Chapter 112 There is nothing new under the sun
After another round of meetings between the presidents and heads of major corporate departments of the Korean Star Group.
Choi Jindu, the president of Hanxing's display department, and Go Seokjin, the head of Hanxing's mobile phone department, hugged each other again.
Unlike Hanstar Semiconductor Company, Hanstar Display Division and Hanstar Mobile Phone Division have always advanced and retreated at the same time.
The best display screen is always used by the mobile phone department as the flagship mobile phone display of the year. After that, new technologies are developed or the screen quality is improved, and then the old screen is sold to other companies for use.
This is why companies like Xia Wei, which compete with Korean stars for share in the international camp, often do not have access to the best screens of the year.
Apple and some companies with a large proportion of US capital are naturally not included in this list.
The chairman requires that the financial report for the second quarter should be eye-catching enough, so Hanxing Mobile Phone and Hanxing Display will naturally join the battle.
The InfinityDisplay curved screen used by Korean star Galaxy S9 released in February caused a wave of display problems for mobile phone companies.
Specifically, it was a grayscale content restoration problem, which made the screen inaccurate. The problem is that an image or video ranging from black to dark gray may be completely replaced by black.
Once this problem came up, the second quarter financial report was actually half useless.
According to the past solution, it is to wait for the flagship release in the second half of the year and use better hardware to wash away the shame.
But there is no way to delay this time. If we cannot survive the second quarter, everyone will be criticized.
The two responsible persons discussed several times and finally came up with a plan.
Urgently release an upgraded version based on the Korean Galaxy S9, the Korean Galaxy S9S.
The screen is 6.4 inches, a full-view curved SuperAMOLED panel, QuadHD+ level resolution, 2960×1440 pixels, a pixel density of 516ppi, and the screen ratio is still 18.5:9.
“Consumers are actually very forgetful. As long as we come up with better ones, they will forget the bad ones in the past.”
Gao Xizhen patted Cui Jindu’s Shoulders, so to speak.
The two of them stood side by side, seemingly forgetting about a certain president.
Extreme pain is the final liberator of the spirit. Only this kind of pain can force us to achieve enlightenment.
With this realization, Li Jingan walked up to Li Jianxi, bowed and told some of his ideas and plans.
The head of the Korean star patted him on the shoulder.
“This time, I can give you permission, don’t let me down.”
The global semiconductor industry in March was like a roller coaster, with ups and downs, which made laymen feel Extremely exciting.
Korean Star Semiconductor teamed up with Neon Semiconductor to pull TSMC into a wave of price increases.
Daxia Jiuzhou Technology stood up and stated that it has a monthly production capacity of 500,000 pieces and supplies it at a low price.
Just when everyone thought it was a boast, in order to stabilize the market price, it later supplied the goods as promised, catching everyone off guard.
Li Jingan, CEO of Hanxing Semiconductor Company, said after careful investigation and research that Jiuzhou Technology Company’s low-price wafers are not possible. With Daxia’s manpower and material resources, production capacity can be expanded, but the production process In the two most important areas of production and equipment consumption, it is absolutely impossible for Daxia to surpass other semiconductor companies.
After all, in many international research laboratories today, the cutting-edge analysis theories have not been optimized and perfected to this extent.
Energy issues and manufacturing process accuracy issues are all difficulties that need to be overcome.
So Li Jingan issued a military order to bankrupt Jiuzhou Technology Company within three months.
Because according to Daxia's backward production technology and equipment, the cost of a twelve-inch silicon wafer will be at least one thousand or more.
According to the price of 490 Xia Yuan per piece announced by Xia Xin Technology, by comparison, Jiuzhou Technology Company will lose at least 500 Xia Yuan for every silicon wafer shipped from the factory.
The production capacity of 500,000 silicon wafers per month means a monthly loss of at least 250 million Xia Yuan.
If this company had the help of some funds from Daxia, it might be able to survive for a few months until the price of semiconductors in the international market dropped. However, this is an ideal situation when chip prices are high.
What if the raw materials suddenly drop?
A silicon wafer manufacturing plant with a monthly production capacity of 100,000 wafers requires an investment of tens of billions. Jiuzhou Technology Company has a monthly production capacity of 500,000 wafers, which is a level of 100 billion.
The cost of this scale is faced with the sudden drop in chip prices.
What will happen?
Li Jingan felt excited just thinking about it.
After all, Han Xing made a decision, and Neon's company saw it and felt that something was going to happen, so the two companies joined forces again.
As for TSMC which has the largest share?
It is big, but just because it is big, it cannot move around. Whatever the second and third brothers want to do, it can only passively cooperate.
April 1st.
Led by Han Xing Semiconductor, global wafer manufacturing plants suddenly cut prices significantly.
The people eating melons were all confused.
What's going on?
Didn’t we agree that the fire in the factory would cause production capacity to be tight, and labor costs would be getting higher and higher, so chip prices would have to rise?
Why did the price suddenly drop?
And it's not a drop of tens of yuan, but a drop of two hundred yuan.
The global wafer price trend chart is like a person who climbed to the top of a mountain and suddenly jumped off a cliff.
Korean Star and Neon-related industry personnel held a press conference and stated: Due to the optimization of the new process flow and the improvement of equipment performance, this price reduction is to allow downstream chip foundries to have better and more cost-effective raw materials. .
Okay, although the name of Jiuzhou Technology Company is not mentioned between the lines, anyone with a discerning eye will know what is going on.
There are also media reports that have learned the "industry insider information".
Jiuzhou Technology Company borrowed heavily, used its own company as a mortgage in exchange for a large amount of funds, hired a group of highly qualified engineers and experts with high salaries, and spent huge sums of money to build factories and purchase equipment.
So despite the fact that Jiuzhou Technology Company can produce 500,000 wafers a month, it has actually been operating at a loss.
While talking, some self-media appeared.
Some harmonious arguments began to spread.
Why is Jiuzhou Technology Company actually spending taxpayers' money to subsidize the purchase price of raw materials for non-domestic companies such as Xiaxin Technology?
Obviously there is no shortage of wafers, but some people in China want to make money and insist on this project.
When the direction of media public opinion is distorted, it is easy for netizens to distort their speeches, especially with the large sums of money spent by certain institutions. Many "knowledgeable" and "reasonable guests" have also stepped down. Rumors.
What is gossip? Just what I heard.
“No wonder those giants want to lower their prices. It turns out that our people just want to make a profit and run away?!”
“There is nothing new under the sun. Who was not it back then? Just make a big sum and run away.”
"Talk about it! How could such a huge investment be just to do something like this!?"
PS: Good night everyone.
A few years ago, there was really a lot of ignorance...
(End of this chapter)