occasionally.

“We’ll acquire all three companies in Shenzhen,” he said. “We’ll integrate them into one parts factory, specializing in mobile phone casings and batteries.”

"We'll also acquire that charger factory in Guangzhou. But we'll need to upgrade the equipment and improve the quality."

“We’ll pick two of the better small factories in Dongguan and acquire them. As for the others, we can cooperate with them and have them do the manufacturing.”

“That research institute in Shanghai is poaching me. They're offering double the salary, and they'll cover housing and children's schooling. I want their entire team to come over.”

"Forget about Taiwanese chip companies! They're all a bunch of idiots with no brains! We'd rather use the technology and equipment from our space world."

Ah Fu wrote them all down.

“Master, the initial estimate for all of this is fifty million,” he said.

"Approved." Su Ning didn't even blink. "The money will come from the company account. If that's not enough, take out a loan as much as possible. Don't use the funds from the spatial world unless absolutely necessary."

"Yes."

“Also,” Su Ning added, “we need to build a research and development center in Shenzhen. It needs to be large and equipped with advanced equipment. It needs to have laboratories, testing rooms, and sample rooms. We also need to build a dormitory for the R&D staff.”

"Ok."

“Afu, you’re in charge of this personally,” Su Ning said. “I only care about the results—within one year, we need to have our own parts factory, capable of producing phone cases, batteries, chargers, and earphones. Within two years, we need to have our own screen production line. Within three years, we need to have chip design capabilities.”

"Yes, I promise to complete the mission."

Afu knew that this was a massive plan and a daunting task.

But he wasn't worried at all, because he had his master's support, enough funds, and the abilities granted by the system.

……

The news spread quickly.

"Is Shenzhen-Hong Kong Electronics going to enter the mobile phone industry?"

"I heard they're going to acquire a lot of factories, build R&D centers, and even make chips?"

"President Su is about to make a big splash!"

There's been a lot of discussion within the industry.

Some people are optimistic, while others are skeptical.

“Mobile phones are not pagers; the technical barriers are much higher. Shenzhen-Hong Kong Electronics succeeded in making pagers, but that doesn’t necessarily mean they can succeed in making mobile phones.”

"Yes! So many factories in China want to make mobile phones, but very few have succeeded. Even established brands like Panda and Bird couldn't make it work."

"But President Su has money and guts. Maybe he can really make it happen."

"It's hard to say, we'll see!"

Xiao Ran and Liu Yuan also heard about it.

"Old Xiao, President Su is going to make mobile phones," Liu Yuan said. "I heard he's going to invest tens of millions."

“Yes.” Xiao Ran nodded. “He always does things on a grand scale.”

"What do you think we should do...?" Liu Yuan asked tentatively, "Selling mobile phones is definitely more profitable than pagers. If we could plan ahead..."

"You're overthinking it," Xiao Ran said. "We're in sales; we just need to do our jobs. Company strategy is not something we can get involved in."

"That's true," Liu Yuan sighed. "But Lao Xiao, do you think President Su can pull it off?"

"I don't know," Xiao Ran said, "but given his style, once he decides to do something, he'll definitely see it through to the end."

He actually admired Su Ning a bit; he was bold, decisive, and had guts.

They're both young people, but others are already planning their industrial layout, while I'm still worrying about sales performance.

The gap is widening.

……

Suning ignored the outside discussions and instructed Afu to expedite the acquisition plan.

The three parts manufacturers in Shenzhen quickly reached an agreement.

Shenzhen-Hong Kong Electronics invested 8 million to acquire three factories and integrate them into "Shenzhen-Hong Kong Precision Electronics Co., Ltd.", which specializes in the production of mobile phone accessories.

A charger factory in Guangzhou was acquired for five million yuan, and all its equipment was replaced.

Two small factories in Dongguan were acquired for three million yuan and transformed into OEM factories.

They poached the entire team from the Shanghai Research Institute, fifteen researchers including two professors and five PhDs.

Suning offered them exorbitant salaries: 10,000 yuan per month for professors, 8,000 yuan for PhDs, and 5,000 yuan for ordinary researchers.

In 1993, this was absolutely a top salary.

They also arranged housing for them and solved the problem of their children's schooling.

The researchers were very moved and said they would definitely do their best.

Then, a top-notch laboratory and R&D center were established, based on AI robots.

Construction on the research and development center began soon afterward.

They selected a 50-acre plot of land in Nanshan District, Shenzhen, and invested 30 million yuan to build a modern research and development base.

In just three months, Shenzhen-Hong Kong Electronics' layout in the mobile phone industry has begun to take shape.

Suning looked at the progress report and was very satisfied.

"Ah Fu, well done."

"Thank you for the compliment, Master," Afu said. "However, Master, we've expanded too much, and management is a problem. The factories we've acquired were previously very poorly managed and need to be reorganized."

“I know,” Su Ning said. “You’ll transfer a group of managers from Shenzhen-Hong Kong Electronics, especially AI robots, to take over completely. All the systems will be based on those of Shenzhen-Hong Kong Electronics. Those who don’t obey will be fired. Those who aren’t capable enough will receive training. What I need is efficiency and quality.”

"clear."

By the end of 1993, Shenzhen-Hong Kong Electronics' mobile phone industry layout had been fully launched.

Accessory factories started producing phone cases, batteries, and chargers; the quality was good, and the cost was low.

The research and development center was built, and the researchers began their work.

Everything is going according to plan.

In 1993, mobile phones were a luxury only for a select few.

But soon, it will be available to everyone.

What Suning needs to do is to plan ahead and seize the initiative.

When the mobile phone era arrives, Shenzhen-Hong Kong Electronics should become a leader, not a follower.

……

In the laboratory of Shenzhen-Hong Kong Microelectronics Company, Su Ning looked at the few chip samples that had just been prototyped on the table.

These are the first batch of mobile phone baseband chips produced according to a design provided by an American chip design company.

The performance is barely usable – high power consumption, high heat generation, and poor signal stability.

"Is this the best chip we can make right now?" Suning asked.

Dr. Wang, the technical director, wiped his sweat and said, "President Su, this is the limit of what we can do. The domestic semiconductor industry is too weak, the equipment is outdated, and the process is not keeping up. The technology of this chip is at least five years behind that of foreign countries."

“Five years…” Su Ning frowned. In the electronics industry, five years means a generation’s gap.

Digital mobile phones are now being developed abroad, while China can't even make analog mobile phone chips properly.

"What about the other accessories?" Suning asked.

"Regarding the screen, we are still researching LCD technology, but progress is very slow," Dr. Wang said. "We can make batteries, but the capacity is low and the lifespan is short. Low-end accessories such as the casing and charger are fine, but the core components all depend on imports."

Suning remained silent for a moment.

"Dr. Wang, if I provide you with some... cutting-edge technical information, will you be able to digest it?"

"Advanced technical information?" Dr. Wang was taken aback. "How advanced is it?"

"It's two or three years ahead of the most advanced technologies abroad," Suning said. "For example, a more energy-efficient chip architecture, clearer LCD display technology, and higher capacity battery formulations."

Dr. Wang's eyes widened. "President Su, where...where did you get these technologies?"

"Never mind that," Su Ning waved his hand. "I only ask, if I give you this technology, can you make a sample within a year and start mass production within two years?"

Dr. Wang thought for a moment, “If we have complete technical data and sufficient funding, it should be possible. But Mr. Su, this requires a large investment in research and development, and success is not guaranteed.”

"Money is not an issue," Suning said. "I only care about the results."

……

That evening, Su Ning returned to his residence and entered the spatial world.

Everything he needs is in the system repository.

Chip design drawings.

Liquid crystal display technology.

Lithium-ion battery technology.

Mobile operating system framework.

These are technologies from around 1995, which are two or three years ahead of the most advanced technologies abroad today, but not so advanced as to raise suspicion.

Suning transferred all these technologies to the warehouse of Shenzhen-Hong Kong Electronics, along with various advanced equipment that money can't buy.

The next day, Afu was summoned again.

"Afu, send these documents to the R&D center." Su Ning handed him a thick file bag. "Tell Dr. Wang that these are technical documents I bought from abroad at a high price, and tell them to study them as soon as possible."

Afu took the file bag, opened it, and took a look.

The information inside is very detailed...

Chip design schematics, manufacturing processes, and testing plans; LCD screen material ratios and production processes; lithium battery electrode materials, electrolyte formulations, and packaging technologies…

There was even a framework design for a mobile operating system, which, although simple, already had the rudiments of an intelligent system.

"Master, these technologies... are too advanced," Afu said. "Won't it arouse suspicion if we suddenly bring them out?"

“So you said it was bought from overseas,” Suning said. “Just say that I asked people in Silicon Valley, Japan, and South Korea to get it. I spent a lot of money on it, so they will cherish it.”

"clear."

“In addition,” Su Ning said, “have Dr. Wang set up several specialized teams: chipset, screen, battery, and system. Each team will be responsible for one area and will work together in parallel.”

"Yes."

"And the advanced equipment in the warehouse is something that money can't buy."

"Understood! I'll gather the AI ​​team to install it right away."

Afu took the materials to the research and development center.

Dr. Wang's hands were shaking when he received the materials.

"This...this is incredibly detailed!" He flipped through the chip design diagrams. "I've never even imagined this architecture! Power consumption can be reduced by 30%, and performance increased by 50%!"

The head of the LCD group exclaimed, "This material ratio... can improve the display effect so much? The colors are more vibrant, and the response speed is faster!"

Battery experts were even more excited, saying, "This electrolyte formula... can double the energy density! And it's safer, less likely to explode!"

"Where did President Su get this from?" Dr. Wang asked Afu.

"President Su asked many people for help and spent a lot of money to get it from abroad," Afu said, following Su Ning's instructions. "You guys hurry up and do your research, and produce results as soon as possible. Money is not a problem. Buy whatever equipment you need, and hire whatever people you need."

"Great! Great!" Dr. Wang said excitedly, "With this information, we're sure we can do it!"

……

With the technical information provided by the system, the research and development progress was greatly accelerated.

The chipset completed the design of the new architecture within a month and began tape-out.

The screen assembly was prototyped in just two months...

A 3.5-inch color LCD screen, although the resolution is not high, the display effect is much better than the current black and white screen.

The battery pack produced its first batch of lithium batteries in just three months. The capacity of the lithium batteries is twice that of the current nickel-metal hydride batteries, and they are also lighter and thinner.

The system team is also working hard to develop a mobile operating system. Although it is still very simple, it can already realize basic menu operations, phonebook management, and SMS sending and receiving functions.

Suning was very satisfied with the progress.

But he knew he couldn't go too fast.

"Tell the R&D center not to rush," he told Afu. "Prototypes within a year, mass production within two years. Quality must be guaranteed; reliability cannot be sacrificed for speed."

"clear."

“In addition,” Suning said, “the production lines need to be prepared. The chip production line needs to be upgraded, the screen production line needs to be built, and the battery production line needs to be renovated. All of these take time and need to be planned in advance.”

“It’s already underway,” Afu said. “In Shenzhen, we’ve built a new chip packaging and testing plant. In Guangzhou, we’ve built a screen module plant. In Dongguan, the battery production line is being upgraded.”

“Okay.” Su Ning nodded. “Remember, our goal isn’t to make the most advanced phone, but to make a phone that’s slightly more advanced than foreign products. A little better performance, a little cheaper price, and a little more stable quality. That’s enough.”

"clear."

Afu knew his master's strategy: not to pursue technological leadership, but only cost-effectiveness.

Using technology that is two or three years ahead, we can make products that are slightly better than those from abroad, and then seize the market by relying on price advantages.

This strategy is very pragmatic.

Given China's current industrial base, it's unrealistic to expect it to produce world-leading mobile phones.

However, it is entirely possible to produce a mobile phone with a higher cost-performance ratio than foreign products.

Moreover, the domestic market is huge.

As long as the product is good and the price is reasonable, it will definitely sell.

……

In early 1994, Shenzhen-Hong Kong Electronics held its first progress report meeting on the mobile phone project.

The heads of all the branches have arrived.

Dr. Wang from the chip company reported, "The design of the new architecture baseband chip has been completed and is currently in the tape-out stage. Mass production is expected in the second half of the year. Its performance is 50% higher than that of chips currently on the market, while power consumption is reduced by 30%."

Mr. Li, the general manager of the screen company, reported, "The 3.5-inch color LCD screen sample has passed testing, and we are optimizing the production process. We expect to be able to start small-batch production by the end of the year."

Mr. Zhang, the general manager of the battery company, reported, "The lithium battery samples have passed the safety test, and their capacity is twice that of nickel-metal hydride batteries. The production line upgrade is complete, and mass production can begin at any time."

Mr. Zhao, the general manager of the accessories company, reported, "Accessories such as mobile phone cases, chargers, and earphones can now be mass-produced. The cost is 40% lower than that of imported accessories."

The head of the system development team reported, "The basic framework of the mobile operating system has been completed, and we are currently working on improving its functions. It is expected to be installed on the prototype by the end of the year."

After listening to the report, Suning nodded. "The progress is good, but we need to speed it up. I want to see our own mobile phones on the market in 1995."

"Mr. Su, isn't 1995 a bit too rushed?" Dr. Wang said. "Mass production of chips takes time, the yield rate of screens is still not high, and the system is unstable..."

“I know there are difficulties,” Su Ning said, “which is why we need to hurry. Money is not a problem; we’ll provide as much as you need. If we don’t have enough people, we’ll hire more; if we don’t have enough equipment, we’ll buy more. What I want is results.”

"Ladies and gentlemen, mobile phones are the future. No matter how popular pagers are, they will eventually be phased out. We must plan ahead and seize the opportunity. In 1995, a large number of foreign brands will enter the Chinese market. We must establish a foothold before they arrive."

"Yes!" everyone replied in unison.

"In addition," Suning said, "we must keep our technology confidential. Our technology is slightly ahead of that of foreign countries, which is our advantage. We cannot leak it, especially our chip and screen technologies."

"clear."

After the meeting, Suning called Afu over.

"Afu, the construction of the production lines needs to be accelerated. In particular, the chip production line needs to be put into operation as soon as possible."

“Yes, Master,” Afu said. “However, Master, chip production requires a lot of capital. A single production line costs tens of millions.”

“Money is not a problem,” Su Ning said. “Shenzhen-Hong Kong Electronics currently has a monthly profit of 30 million yuan, plus bank loans, so we have plenty of funds. Just go ahead and do it.”

"clear."

Afu knew that his master was going all out.

But this is normal.

The mobile phone industry is inherently a money-burning industry.

Without sufficient funding and technological expertise, it simply cannot be done.

Fortunately, the owner had foresight and made arrangements in advance, and also had access to the technical information and equipment provided by the space world.

The odds of winning are very good.

After Afu left, Su Ning closed his eyes to rest, feeling tired. Huang Yunyun, however, obediently took the initiative to massage Su Ning.

"Yunyun, your technique is getting more and more skillful."

"You've worked too hard."

"With you by my side, this little bit of hardship is nothing."

"My dad invited you to his house for dinner, probably because he wants to talk about us."

"Yunyun, actually I don't plan to get married. I hope you can understand."

"Why?" Huang Yunyun's hand suddenly paused in surprise.

"Marriage is too much trouble! I have too many women outside, and if I get married, it would be unfaithful to my wife."

"This……"

"Yunyun, don't worry! I will definitely not treat you badly. You can have anything you want, except for that marriage certificate."

"Including having your children?"

"Of course! My business is so big, it always needs an heir."

"Okay, fine! Just let me have your baby."

"Yunyun, let's work hard when we get home tonight."

"Ah."

...(End of chapter)