'Do not hesitate to invest 50 billion yuan, to do the top ten ... ...' Recently, home appliance giants have thrown their own goals in the chip industry.
Following Dongming Zhu’s high-profile external assertion that Gree will not hesitate to invest RMB 50 billion into the chip field, Konka Group also announced that Konka Group will establish a semiconductor technology division to formally enter the semiconductor industry.
This is the second time since 1999 that home appliance giants have entered the chip industry for the second time. At that time, China increased its support for the chip industry and introduced relevant policies to support it. Many home appliance giants are trying to explore the chip field. But here it is. In only 20 years, there are not many home appliance companies that can really stick to it and enlarge the scale of this industry.
This time, the home appliance giants in transition are once again locking their eyes on the chip industry, and their ambition is not small.
The industry believes that with the rise of smart appliances, the demand for chips in the home appliance market has increased significantly. Home appliances have fewer memory requirements and storage functions than PCs and mobile phones, but this does not mean that they are used in home appliances. The chips on the chip are low-end, and the technology is not complicated. The threshold for enterprises to enter this field will be low. The chip needs huge funds, technology and talents. The home appliance manufacturers that have not accumulated in this area cannot enter rashly.
Funds, technology, and talent are three major barriers
Recently, Konka Group announced the establishment of a semiconductor technology business unit to formally enter the semiconductor industry. As far back as years ago, TCL, a black power company, Changhong has entered the chip field and is continuing to increase its expansion in this area.
This time, Konka is in a tough position. The goal is to become the top ten semiconductor companies in China within 5 years to 10 years. Changhong is also an early home appliance company that has entered the chip industry. It is currently available for washing machines, air conditioners, refrigerators, etc. Home appliances provide control chips, allowing them to gain the right to speak in the home appliance industry. Even the outside world claims that its profits have surpassed Lenovo.
'Chip is a need (for enterprises) to accumulate for a long time and invest in a huge industry. From the perspective of TCL and other companies' practices, companies' investments in chips are often tens of billions of dollars and require huge financial support.' Deputy Secretary-General of Business Association Zhang Jianfeng said.
He believes that the investment return period of the chip industry is very long. It is unclear whether household appliance companies can afford it and whether they can withstand the high expenses of the previous period. 'Do not let this industry drag on its core industry. Industry, to do what it takes.'
'At present the chip industry has three major barriers: capital, technology, talent. Appliance companies must first reserve for capital accumulation and talent, and then enter the chip field, otherwise the risk will be great.' Home appliance industry observer Liang Zhenpeng said.
Prior to this, Dong Mingzhu also announced that Gree Electric did not hesitate to invest 50 billion yuan to do chips. At that time, some netizens developed Huawei’s R&D investment on the chip: R&D expenses were double that of profits; in the past five years, Huawei’s research and development The funds invested exceed net profit every year.
Gree Electric Appliances had a net profit of 22.4 billion yuan last year. Dong Mingzhu's investment amount was twice that of last year's net profit. From the view of Dong Mingzhu, Gree also made a prolonged battle in the chip field. Preparations.
Cross-border M&A or favorable path
At present, in the field of consumer electronics, the chip occupies an important position. In the home appliance industry, chip applications are everywhere.
According to Zhang Jianfeng, 'Original home appliances are mostly mechanical and their memory function is weak. After the emergence of smart products, home appliance companies are increasingly demanding chips. At the same time, many home appliance manufacturers are unwilling to be controlled by the core technology. This is also a large number of giants. Will be willing to enter the chip field. "
However, at present, the home appliance industry is undergoing a new transformation and many companies are confused. A new field appears and it is easy for many home appliance companies to be ready. In the current market environment, home appliance companies have once again entered the chip field, and the challenge is greater than the opportunity. .
'The household appliance company or does not rule out cooperating with specialized chip manufacturing and research companies and enters this field through equity participation, joint ventures, etc. This kind of operation is neither radical nor secure.' Zhang Jianfeng said .