220: Chapter 220 Cooperation and Competition

Seoul, South Korea, Samsung Electronics headquarters.

In Lee Jae-yong's office, the strategy meeting had been going on for two hours.

"2000nit peak brightness..." the head of the display department lowered his head. "Our lab is still struggling to overcome 1800nit, and our yield rate is only 30%. How did Xinghuo manage to do it?"

"The question now isn't how they did it, but what we are going to do," Lee Jae-yong said, his face ashen. "Our S9 has only been on the market for three months, and it's already being completely crushed. The S10 plan must be moved forward, and the specifications must be reset."

He pulled up Xinghuo's data: "The camera on the HX2 uses a 1-inch sensor. Our S10 was originally planned to use a 1/1.5-inch sensor, but now it must be changed to 1 inch. As for the chip, we originally planned to use the Qualcomm Snapdragon 855, but now... contact TSMC and ask about the progress of their 7nm EUV process."

"But the cost will skyrocket..."

"Cost is not the issue; market share is," Lee Jae-yong slammed the table. "Samsung cannot lose the high-end market. Also, the foldable phone, Galaxy Fold, must be released ahead of schedule in the fourth quarter of this year."

He concluded, "Contact Xinghuo. Ask about their OLED screens... we will buy them. At the same time, ask if they are selling their camera modules. An enemy's weapon, if it can be used by us, is the best weapon."

Tokyo, Japan, Sony headquarters.

Yoshihisa Ishida, the head of the TV department, sat alone in his office with the lights off.

On the table lay the spec sheet for the "Star Screen Pro": 65-inch OLED, 8 million pixels, million-level contrast ratio, priced at 32,999 rmb.

Sony's A9F Master Series of the same specifications costs 50,000 rmb to produce and retails for 69,999 rmb.

"We can't win a price war..." Ishida muttered, "and we can't win on specs either..."

He remembered the era twenty years ago when Sony's Trinitron TVs swept the globe. At that time, Chinese companies were still making CRT TVs, and Sony was the undisputed king.

Twenty years, and everything has turned upside down.

His phone rang; it was the President, Kenichiro Yoshida.

"Ishida-kun, have you seen the news?"

"I have."

"Do you have any countermeasures?"

"..." Ishida was silent for a long time. "Our advantages are color calibration, industrial design, and brand premium. Although Xinghuo has high specs, a TV is more than just specs. We can emphasize 'Sony's audio-visual aesthetics' and 'craftsmanship'."

"But will consumers buy into that?"

"I don't know," Ishida said honestly, "but it is the only path we have."

Hanging up the phone, Ishida walked to the window.

In the Tokyo night sky, the starlight was dim.

He had a premonition that an era was coming to an end.

At 2:00 PM sharp, on the third floor of the Convention Center, in VIP Conference Room No. 1.

The room was decorated in a Chinese style, with a long mahogany table and blue and white porcelain ornaments, but the people sitting there were full of Middle Eastern flair.

At the center of the Saudi delegation was Prince Khalid—35 years old, a cousin of King Salman, an Oxford MBA graduate, wearing a well-tailored dark grey suit, with the newly released Xinghuo Starlight 3 smartwatch on his wrist.

Zhang Yang walked in with five executives, and both sides shook hands.

"Mr. Su didn't come today?" Khalid asked in fluent English, slightly disappointed.

"Mr. Su is overseeing the overall situation," Zhang Yang smiled. "I am fully responsible for today's consumer electronics cooperation. Your Highness, we can begin."

Khalid nodded and signaled his assistant to turn on the projector.

"Mr. Zhang, let's get straight to the point." His style was different from traditional Arab businessmen—crisp and efficient. "Saudi Arabia's 'Vision 2030' needs the support of real industries. We don't want to sell oil forever; we want to become the technology center of the Middle East."

He pulled up a PPT: Cooperation Framework. Saudi Sovereign Wealth Fund invests 1 billion USD, holding a 20% stake. Xinghuo Electronics contributes technology + management, holding an 80% stake. Build an assembly plant in Jazan Port Economic Zone, covering 500 mu in the first phase. Annual capacity: 5 million mobile phones, 500,000 drones, 1 million smart wearable devices. Products enter the 22 Arab League countries (population 430 million) tariff-free.

"Jazan Port is located on the Red Sea coast, adjacent to the Suez Canal, with convenient logistics," Khalid added. "We will provide the land for free, build the infrastructure, and offer a full tax exemption for the first five years, with a 50% reduction for the following five years."

Zhang Yang quickly calculated in his mind: 1 billion USD in cash, 500 mu of free land, a market of 430 million people, tax-free policies...

"The terms are very generous," he said, "but we have requirements."

"Please, go ahead."

"First, the factory must adopt Xinghuo's production standards and quality management system. Second, the core chips, algorithms, and software will be provided by Xinghuo; local operations will only handle assembly and some parts production. Third, the brand must be 'StarFire by Saudi'—a joint brand."

Khalid smiled: "This is exactly what we want. We don't want to be an OEM; we want to be a brand owner. 'Made in Saudi' high-tech products—this fits the image of 'Vision 2030'."

He paused: "But we also have a requirement: the factory must employ no less than 70% Saudi nationals. This is our employment assessment indicator."

"That is acceptable," Zhang Yang nodded. "We will provide training. However, for technical positions, we may need Chinese personnel to provide guidance in the initial stages."

"Reasonable."

The negotiations went exceptionally smoothly. Both sides were pragmatists who didn't play games.

An hour later, the framework agreement was reached.

Before signing, Khalid suddenly said, "There is one small request."

"Please speak."

"Our royal family would like to order 10,000 customized HX2 Max units. Requirements: the casing must be inlaid with gold, the system must have a built-in Arabic royal interface, and pre-installed customized apps." Khalid smiled, "Money is not an issue; we can pay 100,000 rmb per unit."

Zhang Yang was stunned: "10,000 units, 100,000 each... that's 1 billion rmb."

"Yes. This counts as the first batch of orders," Khalid said. "We want all Arab nobles to use Huaxing Mobile Phones—this is the best advertisement."

Zhang Yang smiled: "Deal. We will establish a special design team."

Both sides shook hands and took a photo.

Khalid concluded: "Mr. Zhang, this is just the beginning. Saudi Arabia has oil, capital, and a market. Xinghuo has technology, products, and ambition. Together, we can change the technology map of the Middle East."

"Agreed," Zhang Yang said. "Next week, I will personally lead a team to Jazan Port for site selection."

Middle Eastern tycoons are truly generous; they spend 1 billion without blinking, and the price of Huaxing Mobile Phones instantly increased tenfold—it's like picking up money off the ground. The joint venture provides money, personnel, land, and the market; as long as the industry lands and provides jobs, who could refuse such terms? With production lines moved to Saudi Arabia, Huaxing Mobile Phones exported to Saudi Arabia can also be tax-exempt for 5 years, and profits will only be higher. Once the Middle East market gets used to Huaxing Mobile Phones, it will be easier for subsequent new products to be accepted.