Rebirth 08: Can a mobile game company also build a tech empire?

Chapter 132 Layout

The meeting room was silent for a few seconds.

Then, Lin Bing spoke first.

"Don't worry, Mr. Lu, I'll keep a close eye on production. Mass production will begin at the end of October, no problem."

Hong Feng closed his notebook, his tone firm.

"I will personally lead the team for ZUIforPad, and I am confident that we can do a good job with the gesture interaction logic."

Xu Yi adjusted his glasses and added.

"The Z-Dimensional tablet version will begin development next week, and a usable version will definitely be available before the end of October."

Jiang Chang scratched his head, but there was no hesitation in his eyes.

"The game development team will fully cooperate."

Lu Chen nodded in satisfaction.

Meeting adjourned.

Everyone got up and left the meeting room one after another.

Lu Chen remained seated and did not move.

Sunlight streamed in through the glass.

A bright spot of light was cast on the floor.

Lin Bing was about to get up when she noticed Lu Chen's expression and sat back down.

"Is there anything else?"

Lu Chen withdrew his gaze and nodded.

"Yes, other things."

Lin Bing put down her notebook and leaned back in her chair.

He knows Lu Chen too well.

Whenever this young man showed that thoughtful expression...

This means there are more important things to discuss.

The meeting room door was gently closed.

It isolates the area from the noise of the outside office area.

Lu Chen sat in his seat and remained silent for a few seconds.

It seems like they are organizing their thoughts.

Lin Bing didn't urge him, and waited quietly.

After a moment, Lu Chen spoke.

"Mr. Lin, how much do you know about the chip industry?"

Lin Bing was taken aback.

This question is somewhat unexpected.

"A chip?"

He adjusted his glasses and spoke carefully.

"When I was at Google, I worked on some hardware projects and dealt with teams from Qualcomm, Texas Instruments, and Samsung. I understand the basic concepts of architecture, manufacturing process, and power consumption, but I wouldn't say I have an in-depth understanding."

He paused, then looked at Lu Chen.

"Mr. Lu, why are you suddenly asking this?"

Lu Chen did not answer directly.

Instead, he stood up and walked to the window.

Outside the window, the sun shines brightly over Hangzhou, and cars stream along the streets.

"President Lin, what kind of company do you think ZhengTu Technology should be in five years?"

Lin Bing thought for a moment and answered seriously.

"With the mobile phone business stabilizing its core business, tablets exploring new markets, games and platforms forming a closed ecosystem, and Voyager producing several influential AAA titles, by then, Journey should be a technology company with annual revenue of tens of billions and global influence."

Lu Chen nodded.

"What about ten years from now? Twenty years from now?"

Lin Bing fell silent.

This time span is too long.

He couldn't give a definite answer.

Lu Chen answered for him.

"Ten or twenty years from now, if we still want to be at the poker table, we must have our own chips."

His tone was calm.

But every word was powerful and resounding.

Lin Bing's expression changed.

"Chip ————"

"Yes, chips."

Lu Chen turned around and looked at Lin Bing.

"Mr. Lin, have you ever thought about where the chips we use now—from Qualcomm, Samsung, and Texas Instruments—come from?"

Lin Bing did not answer.

He knew the answer, but didn't want to say it at the moment.

After a moment of silence, Lin Bing slowly spoke.

"Mr. Lu, we haven't encountered any difficulties with the chips so far."

Lin Bing carefully considered her words.

"Qualcomm's supply has been very stable, and we can continue to cooperate on the next generation of products."

"I know."

Lu Chen walked back to his seat and sat down.

Place your hands, folded, on the table.

"But Mr. Lin, have you considered what would happen if Qualcomm stopped selling us chips one day?"

Lin Bing was stunned.

This assumption is too far-fetched, even somewhat absurd.

Qualcomm is a commercial company.

Selling chips to anyone is the same as selling them.

Why reject a rapidly growing client like Journey Technology?

"Mr. Lu, this possibility—"

Lin Bing spoke cautiously.

"At present, the chances are extremely slim, and Qualcomm has no reason to reject us."

Just because it's not there now doesn't mean it won't be in the future.

Lu Chen's tone was calm.

But it exudes an undeniable firmness.

Lin Bing looked at him without saying a word.

As a former technology executive at Google.

Lin Bing has met too many startup founders.

Someone wants to be the next Apple.

Someone wants to overthrow Microsoft.

Some people want to surpass Google within three years.

The aspirations of most people.

In the end, it was all just in our imagination.

But Lu Chen is different.

From Angry Birds to Conquer Online Z1.

From Journey 1 to ZUI system.

Every seemingly bold decision he made.

They were all proven to be correct in the end.

Lin Bing has learned to trust this young man's judgment.

"Mr. Lu, have you heard something?"

Lin Bing asked tentatively.

Lu Chen shook his head.

"There's no word on it, but Mr. Lin, some things don't need to be prepared until there's a rumor."

He paused, his tone becoming serious.

"Chips are the heart of smart devices. Right now, this heart is in the hands of others, Qualcomm, Texas Instruments, and Samsung. If they sell to us, we can produce them. If they don't sell, we have to stop production. I don't like the feeling of having our lifeline in someone else's hands."

Lin Bing nodded thoughtfully.

From a business perspective

Over-reliance on a single supply chain does indeed pose risks.

However, this risk seemed too distant in 2009.

Few people take it seriously.

"So you want to—make your own chips?"

When Lin Bing asked that question.

Even I find it a bit unbelievable.

Chips, that's the real deep water.

It's not game development, nor MP4 manufacturing.

It's not even about developing the entire mobile phone.

Chips are one of the most core, complex, and expensive areas in the electronics industry.

"Mr. Lu, you're right, the chip is indeed the Achilles' heel."

Lin Bing spoke sincerely.

"But the field of chips cannot be entered by simply talking. Just like no matter how angry a person is, they cannot solve a math problem. This is an objective law."

He paused, then continued.

"A tiny chip involves hundreds of steps from design to manufacturing. Design requires EDA tools, tape-out requires entering a wafer fab, and packaging and testing is another system. Each link is monopolized by a few giants."

"More importantly, it's a money pit. A single tape-out can cost millions of dollars. The R&D cycle is often three to five years. And even if you invest money and time, the product you make may not be usable."

"Zhengtu Communications has just completed its Series A financing and has 750 million yuan in cash on hand. It seems like a lot, but if you throw it into the chip industry, it won't even make a splash."

Lin Bing's tone was sincere, but also very direct.

He wasn't pouring cold water on the situation; he was stating the facts.

Lu Chen listened attentively, and only spoke slowly after Lin Bing finished speaking.

"I know, so we're not involved in manufacturing right now, we're only doing design."

"Chip design?"

"right."

Lu Chen's tone was firm.

"The chip industry chain is divided into three parts: design, manufacturing, and packaging and testing. Manufacturing is the most asset-heavy and the most difficult to break through. Packaging and testing is relatively simple, but the profit is thin. Only design is an asset-light field that is talent-intensive."