FWF Chapter 126 Public Opinion Storm
Chapter 126 Public Opinion Storm
2020 8 Month 10 Day.
While Su Chen was busy pushing forward with the strategic investment in Microchip Sensing and the acquisition research of Qixin Microsystems, an unexpected media storm was brewing.
The incident began at DJI's annual supplier conference.
Every August, DJI holds a supplier conference to inform its core suppliers about its procurement plans and cooperation directions for the following year.
At this year's supplier conference, DJI's supply chain director, while introducing the "adjustment of the strategic supplier list," inadvertently mentioned:
Regarding the supply of MEMS gyroscopes, we have reached a deeper strategic cooperation agreement with Murata to ensure the security of the supply of core components. At the same time, we also advise our partners to carefully evaluate their relationships with new entrants.
This statement itself is quite cryptic.
But the suppliers present were not fools.
"Some new entrants"—isn't that referring to Hongyuan?
"Carefully evaluate the partnership"—isn't that just an implication to avoid cooperating with Hung Yuan?
The "deeper strategic cooperation agreement with Murata"—combined with the news a few days ago that Murata had cut off its supply of MEMS gyroscopes to Hongyuan—
A smart person would immediately understand: DJI played a role in this Murata supply disruption incident.
The contents of the supplier conference should have been kept confidential.
However, the head of a small-to-medium-sized sensor company from Dongguan casually mentioned this matter while having dinner with colleagues after the meeting.
Then the news spread quickly within the drone industry.
Then it was spotted by a perceptive tech blogger.
On the morning of August 10, an article titled "Exclusive: Hongyuan MEMS supply chain suspected of being targeted and suppressed, DJI may be one of the behind-the-scenes manipulators" was published on a technology public account.
The article is carefully worded, using a lot of phrases like "according to informed sources," "suspected," and "or," but its content directly points to DJI colluding with Hangxindatong to suppress Hongyuan by pressuring Murata to cut off the supply of MEMS gyroscopes.
Within two hours of its publication, the article had garnered over 10 views.
Then, tech media outlets such as 36Kr, Huxiu, TMTPost, and Leifeng.com followed suit and reprinted the article.
By noon that day, the news had climbed into the top ten trending topics on Weibo.
#Hongyuan MEMS Supply Disruption#
#DJI suppresses domestically produced flight controllers#
#Low-altitude economy bottleneck#
The three topics simultaneously trended on social media, garnering over 300 million views in just a few hours.
……
on Weibo.
@TechVeteranBossDai: "Hongyuan's Flying Bird S1 was cut off from MEMS supply less than two weeks after its launch? This is outrageous! They were talking about building an open ecosystem at the July launch event, and now they're resorting to supply chain suppression?"
This Weibo post was forwarded more than 20,000 times.
The comments section exploded:
"Is DJI scared off by Hongyuan? The Flying Bird S1 is indeed powerful, but how is this kind of tactic of suppressing competitors any different from some foreign companies back in the day?"
"Hangxindatong is the same. They can't beat H-Link in the LDCL standard, so they resort to using supply chain bottlenecks? Does this kind of company even deserve to set industry standards?"
"What's most infuriating is Murata. What gives a Japanese company the right to decide whether Chinese companies can buy MEMS gyroscopes? This is the price of not being self-sufficient in core components!"
Ultimately, it comes down to our inability to produce high-precision MEMS. If domestically produced MEMS were sufficient, who could hold us back?
……
On Zhihu, a question titled "How do you view the suspected joint supply cut-off of MEMS gyroscopes by DJI to Hongyuan Intelligent" received more than 800 answers in just a few hours.
The highest-ranked answer came from an anonymous user named "MEMS Veteran":
Let me state a few facts.
First, the global MEMS gyroscope market is dominated by three giants: Bosch, STMicroelectronics, and Murata. Chinese companies have virtually no presence in this field.
Secondly, Hongyuan's Feiniao S1 uses Murata's SCR1100 series, which is one of the most accurate MEMS gyroscopes currently available in the commercial market. If Murata cuts off the supply, no domestic company can provide a substitute with the same accuracy in the short term.
Third, DJI purchases over 2 million RMB worth of MEMS gyroscopes from Murata annually. In comparison, Hongyuan's purchases are less than one-tenth of DJI's. If DJI pressures Murata to choose between the two, what will Murata choose? The answer is self-evident.
Fourth, and most importantly—this incident doesn't expose how bad DJI is, but rather how vulnerable China is in the field of core MEMS components. A single supply cut order from a Japanese company can force a Chinese tech company's star product to face production halt. This is the real issue that everyone should reflect upon.
This answer received over 40,000 upvotes.
In the comments section, netizens' emotions gradually shifted from anger to reflection.
"That's absolutely right. Instead of criticizing DJI, we should think about why we're so weak in the MEMS field."
"Therefore, Hongyuan now only has two paths: either find an alternative supplier or manufacture its own MEMS. No other path is viable."
"Building MEMS from scratch? That's easy to say. Bosch and Murata have accumulated three or four decades of experience in this field. Hongyuan, a flight control company, wants to build MEMS from nothing? Isn't that a joke?"
"The person upstairs makes a good point, but you forgot one thing—four years ago, Hongyuan was just a small company making agricultural flight controllers. Today, their H-Link 2.0 has become the industry standard. Never try to understand Su Chen using conventional wisdom."
……
On drone enthusiast forums, emotions are expressed even more directly.
User "Flying Hero No. 1" posted: "DJI has truly disgusted me this time. I will never buy any DJI products again."
"Agree +1," replied user "Sky Soaring."
"Agreed," replied user "Drone Novice".
"Agreed! I was originally planning to buy the new DJI Mavic, but I've cancelled it now," replied user "Aerial Photography Expert Lao Li".
"Cancelled too. I'll buy it again when Hongyuan's Flying Bird S1 is back in stock," replied user "Shenzhen Flying Enthusiast".
"To be honest, I was already annoyed by DJI's push for a closed LDCL standard, and now they're even putting pressure on the supply chain? Do they think their reputation is too good?" replied user "Tech Geek Lao Wang".
"However, on the other hand, Hangxindatong is a cancer. They charge such an expensive licensing fee for the LDCL standard, yet their technology is inferior to H-Link's. Now they're resorting to these underhanded tactics. From now on, I'll just pass on any LDCL-certified product." replied user "Geek Xiaofei".
Agreed!
Agreed!
Agreed!
A flood of likes on the screen shows that this incident has seriously damaged the brand image of DJI and Hangxindatong.
DJI, in particular, as a benchmark enterprise in China's drone industry, has always been seen as a "shining example of Chinese products" in the public's mind.
However, this act of colluding with foreign companies to suppress domestic competitors has left many consumers deeply disappointed.
It can be said that the brand damage suffered by DJI and Hangxindatong in this incident far outweighs the short-term gains they made by suppressing Hongyuan.
This is truly a case of losing a watermelon to pick up a sesame seed.
……
The situation is still developing.
By the morning of August 11, more than two hundred reporters had gathered at the entrance of Hongyuan's Shenzhen headquarters.
CCTV Finance, Xinhua News Agency, Daily Economic News, CBN, Southern Metropolis Daily, Shenzhen Special Zone Daily...
From central media to local media, from financial media to technology media, almost every well-known media outlet sent reporters.
And judging by this trend, even more reporters will arrive this afternoon.
Zhou Ming immediately reported the situation to Su Chen.
"Mr. Su, there are too many reporters at the entrance, which is affecting the employees' normal get off work hours. What do you think—"
Su Chen remained silent for a few seconds.
He knew this moment would come sooner or later.
The news of Murata's supply cutoff was bound to come out sooner or later, and a media storm was bound to erupt. Rather than responding passively, it's better to take the initiative.
"Arrange a media briefing. This afternoon at 3 PM. In the company lobby on the first floor."
"OK!"
……
3 PM.
The lobby on the first floor of Hongyuan was temporarily transformed into a press conference venue.
More than two hundred reporters filled the entire hall, with cameras, video recorders, and voice recorders densely pointed at the podium in front of them.
Su Chen walked onto the podium alone.
There was no PowerPoint presentation, no prepared speech, and he didn't even sit down—he just stood there, looking at the more than two hundred pairs of eyes below the stage.
"Mr. Su, is it true that Hongyuan is facing supply chain pressure? Has Murata indeed cut off the supply of MEMS gyroscopes?"
The first question came quickly.
Su Chen did not hesitate:
"It's true."
The scene was filled with the sound of camera shutters clicking.
Starting August 3rd, Murata officially ceased supplying SCR1100 series MEMS gyroscopes to Hon Hai Precision Industry Co., Ltd. Meanwhile, Xingyao Technology's chip packaging and testing foundry business was also affected by pressure from various quarters.
Su Chen's voice was calm and clear:
"Regarding the reasons behind this, I think everyone here knows better than I do. I'll just state one fact—the Flying Bird S1 was released and then its supply was cut off in just sixteen days."
Sixteen days.
This number sent a chill down the spines of the reporters present.
They witnessed firsthand how sensational the Flybird S1 launch event was on July 18th. A launch event with over 900 attendees, three major products, two cutting-edge technologies, and the H-Link 2.0 standard sweeping away LDCL—
Then, just sixteen days later, Murata stopped supplying the product.
This speed indicates that someone had already made preparations, waiting only for the successful launch of the Flying Bird S1 before making a precise move.
"Mr. Su, can the Flying Bird S1 still be produced?"
"able."
Su Chen's answer was concise and powerful:
"Our technical team completed a contingency plan within 48 hours of the supply disruption being confirmed—by optimizing the amount of MEMS used in the flight control architecture, our inventory is sufficient to support the supply until the first batch from the alternative supplier arrives."
"We have already signed a supply contract with Bosch in Germany for MEMS gyroscopes. The first batch of standard MEMS will arrive in a week. Production of the Flybird S1 will continue."
Upon hearing this news, a visibly relieved expression appeared on the faces of many reporters and onlookers.
But then, a sharp-eyed CCTV Finance reporter followed up with:
"Mr. Su, is there a performance difference between Bosch's MEMS and Murata's MEMS? Will the core performance of the Asuka S1 be affected by this?"
Su Chen smiled slightly:
"Good question. Frankly speaking, the accuracy of the standard Bosch BMI270 is indeed inferior to that of the Murata SCR1100. Our technical team is working with Bosch to develop a customized, optimized version, which is expected to be delivered in October. At that time, the accuracy gap will be narrowed to an acceptable range."
But I want to tell you the truth—
Su Chen's expression turned serious:
"Whether it's Bosch or Murata, whether it's a Japanese company or a German company, as long as core components are controlled by others, we will always face the risk of being held hostage. Today Murata can cut off supplies, tomorrow Bosch can too. This time they didn't block the Bosch line, but who can guarantee they won't next time?"
A brief silence fell over the scene.
Su Chen said what everyone was thinking, but no one dared to say.