Chapter 1558 [The chip industry has historically become the largest export category]

But at this moment, Tian Jiayi couldn’t help but smile: “After the news broke and the public opinion fermented, the local drone consumers of Bei Magnesium were very angry, and they all hoped that DJI Kunpeng drones would come back. Even the mainstream media of Bei Magnesium also helped. I hope DJI Kunpeng can return to the Beijing magnesium market, which is quite magical.”

Everyone who saw Ah Mei's scene felt it was extremely magical and sophisticated.

The news was transmitted back to China. Domestic netizens were surprised to see that the mainstream media in Ah Mei were begging DJI Kunpeng to return. However, they were also secretly happy. Many netizens He said he still wanted to see Ah Mei's unruly look before.

At this time, Fang Hong said calmly: "What is magic or not? If multiple departments had not notified the export control of drone products the day before yesterday, how could Magnesium Media have such an attitude?"

This notice on seamlessly linking export controls not only covers complete machines, but also related parts.

For those local drone brands in Amei, even if the sky is not falling, they are still anxious. Where can I buy goods if you take care of it? If I can’t buy my drones, what else can I do? Assemble it and sell it!

In fact, this is only one of the reasons. Another important reason is that there are huge differences in the internal attitudes towards the drone products of DJI and Kunpeng.

Some people want to be completely blacklisted to the end, but some people are strongly opposed to it.

Previously, Ah Mei's Shenyi Institute wanted to completely ban DJI and Kunpeng's drones, but it encountered strong opposition from more than 6,000 powerful institutions in Beijing.

That’s right, there are really so many organizations, large and small.

90% of the drones used by Bei Magnesium Law Enforcement Agency are products from Dongda University, mainly products from DJI and Kunpeng. There are simply no better substitutes.

Without the support of these products, local law enforcement efficiency will drop significantly and law enforcement costs will rise significantly.

If there is a second option, Ah Mei will not give DJI and Kunpeng the green light again at this time.

This is hard power.

It is also determined by the scale of industrial production in the large Eastern countries. The large scale brings extremely low marginal costs. For example, the production costs of DJI drone products, which are mainly targeted at the civilian market, can be reduced to very low costs through layer-by-layer reduction.

In the early days, some organizations carefully researched the overall structural cost of DJI drones and disassembled them. They found that the comprehensive cost of a small drone selling for $150 in Xiaobenzi was only 15%, which really surprised them.

If we apply it to the R\u0026D and manufacturing of local companies in Xiaoli, then the price of just manufacturing some of the parts is already more than twice that of DJI products with the same functions.

If other costs such as labor are added, the price of a Nissan drone with the same functions as a DJI drone will be about 6 times that of DJI after the genuine product is released to the market.

Under this situation, products with the same functions and DJI drones are not competitive at all in the market. For normal consumers, two products with the same functions but a price difference of more than 5 times will definitely be the next choice. Buy cheap and vote with your feet.

No matter in terms of price or other aspects, DJI drones cannot be surpassed by similar competing products from other countries at present, including in the future.

Now even if the export price has increased by 25%, it still has unparalleled competitiveness, and there is still a lot of room for price increase. Even if the price increases by another 25% on the basis of the 25% price increase, it will still have huge competitiveness, let alone It is said that due to the black swan impact, global production capacity has been cut off except for the big eastern countries.

For DJI, there is only one competitor in its eyes, and that is Kunpeng Technology, which is also a member of the Galaxy Group.

It is worth mentioning that Kunpeng Technology is not as well-known in the world as DJI. This is normal, because DJI focuses on the civilian market and is oriented to mass consumption. It currently sells much more drones than Kunpeng Technology.

Kunpeng Technology focuses on the military market, and its customer base is not individual consumers.

However, Kunpeng Technology's profits are even higher than DJI's, because the premium rate for military products is often ten times higher. This is not a multiple difference, but an order of magnitude price difference.

Of course, this is the export and foreign trade version. In fact, there is no profit in purchasing for the own military, not even more than 5 percentage points.

Excluding the 20% civilian market share, in the military market, more than 90% of Kunpeng Technology's profits are supported by the export of foreign trade products.

This can also explain why the market value of Kunpeng Technology is higher than that of DJI, and the space for future imagination is still huge. Now all countries are beginning to pay more and more attention to the role of drones on the battlefield, but many countries have not yet installed many drones. , which means that the demand side has not yet been fully opened.

If there is another large-scale war, such drones will be quickly consumed as battlefield consumables, and the demand will skyrocket. The current dispute between Xiaofa and Blue Fox International in West Africa is a good example. .

The current global situation is actually not optimistic, which also gives Kunpeng Technology a higher market value expectation. It is not surprising that the market value is higher than DJI Technology.

Finally, Tian Jiayi took out another material file report and handed it to Fang Hong, saying: "There is another good news to boost people's morale. This is the export data of integrated circuit chips from January to May this year. The total export volume of my country's chips in the first five months was 522.755 billion yuan, a year-on-year increase of +69.8%. Chips have become my country's largest export category, surpassing automobiles, mobile phones, and labor-intensive products."

Fang Hong immediately took the material and browsed it, nodding his head repeatedly and said with satisfaction: "Not bad, not bad, really good, multiple points are blooming, and it is finally going to explode in an all-round way, not bad."

Tian Jiayi smiled and said: "Chip exports have become the largest category, and the export share of the chip industry has also won the world's first place in one fell swoop. This is indeed unexpected, but it is also reasonable. The data shows that the large increase in the export share of chips is mainly due to the sharp increase in demand for new energy vehicles, military and civilian drones, and photovoltaics, all of which require chips, and these categories happen to be my country's advantageous areas."

What is certain is that a historic turning point has been ushered in the field of chips.

Since 2018, the process technology of domestic chips has in fact caught up with the world's most advanced level. In 2019, it began to maintain a slight lead, and now it has further expanded its advantage.

In other words, the shortcomings of high-end chips have been made up, and the current process node is heading towards 5 nanometers, while the West is still at the 8 nanometer node.

The vast majority of chips used in the global market are actually 14 nanometers or above. Only consumer electronics and advanced consumer electronics use chips below 14 nanometers, such as high-end smartphones.

But the market size of high-end chips is actually relatively small. The real big head is mid-range and low-end market chips, such as home appliances, photovoltaics, automobiles, photovoltaics, etc., which do not require the process requirements of smartphones.

Now China's production of chips with a process of more than 14 nanometers ranks first in the world, sales are the first in the world, and exports are also the first in the world.

Fang Hong put the materials aside, feeling quite comfortable, and said with a smile: "In the second half of this year, our domestic chips will most likely have unexpected breakthroughs in 5-nanometer process chips."

So many years, so much investment.

Now, we have finally achieved a comprehensive technological breakthrough in the chip industry, realizing a historic leap from lagging behind to catching up and then surpassing the leading position. The industrial crown that the West is most proud of has also been taken off. How can we not feel comfortable and happy?

……