Rebirth: My 80s

Less than two hours after Huadian Group released its announcement, Taiwanese media, which is closer to the country, released a news article.

Titled as:

"This is insane!"

The article severely criticized Huadian Group for disrupting market order and engaging in malicious competition, and even described Huadian Group as a "troublemaker."

The second fastest reaction came from the Japanese media.

However, for the first time ever, the Japanese media did not criticize the Huadian Group this time.

The headline of the Japanese news is:

"This is the end of the DRAM market, and someone will suffer the consequences."

The first half of the article uses obscure writing to denounce the suppression of Japan's semiconductor industry. There is a hint of bitterness and anger between the lines that cannot be faulted in the literal sense.

The second half of the article analyzes the industry turmoil that this incident may cause and draws a conclusion:

"If Huadian Group's price cuts continue for more than half a year, the global DRAM market will begin a major reshuffle, and more than 90% of manufacturers will be forced out of the market."

At the end of the article there is a sentence "Those who harm others will eventually harm themselves", which at first glance seems to be a curse on China Huadian Group, but those who understand can read a sense of relief from it.

Subsequently, related news burst out from all over Asia.

Coincidentally, almost all the news headlines used big shock fonts.

Hong Kong media: "A desperate counterattack!"

Thai media: "A feast for DRAM buyers, a nightmare for manufacturers!"

Brazilian media: "The welfare benefits from the world's richest man are completely free!"

Malaysian media: "No one can stop buyers from pursuing Longteng 1!"

Indian media: "Is it a stunt or a gamble?!"

New media: "Behind Huadian Group stands a person whom no one can underestimate!"

...

Even the financial media jumped out to join in the fun.

The Economist, which has branches in Asia, calculated the current size of the global DRAM chip market and pointed out that if Huadian Group sells Longteng 1 at US$0.1 per piece, and then assumes US$0.99 per piece, it will be the break-even price for Longteng 1.

It is also calculated based on the highest market share ever held by a single DRAM chip manufacturer in history - 91.3%.

reached a conclusion:

Huadian Group will suffer losses of at least US$76.4 billion per year.

We also seriously warned Huadian Group to be cautious and suggested that it adjust the price back.

Not long after the news from The Economist came out, the Economic Herald, a long-established financial media in Hong Kong, also published a piece of news, as if a big slap was thrown at them.

The following is an excerpt from the original text:

"…The controlling shareholder of Huadian Group is Mr. Li Jiankun. As we all know, Mr. Li was also the world's richest man in 1987 as announced by Forbes magazine, with assets of more than 60 billion US dollars at that time.

“But, that was only at that time.

"During last year's global financial crisis, Mr. Li had foresight and completed his layout in advance. He warned Wall Street many times, but not many people believed him. In the end, Mr. Li was proved right. How much profit Mr. Li made in that stock market crash remains a mystery.

“But one thing is certain, Mr. Li’s current assets are definitely worth more than 100 billion US dollars.

"To borrow a word from other media - a gamble. This means that even if it is a gamble, Mr. Li can afford it. His strong assets are enough to support Huadian Group's continuous losses for many years.

“However, as an asset-heavy, fast-paced chip industry, looking around the world, how many companies can afford to suffer losses for many years in a row? How many companies still have the financial resources to carry out innovative research and development despite losses year after year?

“We believe that the ultimate winner will be Mr. Li Jiankun.

"Because it is obvious that no DRAM manufacturer can survive Huadian Group..."

Just as the semiconductor industry and financial fields were in an uproar over this incident, the Western mainstream media, which has always been very powerful, could almost be described as collectively silent.

Some non-mainstream Western media, even if they speak out, always feel like their throats are being strangled, and they only say half of what they want to say and keep the other half.

Then a fearless media from the Soviet Union may have told the truth -

“Those guys were stunned by this sudden slap.

"They've been using a big stick to hit people everywhere, but this time, they've clearly hit a wall.

“They messed with someone they couldn’t mess with.

"The calm is only an appearance. The group that aspires to dominate the world is already in chaos."

This is the fact.

The beautiful country is in a state of panic now.

Countless troubles followed one after another.

However, there are three main aspects:

1. Major DRAM chip demanders, led by Dell, Apple, Wang An, Hongzhi, Compaq and other companies, jointly protested and demanded that the federal government lift the ban on Longteng 1.

For good reason.

First of all, if they can purchase the Longteng 1 chip, they will save a lot of costs.

Additionally, if they cannot source it but their competitors can, their products will become less competitive.

This time was different from the previous ones, and it was particularly fierce.

Several large companies even declared that if the federal government insists on its own way and causes them to face operational difficulties, they may have no choice but to consider moving their industries abroad.

2. Chip manufacturers who originally supported the Semiconductor Industry Association of the United States and imposed restrictions on Longteng 1 have gradually changed their minds.

the reason is simple.

First of all, Huadian Group has pushed down the price of Longteng 1 to such a low level that they will have no chance of doing any DRAM business overseas in the future.

Secondly, even if domestic companies still purchase their chips, they will be very dissatisfied and may go overseas to develop one day.

Who will they sell their DRAM chips to then?

Not only did these manufacturers suddenly change their attitude and request the federal government to lift the ban, they also urged them to negotiate with Huadian Group, hoping that everything could get back on track.

3. The allies who jointly implemented the ban have begun to have different ideas, and some have expressed their desire to lift the ban.

Because they have no other choice.

They also face the two problems 1 and 2 mentioned above.

However, the self-esteem of some of the superiors in the United States makes it difficult for them to lower their noble heads.

So things came to a temporary standstill.

Some people in the Semiconductor Association of the United States, which directly triggered Huadian Group's behavior, are not only overwhelmed, but also face the risk of losing their jobs.

Compared with the United States, the situation of another instigator, Korea, is much better.

As we all know, their economy is mainly controlled by the chaebols.

The semiconductor industry, as a high-tech industry, is almost entirely in the hands of the chaebols.

There are many chip-consuming companies under the control of the chaebols.

This forms a closed loop, where people use their own chips.

In fact, since the development of the semiconductor industry, Korea has basically had no need to purchase chips from outside, and only has a demand for raw materials.

They are all family businesses, so the second brother cannot blame the eldest brother.

No major conflicts arose.

Only they themselves know how much distress they are experiencing - the chips they produce cannot be consumed by their own company alone.

But they would never admit it.

One day after the Huadian Group’s announcement, Korean media published several news stories with the following headlines:

"Huadian's despicable behavior is of no use to us."

"South Korea's semiconductor industry is as strong as a rock!"

"Lowering prices is the most incompetent behavior, exposing all the problems of the product!"

"Samsung Semiconductor announces expansion!"

...

Of all the news, Samsung Semiconductor's announcement of expansion caused the biggest response.

Because the others are just empty talk, this incident is substantive.

Under such circumstances, Samsung Semiconductor did not retreat but advanced, which strongly proved that they were not worried at all and were full of confidence.

The media around the world have shown great interest in this.

The American media is moving very fast.

September 10th.

In the Samsung semiconductor factory in Giheung District, Gyeonggi Province, Korea.

Lee Jung-hyun, head of Samsung Semiconductor, accepted a joint interview with several mainstream American media including The New York Times, The Washington Post, and Fox News.

Reporter: "Chairman Li, is it true that your company wants to expand its scale? If so, why did your company make such a decision? As we all know, the memory chip market is now in a cold winter that has never been seen in history, and your company's main product is DRAM chips."

Lee Jung-hyun: "Yes, we are planning to do so. As for the reason... Although the maliciousness of competitors is fierce, Samsung has never been intimidated. If we back down at this time, it will play into their hands. No! Samsung will say 'no' to such malicious competition. We will fight to the last drop of blood."

clap clap clap...

Amid a row of cameras, applause broke out openly at the scene.

Reporter: "The boss behind Huadian Group is Jack Lee, who is as rich as a country. What can Samsung do to fight him?"

Lee Jung-hyun: "Madam, I hope you understand that Samsung is a long-established conglomerate, unlike some upstarts, and is extremely united internally. If competitors want to outlast Samsung Semiconductor, our brother companies and friends will not agree."

Reporter: "What do you think about the information security risks of Longteng 1?"

Lee Jung-hyun: "I believe where there is smoke there is fire."

Reporter: "What do you think of Jack Lee?"

Lee Jung-hyun: “I think I’ve said that.”

Reporter: "Nouveau riche?"

Lee Jung-hyun: “You can understand this as a compliment to him.”

……

Hong Kong City, Wah Keung Taikoo Building.

Office of the Chairman.

Li Jiankun sat back on the European-style sofa, watching the images on the color TV screen opposite him, with a smile on his face: "Haha..."

"Push to the street!"

Beside her, Ran Zi cursed angrily.

"Hi." Li Jiankun tilted his head and said, "Be a lady."

Ran Zi said angrily: "Aren't you angry?"

"What's the point of getting angry? You'll only hurt yourself. It's not worth it. When it comes to conflicts between men, just do it."

"How dare Samsung?"

Ran Zi couldn't understand why.

They definitely cannot outlast their boss. Although the group is large in size, its cash flow is not abundant. Otherwise, during the cold winter of the DRAM market in the past two years, Samsung Semiconductor would not have needed to seek government endorsement and raise funds from the society.

"After tasting the sweetness, they just used the same old trick again. It's a very smart move."

Li Jiankun commented.

Ran Zi was surprised.

Li Jiankun did not explain much. This was the method that Samsung used to become the dominant player in DRAM in its previous life - counter-cyclical investment.

Just imagine, no matter how powerful Huadian Group is, can it outlast all other DRAM manufacturers in the world?

That is impossible.

Not to mention anything else, antitrust law (anti-monopoly law) does not allow it.

Li Jiankun didn't intend to go this far, but in the end there will definitely be a few companies that survive.

So at this time, whoever is more daring will have a greater hope of survival in the future and will have more advantages.

However, praising them for being smart is just an objective evaluation and does not mean that Li Jiankun appreciates them.

Gou Ji did not reveal any of his own thoughts. He occupied the moral high ground under the banner of "fighting against evil forces to the end" and dared to make personal attacks on others.

Gan!

Boom boom boom!

After Li Jiankun said "Come in", the double-leaf mahogany door was pushed open, and Effie walked in wearing high heels:

"You can enter now."

There is a press conference in this building today, which is also the reason why Li Jiankun came to Hong Kong.

The commotion has become so big that the whole world is waiting for him to come out and say a few words.

How can I let people down?

Huadian Group currently needs some relatively positive news reports.

The construction of the world is not a game for one person after all.