Technological Supremacy Chapter 85: Suppression
The semiconductor technology circle in November is not destined to be peaceful.
Led by Shin-Etsu Chemical, the global photoresist giants suddenly lowered their prices sharply, which stunned all the people who paid attention to the semiconductor industry.
People are surprised that in order to deal with Xingchen Technology, which has only been established for half a year, the giant company has taken such a heavy hand, as if it wants to force Xingchen Technology to death.
How far has the price of photoresist been suppressed now?
The profit margin of the seventeen giants in the world has directly entered single digits from around 60%!
As a new entrant in the industry, Xingchen Chemical, because of massive investment in equipment and research and development, high salaries to hire experienced experts and engineers, coupled with global patent registration, low utilization rate of new equipment capacity and other factors, every ton of lithography produced Glue, you will pay a ton.
According to sources familiar with the inside story, one of the important reasons why the international giants have made such a heavy hand is that Xingchen Technology has a big appetite.
Their current annual production capacity has reached 6,000 tons, and the second phase plan has reached an incredible 15,000 tons!
Although photoresist is the most used consumable in the semiconductor and display industries, Star Technology's crazy production capacity planning is obviously going to go all out and win half of the photoresist industry!
That is to say, the second phase of the project has just reached the stage of land acquisition. If Xingchen Technology can be put into production smoothly, the fourth, fifth, and sixth grades, these three are the highest and most profitable photoresist varieties, Xingchen Technology will Become the world's largest supplier!
You know, the annual global sales of high-grade photoresist is only 50,000 tons. The first and second phases of Star Chemical's plan have reached 21,000 tons, accounting for 1% of global sales. Forty-two, can the giants not be impatient?
Even if the giants can withstand the impact of Xingchen Chemical's 6,000-ton production capacity this year, what about next year? Another 15,000 tons of production next year will have a fatal impact on the market. Moreover, who can guarantee that Star Chemical will not have a third phase?
By that time, the Xingchen chemical process will also mature, and the cost will also drop, which guarantees that a large number of those international giants will die!
Judging from the previous fights, Xingchen Technology is definitely a ruthless player. As long as they enter an industry, the industry will immediately be bloody.
So, everyone, don't wait for Xingchen Chemical to start, and join hands to kill this guy who hit the market first. On this issue, the attitudes of the giants are highly consistent.
In the domestic professional forums, people from all walks of life talked about it.
"No wonder those international giants want to kill, it turns out that Star Technology's ambitions are so big!"
"You just know that the most tough guy in the world of science and technology has never been bragging. Do you know how many phases Star Optics has expanded?"
"How many issues?"
"The second phase of the plant has just been built, and the third phase has started again. The planned area is the sum of the first and second phases!"
"So awesome!?"
"That's it! And it's not just Xingchen Optics who are crazy about expanding production. Xingchen Display and Xingchen Electric have only been put into production for a few days. The second phase of the project will not be completed until the beginning of next year, and now there are plans for the third phase!"
"It's very enjoyable to listen to. I fully support the expansion of Xingchen Technology, but the problem now is that Xingchen Chemical has already spent billions of dollars. It was blocked by giants just after it was put into production. What should I do?"
"Yeah, if we don't produce, the equipment and factory buildings will be useless. If we produce, we will pay for one ton for one ton. Star Technology currently has a long battle line and is advancing in many fields. Can they afford it?"
"Hey, it's a pity. It's hard to get the top domestic photoresist. The giants are really ruthless."
"If you want to blame, blame Xingchen Technology for not knowing how to keep it secret, and leaking such important news in advance."
"Stop making sarcastic remarks here, and leaking information. Have you done supply chain work? The main raw material of photoresist, polymer resin, must be purchased from major manufacturers, and project planning must be approved by major authorities. Production equipment To purchase customization, patents must be filed, and any link will leak information.”
"What the upstairs said is reasonable. This is a photoresist, not an atomic bomb. It is impossible to completely block the news."
"You are all right. Anyway, now that the swords of the seventeen giants have been raised, it depends on how Xingchen Technology responds. We can do nothing but support silently."
...
Baoshan, the headquarters of Xingchen Technology.
In the meeting room, there was a tense atmosphere, and the company's management gathered together.
Hong Tao's honest and thick lines, his face has turned into a pig's liver with anger, and he shouted and killed there.
Li Moran, a Virgo, continued to remain silent, holding a small notebook in his hand, and kept writing various solutions.
Luo Jia remained calm and tapped his fingers on the table slowly.
It has always been his habit to plan ahead, but Luo Jia did not expect it to cause such a big backlash.
This is probably not just a matter of fear of losing the market, but because Star Technology has made decisive moves in many fields before, which has caused huge psychological pressure on the opponent. The greater the pressure, the greater the rebound.
To put it simply, those international giants hate Xingchen Technology to the point of gnashing their teeth, so they would rather use this strategy of killing one thousand enemies and harming eight hundred, sacrificing some interests, but also frustrating Xingchen Technology.
At this time, Luo Jia's phone rang suddenly.
Everyone fell silent immediately. Everyone knew very well that if the call could still come in during the meeting, the caller must be someone very important to the company.
"It's Mr. Tang from SMIC." Luo Jia glanced at the number and said to everyone.
Immediately after he connected the phone, Tang Boyun's voice was very heavy.
"It's also difficult for us. The semiconductor foundry industry also has to fight for price." Tang Boyun said, "If we all use your photoresist, the cost disadvantage is too great. UMC, GlobalFoundries , those our old rivals will take the opportunity to seize SMIC's market share."
"However, although we have no way to use all of your products ~ IndoMTL.com ~ half is still possible!" Tang Boyun said firmly, "Come here as soon as possible to sign the contract, and you can set the price yourself."
Luo Jia hung up the phone and told everyone about the matter.
There was a sigh in the meeting room, and SMIC stood up to fully support at this time, which moved everyone very much, but everyone always felt uncomfortable.
Later, Luo Jia received a call from President Wang of BOE. The meaning was the same. If all the photoresists made by Xingchen Technology were used, the pressure would be too great. Best solution to part of the stress.
Mr. Wang had just finished calling when Mr. Ren from Huawei called again.
A few minutes later, Luo Jia put the phone on the table and shrugged, "Mr. Ren said that from now on, the Big Four will pay us in cash instead of pressing us for a week to half a month. , to put it bluntly, just want to help us solve the financial pressure."
"Before the meeting, I also received a call from President Li of TCL. The Big Eight TV giants also said the same thing. Try to reduce the billing period as much as possible. Whenever we need money, they will send us money."
Everyone is very excited.
Hong Tao said, "Did you see that at the critical moment, we still have to rely on our friends! Let's not enter the market directly, but look for powerful partners. This is the right move! We, Star Technology, don't have much. , means more friends!"
Li Moran said, "Since we have the support of downstream enterprises, we should be able to survive this hurdle."
At this time, Luo Jia suddenly laughed, and a sharp light burst out in his eyes.
"It is of course very good that our partners are willing to fully support us, and I am also very touched." Luo Jia said lightly, "However, we are not here to make others feel sorry for us."