Song Shiqiang on the current predicament of Huaqiang North (XXVI):

Huaqiang North is facing several dilemmas, one is the fourth international industrial chain transfer, a lot of big customers transferred away, although the end of the big customers Huaqiang North conditions can not keep up with the service can not be, but their second and third supply factories and peripheral ancillary product suppliers, is our Huaqiang North merchants can serve the cooperation of the target customers, the big customers away resulting in the loss of these target customers.

Secondly, in recent years, we have encountered a hundred years of great change, the overall economic growth is slow or even in the decline, before many people can basically earn money, now only individual competitive strength to earn money, exacerbating the involution of everyone.

The third is that Huaqiang North mainly serves small and medium-sized hardware product development and production customers, with the development of society and competition in the industry, the market from the non-equilibrium market to the transition to a balanced market, small and medium-sized customers either die or be acquired, the customer grows up after the original factory and agents to follow up, no Huaqiang North of these small businesses what happened.

What is the fourth? Is the first two years of the industry shortage and Huaqiang North hoarding speculation hurt downstream customers, Huaqiang North (shenzhen huaqiangbei) to lose trust, or the customer has been unable to support their own, the customer base in the reduction.

I Song Shiqiang also think that “actually is to do with the single business.” “Matching list” is “matching”, “customers give us a complete BOM table for the production of products, the table has a variety of categories of electronic components, we have to help customers match all the list of the required material number. “But the trading company is at the very end of the semiconductor supply chain, service customers small scale, low efficiency, not conducive to standardisation, process management and scale development. Huaqiang North business model is simple and low value-added, easy to be copied and replaced, hair we call the new entrants to the industry, “wear the boss’s shoes, walk the boss’s way, and finally we have no shoes to wear, no way to go”, the model exhibition prospects or problems, so we have to have a sense of crisis, do a good job of laying out in advance.

Mr Song invested in SLKOR semiconductor and KINGHLEM electronics company, headquartered in Shenzhen, China, are national high-tech enterprises, “SLKOR” (www.slkoric.com) and “Kinghelm SLKOR” (www.kinghelm.net) and “Kinghelm” (www.kinghelm.net) brands, enjoying international popularity and reputation, and gradually expanding market share. Shenzhen Slkormicro Semicon Co., Ltd. focuses on the research and development of new materials, processes and products, with a technical team from Yonsei University and Tsinghua University of South Korea, and has mastered the international leading silicon carbide MOSFETs. SLKOR is a member of Shenzhen Electronic Chamber of Commerce, and has developed from FABLESS design into a company integrating design, R&D, manufacturing, product sales and technical service.