A group of well-dressed upper-class people were having a secret discussion. If Wang Yaocheng were here, he would know everyone present and have dealt with them at least once.
Senator Michael Bay, Enron Chairman Kenneth Wray, Winthrop Rockefeller, and some of the leading figures in the Boston and Mellon Groups.
The issue is;
How to help Samsung Electronics get out of trouble?
Winthrop Rockefeller spoke first;
"Friends, our ally on the Korean Peninsula, Mr. Lee Kun-hee, has sent a request for help. Samsung Electronics needs our help, whether it is technology or policy, or even the European and American free markets.
As common shareholders, we all have the same interests and hope to do whatever it takes to satisfy our friends on the Korean Peninsula."
“What’s the biggest problem?”
“What kind of help does Samsung Electronics need, technology or market?”
Facing questions from the crowd, Winthrop Rockefeller smiled bitterly, pointed his finger at his neck and said;
"Samsung Electronics desperately hopes that the boss can loosen the noose around his neck.
As two 10-inch wafer fabs in Jinling and Shenzhen in mainland China have been put into operation, the price of memory chips in the international market has plummeted, and it has once again fallen into a state of chaos.
The good days have not passed for two years, and a new round of brutal competition has begun again.
Atlantic Jinko announced its next large-scale investment plan for 12-inch crystal factories in China. It is still a two-factory ab factory plan, with an estimated investment scale of up to 23 billion US dollars.
This is just the first step, but there should be follow-up plans, which will be a huge blow to Samsung Electronics, which has just recovered slightly.
Hynix Semiconductor on the Korean Peninsula is currently in full production and has also launched an investment plan for a 12-inch wafer fab, with an estimated total investment of US$13.5 billion.
that is;
Atlantic Jinko Group's first step plan alone is to build three internationally advanced 12-inch wafer fabs, with a total investment of US$36.5 billion.
At the same time, in 2001, up to 3.7 billion US dollars of research and development funds will be invested in the field of memory chips, which is a huge investment.
According to the first fiscal quarter report of 2001, Atlantic Jinko Group's current production capacity has accounted for 39.72% of the world market, making it the world's largest memory manufacturer and its strength is very strong.
Samsung Electronics has expanded its production capacity through counter-cyclical growth, and its market share has further increased to 31.2%, making it the world's second largest memory manufacturer.
The third largest company is Fuso's Elpida Semiconductor. After they acquired Mitsubishi Electric's DRAM business, their market share declined instead of increasing. They have already incurred considerable losses, and they are still struggling to support it.
Elpida Semiconductor will have strong support from the Fuso government in the future and will not allow this sole memory chip manufacturer to fail.
Therefore, the current competitive situation is worrying.
The problem is that Samsung Electronics has just cut its huge debt by half and is facing the next round of brutal market competition.
Whether you can survive until the dawn of time shows up depends on whether the boss king shows mercy?"
Everyone was silent.
The US-funded consortium went to the Korean Peninsula to pick up bargains and organized groups to sweep goods. They were interested in Samsung Electronics' world-competitive home appliance production capabilities, Samsung Group's comprehensive industrial layout, excellent technical workers and assets.
From the perspective of mergers and acquisitions, the US-funded consortium undoubtedly got a big bargain at a bargain price.
No one here dares to dream that Samsung Group will develop into an incredible electronics giant, dominate the global semiconductor industry, home appliance industry, LCD display and mobile phone markets, and become a formidable technology giant.
Even the most imaginative people would not dare to think this way.
Under the strong suppression of Wang's consortium, Samsung Group and Samsung Electronics are now in a very difficult situation, and the road ahead is murky and uncertain.
In everyone's opinion, if Samsung Electronics can occupy a substantial share of the world market, it will fully meet everyone's expectations.
The US-funded consortium previously spent a lot of money to acquire the huge assets of Samsung Group. If they continue to invest large sums of money, everyone present, including the three powerful consortiums, are a little hesitant.
"Mr. Winthrop Rockefeller, do you think that if we continue to invest heavily in supporting Samsung Electronics to win the battle of memory chips, these Korean sticks that smell like kimchi will eventually have a chance to win?"
Kru Humphrey of the Boston Financial Group asked about the key point. He once suffered a lot in the acquisition battle of HSBC, and he still remembers Wang Yaocheng's ruthlessness.
Think back to the beginning
In the battle for HSBC, how did the Krone family, the Chicago conglomerate that acted as a white knight, sink?
A hundred years of foundation has been overthrown in one day, and the lesson is profound!
Winthrop Rockefeller spread his hands and said, "The problem now is... we have no way out."
"Wrong."
Crewe Humphrey said categorically;
"For the sake of God, please don't act out of emotion. Don't forget that Li Jianxi, who smells like kimchi, brought a good company to the brink of bankruptcy. It was us Americans who saved him.
We don't owe Han Bangzi, they must show their ability to convince us how to win this damn competition.
How much more do you want to continue investing?
Is US$5 billion enough?
If it’s not enough, how much is needed to see the dawn of victory? We just need a damn number instead of just throwing money into it blindly.”
"Second, we should know all this. The Franklin in our pocket was not blown by the wind."
"Second, it should be a rigorous analysis that discards emotions."
"Second, I hate the smell of kimchi."
Senator Michael Bay remained silent and was deep in thought. He looked at everyone with complex eyes, nodded and said, "Is Li Jianxi here?"
"Yes, right in the clubhouse."
"Let him explain it himself. Our friends need an explanation."
Finished
Senator Michael Bay stood up and left. No one here tried to persuade him to stay. Mr. Senator did not really believe in these Korean stick men, so he still had to make superficial remarks.
a moment later
When the gray-haired Li Jianxi came to the venue, no one present stood up to greet him. What Li Jianxi saw were many questioning looks and silent contempt.
Li Jianxi walked to the middle of the venue and bowed deeply.
"Okay, let's sit down and say, we want to hear the truth. Does Samsung Electronics have a chance to defeat Atlantic Jinko?"
Li Jianxi hesitated for a moment, but then told the truth;
"There is a possibility, but the chance is very small and it is difficult."
"watt?"
"What a bastard!"
Everyone immediately became agitated, did they feel like they were kidding me?
Seeing that his father, the U.S. financier, was about to lose his temper and things were rapidly deteriorating, Li Jianxi did not dare to give up and could only tell all the difficulties faced by Samsung Group.
We are all like grasshoppers on a rope, we must die together.
Li Jianxi said in a deep voice, "Atlantic Jinko is not alone. They are backed by the big tree of the Wang Consortium and have strong financial support from HSBC. 70% of their products can be digested by affiliated companies.
This includes Oppo mobile phones, computers, copiers, Panda color TVs, Green Electric, computers, Nokia mobile phones, Fujitsu computers and other world's mainstream manufacturers, forming a complete enterprise industry chain.
Moreover, Atlantic Jinko has just broken through the 0.13 micron wafer production process. What does this mean?
This means that Atlantic Jinko has the most advanced microprocessor chip production technology in the world and can produce Intel's latest Pentium microprocessor. Athlon is fully engaged in research and development and is expected to launch the Athlon 3 microprocessor in the middle of the year.
With faster computing speed and less power consumption, it can win more profits to subsidize the production of memory chips and compete with Samsung Electronics.
Compared with its rivals' huge investment in technology, Samsung Electronics' annual technology investment does not exceed 880 million US dollars, and its investment in the field of memory chips does not exceed 478 million US dollars. The gap is getting wider and wider.
If we cannot increase investment, we will lose this crucial competition."
Winthrop Rockefeller said unswervingly: "The United States will provide comprehensive technical support and guide Japanese manufacturers to export technology to Samsung Electronics to help expand the world market. I hope you can produce results that satisfy us."
"This is not enough. Samsung Group needs a lot of funds to invest in technological research and development in the field of memory chips and launch a 12-inch wafer factory. We cannot lag too far behind our competitors, otherwise we will not be able to catch up."
"How much funding will it take?"
"If it just bites the opponent, waits for an opportunity to overtake, and survives the brutal price competition in 2001, Samsung Electronics will need an additional investment of 18 billion U.S. dollars, of which 13 billion U.S. dollars will be used to launch a 12-inch wafer fab. If it can
With investment support of US$35 to US$40 billion, Samsung Electronics is confident of overtaking its rivals.”
Hearing Li Jianxi's loud mouth, the big shots present could not sit still, and they almost laughed at this arrogance.
"This damn Han Bangzi, does he think we are a bunch of idiots?"
"This metaphor should be an ATM machine. I already regret setting foot on this sinking ship. Such an investment is simply a bottomless pit. When will I see the day when I can make a profit?"
"I'm going to kill this bastard, make it into bacon and hang it on a tree branch."
"Defeating Atlantic Jinko Group is equivalent to defeating HSBC, a world-famous multinational bank. It is a giant. It employs 63,000 employees in the United States alone and as many as 120,000 employees worldwide. This is simply
crazy."
Winthrop Rockefeller felt very tired at this moment. He wondered whether he had also made the wrong investment decision and trusted these pickle jars too much.
"Uh...gentlemen, please listen to what I have to say again."
Li Jianxi hesitated for a moment, then said what he wanted to say; "Panda Electronics, a subsidiary of Huanghe Technology Group, has undergone large-scale investment and transformation in its product line. It is producing more and more LCD TVs and putting them on the world market at low prices.
Price hits Samsung TV market share.
This is a big and urgent problem.
For Samsung Electronics, LCD and plasma TVs are one of the profit pillars.
If we join the price war to compete for the market, I am afraid that this area will be in trouble and will not be able to contribute more profits to Samsung Electronics, so I think..."
"Get out!"
The big shots present almost denounced in unison, the sound shaking the roof...
Li Jianxi was so frightened that he ran away. In front of the tyrannical financial lord father of the United States, Han Bangzi was born a dwarf and had no confidence in speaking, let alone straightening his back!
This is not an acre of land on the Korean Peninsula. A dragon has to be coiled up, and a tiger has to lie down.
Winthrop Rockefeller looked at Crewe Humphrey, who looked gloomy, and felt a headache. Everyone sat silently and thought hard, trying to find a solution to the problem.
The Wang family consortium's corporate linkage is extremely powerful, and it has absolute control. Wang Yaocheng can make decisions regardless of big or small matters. From the perspective of top-level decision-making, his efficiency overwhelms everyone.
Speaking of one thousand, speaking of ten thousand, whether it is a mule or a horse must be determined by free market competition.
You can't do it as a serious matter all day long, because it will arouse public outrage.
To put it into detail, the US-funded consortium has many dark hands behind the scenes.
The government leveraged its influence to disrupt Cisco's acquisition of Qualcomm, used the government to force the Wang Consortium to acquire its controlling stake in Cisco, opened a case to investigate Atlantic Jinko's conspiracy to drive up the price of memory chips, and imposed heavy fines, etc.
However, these may at most affect the development of the enterprise and cannot have a decisive impact.
It’s like a dog bites a hedgehog, there’s no way to start!
At this time
Senator Michael Bay came out from behind and said solemnly;
"Samsung Electronics must provide help when it is in trouble! Otherwise, everyone will be dragged into the water.
In order to reduce investment risks, the 12-inch wafer fab project may not be launched for the time being, but investment in scientific research must be increased to prevent being left behind by competitors.
When the time comes, it will be difficult to catch up.
I suggest that we allocate 1.5 billion U.S. dollars for scientific research investment, and then raise no less than 6 billion U.S. dollars to support Samsung Electronics through the difficulties.
At the same time, it will open the door to Samsung Electronics in the European and American markets and major customers.
Friends, only by revitalizing this asset can we make a profit, otherwise everyone will be dragged into the water."
Senator Michael Bay's words made sense, and representatives of various financial groups nodded frequently.
Everyone knows that Samsung Electronics and Samsung Group cannot be allowed to sink like this, as the losses will be too great.
But the resentment in my heart is piling up and fermenting slowly. No one knows when it will explode.
Among these people, Enron Chairman Kenneth Wray was sitting on pins and needles, with a layer of white sweat secreting from his bald forehead.
Where can Enron get money now?
That damn accounting expert, Harry Markopoulos, was constantly on fire in the very influential "Washington Post" and the BBC television network in the United States, accusing Enron of falsifying its accounting statements and deceiving the majority of small and medium-sized investors.
at the beginning
Kenneth Rey thought that Wang Yaocheng was behind the scenes, trying to uncover this shocking secret.
According to FBI insider investigation, the Wang Group has nothing to do with this. It was purely accounting expert Harry Markopoulos who started the trouble.
Damn, it’s such a bad year, even drinking cold water will hurt your teeth.
The remarks made by accounting expert Harry Markopoulos caused an uproar in the society. Enron's public relations team was overwhelmed by this and did not dare to use large sums of money.
Invest your own money?
Don't be kidding, Samsung Electronics is not far from death from any angle. If you want to take down the company owned by the world's richest man, Wang Yaocheng, you must first be stronger than him, have more money than him, and have wider connections than him.
It also needs the support of a large multinational bank that is stronger than HSBC. There is endless money to burn, and the two sides compete for hard power.
If you want to win the competition by relying on shady means, European and American business societies have developed to this day, and there has not been a single such miracle.
So, Kenneth Rey made up his mind;
I won’t give out another dollar, so I love you so much!