Chapter 862 [Facing the opponent? Its not worth the opponent at all!]
In fact, the largest share of the chip industry is not high-end chips, but low-end chips.
The public is all focused on the most high-end chip technology, especially the high-end chips in smartphones, which represent the highest technological content of the semiconductor industry.
But in fact, the demand for chip semiconductors is not limited to just a mobile phone? There are many other industries that consume far more chips than smartphones, and their scale far exceeds the smartphone industry. There are no electronic products that do not use chips.
There is no doubt that high-end chips are important.
However, it is also a basic objective fact that high-end chips do not account for a large share of the overall chip market.
Focusing on the localization of mid- to low-end chips is also Fang Hong’s core strategy in the field of chip semiconductors. It is precisely because of the localization of mid- and low-end chips that he does not have to worry about being choked by foreign countries, so Fang Hong dares to have the confidence to speak loudly, otherwise he will not
I would never dare to show such an "arrogant" side like I have recently.
Moreover, only by maintaining the market share of mid- to low-end chips can we realize the cost amortization problem and have the capital to invest in research and development of high-end chips.
This is true for domestic semiconductor manufacturers, and it is also true for international semiconductor manufacturers. If they lose their mid-to-low-end market share, it will be no less than a slow death for them.
That is equivalent to the foundation being taken away, and the building will definitely collapse.
Losing the mid-to-low-end market share means that cost amortization cannot be achieved, which will inevitably lead to no money to spend on high-end chips in the future. The research and development of a new generation of high-end chips requires a lot of capital, but the costs cannot be amortized, and there is no money.
If we focus on the research and development of the next generation of high-end chips, we will not have the sustainability of development. Naturally, we will not be able to continue to lead. If we stand still, we will retreat if we do not advance.
But at this moment, Tian Jiayi raised his eyes and stared at Fang Hong and asked: "How should we defeat the Mei country's move?"
Fang Hong said with a smile: "There are many ways to treat this monkey in the south. The difference lies in which method has the least side effects. For example, you can cut off the power of the monkey, or increase the electricity price.
, he will scream in pain immediately."
Whether a country or region's industrial development is regressing or progressing does not actually need to analyze this or that random technical indicator. It is enough to look at one factor, which depends on whether its demand for electricity has increased or decreased.
The substantial growth in electricity demand indicates that its industrial development is growing rapidly, because the larger the industrial scale, the greater the demand for electricity.
As for Vietnam's demand for electricity, a large proportion of it depends on imports from its northern neighbors. If you increase the electricity price, your industrial production costs will increase. If you turn off the power, your factory may be damaged.
When work and production are suspended, some enterprises that cannot withstand the situation will eventually go bankrupt, but they could have survived.
Fang Hong said to himself: "This monkey has never been the key. Looking at this monkey is a bit self-sacrifice. The key is still the United States, so we need to be strong in blacksmithing. The optimal solution is of course our own technology."
More advanced and cheaper, his dumping strategy will go bankrupt; the second-level solution is to fight with a bayonet, and the actual situation is likely to be this situation."
After a pause, Fang Hong and Tian Jiayi looked at each other and said: "The survival rule here is actually very simple, that is, you can endure what you can't endure, and you can do what others can't. Tolerance is a line, and ability is another line.
Time is the living space. If we can endure what we can't bear and can do what others can't, then our living space will be larger than his. When both sides suffer, if you breathe more than him, you are the winner and you can laugh.
To the end.”
At this point, Fang Hong retracted his gaze and added with a smile: "If the United States engages in this kind of dumping strategy, it will certainly make us uncomfortable, but then again, won't it be uncomfortable for the United States? He will
The U.S.’s own semiconductor manufacturers will also feel uncomfortable. Low-price dumping means giving up profits that should have been taken in, which is even more uncomfortable than us.”
"The profit margins of North American semiconductor manufacturers have been compressed. How can they still spend a lot of money on high-end research? They will definitely be affected to varying degrees. As long as they are affected in the area of high-end chips, their plans to develop the next generation will be affected.
This is a situation that we like to see, and it means that the pressure on us to catch up with high-end chips will be relieved a lot."
Tian Jiayi nodded repeatedly after hearing this.
You are chasing him madly and standing still, and the gap between you and him is shortened by one step if you take a step forward; while you are chasing him madly and running forward quickly. When both parties take a step forward, the gap is not shortened at all, only he
To take one step forward, you must take two steps forward to shorten the gap of one step.
Fang Hong continued: "So, if the United States engages in low-price dumping strategy, it would be best if we can reduce the cost from a technical level. If not, then start a price war with them. He is cheaper and I am cheaper than him. Let's see who is better."
See who can outlast whom, see who can endure what others cannot bear, see what others cannot, see who can breathe more breath than the other."
Facing Hua, Fang Hong didn't give up to his opponent at all.
His confidence lies in the fact that today's Qunxing Capital retains terrifying leverage capabilities and currency derivative capabilities.
Now Qunxing Capital can leverage more than 800 billion in liquidity by simply increasing its debt by 10% through leverage.
The current debt level of Qunxing Capital has always been maintained below 10%, leaving a huge leverage space. Fang Hong has never used it. He would rather maintain a large capital cost expenditure every year than increase leverage, just to use it when necessary.
Furthermore, Qunxing Capital is not standing still. It is also constantly growing and expanding. In a few years, if the debt scale is also increased by 10%, the amount of funds leveraged will definitely exceed the trillion level.
With the "money power" of Qunxing Capital at the bottom, the semiconductor companies below can maintain a state of operating at a loss for a long time and fight against their opponents in a war of attrition.
Fang Hong even very much hopes that his opponents can continue to compete with him. This will actually delay the progress of his opponents in the field of high-end chips and gain more time windows for his own high-end chips to catch up.
Once they are tied in the high-end field, the entire situation will undergo earth-shaking changes, and offense and defense will change from now on.
By then, it will no longer be a question of whether he wants to engage in a low-price dumping strategy for Laos and the United States, but that Fang Hong will retaliate and engage in a low-price dumping strategy against Laos and the United States, and directly from high-end chips.
Market starts.
Directly discounting high-end chips that are now extremely expensive at bargain prices would be an absolute nightmare for chip and semiconductor manufacturers in the United States.
Once the high-end technology reaches parity, it will be the beginning of the collapse of international semiconductor manufacturers. Chip manufacturers in Europe and the United States will surely stage a spectacular wave of bankruptcies, leaving only the big manufacturers with the foundation to compete with them.
contend.
The essence of this world has always been a game of the law of the jungle, and Fang Hong didn't want to let them live at all. After all, others will try to kill you, and being kind to the enemy is cruel to yourself.
