I can become stronger by paying salaries. I have one billion employees!

Chapter 581 Annual output value of 120 billion US dollars! I'm convinced it was you who did it, just wait for the war to begin!

In mid-March, the weather in Xucheng was gradually getting warmer. The early cherry blossoms downstairs in the Science and Technology Park were about to bloom, and the golden osmanthus was sprouting tender buds, swaying gently in the spring breeze.

Following Pinbei, Orange Payment, and Today Technology's relocation to Luzhou, Tiangong Technology and Orange Communications also began their relocation work, packing computers and office supplies into boxes and entrusting them to the 'Kuai De Moving' team for transportation to Luzhou.

The once bustling Zhuxianzhuang Industrial Zone has suddenly become even more deserted.

Only the research and development labs of Orange Technology and Orange Auto remain.

Before leaving, Ye Qiuping insisted on reporting her work to Chen Yansen.

Master Ye's intentions were obvious.

This work report lasted for two hours, and Chen Yansen listened very attentively.

After Ye Qiuping left, Chen Yansen leaned back in his chair for a short rest, pondering his next plan.

This Friday, March 21, Tiangong Technology will hold a new product launch event to introduce the Tiangong B100 and Tiangong C100.

On the 1st of next month, Orange Technology will also hold a spring new product launch conference, at which time it will launch new models of Qingcheng, Orange and Yaocheng systems, as well as new products in categories such as Alexa smart speaker, Orange Pad, Orange Magicbook, power bank, Bluetooth headphones, etc.

In Shenzhen, DeepBlue Technology's third factory has already started production, and together with the first and second factories, the annual production capacity is as high as 30 gigawatt-hours.

Based on the current supply price of Deep Blue batteries, the annual production value is US$120 billion.

BYD and CATL, as contract manufacturers for DeepBlue Technology, have also achieved an annual production capacity of 25 gigawatt-hours after expanding their production lines.

It's worth noting that global lithium battery production last year was only 37 gigawatt-hours.

In other words, driven by DeepBlue Technology, China's battery industry has become the world's largest.

When traditional automakers develop new energy vehicles, the first thing they do is go to Shenzhen and secure a supply contract from DeepBlue Technology before they dare to take the next step.

The domestic electric vehicle industry has also entered a period of comprehensive upgrading and replacement, showing a trend towards high-end, intelligent and long-range vehicles.

The prices have become polarized. The original lithium batteries have been impacted by DeepBlue Technology, and their prices have become cheaper and cheaper, leading to Aima, Yadea and Tailg releasing a bunch of electric vehicles priced under 1,000 yuan.

They share very similar characteristics: large battery size, short battery life, weak power performance, slow charging, and simple appearance design.

Electric scooters equipped with DeepBlue batteries start at over 2000 yuan, with the mainstream price range between 3000 and 5000 yuan, and their range can even reach 150 kilometers.

One charge lasts for three days.

In contrast, Orange Motors has remained silent since launching the Orange Q1 electric scooter, appearing to be keeping a low profile.

With this model, Orange Auto achieved total sales of 137 million vehicles in 2013, generating revenue of 13.7 billion yuan and a net profit margin of 11.4%, making it a product with low profit margins but high sales volume.

Therefore, at the year-end performance review meeting, Chen Yansen gave Cheng Zilong the New Year's task: to develop new car models and enter overseas markets.

We need to focus on the high-end market, but we can't neglect overseas markets either.

After all, Senlian Capital has a deep foundation in the fields of fast charging and power battery technology.

We can't just let money slip by, can we?
"Knock knock knock—!" A crisp knocking sound rang out.

"Come in," Chen Yansen replied casually, snapping out of his reverie.

Guo Shenyi led a foreigner in a suit and tie into the room.

"Hello, Mr. Chen."

Maximilian was extremely respectful when facing his new boss.

The reasons are simple. First, the other party offered him a 40% salary increase and stock options worth 200 million euros. Second, Chen Yansen's name is not only a household name in China, but also has a considerable influence in Europe and America. Working for the other party is an honor and a source of pride for him.

For example, a significant proportion of the employees at Li Ka-shing's Cheung Kong Holdings are foreign nationals.

In fact, whether they are white or black, as long as they are paid enough, these people will still be willing to risk their lives.

It's just a job; whoever pays the most is the god of wealth.

"Please take a seat."

Chen Yansen raised his hand in a gesture.

Guo Shenyi consciously left the room and closed the door.

Maximilian is 32 years old, French, and a graduate of Thackeray Business School. He joined Rocket Internet nine years ago, following in Oliver's footsteps and copying a bunch of projects.

The most impressive achievements are Panda Delivery and Lazada.

The former was acquired by Delivery Hero for $1.5 million, while the latter was bought by Pinduoduo for $7.5 million.

In just six years, Maximilian has spearheaded two successful projects, demonstrating his remarkable abilities.

Of course, what Chen Yansen values ​​is his deep insight into the European food delivery market and his mature resource network.

The online food delivery industry in Europe has always been known for its "decentralization," "localization," and "high barriers to entry."

Different countries have vastly different food cultures and consumption habits, as well as different logistics systems and regulatory policies. Even the mainstream payment methods are significantly different. Foreign companies often have to pay extremely high trial and error costs to gain a foothold in this market.

However, during his time at Panda TV, Maximilian quickly grasped the operating rules and strategies of the local food delivery market.

By accurately grasping users' dietary needs and building a differentiated delivery network, the brand has covered major cities in 12 European countries in just two years.

His extensive practical experience has given him a thorough understanding of user pain points, competitor weaknesses, and supply chain shortcomings in different regions of Europe.

More importantly, Maximilian has accumulated a wealth of resources over the years of managing operations.

From communication channels at the central level to partnerships with small and medium-sized catering businesses and logistics service providers, as well as resources from local European payment platforms and banking institutions, these are the essential stepping stones that Chen Yansen needs to establish a foothold in the European food delivery market.

Thinking of this, Chen Yansen looked at Maximilian in front of him and said with a light smile, "I know you have achieved a lot of remarkable results in the European food delivery market, but what I want is not to copy and paste, but to gain the right to speak in the entire European food delivery market."

The implication is that he poached Maximilian to compete head-on with Delivery Hero, Takeaway, and Hungry House.

"Mr. Chen, the fact that Delivery Hero is constantly acquiring and merging with similar software shows that the competition among food delivery platforms in Europe is extremely fierce."

Frankly, I believe that while Kuaipao's delivery route planning, intelligent order dispatching, and capacity management system might gain a certain market share in Europe, it will be very difficult for them to overthrow Delivery Hero's dominant position.

Maximilian thought for a moment and answered seriously.

Fearing that Chen Yansen's expectations were too high, he simply laid it all out in the open, exposing the risks and difficulties, and then added: "Since 2010, Delivery Hero has acquired and merged with several leading regional platforms."

Today, they hold over 35% market share in the food delivery market across 26 European countries, especially in core markets like Germany, France, and the UK, where customer loyalty is extremely high, and many restaurant chains only want to partner with them.

At this point, Maximilian looked up at Chen Yansen, his eyes filled with sincerity: "I don't mean to be pessimistic, but I think you should be clear about the actual situation. With Kuaipao's current strength, it's no problem for them to get a share of the European market, but it will take at least 3 to 5 years to shake Delivery Hero's dominant position."

Chen Yansen leaned back and chuckled softly.

Maximilian truly deserves to be called a professional manager trained by Oliver. Putting aside everything else, his strategic vision alone is extremely rare.

In fact, he already knew the situation the other party was talking about.

"If Delivery Hero were a spineless coward who could be crushed with a pinch, why would I spend so much money to poach you?"

Chen Yansen asked in a nonchalant tone.

Before Maximilian could respond, he continued, "You think it will take 3 to 5 years for Kuaipao to shake Delivery Hero's market position because you're looking at it from the perspective of 'competing head-on with them in terms of resources and subsidies.'"

But you know Delivery Hero, yet you don't know the true strength of Kuaipao.

Before planning to enter the European food delivery market, he conducted a detailed investigation of platforms such as Delivery Hero, Takeaway, and Hungry House.

Delivery Hero relies on acquisitions to monopolize the market and on heavy spending to lock in merchants, but it also has a host of weaknesses. For example, its over-reliance on mergers and acquisitions has led to internal system chaos, with user data and delivery networks on different platforms not being able to communicate with each other.

With high marketing investment, profit margins have been severely compressed; last year, the net profit margin of the European business was less than 2%.

The biggest competitive advantage of the food delivery industry is its economies of scale!
Secondly, there are intelligent scheduling systems, precise recommendations, dynamic pricing, and subsidy strategies.

The massive scale of orders generates a huge amount of data, and the data, after being processed by algorithms, will in turn strengthen the moat of scale.

Data is the fuel, and algorithms are the engine.

The larger the scale, the more data, the smarter the algorithm, the higher the efficiency, the lower the cost, and the better the user experience, further consolidating the scale advantage.

In this regard, KuaiPao, with 60 billion food delivery orders annually, has long developed a highly efficient algorithm model.

The last point is also crucial: the massive rider delivery network and ground promotion team constitute a significant asset barrier.

For Chen Yansen, the least daunting thing is the expenditure on human resources.

While others earn 2%, he can earn only 1%.

After hearing Chen Yansen's description, Maximilian's concerns vanished instantly, his eyes lit up, and he had higher expectations for his new job.

In his view, if Senlian Capital invests regardless of cost, Kuaipao Waimai may well be able to defeat Delivery Hero.

Putting everything else aside, DeepBlue Technology's annual net profit alone could buy several Delivery Heroes.

If the two sides reach a stalemate in the European market, the capital behind Delivery Hero will likely become restless and force the two companies to merge.

Otherwise, no investor can accept the inability to generate profits in the long run.

Chen Yansen and Maximilian talked for more than an hour and roughly determined the expansion plan for the European market.

First stop, the United Kingdom.

Only after establishing a firm foothold will they expand into Germany, France, and Finland.

Upon joining the company, Maximilian immediately began preparations, including recruiting ground sales staff, delivery riders, and operations personnel.

Some delivery drivers who were about to be transferred to the European market were completely bewildered when they learned that they would also have to learn English.

If I could learn English, why would I need to deliver food?

However, the base salary, order commission, order completion bonus, and tipping mechanism in the European market made them extremely envious.

Guaranteed monthly income of 3 yuan!

So, these delivery riders who only knew how to say "hello" and "goodbye" went to the company's training classes after get off work every day, lured by the high income, and frantically started learning foreign languages.

Of course, there are also delivery drivers with good English skills, but they make up a small percentage.

At 3 p.m. that day, Mike Keller walked into Chen Yansen's office with a dark expression.

"Boss, TSMC in Taiwan sent a notice that due to insufficient capacity for the 28nm process, they will be cutting orders by 20%."

Mike plopped down and said in unison.

Although he was a research-oriented person, he had worked at AMD and Apple for many years and was very knowledgeable. He immediately realized that there was definitely someone behind TSMC's move.

20%?

Chen Yansen understood that this was Zhang Zhongmou testing him.

Regardless of whether they approach GlobalFoundries or UMC, if Tiangong Technology can resolve the capacity issue, TSMC Taiwan will cease its production control measures; otherwise, it will intensify them.

"Starting from the second quarter, we cut TSMC's foundry orders by 40% and gave 20% to GlobalFoundries and UMC respectively."

Chen Yansen immediately made a decision.

Morris Chang wants to be a lackey for North American semiconductor companies, so he'll grant his wish.

If you don't want to make money, then cut another 20% of your orders.

When Liang Jinsong achieves mass production of 28-nanometer process chips, that will be the day when Star Source Technology officially goes to war with TSMC in Taiwan.

"Okay, boss, I'll get right on it." Seeing Chen Yansen's assertive attitude, Mike couldn't help but smile.

After Mike left, Chen Yansen took out his phone, dialed Ren Zhongfei's number, and called him.

the other side.

After receiving the reply from Tiangong Technology, Chen Jiaxiang, General Manager of TSMC's Dahua Region, frowned. Just as he was about to report to his boss, his phone rang again.

He Boting, President of HiSilicon!
He hesitated for a few seconds, then pressed the answer button.

Is HiSilicon also reducing orders?
What a coincidence!
Chen Jiaxiang immediately realized: this was a joint effort by Chinese chip design companies to exert pressure.

In Ren Zhongfei's view, if TSMC dares to restrict Tiangong Technology's production capacity today, it will dare to restrict HiSilicon Semiconductor's production capacity tomorrow.

We can't just let others take advantage of us, can we?

Therefore, Ren Zhongfei readily agreed to Chen Yansen's request after receiving his call.

If we don't band together now, are we just waiting to be humiliated by TSMC in Taiwan?
Even though GlobalFoundries and UMC's manufacturing fees and yield rates were not as high as TSMC's, Ren Zhongfei still notified He Boting to voluntarily reduce her order volume by 20%.

After pondering for a while, Chen Jiaxiang relayed the reactions from Tiangong and HiSilicon to the chairman.

"Tiangong and HiSilicon are very resistant, let's leave it at that for now."

Zhang Zhongmou pondered for a moment, then said calmly.

Paul Jacobs threatened him with Qualcomm's orders, and he had no choice but to comply, since Qualcomm was the dominant player in the mobile processor industry.
However, with Tiangong, HiSilicon, GlobalFoundries, and United Microelectronics Corporation as alternatives, he couldn't hold Chen Yansen and Ren Zhongfei by the throat.

Unless Paul Jacobs can persuade the heads of GlobalFoundries and UMC to cooperate, he doesn't want to offend Tiangong and HiSilicon to the point of no return.

at the same time.

Upon learning of the situation, Paul Jacobs immediately instructed his assistant, Sanjaya, the CEO of Yogdrofond, to call Hung Chia-tsung, the chairman of United Microelectronics Corporation (UMC).

To his surprise, even though he promised some technical and financial compensation, the two men still refused.

Just as he was wondering what was going on, Chen Yansen called.

"Paul, by doing this, you will only cause Tiangong Technology to completely abandon the use of Snapdragon processors."

Chen Yansen's cold voice came through the microphone.

“Mr. Chen, I didn’t do it,” Paul Jacobs denied outright.

"I'm convinced you did it. Just wait for the war to begin!"

Chen Yansen snorted coldly.

"..." Paul Jacobs was about to defend himself when Chen Yansen hung up the phone.

Go to war?
I don't believe you can represent the position of all mobile phone manufacturers in China!

Paul tossed his phone aside and muttered to himself in a sinister tone.

Qualcomm only needs to lower its supply price and increase its supply volume, and those Chinese mobile phone manufacturers will pounce on it like vicious dogs, licking the soles of its shoes affectionately.

Did Chen Yansen really think that Qualcomm's market share in China would decline after leaving Senlian Capital?
(End of this chapter)