Chapter 329: The Scaled Expansion of Rongyao Electronics
"Dragon and phoenix twins? That's wonderful news!" exclaimed Bai Yushan's mother joyfully upon hearing the update.
Yang Wendong, still full of concern, turned to the doctor and asked, "Doctor, are both the mother and the children alright?"
"Everything is fine, Mr. Yang," the doctor assured him. "However, the birth was quite strenuous. One of the babies had the umbilical cord wrapped around the neck. There was no immediate danger, but it did make the delivery more exhausting for the mother. She'll need to rest well during the confinement period."
"That won't be a problem," Yang Wendong replied.
Although Hong Kong in this era didn't yet have modern maternity centers, Yang Wendong had already replicated that model at home, with a full suite of postpartum care in place.
The doctor continued, "You may now see the babies, but the mother has just fallen asleep. Please be quiet."
"Understood," everyone replied in unison.
The two babies were adorable—both fast asleep. Surprisingly, their tiny hands, just a bit larger than grapes, were clutching each other's fingers, as if they had held on like that even before birth.
After taking a few photos, Yang Wendong and the family exited the room quietly.
Outside, Yang Wendong turned to an assistant and said, "Take the film and have it developed. Store the negatives carefully."
"Yes, Mr. Yang. I'll take care of it right away," the assistant replied.
Yang Wendong added, "Also, arrange for someone to check the international medical equipment market. I want you to find out if there's a machine called an ultrasound, which uses sound waves to scan the inside of the human body. I believe the technology already exists, but I'm not sure if it's commercially available yet."
The science behind ultrasound had long been known, and the principles for examining human or object interiors had been established. But whether practical equipment had been built was unclear.
If it had, Yang Wendong would consider establishing a small private hospital in Hong Kong, focusing on health screenings and obstetrics. He would benefit from it personally, and given the rising number of Hong Kong tycoons, there would definitely be a market for such services.
After all, safety wasn't just about daily living—it included preventive healthcare. A professional hospital wouldn't just be a good business; it would have real meaning for his family and himself.
"Understood. I'll assign someone immediately," the assistant said, then left.
—
The next morning, Bai Yushan regained consciousness. The twins woke up a few times to feed but quickly fell back asleep.
The atmosphere was warm and joyful. Everyone took turns playing with the babies or simply chatting—it was a rare moment of peace.
Yang Wendong couldn't take his eyes off his children. Even when they were just sleeping, they looked unbelievably cute.
Two more days passed.
The assistant who had been sent to research ultrasound equipment returned with a report: "Mr. Yang, I've confirmed that ultrasound devices are already in use in some large hospitals in Europe and the U.S. Companies like General Electric and BioMérieux in France manufacture such machines."
"Good," Yang Wendong said. "Have Li Haoyu reach out to the Hong Kong Department of Health. Let them know Changxing Group intends to apply for a license to build a private hospital, focused on checkups and obstetrics."
Hospitals, even in the modern world, often had areas of specialization. Even the largest public hospitals had departments they were known for, while private hospitals typically operated as specialty clinics—common ones included dentistry, ophthalmology, and gynecology.
"Got it. I'll let Mr. Li know," the assistant said.
Li Haoyu was one of the top managers in Changxing Group's headquarters, with a doctorate in law. He handled all matters related to the government and licensing.
—
A few days later, with both mother and children in good health, Bai Yushan returned home.
After a few more days of staying by their side, it was now March 10th.
That morning, Yang Wendong headed to North Point on Hong Kong Island.
There, Wang Zhiqun from Rongyao Electronics led him to a vast open space and said, "Mr. Yang, this is the site I've chosen for our television manufacturing plant. Negotiations with the government are nearly done. The plot measures 300,000 square feet, enough to accommodate the American production line with a capacity of 500,000 units per year."
Yang Wendong looked around and asked, "I see some residential housing nearby. How many households?"
"Twenty-six in total," Wang Zhiqun replied. "But that's not our concern. The government will handle the demolitions and compensations. We'll be purchasing the cleared land directly from them."
Yang Wendong nodded. "Has the land price been finalized?"
"Not yet. The government wants HK$6.8 per square foot, which is the standard rate for industrial land in this area. But since we're buying such a large parcel, I'm trying to negotiate down to HK$6.2. Talks are ongoing."
Yang Wendong continued, "And the equipment from the U.S.?"
"All set," Wang Zhiqun confirmed. "Including patent licensing, on-site testing, and technical support from American engineers for the first six months, the total cost is US$420,000. We're just waiting on your signature to finalize the deal.
Once signed, dismantling the line and shipping it overseas will take around three months."
"Three months?" Yang Wendong frowned. "And we haven't even built the factory yet. Will that be enough time?"
"No need to worry," Wang Zhiqun smiled. "As long as we secure the land, we can start construction immediately. If we pay up front, the contractor will work 24/7.
The assembly line for the TV sets is relatively simple—just needs basic infrastructure like water, electricity, and ventilation. The CRT production, on the other hand, is more complex and will remain in the U.S. temporarily. We'll send 30 people there to learn. Six months later, we'll bring that production back.
This way, our assembly staff and QC team can get familiar with the workflow before we shift CRT production to Hong Kong."
"Sounds reasonable," Yang Wendong nodded. "Let's secure this land as quickly as possible. Don't waste time bargaining over pennies. With how fast land prices and industrial development are going in Hong Kong right now, delays will only hurt us."
In 1963, land prices in Hong Kong were rising fast. Commercial auctions kept breaking records, and residential prices followed suit. Naturally, industrial land also became more sought-after.
With rapid growth in Hong Kong's manufacturing sector, the demand for industrial space was intensifying—pushing prices even higher.
"Understood. I'll visit the Lands Department again tomorrow," Wang Zhiqun replied.
"Alright," Yang Wendong nodded. "What about logistics—any transportation issues?"
"None," Wang Zhiqun said with a smile. "North Point has been an industrial hub on the island since the 1930s. Infrastructure is fully developed. There's even a direct road to the Taikoo Dockyard.
We only need to build a few hundred meters of road from our main gate to the main road. The government has already agreed to handle that."
"Good. Sounds like everything's on track," Yang Wendong said. "Start recruiting production workers as well. Even basic training takes time."
"Already in motion, Mr. Yang," Wang Zhiqun assured him.
"Great. One more thing—our transistor factory is nearby, isn't it?"
"Yes, it's about 1.5 kilometers from here," Wang Zhiqun replied.
"Let's go check it out," Yang Wendong said.
"Of course. We'll drive over now," Wang Zhiqun answered.
Ten minutes later, the group arrived. The transistor plant's senior managers joined them as Yang Wendong toured the facility.
There were many processes that Yang Wendong didn't fully understand—no matter how much explanation was given. However, when he reached the end of the production line, he could clearly see the mass-produced transistors being boxed and labeled.
The group then moved to the front office building of the factory.
Yang Wendong asked, "Are we running at full capacity now with our transistor production line?"
Wang Zhiqun replied, "Yes, it's already at full load. Last month alone, we produced around 1.2 million transistors. This production line's maximum annual capacity is 15 million units."
Yang Wendong nodded. "And are we mainly exporting?"
"Yes," Wang Zhiqun confirmed. "Seventy percent of our production is exported—to Japan, the U.S., and Europe. The remaining thirty percent is used domestically in Hong Kong. But over the past six months, local demand has been rising fast—there are more and more electronics factories setting up here."
Yang Wendong smiled. "Makes sense. The global electronics industry is booming, and Hong Kong is the world's assembly plant. Plus, we've significantly driven down the price of transistors. That alone would push a lot of entrepreneurs here into the electronics game."
When a new industry first begins, the technology is simpler and the barriers to entry are low.
The electronics industry was exactly that right now. Aside from complex home appliances, many small electronic devices only required basic assembly and a handful of transistors.
Back when Japan dominated the transistor market, prices were high. But now, with prices falling, the entire electronics sector was gaining momentum.
Wang Zhiqun added, "Exactly. A lot of electronics products need dozens of transistors per unit. That's good news for us."
Yang Wendong continued, "I'm thinking of purchasing a new production line. What do you think?"
Wang Zhiqun hesitated for a moment, then said, "Mr. Yang, I've been thinking about that too. But something unexpected has come up—Fairchild Semiconductor from the U.S. is planning to invest in a transistor factory in Hong Kong. Their expected capacity is 120 million units per year."
"You're worried they'll take our market share?" Yang Wendong asked with a laugh.
He was already aware of Fairchild's planned investment.
Back in the early 1960s, after Japan flooded the U.S. with cheap transistors, domestic manufacturers found they couldn't compete on cost. So they began moving operations offshore.
Mexico was too unstable, and Japan, wanting to protect its local industries, rejected foreign capital. Eventually, Fairchild chose Hong Kong for its major investment in a transistor production facility.
This was a golden opportunity for Hong Kong's electronics industry. Unfortunately, Fairchild eventually collapsed due to internal mismanagement.
Wang Zhiqun said, "Yes. They won't just take the local market. They'll affect our exports too."
Yang Wendong replied, "That's true. But I believe the transistor market is virtually unlimited. There are so many electronics industries being established globally, and all of them need transistors.
Take televisions for example—do you know there are still billions of people in the world without a TV? Once their economies develop, they'll all want one. And each television contains dozens of transistors. Can you imagine how huge that market is?"
Before integrated chips took over, transistors were the heart of every electronic device. Even the simplest home appliances used a large number of them.
This kind of demand was nearly endless. With high-quality, low-cost transistors, a single large factory could generate more profit than all of Changxing Industries combined.
Wang Zhiqun nodded. "That's true. But technically, we're still not as advanced as Fairchild. That's what worries me."
"Then we learn," Yang Wendong said, smiling. "Fairchild investing in Hong Kong is actually a good thing for us. They'll bring more engineers, experience, and most importantly, they'll train local talent. That's a win for us.
Otherwise, we'd have to build the entire transistor ecosystem from scratch, which would be extremely difficult. We'd risk being crushed by better global competitors.
And the more transistor factories there are in Hong Kong, the more we can push down the supply chain costs, and increase our product's competitiveness."
In any industrial sector, clustering leads to economies of scale. Yes, there would be competition—but overall, the market would expand faster, and costs would drop.
"You're right, Mr. Yang," Wang Zhiqun admitted. "I was being too short-sighted."
"It's alright. You're a professional manager, and risk analysis is your job," Yang Wendong said, nodding approvingly.
As a time traveler, Yang Wendong knew the future. But for most people, even seeing five years ahead was already impressive.
In many businesses, the key wasn't just to chase growth, but to manage risks and maintain steady operations.
The stories of aggressive success often hid the reality: behind every winner were thousands of failures.
Wang Zhiqun continued, "Then I'll begin looking for a new transistor production line in Europe and America."
"Good. But no more second-hand equipment. Buy the latest tech," Yang Wendong emphasized. "The transistor business depends on massive economies of scale. We need to custom-build a large-scale line. Once our costs drop, market demand won't be a problem."
Industries like transistors, LCDs, and semiconductors all followed the same logic: the bigger the scale, the lower the cost, and the higher the market share. This created a moat stronger than any patent.
The same applied to consumer goods.
"Understood," Wang Zhiqun replied. "Once I have a proposal, I'll report back to you."
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