Starting from a Fake University
Chapter 1233 - 661: Chip Shortage Crisis, The Arrival of Opportunity (Please Subscribe)

Chapter 1233: Chapter 661: Chip Shortage Crisis, The Arrival of Opportunity (Please Subscribe)

"What’s the matter, Miss An? Is there a problem in our car manufacturing process?"

Seeing An Yujia furrow her brows, Ding Yue quickly asked.

Ding Yue had already planned out the car manufacturing process, and everything would be best if it proceeded according to plan, especially since they were all set to hold a launch event for the Feiyue Future New Energy Vehicle later this month.

If there were any issues at this critical juncture, the impact would be a series of problems.

"I think everything looks pretty normal."

"Yeah, we visited the car factory last time, didn’t we? And all the equipment seemed fine."

Huang Youjie and Xu Bin chimed in, one after the other.

"Principal Ding, Director Huang, Director Xu, there’s no big issue with the car factory or the manufacturing equipment, but the problem is that our Feiyue Future New Energy Vehicle’s on-board intelligent control system ’Big White’ requires chips."

An Yujia got to the point.

Yes, chips—chips!

"Chips?"

When Ding Yue heard these words, he was initially taken aback, but quickly felt that there shouldn’t be an issue with the chips.

Indeed.

The Feiyue Future New Energy Vehicle needs a chip because it has an onboard intelligent control system. Naturally, an intelligent car wouldn’t be complete without a chip to process data.

But, if Ding Yue remembered correctly, his Mist City Arts and Science University, Feiyue Group, and the country’s largest chip manufacturer, Guoxing Technology, had a close partnership; hence, getting chips shouldn’t pose a problem.

Moreover, Feiyue Group’s gallium nitride semiconductor material technology had already formed a deep collaboration with Guoxing Technology. Now, Guoxing Technology could get the gallium nitride semiconductor material technology from Feiyue Group to produce gallium nitride chips.

"Aren’t we in partnership with Guoxing Technology?"

"Yeah, can’t they just produce and supply the chips directly?"

Huang Youjie and Xu Bin asked, puzzled.

"That’s true, but the problem is that this morning, Mr. Wang Liwu from Guoxing Technology called me to say that Guoxing Technology is under tremendous pressure and is desperately short on chips. Right now, the entire international scene is also facing a chip shortage."

An Yujia replied seriously, explaining.

"A shortage?"

After hearing those words, Ding Yue fell into deep thought.

Recently, Ding Yue hadn’t paid much attention to the semiconductor chip industry, and he was unaware that the market’s high demand and the limited production capabilities of chip manufacturers had led to an acute shortage of chips, which was only growing.

Moreover, the foreign players were bottlenecking the domestic supply, forcing local companies to place orders with Guoxing Technology, the largest domestic manufacturer. If they tried to order from abroad, not only was there no guarantee that foreign manufacturers would produce for them, but it would also seem like a sign of weakness.

Besides, the foreign chips were in tight supply and unlikely to be available for the domestic market.

This compounded the domestic chip shortage crisis even further.

"I seem to recall seeing news that a chip shortage crisis was going to erupt again. Now that I think about it, it does make sense. With many domestic companies growing larger, their need for chips is increasing, but our chip technology hasn’t made significant advancements, leading to the current shortage crisis."

Xu Bin stroked his chin and began analyzing involuntarily.

Ding Yue knew that Bin was right.

Presently, many domestic companies needed chips—not just ones like Huawei, but even companies like Penguin Group, which, after entering the new energy vehicle market, also need chips.

Not to mention traditional auto manufacturers transitioning to new energy vehicles, which increases the demand for chips even more.

There are many other companies in various fields that need chips for their products, and the government also needs them. With Guoxing Technology as the sole provider, it simply couldn’t meet such enormous demand.

"That being said, the number of chips we need for manufacturing our cars is much less compared to smartphone and computer manufacturers. Maybe we can discuss it with Guoxing Technology Group?"

Ding Yue muttered.

Smartphone and computer manufacturers domestically produce and sell products in tens of millions, even crossing the billion mark annually, requiring an immense number of chips.

But it’s different for new energy vehicles.

Even for a car model with good sales, selling a hundred thousand units a month means just over one million yuan a year.

Hence, compared to smartphones and computers, the quantity of chips required for vehicles is considerably less. In light of this situation, perhaps it would be possible to negotiate with Guoxing Technology to reallocate some of the production capacity from smartphones and computer manufacturers and give it to new energy vehicles?

After all, with the relationship between Feiyue Group and Guoxing Technology Group, Ding Yue felt they might have a chance to have a serious discussion with Mr. Wang Liwu.

"Principal Ding, Mr. Wang said the shortage of chips is too significant, which indicates it might be very difficult to adjust. However, there might still be a chance. Shall I discuss it further with Mr. Wang?"

After some thought, An Yujia suggested.

"No need, I’ll talk to Mr. Wang myself."