381: $35 billion!

Of course, whether they purchase Shuguang Memory and Shuguang Display or not, when they purchase Dawn CPU, Shuguang Graphics Card, and Shuguang low-end motherboards, Shuguang Technology will be the biggest beneficiary.

They will merely be subsidiaries of Shuguang Computer, earning some money, but Shuguang Technology will always earn the most!

Therefore, after this action is achieved, although Shuguang Technology's sales of low-end computers will experience a decline, the actual profit will not decrease much, and may even be higher.

It can also avoid potential anti-monopoly and anti-dumping investigations and strikes, which is within an acceptable range.

"In that case, I have no objections."

Sales Director Li Qianqiang, who had come to his senses, slowly gave his reply.

Seeing this, other senior executives also expressed their agreement, all agreeing to sell Shuguang low-end motherboards externally to avoid potential anti-monopoly and anti-dumping investigation crises.

At this time, the many senior executives of Shuguang Technology, including Lin Chen, did not know that Shuguang Technology had inadvertently avoided a dead end in advance, and this dead end was the anti-dumping investigation!

That anti-dumping investigation is different from an anti-monopoly investigation; the anti-dumping definition in an anti-dumping investigation is too vague, and compared to the relatively clear anti-monopoly investigation, it truly relies on what others say.

If they say you are dumping, then you can only honestly accept the punishment, and then accept the fine while bearing higher taxes than others or being directly prohibited from selling in that country.

At this time, Shuguang Technology will sell low-end computer motherboards along with Dawn CPU, Shuguang Graphics Card, Shuguang Memory, Shuguang LCD displays, etc., externally.

From then on, others can completely purchase Shuguang Computer components to produce their own "Shuguang Computers." In this situation, it will become more difficult for United States to accuse Shuguang Technology of anti-dumping.

Therefore, Shuguang Technology has invisibly avoided an anti-dumping investigation, which is a blessing in disguise.

It can be said that this decision alone saved Shuguang Technology hundreds of millions of dollars in legal fees per year!

However, Lin Chen and those senior executives did not know this at the moment. After discussing this matter and making a decision, Lin Chen and the others quickly moved on to the next topic.

At this time, Lin Chen said with a solemn expression:

"Although we have achieved great victories in the computer industry, current victories do not mean future victories.

Because the world is constantly moving forward, we cannot immerse ourselves in current glory and ignore potential future crises.

First, our biggest crisis lies in the chip manufacturing process lagging behind the world!

To accelerate the implementation of the 65 nanometer process, we need to hire more researchers and burn more material funds.

Finally, we need to make up for the last shortcoming, which is the serious reliance on external procurement for high-end photoresist and high-end chemical materials.

In the next year, we need to spend approximately 26 billion US dollars to conquer 65 nanometer process chip production equipment, research high-end photoresist, high-end chemical materials, and finally improve the yield rate of the 65 nanometer process.

And this does not include the research and development expenditures for new mobile phone sets, new computer sets, CPU, mobile phone processors, mobile phone GPU chips, computer Graphics Card, displays, and memory modules.

Unreal 3 Game Engine, Unreal Engine 4, Shuguang programming language, maintenance and updates for Dawn Computer Operating System, Dawn Smart Phone System, and other research and development expenditures.

All these things combined, the annual research and development expenses will require at least 6 billion US dollars!

Finally, coupled with the company's own development and maintenance costs and other expenditures, to be on the safe side, we need to prepare for at least 35 billion US dollars in expenditures in the future!"

Hearing Lin Chen's words, the people present instantly fell silent because what Lin Qiang said was a bit too crazy.

Lin Chen even claimed that he needed to be prepared for an annual expenditure of 35 billion US dollars in the future, which was truly insane!

Although this 35 billion US dollars was not entirely spent by Shuguang Technology itself, but by the six major companies under Shuguang Holding collectively spending 35 billion US dollars, it was still too crazy!

After all, which company can earn 35 billion US dollars in a year?

Microsoft Company's profit last year was only 12.2 billion US dollars, and Intel's profit was only 7.5 billion US dollars!

And Shuguang Technology has to prepare for an annual expenditure of 35 billion US dollars. How is this not crazy?

Of course, other companies cannot do it, but Shuguang Technology can, because Shuguang Technology has the profit support from the mobile phone industry and the computer industry!

Therefore, although this 35 billion US dollar expenditure in the coming year is somewhat massive, it can actually be barely supported, after all, Shuguang Technology is in a dominant position in the mobile phone market and the computer market.

When other companies fail to launch products that can compete with Shuguang Mobile Phone and Shuguang Computer, they can naturally obtain huge profits by virtue of their near-monopoly position.

But this is not actually safe, because the market is always changing, and it is normal for one to step down and another to take the stage.

So, if you can earn so much money now, you may not be able to continue earning so much money in the future; the market is always changing.

Moreover, Intel, Microsoft, and Nvidia in the computer industry seem to be plotting something.

Motorola, Nokia, Samsung Electronics, Sony Ericsson, and the Four Major Mobile Phone Giants in the mobile phone industry have been working on smart phone research and development for over a year, and they are all aggressively trying to defeat Shuguang Technology and replace it!

Therefore, as other established giant companies in the mobile phone and computer industries pay high attention to Shuguang Technology and invest large sums of money in researching new core technologies, Shuguang Technology faces increasing pressure.

It is becoming increasingly difficult for Shuguang Technology to maintain its current market dominance, and in the long run, it is absolutely impossible.

Therefore, theoretically speaking, Shuguang Technology will not actually be able to come up with 35 billion US dollars in the coming year, at least it cannot be 100% certain that it can come up with that much money!

So, Sales Director Li Qianqiang, who had come to his senses, quickly spoke up and suggested:

"Is the 35 billion US dollar research and development expenditure for the coming year a bit too large? Although we can barely support it with the profits from mobile phones and computers currently, it doesn't mean we can in the future.

Motorola, Nokia, Samsung Electronics, Sony Ericsson, and the Four Major Mobile Phone Giants have been jointly researching smart phones for a year, and we don't know what the situation of their smart phones is.

It is foreseeable that the smart phone market will be impacted by the Four Major Mobile Phone Giants, which means our profits will be greatly reduced.

Moreover, we don't know how strong Intel's Core Processor in the computer industry is. Their Core Processor may cause a severe impact on our Shuguang Computer after its release.

In this situation, we still have to prepare for an annual expenditure of 35 billion US dollars. Is this research and development expenditure a bit too large? I think the research and development expenditure should be reduced.

Especially the research and development expenses for the 65 nanometer process are too much. I think it should be reduced to 10 billion US dollars, and as for the rest of the money, we need to think of other ways.

After all, we can't bear all the pressure of advancing the 65 nanometer process ourselves. That doesn't make sense.

We should find a way to let 'others,' such as Great Xia Officialdom, bear the other half of the research and development expenditure pressure for advancing the 65 nanometer process." (End of Chapter)