From the beginning of the Asian financial crisis in 1997 to the end of the financial crisis in 1998, the price of the international chip market has recovered slightly.
Due to Atlantic Jinko's price suppression, the world's chip manufacturers are not making much money.
After a year of good times, in early March 2000, the Internet high-tech bubble burst, dealing a severe blow to the world's chip manufacturers.
The international market demand has shrunk greatly, resulting in a sharp drop in chip prices. In addition, Atlantic Jinko has deliberately suppressed prices, and it is still struggling to this day.
The cyclical industry cycle is gone, and the hope of making huge profits is gone, and we are completely plunged into boundless darkness.
Atlantic Jinko relies on brutal price competition and leading technology research and development to always curb the development and growth of other chip manufacturers, denying them the opportunity to earn huge profits, and its heavy debt burden and huge investments are getting heavier and heavier.
The fat ones have lost weight, the strong ones have become crippled, and the good ones have been dragged to death.
Whether Samsung or TSMC, they are all trudging forward with a heavy debt burden.
There is no chance to lick the bleeding wounds, nor is there any chance to earn excess profits to restore blood. Now I am in a sub-healthy state with a blue face and white lips.
Take off?
Forget about this, life and death are on the edge.
Invest heavily in research and development?
Well, Samsung and TSMC have indeed invested a lot of capital in the research and development of advanced processes, but once they cannot recover it, how can they catch up with nano-level processes?
Once TSMC invests in transforming its production lines to produce advanced CPU microprocessors with a 0.13 micron process, it will participate in market competition.
This side
Atlantic Jinko will immediately cut prices significantly, lowering chip products to around the cost line, making them unprofitable.
Anyway
Atlantic Jinko possesses the world's top 90-nanometer advanced process technology, and can still produce cutting-edge CPU products at high prices, and continues to occupy excess profits at the top of the pyramid.
As a result, it always has a generation advantage, leaving other competitors with no hope of making a comeback.
Regardless of whether TSMC invested huge amounts of money in R&D in the early stage or invested heavily in asset line transformation in the later stage, it is impossible to recoup the investment with a large amount of money.
Do you just keep throwing money into this bottomless pit?
Not asking for benefits or returns, this is completely a fantasy and absolutely impossible.
Once they see this clearly, investment institutions will decisively stop losses and close the capital tap.
until then
hehe!
The fun is great.
In Southeast Asia, the delegation led by Wang Yaocheng continues to visit various countries and has frequent meetings with political figures from various countries to explore the possibility of further business cooperation.
end of march
Domestic Shenzhou Computer took the lead in launching the "freezing point" price storm, drastically reducing the prices of mainstream computer products in the market by 1,500 to 2,000 yuan, lowering the overall market level.
The original mainstream brand personal computers cost around 4,800 yuan, but you can take them home for around 3,500 yuan.
The lowest-priced 12-inch LCD computer can be moved home for only 2,999 yuan.
move
It immediately caused a turmoil in the domestic personal computer market. Shenzhou Computer's sales data rose like a rocket, and it gained fame in the first battle.
early April
Yangtze Technology Group's Dell brand computers joined the fray and subsequently announced significant price cuts, once again disrupting the brand computer market structure.
soon after
Panda Electronics has begun a nationwide price reduction. Its main products are mid-to-high-end LCD color TVs, creating a market hurricane and making this spring no longer peaceful.
April 9, 2002.
Hynix announced:
The second phase of the Malaysian Industrial Park has invested a huge investment of US$8 billion to build three eight-inch wafer production lines, and the third phase of the project has entered the preparatory stage.
Atlantic Jinko announced:
It is expected that in the next three years, 40 billion US dollars will be invested to increase chip production capacity and build the world's leading comprehensive chip manufacturer.
Only two days apart
April 11
Seeing no way out, the Taiwan-funded chip manufacturer "United Microelectronics", which was struggling under heavy debt pressure, declared bankruptcy and liquidation, ending its painful journey. This is the second Taiwan-funded company to go bankrupt.
April 12
TSMC announced that it would abandon the acquisition of "Lianrui". At this time, "Lianrui" had become an outcast in the market, and no one was willing to help it.
April 28
Wang Yaocheng has just finished his trip to the Boao Forum for Asia and returned to Yanjing City for a short rest.
Good news from TSMC:
After day and night research and development by scientific and technical personnel, selfless dedication and hard work, we finally broke through the world's cutting-edge 0.13 micron advanced process technology, broke the monopoly of some large multinational manufacturers, and officially entered the field of cutting-edge technology.
Media in Taiwan, Southeast Asia and the world have reported on this, claiming:
The world's cutting-edge chip manufacturing field has since entered a two-power struggle for hegemony, bringing more choices to the world.
TSMC announced with confidence:
It will invest US$4 billion to upgrade its four eight-inch wafer fabs so that they have the same production capacity as the advanced ten-inch wafer fabs.
the next day
The Dutch company Philips announced that it has reached an OEM contract with TSMC totaling US$1.8 billion.
three days later
Intel Corporation announced that it has reached an OEM contract with a total amount of US$2 billion with TSMC to produce X86 architecture CPU processors with stronger performance and lower power consumption, and to provide customers with better products.
Just one day later, the bad news came.
May 5, 2002
Atlantic Jinko Group announced:
After long-term research and development, the company has broken through the 90-nanometer advanced process technology and is currently preparing for early trial production.
The latest Athlon 3B CPU microprocessor product will be produced using a 90nm cutting-edge process technology.
There are 17% more transistors than the 0.13 micron process, the computing speed is increased by 22%, the power consumption is reduced by 10.6%, and the performance is more powerful.
At the same time, in order to give back to big customers.
Atlantic Jinko Group is expected to carry out a large-scale price reduction on its 0.13 micron process chip products on September 1, with a reduction of up to two-thirds.
The action is called: "Thanksgiving for the Golden Autumn, deeply benefiting thousands of users feedback action"
Once this promotional draft was released, public opinion was abuzz, but the industry was completely silent...
TSMC was slapped hard and his face was swollen.
The faces of Philips and Intel are green. The 0.13 micron process is no longer the most advanced process. If you want to maintain market competitiveness, you must now choose 90 nanometers.
Will the orders just announced a few days ago be executed?
If you do not implement it, you will be liable for breach of contract. If you do, you will produce backward products, which will cause greater losses.
It’s painful and confusing!
After much deliberation, I still have to find Atlantic Jinko OEM, even if I pay a higher price.
The next day, May 6th.
As soon as Taiwan's stock market opened in the morning, TSMC's stock suffered a cliff-like decline, and the selling orders were overwhelming.
In just one morning, TSMC's stock plummeted 31%, losing most of its life.
at the same time
TSMC, which had been struggling, announced its bankruptcy and liquidation, ending its painful journey.
Just two hours later, China Microchip announced bankruptcy and liquidation.
In desperation, two major chip companies collapsed in one day.
Coupled with the two previously bankrupt companies, Lianrui and UMC, Taiwan's chip industry is in a state of turmoil.
same day
Faced with the turbulent public opinion, the spokesperson of the Taiwanese government, who was overwhelmed, said:
We sincerely welcome Atlantic Jinko to invest in Taiwan and hope that His Excellency Lord Wang Yaocheng will visit Taiwan as soon as possible to further discuss the expansion of cooperation between the two parties.
Relevant parties have already sent out invitation letters in this regard, which can be said to be full of sincerity.
The Wang Group responded quickly to Taiwan's olive branch.
A spokesman for the Royal Family Fund said in Hong Kong:
We are very optimistic about the economic prospects of Taiwan and thank the Taiwan government for its warm invitation. The consortium has great expectations for further economic cooperation between the two parties. The chairman of the consortium, His Excellency Lord Wang Yaocheng, will choose an opportunity to visit Taiwan to explore the possibility of cooperation.
May 10
Fuso Toshiba, Sony and Hitachi announced:
Withdrawing from the field of LCD panel production, its related assets will be merged and reorganized into one company, JDI, to operate independently.
This means that whether you lose money or not has nothing to do with them. Looking at it from another perspective, I won’t be jealous even if you make money so hard.
Anyway, peel it off completely.
About the same time.
Fuso Sanyo and Seiko Epson announced their complete withdrawal from LCD panel production and closure of factories.
As for its backward second- and third-generation LCD panel production lines, it was packaged and sold to BOE for 100 million yuan.
At this point, the Fuso LCD panel company was completely defeated, earlier and more completely than it had ever happened in history.
In the field of chip production, Fuso has a unique presence in the government-backed Elpida.
In the field of LCD panel production, Fuso has three LCD panel manufacturers, JDI supported by the government, Panasonic and Sharp.
JDI and Elpida have the same parent, which is Fuso INCJ Investment Fund.
INCJ is an investment fund with an official background, similar to China's large government industrial funds.
In addition to leading the memory chip manufacturer Elpida, it also leads the investment of JDI, which also integrates the related LCD panel resources of Toshiba, Sony, and Hitachi.
It's a pity that INCJ Fund forgot the key point:
The alliance between the weak and the weak cannot produce a strong one.