Tech startup: I really do make mobile phones!

Chapter 172 "CK Group" Takes the Stage

Netherlands, Eindhoven

The air in the Queen Hotel's multi-functional conference room was thick with a barely perceptible tension.

Zhou Mingzhe was the last to enter the room, his gaze sweeping around solemnly.

My team has just completed a basic security check and environmental inspection of the conference room to ensure it is a safe place.

The door closed silently behind me, shutting out all the noise from the outside world—this was a closed-door meeting that would determine the fate of Orange Science's expedition.

Choosing to stay at the Queen Hotel, which is a bit further away, instead of the Corning Hotel arranged by ASM, was a decision made after careful consideration by Zhou Mingzhe.

The two CK-PAS 1.0 precision alignment systems, which embody Orange Technology's core technologies, have already required a huge investment in hardware.

On the eve of ASML's official announcement of the list of bidders for the alignment system of its next-generation EUV lithography machine, any oversight, especially the potential leakage of core trade secrets such as "cost" and "price," could lead to failure.

Zhou Mingzhe, being cautious by nature, could not take this risk.

In the center of the conference room, the expedition team carefully assembled by Orange Technology was already in place.

The technical backbone's eyes gleamed with absolute confidence in their company's products, while the sales staff clutched thick stacks of documents, preparing for a price war without bloodshed.

They have unquestionable confidence in the performance of CK-PAS 1.0.

Yesterday's test results from the ASMI technical review panel were like a perfect technical showcase: static accuracy of 0.000018°/h!

This figure puts competitors Chase (0.0008°/h) and Honeywell (0.0009°/h) far ahead by 40-50 times!

This almost pushes the limits of scientific theory (the Earth's annual rotational drift is only 0.0001°), representing the pinnacle of current global inertial alignment technology.

"The shortlist is a done deal!" Mr. Liu, one of Orange Technology's technical consultants, also arrived. His voice was resolute, which drew nods from everyone.

The confidence of the Orange Science team stems from their absolute overwhelming strength.

Zhou Mingzhe sat down in the main seat, tapped the table, and said in a steady voice: "Everyone, the shortlist has never been a problem. Now, what we need to decide is the bid price for tomorrow's auction!"

"We want to maximize profits for Orange Technology while winning the bid? Let's get started!"

He gestured to his assistant to project the "Analysis of Reasonable Pricing for CK-PAS 1.0 System," which had been prepared overnight, onto the large screen.

The meeting room was instantly ignited by a heated discussion among the Orange Technology team.

Value-based pricing is the most popular approach.
"The performance gap is generational!"

The previous generation alignment system for Zeiss coordinate measuring machines sold for 95 to 134 kilos!

Our accuracy is 44 times that of theirs!
Referring to the pricing rules of precision measurement and alignment systems, the price doubles for every order of magnitude improvement in accuracy. We have improved by tens of orders of magnitude, so the basic benchmark should be 4 times higher, at 380-536 million euros!
Moreover, a 30%-50% technology premium (494-804 million euros) in the precision field is an ironclad rule in the industry!

The offer of 804 million euros was too outrageous, and Zhou Mingzhe immediately shook his head and rejected the value-based pricing method!

Market Anchoring and Premium Pricing Methods:

"Honeywell dares to price commercial products used in the measurement field that have an accuracy level that is one order of magnitude lower than ours by $100!"

Asmay's bottom line was $400 million, which in itself is a signal of the client's willingness to pay.

The performance-price elasticity model shows a 50x performance advantage, with a pricing range that is 5-10 times that of competitors!
霍尼韦尔市价测量对准系统100万美刀×5倍就是500万美刀，×10倍就是1000万美刀！

Our reasonable range is $500 million to $1000 million!

This is also outrageous. It seems that everyone is very confident in the technology, but Zhou Mingzhe still rejected the market anchor and premium pricing method.

Cost and profit target pricing method:

The finance manager of Orange Technology, who came along this time, adjusted his glasses: "The material cost is $25 per set, and the total cost for a small batch is $20. Our target profit margin for this bid is 330%-450%?"

"No problem! A quote of $600-800 million will perfectly cover the R&D investment and achieve a gross profit margin of over 450%!"

As the finance director of Orange Technology, he is quite price-sensitive, so his pricing strategy, which starts with cost price, is more practical.

He continued, "Mr. Zhou! I suggest three rounds of bidding:"
The base break-even price is $400 million (covering R&D and high gross margin), the bidding strategy price is $420 million to $860 million (fully capitalizing on technological advantages), and the long-term agreement price is negotiable for large volumes.

The key risk is the technology window of opportunity!

"Chase and Honeywell are not to be underestimated. Our technology is already a generation ahead, and they could very well catch up in 2-3 years. The first order must be worth a high price to cover our R&D costs; I suggest no less than $800 million!"

Three bids were offered, and everyone discussed, calculated, and weighed the pros and cons.

Zhou Mingzhe, the bidding manager for Orange Technology with a technical background, remained calm at this moment, listened to the opinions of his team members, and finally decided to adopt the cost and profit target pricing method.

First round offer: $860 million.

Second round of bids: $600 million.

Third round of bids: $420 million.

From high to low, step by step, we must demonstrate technological confidence, leave room for maneuver, and ensure substantial profits above the bottom line.

The following day, at Asmac headquarters campus.

The result is no suspense.

When Paul, a technical engineer from Asmay's global procurement department, personally handed Zhou Mingzhe the notification letter bearing the words "Shortlisted Supplier," the two exchanged a smile.

It was because Paul had noticed Orange Technology at the Shenzhen Industrial Expo that they had this opportunity to bid.

"Zhou! Congratulations!" Paul smiled sincerely. "I sincerely hope that your CK company will win in the end, so that I can be in charge of liaising with you. I've always wanted to take my daughter Ellie to plant flowers!"

Zhou Mingzhe responded enthusiastically: "Welcome! Paul, come to Chongqing, I'll take you to see the night view of our parent company's flagship store, the 'Half Orange Building,' and treat you to the most authentic hot pot!"

"The parent company?" A hint of surprise flashed in Paul's eyes. "There's an even bigger conglomerate behind CK? No wonder your precision manufacturing capabilities are so astonishing!"

Zhou Mingzhe's smile faltered for a moment, then he said somewhat vaguely, "It's the parent company, not a group. Besides, it's not actually involved in precision manufacturing!"

"Oh?" Paul's curiosity was fully piqued: "Then what does it do?"

With a subsidiary like CK, which is a top-tier precision manufacturer, the other party's group must also be a well-known manufacturing giant in China!
Paul clearly didn't understand the relationship between Orange's parent company and Orange Science's wholly-owned subsidiary, and assumed it was the CK Group.

Zhou Mingzhe touched his nose, with a touch of the honesty typical of a tech person: "We make smartphones."

"A smartphone?" Paul's bright green eyes widened instantly, his face filled with disbelief.

Why would a group whose main business is making mobile phones try to tackle one of the most core and sophisticated subsystems in a lithography machine?

This crossover is way too outrageous!

The conversation ended after Paul checked his watch.

"It's time, Zhou! Take your team and come with me to the conference center."

ASMI Headquarters Conference Center.

This place is home to the world's leading technology giants.

The gleaming marble floor reflected the cool light, and the professional simultaneous interpretation equipment and huge circular projection screen all highlighted the significance of this bidding process.

Reporters with their long lenses and microphones had already set up their equipment, and flashes of light were going off one after another.

ASML President Winnick stepped onto the stage, and under the spotlight, he outlined the blueprint for the next generation of EUV lithography machines—the "crown" of human precision manufacturing and a model of global business cooperation.

Winnick deliberately turned this bidding event into Asma's best publicity stage.

He announced with great enthusiasm the three core subsystems to be tendered and the shortlisted candidates:
Light source systems: Cymer (North America), TRUMPF (Germany), and Chizon Photonics (Japan) – the battle among light source giants is as expected.

Optical systems: Zeiss (Germany), Nikon + Giga (Japan), Leica (Germany).
Chase's "God's Eye" lives up to its name, Nikon Falcon is also a formidable competitor, and as for Leica... well, I've already partnered with a mobile phone brand, what more do you want?

When the list was announced, there were only professional whispers and applause from the audience.

Alignment System: ASML's technical review manager picked up the list and announced clearly, "Shortlisted Suppliers: Zeiss (Germany), Honeywell (North America), Terez (France)"

The brief pause seemed to be gathering strength for the next name.

Then, a name that was both clear and unfamiliar to the field of precision manufacturing was read out.

"And .CK Micro Motor (planting flowers)."

boom!
The whole audience was boiling in an instant!

Reporter area:

"CK? Chine?"

"Micro Motor? They make micro motors? Can they make lithography alignment systems?"

"Is it a mistake?"

A cacophony of doubts, gasps of surprise, and the frantic clicking of camera shutters filled the air.

Reporters from several long-established media outlets in Europe looked at each other, their faces clearly saying, "This is impossible."

Supplier area: Unaware representatives from other subsystem suppliers, especially several heads of North American companies, leaned forward noticeably, their brows furrowed, exchanging incredulous glances.

A representative of a neon light source supplier subconsciously adjusted his glasses, his gaze behind the lenses sharp and complex, subtly revealing a hint of wariness and fear.

Have flower-growing companies made breakthroughs in the most critical and precise areas?

Only the heads of Chase, Honeywell, and Terez, who witnessed the CK-PAS 1.0 test data yesterday, appeared relatively calm, but beneath that calm lay immense pressure and gravity.

Zhou Mingzhe and his team instantly became the focus of the entire event.

Those gazes, whether curious, questioning, shocked, or scrutinizing, seemed almost tangible as they were cast upon him. Zhou Mingzhe subconsciously straightened his back, his face expressionless, but his eyes unusually firm.

He knew that the real battle had just begun.

The bidding process has begun.

The bidding for the light source and optical system has been finalized, with Cymer and Zeiss winning the bids respectively, though the prices remain undisclosed.

Finally, it was the alignment system's turn.

Zhou Mingzhe took a deep breath and solemnly submitted the first round of offers, which carried the highest expectations and a tentative meaning: the $860 million proposal.

The four offers (CK, Zeiss, Honeywell, and Terez) were quickly sent to the judging panel.

The judging panel consisted of seven members, including ASMI's top technical experts, senior purchasing representatives, rigorous quality engineers, and independent external consultants.

Under the leadership of President Winnick, an intense review process began, based on a rigorous weighted scoring mechanism (50% for technology: accuracy, stability, etc.; 30% for cost; and 20% for long-term cooperation potential).

First round of bids and scoring:

Orange Science (CK): $860 million -> Technology 48.6 + Cost 13.7 + Long-term Cooperation Potential 10.2 = Total Score 72.5
Comment: The technology is unparalleled! However, the cost is too high, and the background of planting flowers brings medium- to long-term cooperation risks.

Zaiss: $850 million -> Technology 40.1 + Cost 14.7 + Long-term cooperation potential 18.2 = Total score 73.0
Comment: Top-notch technology, high cost, local Ouzhou company, lowest risk.

Honeywell: $800 million -> Technology 38.4 + Cost 18.7 + Long-term cooperation potential 15.5 = Total score 72.6
Comment: Top-notch technology, good cost control, moderate risk due to North American background.

Theles: $600 million -> Technology 30.3 + Cost 18.2 + Long-term cooperation potential 18.5 = Total score 67.0
Comment: The technology meets the standards, the cost is reasonable, and the risk of Ouzhou Enterprise is low, but the performance gap is obvious.

Winnick looked at the rating results.

CK's technical score is far ahead, but its high price and geopolitical risks have lowered its overall score. Chase is currently in first place with a slight advantage in cooperation risk.

He decisively decided: Terez is out! He then notified the remaining three companies to enter the second round of bidding.

Second round of bids:
Zhou Mingzhe did not hesitate to offer his predetermined second-round offer: $600 million.

Chase offered $650 million, while Honeywell lowered its offer to $600 million.

The ratings reversed instantly:

Orange Science (CK): $600 million -> Technology 48.6 + Cost 27.0 (Cost score significantly increased!) + Long-term cooperation potential 10.2 = Total score 85.8
Our technological leadership remains unshaken, while our price competitiveness has increased dramatically!

Zaiss: $650 million -> Technology 40.1 + Cost 16.8 + Long-term cooperation potential 18.2 = Total score 75.1
The price reduction is limited, and the cost advantage is not obvious.

Honeywell: $600 million -> Technology 38.4 + Cost 27.0 + Long-term cooperation potential 15.5 = Total score 80.9
The price is right, but the technological gap remains a major drawback.

85.8 vs 75.1 vs 80.9!

The huge difference in points is like a chasm!
Winnick stared at Orange's precipitous lead on the screen, especially their terrifying skill score, his eyes gleaming.

He no longer hesitated and even gave up the possibility of a third round of price reductions.

ASML's secret to success in lithography machines: 60% of its core technologies rely on top global suppliers.

The alignment system of this CK machine from China is a truly groundbreaking breakthrough and an indispensable cornerstone for the next generation of EUV lithography machines!

For this possible room to lower the price, if it drives away this "only remaining seedling," that would be a pain that Asmai cannot bear.

"Winner: Zhonghua, CK Micro Motor! Congratulations!" Asma's president Winnick's voice echoed throughout the venue through the microphone.

Click! Click! Click!

The press box erupted in chaos!

Countless flashes of light engulfed Zhou Mingzhe and his team.

This scene—a flower company defeating precision giants such as Chase from Germany, Honeywell from North America, and Terez from France, successfully entering the core supply chain of lithography machines, which represent the pinnacle of global precision manufacturing—is destined to make headlines in global technology media!
History was written at this moment.

Fa Guo, Ba Lai.

Thales Group headquarters.

In a tense meeting room, Lao Zhang, the head of the negotiation team from China Aerospace Science and Technology Corporation, was under immense pressure.

The other party is transferring a set of high-precision gyroscope technology that is a generation behind, and the price they are asking is outrageously high. What's even more infuriating is the additional condition: they are required to promise that it will not be used for military purposes and to unilaterally accept "compliance reviews" from North America at any time!
"Mr. Zhang, this is your only option. Without our technology, you will be unable to move an inch!" Terez's negotiator spoke arrogantly, with an air of condescension.

Old Zhang clenched his fists so tightly that his knuckles turned white.

He had to endure it for the sake of national strategic needs.

He suppressed his anger, saying he needed to reconsider and requested a short recess.

As soon as he stepped out of the conference room, an assistant rushed forward, whispered a few words excitedly, and shoved a newly published copy of Le Mande into his hand.

The eye-catching headline on the front page stung Old Zhang's eyes.

[Exclusive] China Tailai Group suffers a crushing defeat in the bidding for ASMI's next-generation EUV lithography alignment system to China's CK Group!

(Exclusif: The most beautiful thing in the world today is the lamentable face of the group of chinois!)
The report details CK Group’s precision alignment technology, including its core high-precision gyroscope and group correction algorithm, and describes the entire process by which the technology won the bidding process with an overwhelming advantage.

The gloom in Lao Zhang's eyes was instantly dispelled by the gleam of wild joy!

"CK Group? High-precision gyroscope technology? A domestic company!"

The overwhelming amount of information made his heart race.

"Quickly!" he immediately ordered his assistant in a low voice, "Find Asma's contact information immediately, and send another team to the Netherlands on the fastest flight! See if we can intercept these CK Group people in Eindhoven!"

"At the same time, immediately contact the domestic authorities and mobilize all resources to investigate!"
Find this 'CK' Group, whether it's the English name or the pinyin abbreviation, even if you have to dig three feet into the ground!
Our own companies possess world-leading technology, yet we still have to endure this humiliation from those Taiwanese!

When Terez returned to the negotiating table with his usual arrogance, he was greeted by Old Zhang's completely different aura.

Old Zhang stood up straight and said firmly, "The additional conditions proposed by your side involve our group's commercial interests and dignity, and we absolutely cannot accept them!"

"Furthermore, the technology you are transferring is a generation behind, and the quoted price is far from its actual value. We request a reassessment of all terms!"

The Terez representative was stunned, then his face turned ashen, and he snorted coldly: "Hmph! You don't know what's good for you! Without our technology, you Chinese will never get any truly high-precision gyroscopes!"

He turned and left.

Old Zhang watched his furious back as a cold smile curled at the corner of his mouth.

Hope is no longer in Balai.

Eindhoven Airport, Netherlands.

When the elite team dispatched by the aerospace group rushed off the plane and headed towards ASMI headquarters, Zhou Mingzhe's team was separated from the arrival passage by only a wall...

Previously, with a lawyer present, Zhou Mingzhe and Asma signed that weighty contract.

2012~2013年内，CK一共要交付ASM 15套CK-PAS 1.0系统，累积金额：9000万美刀，CK已经拿到了ASM3000万美刀的定金。

The core terms of the contract are cold and rigorous.

Exorbitant penalties: stringent technology confidentiality clauses, with fines for leaks reaching up to 200% of the total contract amount.

Buyback Barrier: If an embargo is imposed due to export controls, ASMI has the right to require Orange Technology to buy back the undelivered equipment.

Strict KPIs: Alignment repeatability ≤0.8nm, trouble-free operation ≥2000 hours, 1.5% deduction per week for delayed delivery.

Double acceptance: FAT (Factory Test) and SAT (Site Test for 30 Days).

Payment schedule: 30% deposit (after signing the contract), 60% before shipment, and 10% after acceptance.

Quarterly assessment: Technical response time ≤ 24 hours, defect rate < 0.1%, annual innovation proposals ≥ 2.

Risk assumed by CK: CK shall bear the losses caused by export licensing issues due to geopolitical policy risks.

Final interpretation right: ASMI reserves the right to adjust technical requirements before signing the contract.

The two CK-PAS 1.0 systems used as samples have been sold at a bid price of $600 million each and remain in ASMI's laboratory, becoming the cornerstone of the development of the next generation of lithography machines.

The space negotiation team arrived at ASMI headquarters, panting, only to be told: "CK Micro Motor? They just signed the contract and left; they should be at the airport now."

They came up empty-handed! They couldn't even catch the person by phone.

The group leader punched the wall in frustration.

"Investigate domestically immediately! CK Micro Motor Co., Ltd., etc., 'Group'? The report says CK Group, not a single company?"

A hint of doubt flashed across the team leader's face: "Never mind, contact them back home first! We'll search high and low to find this 'CK'!"

At this moment, on a flight bound for the flower-growing region.

Zhou Mingzhe leaned back in his first-class seat, closing his eyes to rest.

Outside the window, the sea of ​​clouds is rolling.

This trip to the Netherlands not only opened the door to the world's top technology supply chain for OrangeTech, but also, like a boulder thrown into a lake, its ripples are quietly spreading to a deeper and broader field.

The light of China's high-precision gyroscope has already been lit in Eindhoven.

Its blossoms bloom outside the wall, yet their fragrance fills the air inside; its brilliance is destined to illuminate many more unexpected places.

The name "Chengke Micro Motor Co., Ltd." has been mistakenly associated with "CK Group". As a series of "CX Groups" under the Orange Group subsequently take center stage on the international stage, they will continue to bring technological shocks to the world from the perspective of the "Orange-style Group".

(End of this chapter)