Li Jianxi, who was sitting at the head of the seat, looked lonely and sighed heavily;
"It seems that Samsung Electronics must make major adjustments in its future development direction. We cannot afford to attack the entire industry chain at the same time. We must focus on it. Please share your views."
"Chairman, I think the focus should still be on TV products, which is the industry field where Samsung Electronics has the most advantages.
From the comparison of the comprehensive product lines of Samsung Electronics and Gli Group.
Samsung Electronics has an absolute advantage in the fields of televisions, walkmans, mobile phones, and video recorders. Its competitors are the world's famous European, American and Japanese electronics manufacturers. However, in the fields of computers, copiers, office equipment, air conditioners, etc., it is now at a disadvantage.
In the fields of small household appliances, DVDs, and kitchen and bathroom electronic products, the two sides are almost evenly matched.
Among all products, Samsung Electronics' LCD TVs and plasma TVs are in an absolute leading position with obvious advantages. They are one of the pillars of Samsung Electronics' profit contribution and should be the key breakthrough direction.
According to news from the mainland;
Huanghe Technology Group is negotiating to purchase Panda Electronics and may have plans in the near future.
Panda Electronics is one of the major TV manufacturers in mainland China. Its production capacity of color picture tube TVs is 4.5 million units. Due to its outdated products and backward technology, its competitiveness is not strong. It has suffered losses for four consecutive years and is in urgent need of finding a new home.
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According to the research and judgment of the Economic Research Institute;
Once Huanghe Technology Group acquires Panda Electronics, it may quickly invest heavily to renovate its production lines, expand production capacity, launch world-class LCD color TV products, and focus on competing with us.
They have no technical accumulation in plasma projects and cannot compete with us.
The Wang Consortium is trying to take advantage of the system to defeat us in various segments. This strategy is now beginning to take shape.
Atlantic Business Machines Company has obvious advantages in high-end computer products, copiers, mobile phones and other fields. Gree Group has strong strengths in mid-to-low-end computer products, copiers, office equipment, air conditioners, small household appliances and other fields.
If Huanghe Technology Group joins in...
From the production of glass substrates by Corning Company, to the processing of the fourth generation LCD screen display production line of Huanghe Technology Group, and finally to the production of finished LCD TVs by Panda Electronics.
Among them, Atlantic Jinko will provide the required digital decoding chips and application chips.
Integration will form the competitive advantage of the entire industry chain of the LCD TV industry from beginning to end. The strength is very strong and must be paid great attention to!
By then, Samsung Electronics’ advantage will no longer exist and its prospects will be worrying!”
Lee Jin-cheol, director of Samsung Economic Research Institute, analyzed the details in detail. All the executives who participated in the Samsung Electronics Strategy Seminar frowned and thought, trying to find a feasible solution and offered suggestions and suggestions.
“There are only two directions for the future development of color televisions;
One is an LCD TV. The disadvantage is that the larger the screen, the more expensive it is. The advantage is that the display pixels are clear and the product is durable and reliable.
One is a plasma TV. The advantage is that the screen can be made very large and the cost will not increase much. The disadvantage is that the display pixels are poor and there are still many technical difficulties that need to be solved.
According to Samsung Electronics’ current strength, I am afraid that it will not be able to follow the parallel development strategies of Panasonic and Sony, and it must choose one or the other.”
"Even though the Wang Group is so powerful, it has not developed both LCD TV and plasma TV technologies at the same time. Instead, it has concentrated its financial advantages and focused on developing LCD TV technology. This approach is worth learning from."
"Yes, it is good to wish for flowers everywhere, but it is often unrealistic."
“Sprinkle pepper everywhere, all projects are big but not strong.”
"I agree. We invested US$220 million and US$170 million in R&D on LCD TVs and plasma TVs respectively in 2000, resulting in a current situation where the technical levels of both parties are good, but neither is strong. If R&D funds are concentrated on one project, Samsung Electronics will
I am confident that I will stand out soon.”
"If this is the case, LCD TVs are inherently constrained by others. Corning controls the supply of glass substrates, and Samsung cannot get rid of the other party's constraints. If it is wise, it should choose the plasma color TV project."
"It makes sense, second the motion."
"Second."
Chairman Li Jianxi sat at the top, his hair gray but still vigorous, his eyes gleaming like a lion entrenched in his own territory.
He pondered for a moment and glanced at the crowd;
"Okay, let's vote on this with a show of hands."
"Those who agree to focus on the development of LCD color TVs raised their hands...11 votes." The host of the meeting looked at the executives and immediately reported the number of votes.
"A show of hands agreed to focus on the development of plasma color TV sets... 14 votes were cast, with two abstentions. The proposal received more than half of the votes and will be recorded in the minutes of the Samsung Electronics Strategy Seminar. The next step will be to focus on the development of plasma color TV sets."
From this moment on, Samsung Electronics began to take a different path in history, completely different from its original history.
"Chairman, the problem facing Samsung Electronics is not simply in the TV field, but in the dispute between LCD screens and memory chips. Please make a decision on this, Chairman."
"Yes! Both of these are huge investments, and development at the same time is really beyond our capabilities."
"The investment in a fourth-generation LCD monitor production line requires 1.6 billion US dollars, and the investment in the fifth-generation LCD screen monitor production line led by Huanghe Technology Group will exceed 2 billion US dollars, and may reach a scale of 2.2 to 2.3 billion US dollars. Our Samsung Group
The construction cost and operating cost are higher than the other party, which is indeed worthy of discussion."
"With such a large amount of funds, we can focus on investing in the field of memory chips. The investment scale of two fifth-generation LCD production lines can build three eight-inch wafer fabs, or a world-leading ten-inch wafer production plant. We should concentrate our advantages to do big things.
"
"The latest memory chip market share shows that after Atlantic Jinko merged with major Japanese manufacturers and added the newly put into operation eight-inch wafer production line, it has occupied 31.6% of the world market, becoming the leading DRAM manufacturer with the first market share
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The second is Elpida, a major Japanese company.
The latest news shows that Elpida will merge with Mitsubishi Electric's DRAM production facilities and sales channels, becoming the only remaining major Japanese memory chip manufacturer, accounting for 23.2% of the world market.
Third is Samsung Electronics, which accounts for 19.7% of the world market.
Fourth is TSMC, which accounts for 12.9% of the world market.
Fifth is Micron, which accounts for 8.3% of the world market.
Others are small Bayan manufacturers, such as UMC, Lian Rui or Europe's Qimonda, working together to share the remaining market share. We should focus on investing in this field and strive to become the world's number one manufacturer."
"Yes! In order to defeat its opponents, Samsung Electronics has paid too much."
"I also agree with this plan. LCD TVs have no longer become the leading product in the TV field, and efforts to develop a new generation of LCD screen production lines are tantamount to a waste of resources. Scattered resources should be concentrated and utilized."
"It makes sense, I agree."
Listening to the discussions among his subordinates, Chairman Li Jianxi's eyelids twitched from time to time, and he felt really distressed.
Memory chips and LCD screens are Li Jianxi's two key projects. As Samsung Electronics tries to enter the mobile phone industry, the LCD screen project is indispensable.
The problem is;
The current fourth-generation LCD production line can fully provide the small-size LCD screens required for mobile phone projects, including those required for laptop computers.
There is really no need to disperse precious funds to develop a fifth-generation large-size LCD production line.
The landlord’s family has no surplus food!
When funds are scarce, we can only choose key projects for development.
The large-sized LCD screens provided by the new fifth-generation production line can only be used in LCD TV products.
current season
Samsung Electronics was severely damaged by the competition from Glid Group. The memory chip project only started to make profits at the end of 1998. Due to Atlantic Jinko's low-price competition strategy, the big hole of previous losses has not been completely filled, and its strength is far inferior to that of the same period in history.
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Samsung Group is unable to compete in many fields at the same time and must make choices.
"Then... let's vote."
Saying these words one by one, Chairman Li Jianxi's heart ached like flesh being cut, and his face turned a little blue.
His ambitious ambition to dominate the business world was bruised and bruised by blow after blow, and gradually faded away.
"Those who agree to focus on the development of DRAM raised their hands... 21 votes."
"A show of hands that agreed to focus on the development of a new generation of LCD production lines... 5 votes, 1 abstention. The proposal received more than half of the votes and will be recorded in the minutes of the Samsung Electronics Strategy Seminar. The next step will be to focus on the development of DRAM projects and temporarily shelve the new generation of LCDs."
Display production line.”
The strategy seminar pointed out the way for the company's development direction. Since then, Samsung Electronics has embarked on a completely different path. No one knows what the future will bring.
at the same time
Atlantic Jinko Group's first ten-inch wafer production line was put into trial production in Jinling, code-named 10j1, which means ten-inch Jinling No. 1 factory.
The second ten-inch wafer production line is under intense construction in Shenzhen Atlantic Industrial Park, code-named 10s1, which means the first ten-inch factory in Shenzhen.
Huanghe Technology Group launched two self-developed fifth-generation LCD production lines at the same time, demonstrating the strong financial strength of the Wang Consortium.
These two investments alone total more than US$14.5 billion.
After the project is completed
It will greatly enhance the consortium's competitive advantages in related fields, consolidate its existing market share, and continuously launch offensives against competitors to erode the other party's market.
End of September 2000
Royal Family Fund announced the acquisition of 53.2% of Corning Incorporated's shares, officially entered the board of directors of Corning Incorporated, and firmly controlled the company.
After years of courtship, differentiation, and goodwill, the Royal Family Fund was finally able to take over this long-coveted century-old company, contributing stable revenue to the consortium.
The value of the M&A transaction was US$26.2 billion. Royal Fund paid US$13.9384 billion to acquire 53.2% of Corning's shares, gaining absolute control.
early October
Huanghe Technology Group announced that it will acquire Panda Electronics for 1.35 billion yuan and take over the other party's debt of 12.9 billion yuan. It will invest a huge amount of 1.2 billion US dollars (10.4 billion yuan) to transform the production line and launch new products in the near future.