Tech startup: I really do make mobile phones!

Chapter 203 Entering the International Supply Chain

Terminal 3 of Chongqing Airport.

Paul, ASMI's vice president of procurement, walked out of the arrival gate with his blonde, blue-eyed daughter, Ellie, and a capable technical team.

"Welcome to Chongqing, Mr. Paul! I am Cheng Ke's reception assistant. Director Feng has arranged everything for you."

The professional reception team from Orange Micro Motor was already waiting with a sign in hand. The bilingual business secretary smiled politely and went through the process smoothly, directly leading the weary guests to the best five-star hotel in the city.

Looking out the car window at the skyscrapers built against the mountainside and the light rail train weaving between them, Ellie couldn't help but marvel.

"Dad, this city is so cyberpunk!"

Paul smiled and nodded, his anticipation for the trip growing even stronger. The engineers from Asma also had a good initial impression of Orange Tech's thoughtful and professional hospitality.

The next day.

Factory director Feng Guofu, who has recently gained weight, is personally directing operations with a warm smile, wearing a well-fitting suit and with his hair neatly combed.

"Raise the banner a little higher, yes, make it more eye-catching! Xiao Zhang, double-check the simultaneous interpretation equipment. Li, during the technical presentation later, emphasize the key points, especially the compatibility improvements."

Several deputies and department heads, also dressed formally, stood on either side of him, making quite a show of force.

A huge red banner with yellow lettering fluttered in the wind: "Warmly welcome the delegation from Holland Asmay to visit and guide Orange Science."

When Paul's convoy arrived, this was the lively scene he saw.

Feng Guofu immediately strode forward, warmly grasped Paul's hands with both of them, and shook them vigorously.

"Mr. Paul, welcome, welcome! You must be tired from your journey!"

The bilingual secretary spoke fluent Dutch with a slight Chongqing accent, but it did not diminish Feng Guofu's enthusiasm in the slightest.

Of course, Director Feng didn't neglect Ellie either. He magically took a delicate Shu embroidery sachet from his secretary and handed it to the little girl.

"Little Ellie, welcome to the mountain city. Here's a little gift."

After a brief exchange of pleasantries, Feng Guofu personally led the way, taking a sightseeing bus through a private VIP passage to tour the factory area.

The tour route was clearly carefully designed, avoiding the noisy mass production workshops and instead showcasing Orange Science's core high-end product area through clean and bright observation windows.

The precision packaging line for the MYT-3.0 gyroscope, the test bench for the MYW-3.0 micro motor, and ASMI's key focus this time, the integrated platform for the CK-PAS 1.0 alignment system.

Asma's technical experts watched intently through the glass, occasionally exchanging hushed conversations.

However, Director Feng was well aware of the principle that "to do business, you must first make friends." After briefly demonstrating the technical aspects, he smiled and made a suggestion.

"Mr. Paul, experts, there's no rush. Let me show you another interesting little business of our 'C Group' first, to give you a break!"

The group was taken to the nearby "Half Orange Building".

The first floor is the Orange Mobile flagship store.

Although not as popular as when the Orange 2 phone was launched, the experience area still had a decent flow of visitors.

Several customers were using Orange 2 phones to play "Orange Treasure Racing" and "Orange Treasure Run" with motion controls, making quite large movements, which attracted the attention of the Asmai team.

Feng Guofu proudly introduced: "This is a revolutionary product equipped with our own MYT-2.0 gyroscope and MYW-1.0 micro motor."

Paul and others went up to try it out, and the responsiveness and interesting game design were truly impressive.

Ellie especially liked it; although she couldn't read Chinese, the fun of the game was universal.

Paul, a doting father, immediately wanted to buy her one.

Feng Guofu waved his hand and laughed, "Mr. Paul, how could I let you spend so much! This building belongs to our C Group, and this mobile phone is a product of our CZ Consumer Electronics Company."

"Our C Group has a wide range of businesses, including consumer electronics, new energy, the Internet, precision manufacturing, and new materials."

He spoke casually, as if he were talking about a trivial matter, but he cleverly made the strength of "C Group" seem unfathomable, thus masking the fact that the Orange Technology brand lacked depth.

Upon hearing this, Paul was indeed filled with respect and began to reassess the power behind this seemingly unremarkable factory leader.

After he returns, the legend of the "C Group" behind the "CK Group" will likely spread throughout Asmai again.

Apart from Ellie, the engineers were initially not very interested in the Orange 2 phone; they preferred the "productivity" of the Apple phone.

But when Feng Guofu demonstrated how the specially made phone case could be transformed into a simple level and massager, the engineers were intrigued and marveled at it!
Feng Guofu seized the opportunity and made a statement on the spot.

"To thank everyone for coming from afar, and to allow you to better experience our products, OrangeTech has prepared a small gift for each member of the inspection team!"

"One Orange 2 phone, plus a complete set of unique phone cases!"

This move immediately won a round of sincere cheers and applause from the engineers.

The tea break was held at the Orange Café on the second floor, where specialty coffees and fruit teas with creative orange-themed platters once again demonstrated the attention to detail.

Next, Feng Guofu led them to browse the boutiques inside the building.

Passing by L/ and Gacci, he didn't stop, but led everyone directly into a shop called "Valentine [Orange]".

The store was luxuriously decorated, the products were stylishly designed, and the prices were high, leading the inspection team members to subconsciously categorize it as a luxury brand.

Factory Director Feng generously offered that everyone could choose a gift they liked, which would be paid for by Orange Science.

Ultimately, the "Valentina [Orange]" store saw its sales surge by over 18 during this wave of consumption.

The engineers in the inspection team were all beaming with joy upon receiving the "luxury goods," repeatedly rubbing the gift bags in their hands, showing them off and comparing them to each other, creating a lively atmosphere.

Feng Guofu thoughtfully handed out the receipts and price tags to everyone, adding with a smile, "Within seven days, you can enjoy a 30% discount on refunds and exchanges with your receipt!"

This earned Orange Science a lot of goodwill.

Subsequently, the thrilling glass walkway experience at the cloud-top viewing platform, the professional photography session, and the unique dining experience of the five-tiered orange hot pot, with its contrast between the bubbling red broth and the fruity clear broth, left the foreigners both curious and excited.
After going through the entire process, the Asmay team was already immersed in a pleasant and welcoming atmosphere.

In the evening, the van took them to a coffee shop with a great view on the hillside across the river.

At this time, some tourists were already waiting on the stage.

Ellie was curiously asking Paul why he was here when the crowd ahead began counting down on their phones: "Ten, nine, eight."

As the countdown reached zero, a breathtaking scene unfolded as expected!
A long bridge lies across the water, the afterglow of the setting sun lingering, where the two rivers meet, their clear and turbid waters distinctly separated.

The clear waters of the Jialin River on the east side perfectly reflect the dazzling lights of the warm orange Half Orange Building, creating the scene of "Half Orange Reflecting in the Clear River".

The muddy yellow waters of the Yangtze River on the west side contrast with the stilted houses on the cliffside of the Hongyadong area on the opposite bank, which are outlined by cool blue lights, creating a spectacular scene of "emerald cliffs and red soup".

This spectacular scene, a blend of clear and murky, warm and cold, traditional and modern, is full of surreal cyberpunk style, strongly impacting the visual senses of every ASMI member from the small Western country of Holland.

Wow! Incredible!

"Amazing!"

Amid exclamations of surprise, they all pulled out their Apple phones to record this unforgettable moment.

On the way back, everyone was still excitedly discussing, developing a deeper curiosity and respect for this magical oriental city and the "C Group" with such diverse industries behind it.

That evening, some members enjoyed the relaxing spa treatments at Orange SPA Club, while others opted for the tranquility of the 12th-floor Starry Sky Bar.

The night view of the mountain city, seen through the glass dome, once again captivated them.

The business meeting the following day proceeded in an extremely amicable atmosphere. Paul had the team conduct a technical assessment, and all fifteen members unanimously agreed that Orange Technology was fully capable of providing a compatible alignment subsystem for ASMedia's next-generation NXE:3300B DUV lithography machine (7nm and above processes).

The modified solution proposed by OrangeTech based on CK-PAS 1.0—CK-PAS 1.0 D (DUV)—has been widely recognized.

Paul urged for delivery time, while Feng Guofu confidently mentioned that the five-axis CNC machine tool center under construction would improve Orange Technology's high-end production efficiency and ensure on-time delivery.

Ultimately, the ASMI team placed an order for four CK-PAS 1.0 D subsystems worth $16 million and boarded their departing plane with satisfaction.

Meanwhile, the reception style of Zhou Mingzhe, the technical director of Orange Technology, was completely different.

In contrast, the process of CTO Zhou Mingzhe receiving the team of Chief Technology Officer Tanaka Kenichi of Neon Sen Crystal was full of hardcore technical flavor, with almost no "personal connections". It was just a matter of following the important customer reception process step by step, without any "fancy tricks".

In the conference room, he first showed the Senjingji inspection team a 3-minute corporate promotional video.

Due to some historical reasons, Zhou Mingzhe communicated entirely in English with the Japanese, his tone cold and professional.

The tour route naturally led to the mass-produced product area, which had a low level of confidentiality. As for the high-end production lines, the team from Senjing Machinery was only allowed to observe them from a distance, and were not even allowed to look through the observation window.

However, Zhou Mingzhe deliberately led them into the noisy MYT-2.0 mass production line without giving them any noise-canceling headphones.

During his visit to the MYT-2.0 production line, Kenichi Tanaka astutely pointed out the problem with the high-rigidity spindle dynamic balance adjuster they were using at Higashi Machine Tools, and frankly admitted it.

"I led the research and development of this technology at Senjing Machinery in 2004!"

He even personally debugged the equipment, instantly increasing the efficiency of the three-axis machine tool on the production line by 13% and reducing the defect rate by 18%.

This tangible display of technical skill caused Zhou Mingzhe to abandon his initial indifference and disdain, and his attitude softened somewhat.

Subsequently, Kenichi Tanaka noticed the special foundation material outside the new factory building and accurately judged the situation of the CNC machining center that Orange Technology was setting up.

"This is your third-generation CNC bridge-type gantry five-axis linkage turning and milling composite machine tool, developed by Peking University and manufactured by Shenyang Machine Tool Group, right?"

As an expert member of the International Committee on Machine Tool Standards (ISO/TC39), Kenichi Tanaka reviewed some of the basic information about this machine tool.

"Japan has basically phased out five-axis CNC machine tools that are two generations behind!"

His words carried the superiority complex of a technological leader, claiming that Mori Crystal had developed the fifth generation of machine tools.

Kenichi Tanaka hinted that the fourth-generation product could be exported to Orange Technology for "only" $4000 million, with a total deployment cost of about $6000 million, far lower than the exorbitant price of the domestically developed third-generation product.

Zhou Mingzhe was taken aback, because the "CNC bridge-type gantry five-axis linkage turning and milling composite machine tool" manufactured by Shenyang Machine Tool Group was a third-generation five-axis CNC machine tool.

Three units have been manufactured so far. One is in the hands of the developer, Peking University; one is in the hands of Orange Science and Technology under special approval; and the other... well, it's in a classified unit.

Anyway, the first flower-growing machine developed by Peking University, the third-generation five-axis CNC machine tool, has a basic cost and selling price of about 6 million yuan per unit because the conditions for mass production are not mature, and the overall layout cost is about 8 million yuan.

If it weren't for the 10 billion RMB technology transfer licensing fee that Orange Technology paid to Aerospace Group for the MYT-3.0 high-precision gyroscope, as well as the support of high-end orders from ASMI, they wouldn't have had the money or motivation to set up such a large CNC machining center!
The current price of Neon Sen Crystal Machine's fourth-generation five-axis CNC machine tool is only US$6000 million, which is about RMB4.2 million, making it very competitive!
Zhou Mingzhe was shocked by the other party's competitive pricing, but he knew the importance of technological independence, especially the crucial fact that core processing data must not be leaked. He resolutely refused.

The situation reversed when the visit extended into Orange Science's high-end product area.

As the group stood far from the observation window, Zhou Mingzhe proudly introduced Orange Science's high-end products.

MYT-3.0 gyroscope: zero bias 0.00001°/h, integrated ant colony calibration algorithm.

"We are currently developing the fourth generation, which uses a multi-gyroscope array to mimic ant colony collaboration, with the goal of achieving centimeter-level positioning in environments without GPS!"

Upon hearing this, the Senjingji team wore expressions of amazement.

CK-PAS 1.0 alignment system: zero-point drift rate 0.000018°/h.

"We are already a supplier of alignment subsystems for ASML EUV and are developing a DUV-compatible version of CK-PAS 1.0 D for them."

"At the same time, we are also developing the CK-PAS 1.0 J solution for CNC machine tools, and have obtained the license for the IDME industrial CNC engine. We are also developing our own industrial control software!"

Upon hearing that Orange Technology had a mature machine tool alignment solution, Kenichi Tanaka's eyes lit up immediately, which was precisely the core purpose of his trip.

We are looking for a top-notch alignment subsystem for the six-axis CNC machine tool jointly developed by Senjing Machinery and Demar Machinery.

He immediately proposed two cooperation models: technology as equity or simply as a supplier.

After Zhou Mingzhe reported, he received instructions from Chen Mo: only act as a supplier, do not invest technology.

The MYW-3.0 "high-speed" micro motor (torque density 35mN·m/g, response 0.1ms, energy efficiency 92%) that Tanaka Kenichi subsequently selected was of excellent performance.

Zhou Mingzhe also stated that he would only provide finished motors at a price of US$100 million per set and would not participate in the development of the spindle drive subsystem proposed by Senjing Machinery.

The main problem is that, apart from a micro motor, Orange Technology currently lacks the other technologies required for a spindle drive subsystem, and the team already has a lot of R&D tasks.

CK-PAS 1.0 D, DUV alignment subsystem.

CK-PAS 1.0 J, machine tool alignment subsystem.

Both systems need to be developed as soon as possible, otherwise the penalties for delayed delivery will be enough to give Orange Technology a hard time!
This CK-PAS 1.0 J machine tool alignment subsystem was originally prepared by Orange Technology for Jingda Machine Tool, but Senjing Machine Tool took a liking to it, which can be considered a lucky break, allowing them to make an extra profit.

As for whether this will weaken the competitiveness of domestic five-axis CNC machine tools.
Well, to be honest, even fifth-generation five-axis CNC machine tools are already using IoT networking and collaboration.
While we were still in a semi-automatic stage, requiring manual programming and drawing, they had already downloaded the solution online and gone completely into full automation.

If it weren't for North America's Warnerson Agreement controlling the import of high-precision machine tools into China, our domestic high-precision machine tools would hardly be competitive in the market.

Although China has filled some gaps in high-precision manufacturing, it is still one or two generations behind and needs to work harder!

Ultimately, Senjingji placed a $400 million order for a set of the first-generation CK-PAS 1.0 J samples from the laboratory, leaving with a new understanding of OrangeTech's technological strength and a slight regret at not being able to cooperate more deeply.

Senjing and Demar are very innovative and believe that ASMI's global collaborative development model is a good way to break through technological bottlenecks.

After all, the semiconductor giants in North America and Japan, who tried to operate across the entire industry chain, have all failed!

On the contrary, specialized manufacturers like ASML, whose 60% of components come from globally leading technologies, are able to maintain their technological advantage and gain market recognition!
Judging from the combined effects of Senjing Machine Tool and Dema Machine Tool in later generations, they were also the first to develop a six-axis CNC machine tool.

As we reach technological bottlenecks, breakthroughs in modern technology increasingly rely on integrated solutions across the global technology sector.

Therefore, after learning about Chengke's technical strength in precision manufacturing, Senjing Machinery and Demar Machinery were eager to team up with Chengke to develop six-axis CNC machine tools.

After all, Orange Technology has high-precision gyroscopes, high-torque high-speed micro motors, and has developed alignment systems and spindle drive systems, giving it a unique advantage.

The third wave of customers, Lin Deming, the manager of Xing'erpo at "Alpha Technology", had a very simple reception process, and the other party placed an order decisively!
Front desk registration, reception by a regular market manager, standard PPT presentation in the conference room, and a distant view of the production line.

There were no executives accompanying them, no banquets, and not even a working meal was arranged.

However, Manager Lin, who claimed to be purchasing high-precision gyroscopes for "tunnel monitoring," placed the order unusually readily.

For the MYT-3.0 gyroscope, which was quoted at $100 million, he directly placed a large order for 50 units, reducing the unit price to $80, for a total price of $4000 million. He made the decision on the spot, paid the deposit, and started the process.

The success was so smooth that even seasoned veteran Feng Guofu felt it was somewhat unreal, and he immediately reported his doubts to the big boss, Chen Mo.

Soon, Chen Mo's reply was brief: "Follow the procedure, collect the deposit, prepare the goods, and deliver the goods after the balance is paid!"

Factory Director Feng put down the phone and looked out the window. The mountain city was shrouded in mist, as if concealing countless unknown things.

Three waves of clients, three different ways of receiving them and their outcomes, foreshadow that "CK" and "C Group" are getting involved in a more grand and complex global landscape.

And the journey of oranges into an international market supply chain seems to have only just begun.

At this moment, the Yantian Port terminal is bustling with activity. 2 sets of customized honeycomb power batteries (without BMS) for Tesla, procured through the Zhicheng Centralized Procurement Standard Company, are being loaded into containers and awaiting shipment to North America.

Based on the calculation, a basic version of an on-board battery pack can be integrated using four sets of honeycomb power batteries.
This is precisely the core battery component that Maestro is sourcing specifically for the first 5000 Maestro S customers in the North American market who have pre-ordered it for their new vehicles.

(End of this chapter)