Wang Yaocheng's heart was still surging, and it was difficult to calm down the ups and downs of his mood. He had a feeling of firmly grasping the historical opportunity, which filled him with a great sense of career accomplishment.
The significance of the acquisition of Hynix is so significant that it is difficult for non-experienced industry people to understand it.
first
Solving Atlantic Jinko's imminent sustainable development issues, products can be successfully iteratively continued, and the company can continue to participate in the competition as a second-tier manufacturer in the world, laying a solid foundation for further opportunities.
When it acquired the eight-inch wafer production line of a major Japanese manufacturer, it also obtained a cross-licensed production patent pool, which laid the foundation for Atlantic Jinko to become a second-tier manufacturer in the world.
Unfortunately, there is no opportunity to simultaneously introduce memory chip research institutions and experienced experts. Fujitsu Co., Ltd. will not give up this group of senior experts with world-leading levels.
This creates hidden dangers
Without the support and innovation of scientific research, sustainable development will be discontinued.
The iterative innovation of electronic products is very fast. It takes several years to reincarnate. Both first- and second-tier manufacturers have their own core research patents and high-level research teams to continuously track and develop new products.
Atlantic Jinko obtained mainstream memory chip technology in the early 1990s. Today, it has entered the end of its life cycle and is in urgent need of finding replacement products.
The dram technology architecture in today's world is divided into two camps
One is trench technology, dominated by European Siemens Semiconductor and France-Italy Semiconductor.
The other is stacked technology, and major manufacturers include Hitachi, Samsung, Micron, Hynix, etc.
As the name suggests
"Trench technology" means digging down, and "stack technology" means stacking up, representing two different technological development directions.
Digging-down technology encounters technical bottlenecks earlier, faster, and more difficultly than stacking technology. Research is more expensive, and technical bottlenecks are more difficult. It is mainly Western European manufacturers who like to get into trouble and challenge high difficulties.
A chip is so thick, how long can it be dug down?
It won't be long before "trench technology" will come to an end. It can be seen from the disappearance of these manufacturers into the long river of history that there is no future at all.
What Hynix has mastered is the future mainstream stacking technology, which is rare and valuable.
It has solved the urgent sustainable development problems of Atlantic Jinko, filled the technological gap, and revitalized the mainland's assets of more than 8 billion US dollars. Its significance cannot be overestimated.
Hynix has a complete research team and a new generation of mainstream product technology. It also has the world's leading 1g capacity sdram product and the newly developed 64m ddr sdram product. These are all leading products with strong competitive advantages.
Without these, Atlantic Jinko's short-lived prosperity will inevitably fade away and become a shining meteor streaking across the sky.
So, will other manufacturers be able to sell product patents?
There is absolutely no chance.
No matter whether it is Hitachi, Intel, Samsung, IBM, or Micron, it is impossible for them to sell their core patents. That is really stupid! Who will sell their own secrets of making money to help their competitors grow and develop?
Unless there is bankruptcy liquidation, mergers and acquisitions or withdrawal from the dram production field, it is absolutely impossible.
Secondly,
The acquisition of Hynix completely ended the beautiful vision of the Han Bangzi brothers to monopolize the world's memory chip market, allowing Atlantic Jinko to successfully achieve a counter-cyclical explosion, have the power to influence the price of the memory chip market, and enter the world poker game to start the game.
On this point, Wang Yaocheng was deeply touched.
In the original historical time and space, Korean manufacturers LG and Samsung Electronics joined forces to monopolize the world's LCD screen production. Samsung Electronics, Hynix, and Micron jointly monopolized the memory chip market and adopted strict technical blockade measures against mainland manufacturers.
Now, taking advantage of historical opportunities to take off, the pattern is completely different.
Previously, Atlantic Jingko was at most a little duck flapping in the pond under the wings of an old hen. (No language problem)
In the foreseeable future, Atlantic Jinko will grow rapidly and be able to covet other people's cheese.
The world's memory chip market is a bulk electronic product in the semiconductor industry. It is a highly cyclical industry with strong cyclical ups and downs, which makes people's hearts beat faster like a roller coaster.
When the price goes up, I tremble all over when I count the money. When the price goes up, I get so mad that I even kill myself. It’s more enjoyable than gambling, and more exciting than K-fans.
When the market is good, you can make billions of dollars a year, but when a financial crisis hits, you can lose billions of dollars a year.
This strong cyclical industry has distinctive characteristics;
The degree of product standardization is high and user stickiness is almost zero. Whoever gets the cheaper price will buy it.
The industry has a scale effect. The larger the production scale, the more effectively it can spread costs. The nature of industrial transfer is obvious. From the United States to Fuso, from South Korea and Taiwan to the mainland, we are looking for price depressions.
Heavy assets, huge depreciation rate, an eight-inch wafer fab worth more than one billion US dollars, usually depreciates in three years. Once such a company is put into production, it cannot stop, and it has to bite the bullet and produce at a loss. At least it still has cash flow.
.
Nearly 20 manufacturers participate in the market competition. When prices rise, manufacturers want to expand production frantically to kill their opponents. When prices are low, they resort to bankruptcy and mergers to achieve success.
Cut overcapacity now, and the benefits can be converted at any time when prices fluctuate.
The industry structure is unstable, and it is impossible to establish a price alliance without a price alliance.
Only when the players are reduced to a few giants that monopolize the market, no one can kill anyone, and counter-cyclical expansion is useless, can all manufacturers sit back and make money with peace of mind.
They tacitly raise the market price of memory chips and earn huge profits.
In other words, everyone can calm down a little.
How crazy are memory price fluctuations?
It can be seen from the Zhongguancun market in Yanjing City that in 1995, the price of a 4MB memory stick was 1,200 yuan. By the beginning of 1998, the price of a mainstream 32MB memory stick dropped to 425 yuan. It is so crazy.
In 1995, the chip market size of the memory market reached US$24.6 billion, but by 1997, it was only US$13 billion. Mainstream products have developed from 4MB memory sticks to 32MB memory sticks, and the total market size has dropped by more than half.
Subtracting from this the high-end enterprise server memory products whose prices have always been stable, the fluctuations in personal PC memory chip products will be even more dramatic, not even reaching 1/5 of the peak price.
According to the merger and acquisition agreement;
Atlantic Jinko Group assumed 1/3 of bank debt, paid US$5.68 billion to acquire a total of 87.6% of the equity of 130 creditors, acquired Hynix with absolute controlling rights, and was responsible for the placement of more than 13,000 Korean workers.
After calculation, Hynix has a total bank debt of 12.75 billion U.S. dollars. Atlantic Jinko Group needs to bear Hynix's bank debt of 4.3 billion U.S. dollars. 130 creditors have provided a total of 8.45 billion U.S. dollars to write off bad debt losses and make concerted efforts to revitalize Hynix.
Hynix owns a total of five 8-inch crystal fabs, three 6-8-inch wafer fabs, several research centers, hotel industry, transportation industry assets, complete sales channels and stable customers around the world.
This condition is much more stringent than that of Micron, which is almost 158% higher than Micron’s cabbage price of US$3.8 billion.
Wang's consortium has stupid people and a lot of money. Is this a disease?
The huge gap between the Western camp and the Eastern camp must be taken into consideration here. American dads always take advantage when buying things and will not suffer losses. This is determined by the world structure and the United States’ world hegemony, and it has its own protagonist aura.
The country hasn't reached that level yet, so it just pays money to buy companies and talks about business.
Although Hanbangzi is facing a life-or-death crisis for the country and its enterprises, it will neither take advantage of Fusang people nor Europeans, let alone take advantage of mainlanders.
Wang Yaocheng takes advantage of Hong Kong citizens. The Western world has not yet turned a corner, and the world situation is relaxed, so he always thinks that he is still one of his own people.
If it comes from the mainland, it is impossible to sell it even if it offers 12 billion U.S. dollars. The world market is so harsh.
Being able to win Hynix at this price is half cheaper than Wang Yaocheng expected. He is prepared to spend more than 8 billion US dollars, or even higher, to win it.
That's why I was so ecstatic after signing the contract.
Measuring the value of a company is dynamic and cannot be fully reflected by data, especially for memory chip companies.
Two years ago, Hynix spent $14 billion to acquire LG Semiconductor, a premium of five times.
With LG Semiconductor’s two 6-inch wafer fabs and two 8-inch wafer fabs, all factory equipment and a complete set of research institutions, affiliated hotels, transportation, dealer channels around the world and other industries, is such a high price worth it?
Woolen cloth?
From the current point of view, it is a huge loss deal. It contains factors such as Korean banks passing on risks, the government's strong matchmaking, and Hynix's management's ambitious expansion. Various factors work together to promote the merger.
become.
If the boom continues for another two years, this huge bank loan burden can be easily digested, and the company can leap to a new level, which can be said to be a successful transaction.
It's a pity that the young lady's body and the maid's life will eventually fade away.
This is all closed and liquidated, so there is no need to mention anything.
"...
Let us live a life of ease in the world of mortals
Riding horses galloping to share the prosperity of the world
Sing to the wine and express the joy in your heart
Seize the youth with vigor and vitality
Let us live a life of ease in the world of mortals
…”
"Hey, Chairman, what are you so happy about? You are still walking in the garden so late and singing songs, disturbing your dreams!"
Wang Yaocheng turned around and saw that it was the strong woman Ms. Dong Mingzhu. He couldn't help but grinned, showing his white teeth; "Sister Mingzhu, too."
Do you want to sleep? Why do you feel a little homesick after only being out for a few days?"
"As someone who travels around all the time, I don't feel homesick at all. I have been working hard all my life, but I also enjoy the fun of work and am willing to accept new challenges."
"You are telling the truth. You won't see President Zhang jealous, right?"
"It's Chairman Mingjian Wanli. Our Yellow River Technology Group has now established a solid foundation and can't wait to test the world market. With our poor production capacity, we are still unable to disrupt the world market. We need the chairman's strong support."
!”
"Sister Mingzhu, I'm always afraid that the heavy burdens on you will break your string. Where can I find such an outstanding and outstanding business leader? This always makes me deeply distressed."
in the night
The light from a lamp not far away shone over, and Wang Yaocheng's eyes revealed clarity and sincerity, but Ms. Dong Mingzhu saw through it at a glance;
"Come on, Chairman, let's not do this Tai Chi. Everyone knows your Sima Yi's heart. According to the words of our hometown, you are called a nine-footed person. You are a daring and ambitious person.
It's on the edge.
I am also a straightforward person. I can control the development of Huanghe Technology Group. It is time to move to a new level. Now the world LCD market is also facing a reshuffle. We also want to participate. Please give us the right words.
.”
"Okay." Wang Yaocheng agreed immediately, and said after a while, "But Hanbangzi does not have an advanced production line. I only want world-class ones, and I don't care about rags. As for the money, I have plenty of money."
"With your words, I will leave for Fusang Country tomorrow. There will be good news in the next six months. I'm afraid it will cost you a lot."
"Sister Mingzhu, what do you mean by that? Nothing else. I have plenty of money. It doesn't matter as long as I spend money. I will give you as much as the Yellow River Technology Group has the courage to do. As long as you have the confidence to control it, it will be extraordinary.
I also fully support its development.”
Ms. Dong Mingzhu shook her head helplessly and sighed with conviction; "Chairman, you are telling me that I really can't sleep today. What you said made me feel so excited that I wanted to fly to Fuso Country overnight. I couldn't even stay for a minute."
Live."
"Wait a moment."
"What?"
Wang Yaocheng took out his phone and dialed a number; "Tom, um... it's me, urgently applying for a temporary route to Tokyo, um... now, I will arrive at the airport in about 40 minutes, it's Ms. Dong Mingzhu... Yes, you can advance