In the future, the company's independent chip research and development will gradually expand to the Internet of Things and artificial intelligence.
Although at the company's annual meeting in 2018, Xinhua San has released the relevant tone; but as the only complete ICT solution provider in China, Xinhua San has brought some shock to the market. Why did Xinhua San choose to enter the field of self-developed chips at this time, why would it be a breakthrough point to choose high-end routing products? What are the challenges facing Xinhua III and the extent to which they can achieve the established strategic vision? Can it achieve fame and fortune in the field of self-developed chips?
Self-developed chips: the correct and inevitable choice
In my opinion, Xinhua San chose to enter the self-developed chip market at this time, which is a correct and inevitable choice.
First of all, the strategic mission of Ziguang Group, with the words of Zhao Weiguo, chairman of Ziguang Group, Ziguang Group is to build China's “technical heavy artillery”, and the chip as the “base” of the entire technology industry can consolidate the base to win the future.
Secondly, the changes in the international political environment. The ZTE embargo incident last year still leaves the industry with a lingering fear. In the turbulent international political environment, it is most crucial to do well. Undoubtedly, there is no corner in the chip field to overtake. "The bench should be sitting for ten years." To catch up with the international advanced level little by little, it is not too late to start.
The third is the change in the market competition pattern. This started in Cisco and was carried forward inHuaweiThe wave of self-developed chips has now intensified. Self-developed chips will give manufacturers great competitiveness in both cost and performance dimensions. Self-developed chips are the most critical part of cost reduction, especially on very large user boards. From a performance point of view, in the future scene era, more emphasis is placed on application understanding and collaborative optimization of hardware and software. Self-study has advantages over commercial chips. This is not to say that commercial chips are not good, but in many scenarios, commercial chips are difficult to optimize perfectly.
High-end routing: North Slope summit Everest
The high division of labor in the industry chain has indeed lowered the threshold for self-developed chips. An obvious example is that many AI startups have launched self-developed chip products to meet the needs of a specific scenario.
Indeed, this is a shortcut, but this shortcut is not suitable for Xinhua III. As a leading manufacturer of the domestic ICT infrastructure market, Xinhua San chose the North Slope Mount Everest to directly focus on high-end routing products. However, in my opinion, Xinhua III is not just a mouthful of addiction, but a post-movement.
The first is the demand in the era of data flooding. With the advent of the 5G era, the bandwidth of wireless access networks will increase by more than 10 times compared with 4G. To make the bandwidth advantage of 5G fully utilized, operators will set off a new round of backbone. The large-scale construction and expansion of the bearer network. At the same time, 5G's rich and diverse scene applications will also enable large cloud computing, Internet companies and large enterprise network users to upgrade their data centers, which will lead to high-end marketrouterStrong demand.
It can be said that this is a market with strong growth and is the blue ocean in the Red Sea. From the technical point of view, there is no subversive technology at present; from the market side, the players are the first-hand, and the domestic substitution effect is very obvious.
Second, Xinhua San is no stranger to high-end routing products. From CR16000 to CR19000, Xinhua San has accumulated rich experience in product technology, and has also gained an in-depth understanding of application scenarios and user needs. In the enterprise network market, market share has continued to lead; in the telecom operator market, significant achievements have been made in the new bidding projects of operators in recent years.
In the words of Yu Xuejun, co-president and chief technology officer of Xinhua Group, the high-end routing self-developed chip will help Xinhua III to maintain the top two in the Chinese market competition and have the ability to enter the market leading position.
Many challenges: "balance" on balance beam
It is not easy to jump out of elegant and beautiful dance on the balance beam of the self-developed chip.
Xinhua III must have sufficient strategic strength, strategic self-confidence and strategic patience. This is the biggest challenge for Xinhua Group.
First of all, as mentioned above, the chip is an area that can withstand loneliness and requires long-term, high-intensity continuous investment. Take a certain manufacturer as an example, it has achieved great success in the field of self-developed chips (telecom, enterprise, and consumer), but its investment is also very huge, and continuous high-intensity and multi-investment is the ability to do this business. The key to the premise.
However, Xinhua III is different from the manufacturer. Xinhua III is a public enterprise. It is responsible for investors and investors. It needs to find a balance between short-term performance and long-term strategic goals, and achieve the best balance between R&D investment and current profits.
Secondly, Xinhua III must balance the commercial chips and self-developed chips. For a long time, Xinhua III has adopted commercial chips, and its suppliers are not many. Its entire R&D and product system are based on professional division of labor. The introduction of self-developed chips is not just a change of the "heart", but a "washing heart", which is a severe pain. Moreover, in the process of changing the core, we must also consider the cooperation with the original suppliers. For the volume of Xinhua San, the cooperation between them is no longer a simple sale, but a close cooperation with each other. The size is not good enough.
In this regard, Xinyingsan CEO Yu Yingtao’s point of view is that Xinhua III will continue to adopt the global technology-leading commercial chip partner solution while adhering to the principle of high technology and high standards. The solution supporting chips form complementary advantages and bring greater industry leading edge to Xinhua III.
Third, for Xinhua San, which has a rich ICT product portfolio, in the future, it is necessary to form a complete forward-looking and competitive self-developed chip combination. The high-end routing chip only sets the high standard for Xinhua III to enter the field. High threshold. In this regard, Xinhua San has already made its own plans, and will launch independent research and development of chips in other frontier areas such as artificial intelligence and Internet of Things in the future. How to choose the time node of the self-developed chip combination expansion, how to coordinate the division of labor with Ziguang Zhanrui, is also a place to test the wisdom of the Xinhuasan management team.