Chapter 363 Competitive Situation of LCD Panel Industry
"Hahaha...hahahaha..."
Looking at the briefing on the situation of Samsung Group in his hand, Wang Yaocheng grinned widely. After six or seven years of painstaking calculation, he finally bore fruit and saw the harvest.
After the US-funded consortium took over, Samsung Electronics is still far from being as powerful as it was in history, let alone taking off.
Because there is an insurmountable mountain standing in front of Samsung Electronics.
If you want to take off, you must first ask the Wang Family Group if they agree?
In the entire world's home electronics market, Atlantic Business Machines Company firmly occupies the number one position in the world's high-end computer brands, and also has very strong competitiveness in the fields of copiers and mobile phones.
Changjiang Technology Group's Dell computer brand, as well as Greene Group's branded computers, air conditioners, small appliances, refrigerators, kitchen appliances and copiers, all have strong competitiveness.
In addition, Panda Electronics, acquired by Huanghe Technology Group, is undergoing a large-scale upgrade of its LCD TV production line. It will not be long before it enters the world market and participates in fierce competition.
When it comes to competing on production costs, mainland companies have never been afraid of anyone.
The competitors faced by Samsung Electronics were stronger than ever before, with more solid foundations and more brutal competition. Samsung Electronics was dragged down from the very beginning of its take-off and fell face first to the ground. It has never recovered its strength.
.
The Wang Consortium uses the flying goose array to consume its opponents, and the result is;
Samsung Electronics had to cut off its important development project...LCD display.
From then on
Samsung Electronics has fallen behind in this key area, and there is basically no hope of catching up.
This made Wang Yaocheng so ecstatic that he wanted to sing a song to soothe his chest.
Okay, great bird!
Samsung Electronics' strategic decision-making was quickly leaked, and the Corporate Strategy Research and Development Department of the Wang Group, which had been keeping a close eye on it, learned that it was not difficult to achieve this.
It is actually very difficult for companies to maintain confidentiality.
Hanbangzi's LCD project research institute has laid off a large number of transferred personnel and focused on researching memory chip projects. The related fifth-generation LCD production line plan has also been suspended, and it is not known when it will be resumed.
It is completely impossible to keep such a big move a secret.
For middle- and low-level researchers who have been laid off, they can only have a drink in a tavern in depression. When they meet an uncle or a little sister who is willing to listen, it is easy to pour beans into a bamboo tube and express their dissatisfaction.
Large-scale investment in wafer production plants and new LCD screen production line plants often cover hundreds of thousands of square meters. It is even more impossible to keep them secret.
in the office
Wang Yaocheng felt so happy that he stood up, poured himself a glass of Martell wine, and drank it all in one gulp.
Let the hot wine pour down your throat and experience the feeling of boiling passion.
In this era of rapid advancement in electronic technology, the LCD monitor production line will be updated to a new generation in one and a half to two years.
One step slowly, one step slowly.
The leader who is strong will always be strong, and the weak will always be weak.
Please don't mention the term "overtaking in a corner", because the huge price paid will definitely daunt latecomers. Except for the strong investment of China, no country in the world can afford it.
According to the development rules of electronic technology;
When pioneers make breakthroughs in technology, they will build a series of patent walls behind them. Over time, they will become insurmountable castles or even natural chasms, daunting latecomers.
Give examples;
Arctic Ocean Company began to incubate the Athlon microprocessor project in 1994, and concentrated a large amount of resources, manpower and material resources. It truly achieved a breakthrough in 1996, spending up to 650 million US dollars to develop the unique patented technology Athlon 1 CPU.
chip.
Since then, the world’s CPU chips have formed three major technology camps;
Namely Intel Corporation, AMD Corporation and Athlon Corporation
Intel launched the Pentium IV microprocessor based on x86 architecture, AMD Opteron processor based on x86 architecture (signed a patent mutual licensing agreement with Intel), Athlon based on risc-v's unique patented technology
Athlon 2 CPU chip.
Think back to those days
In 1979, Intel began an emergency replacement work in Santa Clara (Silicon Valley), striving to launch a temporary microprocessor that year to meet the hot demand in the personal computer market.
In view of the tight schedule
The firefighting team actually expanded the 8080's 8-bit registers and instruction set into bits to make the processor more powerful.
In the end, it only took 3 regular working weeks to complete the design of this isa. It seems unimaginable now. After the development was completed, it was named "8086" chip, and the total cost did not exceed 5 million US dollars.
By 1996, in order to cope with the powerful processor launched by Athlon, Intel concentrated a large number of scientific researchers to develop a new Pentium processor.
It is reported that the entire project cost more than 950 million US dollars.
to this day
The Athlon 2 microprocessor launched by Athlon has exceeded US$1.6 billion in research and development funds. The Athlon 3 microprocessor currently under development may cost even more.
According to the famous "Moore's Law", the difficulty of research and development increases sharply as time goes by.
As semiconductors shrink, the number of transistors that can be accommodated on an IC will double approximately every two years, and performance will double every 18 months.
From less than 10 in the 1960s, to 100,000 in the 1980s, to 10 million in the 1990s, today, the number of transistors that can be accommodated on a microprocessor the size of a finger has reached hundreds of millions.
At the same time, R&D expenses have soared from millions of dollars to hundreds of millions or even billions of dollars, and the need for high-end research talents has also skyrocketed, which has further tested the scientific research organizational capabilities of leading companies.
to date;
Still following Moore's Law, the components on integrated circuits continue to double every 18 months, rushing towards "research-level" difficulty.
Whether it is Intel or Athlon, the high patent wall piled up behind them is daunting. Now, trying to catch up is only a theoretical possibility, and the actual difficulty is very different.
The same is true for LCD screen projects.
In the original history,
Since 1993, in order to catch up with the technological leadership of Samsung and LG, mainland panel manufacturer BOE has endured serious losses for more than 20 years and spent a huge amount of 250 billion. Until 2018, it has not seen the dawn of surpassing its opponents.
The display panel industry has always been a narrow-diameter industry with high capital investment and huge investment in production lines.
Take the fifth-generation LCD production line invested by Huanghe Technology Group as an example. The investment in one line is as high as 3.76 billion US dollars, which is converted into tens of billions of RMB.
Due to the strong low-price competition from Huanghe Technology Group, Hanbangziguo Hyundai Group's panel industry has suffered serious losses. The fourth-generation LCD production line that has just been put into operation is worth up to 30 billion yuan, and is now preparing to deal with it at a low price.
It is reported that the sale price does not exceed 500 million yuan, and BOE is currently in intensive negotiations with the other party.
more than ten years later
Although BOE has become the world's number one in the field of LCD screens, it relied on the "Seven Injury Fist" method of hurting others first and hurting yourself first. Its revenue can reach hundreds of billions, but its profits are only more than one billion yuan.
In the field of OLED flexible panels that are truly lucrative, Korean major manufacturers still account for more than 90% of the market share. This alone makes annual profits of tens of billions of dollars.
How can "overtaking on a curve" be so easy?
According to Wang Yaocheng, the reason why Hyundai Group's LCD division was willing to transfer its fourth-generation production line to BOE at a low price was because it had no good intentions at all.
This is a bait to make BOE sink deeper and deeper.
It is impossible for BOE to dominate the world with just one fourth-generation production line. Subsequent high-cost production technology transfer, equipment installation and adjustment, personnel training and technical support will all cost huge amounts of money.
To move on to the second and third production lines, you have to spend real money to buy them, and at the same time you have to resist the cruel and bloody baptism of the market.
Wang Yaocheng has no intention of giving up. Although Samsung LCD has fallen, Huanghe Technology Group still has a long road ahead.
We must go all out to develop and continue to adopt a cruel low-price competition strategy to bloodbath the market and establish a dominant industrial structure of Huanghe Technology Group. We must not relax for a moment.
Because in the field of panel displays;
Korean giants LG, Toshiba, Sony LCD, Hitachi and Wanwan's AU Optronics, Chimei Electronics, Chunghwa Picture Tubes, Guanghui Electronics, etc. None of them are good, they are all good at "making big shit"
.
Just in the early 2000s
AU Optronics, Chimei Electronics, and Chunghwa Picture Tubes, together with Korean-owned Samsung, LG, Hyundai LCD and other manufacturers, are trying to win over Huanghe Technology Group and use their dominant position in the panel industry to form a price alliance to jointly drive up prices for mainland color TV manufacturers.
Try to recover blood as soon as possible.
In the original history;
This time, the disgraceful panel manufacturers acted in unison and drove up prices, causing heavy losses to mainland color TV manufacturers, which plunged them into serious losses.
now
Huanghe Technology Group does not have these manufacturers at all, so the price alliance will naturally disappear.
This happened not just once.
During the global financial crisis in 2008, panel giants in the Gulf region faced a huge operating crisis and therefore sought help from relevant domestic departments.
To this end, relevant mainland authorities convened a "panel purchasing group" to go to Taiwan to purchase panels worth US$4 billion to alleviate the urgent needs of panel manufacturers in the Bay Area.
Who would have thought?
These unsophisticated white-eyed wolves once again joined forces with Korean-owned Samsung, LG and other manufacturers to drive up prices, causing domestic color TV companies to increase panel costs by 40%, and once again suffered heavy losses.
Being bitten back again and again, the mainland electronics industry learned from the pain and decided to develop its own LCD panel business. At a huge cost, it finally achieved self-sufficiency in LED LCD panels.
So;
I have no sympathy for these short-sighted panel companies in the Bay Area. They are a bunch of ungrateful people who have played a good hand to pieces and are not worthy of pity at all.
In Wang Yaocheng's plan, all these manufacturers will be wiped out and eliminated.
According to the current production capacity, Huanghe Technology Group accounts for about 20% of the world market. After the two fifth-generation lines are put into production, it will reach full production in the middle of next year, further increasing its market share to more than 30%.
In the second half of next year, Huanghe Technology Group will start construction of the third and fourth fifth-generation lines, increasing the company's LCD panel capabilities to about 45% of the world market, achieving absolute ability to dominate the market.
By then;
Haha... More fierce price competition will be launched and most panel companies will be eliminated.
Although the investment in the fifth-generation line is huge, due to the improved process level and equipment efficiency factors, the relative cost is much lower. Compared with the fourth-generation line, the cost is about 25% lower, and it has an absolute advantage in the market competition.
Other panel companies must follow suit and spend huge sums of money to invest in fifth-generation lines, otherwise they will be dead ends.