My 1999

"But I heard that Samsung is getting impatient.

It is preparing to reduce the price of 667M/DDR2 memory chips.

As for the extent of the price reduction, it is not known yet, but the news that the discount is very large, which may exceed 10% of the contract price, or even higher." Sun Mingzhen said.

"The price reduction is certain.

The ex-factory price of DDR2 memory particles is $90, plus the money earned by channel dealers, which is more than three times that of DDR memory. It is simply robbing money."

If there is no other choice in the market, it will be fine.

But there is a very cheap DDR400 that is constantly reducing in price.

You say that the DDR capacity is not good, then I can just add another one.

Two 512M memory sticks add up to 1G, right?

And the price is even cheaper.

With this level of memory, even the memory-intensive World of Warcraft can run stably.

Other games are no problem.

Most of the young people now buy computers to play games, as long as the games can run smoothly.

They don't care whether their memory is 512M DDR or 667M DDR2.

"How many DDR2/400 and DDR2/667 memory chips do we have now?"

"No inventory."

"No?"

Sun Mingzhen smiled bitterly: "The entire Hynix is ​​carrying a huge debt of 16 billion US dollars. We are eager to make money as soon as possible to fill this hole. How can we have money to accumulate inventory?"

"So we can be regarded as a blessing in disguise?" Xu Liang smiled.

Sun Mingzhen nodded.

Flipping through the information in his hand, he continued to ask.

"Is the flash memory market not good this year?"

"NAND flash memory has been growing, and the profit is also very good. But the high-density NOR flash memory with a capacity of 64Mb to 1Gb increased too much last year, and the market needs time to digest it.

In the first quarter of 2005, the market size of NAND flash memory increased by 25%, but the demand for high-density NOR flash memory decreased by 7.2%.

But overall, the entire flash memory market is still growing."

NOR and NAND are the two main non-volatile flash memory technologies on the market.

Intel first developed NOR flash memory technology in 1988, which completely changed the situation where EPROM and EEPROM dominated the market.

Then in 1989, Toshiba released the NAND flash memory structure, emphasizing lower cost per bit, higher performance, and easy upgrade through the interface like a disk.

After more than ten years of development, both have their own advantages and disadvantages in terms of read speed, write and erase speed, durability, reliability, cost, capacity and other aspects, forming different application scenarios.

NOR flash memory with faster read speed and higher reliability is mainly used in occasions suitable for frequent random read and write, such as consumer electronics, Internet of Things, automotive and industrial fields.

NAND flash memory with faster write and erase speed, lower cost and higher capacity is mainly used to store data and is widely used in digital cameras, smart phones, tablets, memory cards, solid-state drives and computers.

Sun Mingzhen looked at the man in front of him with admiration.

"Thanks to you for insisting on changing the Hynix M6 and M7 factories to flash memory production lines last year, otherwise Hynix would lose money this year."

Thanks to Xu Liang's decision, Hynix changed all six production lines of its two largest and most efficient 12-inch wafer production plants to flash memory production lines.

From May 2004 to now, Hynix's flash memory production has increased sixfold, and it has quickly become the third largest manufacturer in the flash memory field after Samsung and Toshiba.

Riding the booming flash memory market, Hynix has earned huge profits.

Looking at the woman's admiring eyes, Xu Liang smiled.

As a person who has experienced it, he certainly knows that flash memory has far more advantages than memory.

Especially with the explosive growth of products such as MP3, MP4, USB flash drives, mobile hard drives, smart phones, wearable devices, etc., the demand for flash memory far exceeds the growth in computer demand for memory.

So just after acquiring Hynix, he persuaded Yu Yiji to convert the largest and newest two of Hynix's seven memory factories into flash memory production lines.

It happened that the global memory market was oversupplied and prices were weak at the time.

Hynix, which had its debt extended for one year, also had no debt repayment pressure.

Hynix's change just hit the node.

From June to now, Hynix's flash memory chips have increased sixfold, with an output of more than 20 million chips.

The total annual output has now exceeded 30 million chips.

"How much cash does the company have in its account now?"

"There are $1.58 billion in working capital and $3 billion in investment accounts." Sun Haizhen said.

When Hynix acquired it, Xu Liang fought for the condition of postponing the repayment period for one year, so Hynix did not need to repay any debts throughout 2004.

Because of its insolvency, Hynix did not need to pay various taxes including corporate income tax.

All the money should be used to repay debts.

So from 2004 to now, Hynix has earned a total revenue of nearly $7 billion.

This part of the money excludes hard expenses such as raw material purchases, equipment depreciation, and salary expenses.

The remaining tax money and Hynix's own net profit are all retained.

However, it should be emphasized that Hynix's $1.58 billion in working capital includes hard expenses such as employee salaries and raw material purchases.

The $3 billion in the investment account is Hynix's own money.

Xu Liang knew very well that it was not impossible for Hynix to repay the huge debt of $16 billion, which was still increasing at an interest rate of 5% every year.

Even if it could barely pay it back, it would miss the opportunity for development due to lack of funds.

So he set his sights on financial investment from the beginning.

For others, this is a high-risk investment that is easy to fail.

But for him, it is just picking up money.

Hynix's $3 billion was all invested in the stocks of high-tech and Internet companies he knew, such as Apple, Amazon, eBay, NetEase, Sohu, Toshiba, and Netflix, with a 5x leverage.

Although each company is not much.

But after spreading it out, the risk is also dispersed.

"How much has the investment account increased?"

In order to avoid paying short-term capital gains tax, Hynix's equity investment is carried out in the name of Hynix's Finance Department.

Instead of Hongyan or Hanhua.

"35.9%."

Xu Liang nodded slightly. Hynix's funds entered the stock market at different times. Although it was 5 times leveraged and invested in high-growth stocks, it only had an average return of 35.9%.

"Oppa, you are so amazing.

The floating rise in the equity market alone is enough to repay Hynix's maturing debts in the first half of this year."

Seeing the woman's admiring eyes, Xu Liang smiled and stretched out his right hand, stroking his conscience.

The scale has grown a lot.

Pregnancy is indeed a multiplier of conscience.

"Oppa, if you want, I will contact YG, JYP and SM for you. They have many trained and clean girls there, and I guarantee you will have fun."

Xu Liang shuddered in his heart and became inexplicably excited.

After a little hesitation.

"Forget it, let's talk about it later."

Although he was a scumbag, the two sisters had just given birth to his children and were messing around outside before they were out of confinement.

It seems too scumbag.

Sun Mingzhen was a little disappointed.

She really hoped that Xu Liang's sexual interest could be diverted.

Otherwise, she would be wasting her time by having children every other day.

Compared with taking care of her husband and children, she hoped to fight in the business world and realize her own value.

And now she already has two sons and one daughter, which is enough.

"How is the construction progress of the two factories in Wu \u0026 Xi?"

"Unexpectedly smooth.

In particular, the local government has given us great support. The factory that was originally built by the end of this year will be completed in June.

The remaining half of the year will be used to debug equipment and trial production.

If everything goes well, it will be officially put into production in November."

"When these two factories are put into production, our production capacity in flash memory will double on the existing basis, and the production and sales volume will exceed 6,000 particles, completely surpassing Toshiba to become the world's second largest flash memory manufacturer.

The situation of Hynix will also usher in a real change." Xu Liang said.

According to the current global flash memory chip market size.

When Hynix M8 and M9 factories are put into production, flash memory production will account for about 20% of global production.

The global flash memory chip market size is as high as 20 billion US dollars, and it is still growing.

By then, with the revenue from memory, Hynix's annual total revenue will grow to more than $6.5 billion.

"Oppa, now Infineon and Qimonda are planning to spin off their memory businesses and list them separately. Should we do the same?"

"Why?"

"It's mainly because memory prices fluctuate too much, with more losses than profits.

Looking at the development of memory so far, there have been more losses than profits.

If we are financially healthy, we can continue to invest in this area, but now with high debt, while the market is still good, it may be a better choice to separate the memory business." Sun Mingzhen explained.

Xu Liang nodded, he understood Sun Mingzhen's choice very well.

With $16 billion of debt on his head, anyone would feel a lot of pressure.

The "seven losses and three profits" of memory is also a well-known industry norm.

Many listed parent companies don't like their financial reports to be profitable at times, so they simply split them up, so that the company's performance will be stable and the management can get bonuses.

But there is only one exception, and that is Samsung Electronics.

This family company has a firm belief from the beginning and has never thought of spinning off the memory business, but has continued to invest huge amounts of its own funds.

They never take shortcuts to acquire peers on the verge of bankruptcy.

Samsung's focus, resilience and ferocity make it the leader in the memory field today.

Xu Liang knows Samsung's development process very well. After all, there are too many business books explaining the Samsung model. In his previous life, he was an educator and had heard about counter-cyclical countless times.

His ears are calloused.

"It's easy to give up a business, but it's hard to get it back.

As for the financial difficulties, you don't have to worry.

With me, I guarantee that Hynix will repay the $16 billion debt within four years."

"Repay $16 billion in four years?"

Sun Mingzhen was surprised.

"Why, don't you believe it?"

"Of course I believe in Oppa, you are the greatest financial genius in the world. But $16 billion is too big, too big to be believed."