Technology invades the modern world

Chapter 368 This is a consideration of maximizing profits
"Thank you all for your cooperation. We have successfully found the right path. The rest is up to the industry."

This is not my victory alone; it is the result of the contributions of everyone here.

Afterwards, I will contact Nature or Science to have our findings published as a special issue, in which everyone will be listed as an author.

The signatures are not ranked in any particular order, but are arranged according to surname.

Lin Ran said with a smile.

Everyone spent the entire spring here, without going home for the Lunar New Year, only letting each other know they were safe by phone.

In Lin Ran's view, being listed as an author on a paper is merely a basic reward after passing this test.

That's something he can do. As for the advanced rewards, it depends on how the national government allocates them.

A scholar in the audience raised his hand and asked, "Professor, shouldn't we keep our findings confidential? If we make our results public, wouldn't that give foreign countries a chance to catch up?"

Lin Ran explained: "Of course, we are only announcing the principles, the breakthroughs at the mathematical level, from mathematics to the experimental end, the breakthroughs in experimental data, to tell the outside world how we saw the path to the breakthrough of photovoltaic modules from mathematics, and then how we followed this path to the end."

We are only releasing this much.

As for the path from laboratory components to industrial production, it can be seen as pioneering; we have opened up a new road in the wilderness, a new road that allows cars to travel freely on it.

This new road will not be announced.

Technological breakthroughs are not that simple. They did achieve industrial-scale mass production, but only in theory. They found a path, and by following this path and this plan, you can achieve industrial-scale mass production.

Such industrialized mass production can theoretically guarantee yield rate, reliability, and cost.

But theory is theory, and reality is reality.

In reality, the production side still encounters a variety of problems during large-scale production.

Adjustments to the existing production line are needed, some new materials are required, and the process needs to be re-run, all of which incur costs.

It's difficult to achieve the theoretical cost at the beginning; you still need time to work things out.

As the technology is distributed to different major photovoltaic manufacturers, different production process details will emerge.

Longi, Tongwei, and Jinko definitely don't use the exact same manufacturing process.

Technological breakthroughs are only the first step, industry integration is the second step, and widespread adoption in sales is the third step, which then forms a cycle.

The process involves continuous adjustments and optimizations, widespread adoption at the sales end, feedback from users, and adjustments in the laboratory. Only through this cycle can the entire process gradually mature and eventually completely replace the old production line.

It doesn't mean that as soon as Lin Ran's technology breaks through, the production side can immediately replace it on a large scale.

This is just the first step in making the snowball work.

“Professor, but once they understand the principles, it’s easy for foreign countries to break through the mass production process in the industrial sector.” Another scholar raised his own question.

Lin Ran nodded: "That's right, but the problem is, as long as we carry out large-scale production, as long as we deliver the technology to enterprises, can the secret be kept?"

Mass production, technology secrecy, and technology participants constitute an impossible triangle.

No technology can do all three of these things at the same time.

We should have confidence in China's photovoltaic industry. Given its dominance, even if other countries knew about it, they wouldn't be able to catch up.

There is no doubt that photovoltaic power initially relied on subsidies.

In its early days, America was a major player in the photovoltaic industry. The technology originated with America, and throughout the 90s, America dominated the research and development and manufacturing of the photovoltaic industry.

Although China entered the industry late, it quickly overtook others by relying on subsidies, vertical integration of the industry, and supply chain dominance.

Subsidies are only one aspect. Europe also has subsidies. Germany introduced feed-in tariffs through the Renewable Energy Sources Act, which propelled European photovoltaic installations from less than 1GW in 2000 to about 30GW in 2010.

America, on the other hand, subsidized the photovoltaic industry through policies such as investment tax credits and the California Solar Initiative.

Subsidies are only one aspect; the more important factors are the comprehensive integration of technology and supply chain, and the government's long-term commitment to investing in photovoltaics.

Everyone here is an industry insider. Although you may not have received any external projects from companies, you are all very familiar with the development of China's photovoltaic industry.

They knew very well that if they competed in a fair environment, Chinese photovoltaic companies would definitely be able to compete with European and American companies.

Of course, this involves the degree of rolling.

Chinese engineers are truly capable of doing this. They work tirelessly in factories, often exceeding their capacity, to achieve technological breakthroughs, optimize processes, collect and report problems, and assist with production.

In China, the industry is interconnected, involving workers, engineers, and R&D personnel across the entire chain.

Why do European and American companies keep accusing you of unfair competition when they can't compete with you? Because when they report problems, it might take them up to six months to resolve them. But when they report problems in China, if they can't be resolved in three days, engineers will come directly to the factory to conduct on-site debugging.

There is a fundamental difference in efficiency between these two approaches.

Researchers can also stay in the lab, and working overtime is commonplace.

"Professor, the results have been approved in Yanjing. This is the main person in charge of the New Energy and Renewable Energy Department in Yanjing. He will personally discuss the details of the subsequent cooperation with you."

Song Nanping brought in a middle-aged man wearing a black jacket. Lin Ran nodded and left him in Lin Ran's office.

“Mr. Lin, my name is Wan Song. On behalf of Yanjing, I would like to thank you in person for your contribution. You have not only solved a major problem for us, but also given us a new way out of our current predicament of having money but nowhere to use it.”

When Song Nanping introduced Wan Song, he downplayed Wan Song's rank.

"At the same time, our colleagues in the financial sector have made a fortune during this period. The start-up capital for the newly established central enterprises was raised directly from the US capital market."

Wan Song continued, "Including after the continued penetration of new energy vehicles, some comrades' doubts about the grid's carrying capacity have also been dispelled."

This refers to the persistent concern that the increasing ownership of new energy vehicles will place an unbearable burden on urban power grids.

This problem can certainly be solved by upgrading the power grid, but in essence, it still increases the demand for electricity. With China's current power generation method, which mainly burns coal, the problem of air pollution still cannot be solved.

The emergence of new photovoltaic modules has provided China with a better solution.

Lin Ran replied without hesitation, "This is what I should do. I have always held the view that the country is my best partner."

While there are certainly factors behind this, such as patriotism, a sense of national responsibility, and the idea that with great power comes great responsibility, there are also more practical considerations.

It's very simple. Take the financial capital operations associated with this photovoltaic technology revolution as an example. How much capital can you, as an individual, leverage? You need to raise money from the market, find traders to manage the transactions, and find counterparties. Throughout the entire process, whether it's the potential for information leakage in the transactions themselves or the strength of the effect of you, as an individual, releasing information to the market, it's far less significant than the Chinese government's actions.

The amount of capital that can be leveraged is vastly different from the final return.

With the national team managing the operation, the final profit could be in the hundreds of billions, even though the unit is RMB. If Lin Ran were to manage the operation, the maximum profit would be in the billions of US dollars, and that would still have to be split with Pony.

This is the power that the state apparatus can wield.

Moreover, once you reach a certain stage in your business, it's no longer just about you as an individual. There are many things you can't decide on your own; you have to communicate and coordinate with the government to obtain the corresponding authority.

Taking real estate as an example, how can developers sell for whatever price they want? If developers want to lower prices, they can't lower them too much; they will be forced to stop.

The same thing happened in America, where the president even directly intervened in company CEO hiring through social media, naming names and saying that so-and-so was unsuitable and needed to be replaced.

The president's use of social media to interfere in corporate personnel changes—if this had happened ten years ago, it would have likely caused a mental breakdown, making people wonder if it was an April Fool's joke.

Of course, this isn't the first time Big T has done this. Back in 2018, he said that GM CEO Mary should be replaced immediately.

This is not the first time President America has done this. Jimmy Carter and Obama have done the same. Obama publicly criticized BP CEO Tony and said he should be fired, and BP actually fired him shortly after, for which they had to pay a huge fine.

These things simply won't be reported on the Simplified Chinese internet, but in reality, government intervention in businesses has always existed, both domestically and internationally, and is difficult to avoid.

This is especially true for aerospace companies.

Lin Ran's approach is the best solution for a Cold War politician who has spent many years in the White House, making a choice that maximizes his own interests and is the optimal solution given his own position and background.

For him, whether his personal assets increase or decrease by a billion dollars or more is really not that significant. The high level of trust, greater autonomy, and support from Yanjing are far more important than money alone.

Even if Lin Ran had a hundred billion dollars in cash, he couldn't possibly run away abroad; the money would just be a number.

"Mr. Lin, the people of Yanjing have never doubted your patriotism and contributions to the country, and we have always treated you as a national hero."

That's right. In addition to the national first prize and corresponding honors, Yanjing will establish a new central enterprise with a paid-in capital of 100 billion RMB. As I just mentioned, part of the proceeds from this financial attack will be used as the start-up capital for this central enterprise.

This newly established state-owned enterprise has two main business segments: one is to promote the implementation of new photovoltaic technologies through technological cooperation, and the other is to promote the implementation of new photovoltaic technologies.

The implementation includes both urban renewal projects and the installation of new photovoltaic panels on the rooftops of residential buildings, which allows electricity to be used locally and reduces the pressure on the urban power grid.

Photovoltaic projects in the northwest frontier, etc.

Apollo Technology will own 20% of the company through a technology-based equity investment.

"Then, Mr. Lin, you can appoint a senior executive, and we will assign them a suitable position based on their abilities."

What does this mean? It means that if someone has the ability, they should be assigned to a position with actual business; if someone doesn't have the ability, they should be assigned to a salaried position such as union chairman or appointed director.

"Okay." Lin Ran nodded after listening. The position was at most an add-on, an extra bonus. The real prize at this level was the 20% stake in the state-owned enterprise.

Of course, due to the mixed ownership structure of Apollo Technology, the amount that ultimately indirectly reached him was definitely not as much as 20%, but it could still be said that he was closely connected with the country.

"Is China's technological breakthrough in the photovoltaic field genuine or just 'claimed'?"

After the trading session ended, Jack Stewart returned home and, as usual, browsed Reddit for a while.

Today, Reddit brought him unimaginable profits, which made him love the platform even more.

For traders, insider information is sometimes more important than their own trading instincts.

It gives you more time to trade and allows you to get to the heart of the matter faster.

Fund managers in the A-share market receive insider information 20 seconds before trading begins, and then make a large-scale purchase before the market opens. Similar operations in America's capital markets are countless.

On Reddit's Solar forum, everyone is discussing the latest technological advancements in China.

This is a forum dedicated to discussing solar energy, with approximately 170,000 users. It was created in December 2008.

In the past, most of the discussions here have been about wanting to build a solar power station on my farm, getting quotes from local installers, and whether those quotes are reasonable.

Then, the comments will almost certainly mention China, with responses like "Why is it so expensive?" or "China is so much cheaper."

In America, the price quote for installing solar panels on a villa rooftop is divided into three parts. The first part is the system itself, which includes solar panels, inverters, and the solar system, and the quote for these is $28000. Then there is the transportation cost, which is $16000. Finally, there is the installation cost. All of this can be packaged together for $50,000, which is already a very low price.

In China, even if you choose Huawei's smart photovoltaic system, the overall price for the same specifications, including installation and use, will not exceed 10 RMB.

This leads to China being constantly mentioned in the solar energy sector, from price and quality to why America is lagging behind in photovoltaics, and finally, the phrase "we are losing the future."

After China announced a major, unprecedented technological breakthrough in photovoltaics, the hottest topic of discussion was about this.

In the pinned post of the forum, researchers, photovoltaic users, practitioners, and photovoltaic enthusiasts in the industry expressed their opinions.

"Of course it's true. The capital market doesn't lie. The plunge in oil prices proves everything. Commodities don't rise and fall for no reason. Clearly, China's technological breakthrough in the photovoltaic field has had a fatal impact on oil prices."

"What I'm concerned about now is when we can get Chinese photovoltaic products into America at a reasonable price, instead of artificially creating unfair market factors that force us to buy super expensive American local products."

People who can afford, are willing to buy, and are willing to install photovoltaic power generation facilities themselves are well aware of why photovoltaics are so expensive in America.

Because of the high taxes, China cannot export directly to America and has to go through a third country for transshipment trade.

Then the local service provider adds another layer of price.

If imports could be made directly from China, and communication could be established with Chinese merchants through Amazon, some calculations have shown that costs could be reduced by at least 70%.

This is also a major blow to America's shale oil industry.

What concerned Jack Stewart most was one of the replies:
"My advisor is a reviewer for Nature's paper on photovoltaics, and the technological breakthroughs in China are real, 100% true."

This user, whose ID is Almond Candy, is an active user on the Solar forum and is known for his professionalism. This is the first time he has mentioned his personal background.

"The most crucial point is that China has built a completely new model that bypasses the Shockley-Quyther limit."

This is a groundbreaking work in the field of materials science. Mathematicians who might have been able to do this in the past would not have focused their attention on the photovoltaic field. Materials scientists working on photovoltaic problems simply do not understand such advanced mathematics.

This is a game-changing application of mathematics in the field of materials science.

(End of this chapter)