Chapter 812 Flash Memory Market
“But I heard that Samsung has lost its composure.
Preparing to reduce the price of 667M/DDR2 memory chips.
As for the extent of the price reduction We don’t know yet, but the news is that the discount is very large, which may exceed 10% of the contract price, or even higher,” said Sun Mingzhen.
“Price reduction is certain.
The ex-factory price of DDR2 memory particles is US$90. In addition, the money earned by channel dealers is more than three times that of DDR memory. It is simply a money grab. ”
That’s it if there is no other choice in the market.
There is also a very cheap DDR400, and the price is still falling.
You said that DDR capacity is not good, then Can I just add another one?
Wouldn’t the two 512M memory sticks add up to 1G?
And the price is even cheaper.
With this level of memory, even the memory-hungry World of Warcraft can run stably.
Other games are no problem.
Nowadays, most young people buy computers to play games, as long as the games can run smoothly.
They don’t care whether their memory is 512M DDR or 667M DDR2.
"How many DDR2/400 and DDR2/667 memory chips do we have now?"
"No inventory."
"No?"
Sun Mingzhen smiled bitterly: "The whole Hynix is carrying a huge debt of 16 billion U.S. dollars. We want to make money as soon as possible to fill this hole. How can we save inventory? "
"So we are a blessing in disguise?" Xu Liang said with a smile.
Sun Mingzhen nodded.
After flipping through the information in his hand, he continued to ask.
"The market for flash memory is not good this year?"
"NAND flash memory has been growing, and profits are also very good. However, the output of high-density NOR flash memory with a capacity of 64Mb to 1Gb increased too much last year The market needs time to digest.
In the first quarter of 2005, the market size of NAND flash memory increased by 25%, but the market demand for high-density NOR flash memory decreased by 7.2%.
But overall, the entire flash memory market is still growing. ”
NOR and NAND are the two main non-volatile flash memory technologies on the market today.
Intel first developed NOR flash memory technology in 1988, completely changing the original combination of EPROM and EEPROM. The situation in the world.
In 1989, Toshiba released the NAND flash memory structure, which emphasized lower cost per bit, higher performance, and could be easily upgraded through the interface like a disk.
< br>After more than ten years of development, both have their own advantages and disadvantages in terms of reading speed, writing and erasing speed, durability, reliability, cost, capacity, etc., forming different application scenarios. < br>
NOR flash memory with faster reading speed and higher reliability is mainly used in situations suitable for frequent random reading and writing, such as consumer electronics, Internet of Things, automotive and industrial fields.
NAND flash memory with faster writing and erasing speed, lower cost and higher capacity is mainly used to store data and is widely used in digital cameras, smartphones, tablets, memory cards, solid state drives and computers middle.
Sun Mingzhen looked at the man in front of her with admiration.
“Thanks to your insistence on changing Hynix’s M6 and M7 factories to flash memory production lines last year, otherwise Hynix would have lost money this year.”
Thanks to Xu Liang’s decision, Hynix It converted all six production lines of its two 12-inch wafer production plants with the largest output and highest efficiency into flash memory production lines.
From May 2004 to now, Hynix's flash memory production has increased sixfold, quickly becoming the third largest manufacturer in the flash memory field after Samsung and Toshiba.
Riding on the surge in the flash memory market has earned Hynix huge profits.
Looking at the woman's admiring eyes, Xu Liang smiled.
As a person who has experienced it, he certainly knows that flash memory has far more advantages than memory.
Especially with the explosive growth of MP3, MP4, USB flash drives, mobile hard drives, smart phones, wearable devices and other products, the demand for flash memory far exceeds the growth of computer memory demand.
So just after acquiring Hynix, he persuaded Yu Yiji to convert the largest and newest two of Hynix's seven memory factories into flash memory production lines.
At that time, the global memory market had a surplus of products and weak prices.
Hynix, which has extended its debt for one year, also has no debt repayment pressure.
Hynix’s change hit the right spot.
From June to now, Hynix's flash memory chips have increased sixfold, with output exceeding 20 million chips.
The current total annual output has exceeded 30 million particles.
"How much cash does the company have in its account now?"
"There are US$1.58 billion in liquidity and US$3 billion in the investment account." Sun Haizhen said.
When Hynix originally acquired it, the condition Xu Liang fought for was to postpone the repayment period for one year, so Hynix did not need to repay any debt throughout 2004.
Because it is insolvent, Hynix does not need to pay various taxes including corporate income tax.
All money must be used to pay off debts.
So from 2004 to now, Hynix has earned a total revenue of nearly US$7 billion.
This part of the money excludes hard expenses such as raw material procurement, equipment depreciation, and salary expenses.
The remaining tax money and Hynix’s own net profit were retained.
However, it needs to be emphasized that Hynix’s working capital of US$1.58 billion includes hard expenses such as employee salaries and raw material purchase funds.
The US$3 billion in the investment account is Hynix's own money.
Xu Liang knows very well that it is not impossible for Hynix to repay the huge debt of US$16 billion with an interest rate of 5% every year, but it is too difficult.
Even if you can barely pay it back, you will miss the opportunity for development due to lack of funds.
So from the beginning, he set his goal on financial investment.
For others, this is a high-risk investment that can easily overturn.
But for him, it was all about picking up money.
All of Hynix’s US$3 billion was invested with 5 times leverage in the stocks of high-tech and Internet companies he knew well, such as Apple, Amazon, eBay, NetEase, Sohu, Toshiba, and Netflix. Although there are not many in each house.
But when it is spread out, the risks are also spread out.
“How much has the investment account increased?”
In order not to pay short-term capital gains tax, Hynix's equity investment is made in the name of Hynix's finance department.
Instead of Hongyan or Hanhua.
“35.9%.”
Xu Liang nodded slightly. Hynix’s funds entered the stock market at different times. Although it was 5 times leveraged and invested in high-growth stocks, it was only An average yield of 35.9%.
“Oppa, you are so awesome.
Just the rise in the equity market is enough to repay Hynix's debt maturities in the first half of this year. "
Seeing the woman's adoring eyes, Xu Liang smiled and stretched out his right hand to touch his conscience.
The scale is much bigger.
Pregnancy is indeed The doubler of conscience.
“Oppa, if you want, I’ll contact YG, JYP and SM. They have many trained girls with clean bodies, and I guarantee you to play with them. Have fun. ”
Xu Liang shuddered and became inexplicably excited.
After a little hesitation.
"Forget it, let's talk about it later."
Although he is a scumbag, the two sisters have just given birth to his child, and they are messing around outside before they are even out of confinement.
It seems too scumbag.
Sun Mingzhen felt a little disappointed.
She really hopes that Xu Liang’s sexual interest can change.
Otherwise, if she gives birth to a child every three days, all her time will be wasted.
Compared with raising a husband and raising children, she hopes to fight in the business world and realize her own value.
And now she has two sons and one daughter, which is enough.
"How is the construction progress of the two factories in Wu & Xi?"
"It went smoothly beyond expectations.
Especially the local government has given us great support. It was supposed to be completed by the end of this year. The factory will be completed in June.
With half a year left to debug the equipment and trial production,
if everything goes well, it will be officially put into production in November.”
"When these two factories are put into operation, our flash memory production capacity will double on the current basis, with production and sales exceeding 6,000 chips, completely surpassing Toshiba and becoming the world's second largest flash memory manufacturer.
海The situation of wrestlers will also usher in a real improvement," Xu Liangdao.
According to the current global flash memory chip market size.
When the Hynix M8 and M9 factories are put into production, flash memory production will account for about 20% of global production.
The global flash memory chip market size is as high as 20 billion US dollars, and it is still growing.
By then, coupled with memory revenue, Hynix's total annual revenue will grow to more than $6.5 billion.
"Oppa, now Infineon and Qimonda are planning to spin off the memory business and list it separately, should we do the same?"
"Why?"
< br>“The main reason is that the price of memory fluctuates too much, and you lose more and earn less.
Looking at the development of memory up to now, you lose money more often than you make money.
If our finances are healthy, we can continue to invest in this area, but now with high debt, it may be a better choice to separate the memory business while the market conditions are good. "Sun Mingzhen explained.
Xu Liang nodded, he understood Sun Mingzhen's choice very well.
With 16 billion US dollars of debt weighing on his head, anyone would feel a lot of pressure.< br>
Memory's "seven accompaniments and three profits" is also a well-known industry norm.
Many listed parent companies don't like their financial reports to show losses and profits, so they simply spin off the company. It's stable and the management can get bonuses.
But there is only one exception: Samsung Electronics.
This family company held firm beliefs from the beginning and never thought of spinning off the memory business but continued to invest huge amounts of its own funds.
We never take shortcuts to acquire peers that are on the verge of bankruptcy.
Samsung’s focus, resilience and fierceness make it the leader in the memory field today and dominate the world.
Xu Liang understands the development process of Samsung very well. After all, too many business books explain the Samsung model. In his previous life, as an educator, he had heard about counter-cyclicalism countless times.
My ears are calloused.
“It’s easy to give up business, but it’s hard to get it back.
As for financial difficulties, you don’t have to worry.
As long as I’m here, it’s guaranteed to be four years Let Hynix repay US$16 billion of debt within four years.”
“Repay US$16 billion in four years?”
Sun Mingzhen's face was full of surprise.
“What, you don’t believe it?”
“Of course I believe Obama, you are the greatest financial genius in the world. But the amount of 16 billion US dollars is too big, it’s so big that it’s hard to believe Unbelievable.”
(End of Chapter)