Chapter 509 America and the Panic of the 3rd Son
Chapter 509 America and the Panic of the 3rd Son
Meanwhile, Transsion's Africa headquarters in Nigeria.
Huang Tianya also gave the personnel in charge of the operation the final order: "Keep it up! We must bring out the panic among those 'leeks' (victims)."
"Smash 20% of it!"
Following the issuance of the order, Micron's stock price began to fall sharply.
It instantly dropped another 9%, wiping out over $42 billion in market value.
Countless panicked retail investors began selling off their shares. Although some people on the forums advised them to be greedy when others are fearful and to buy more, given past lessons, no one dared to listen.
As a result, more and more people started selling off their shares, and under this double blow, Huang Tianya accelerated his pace of buying up the remaining shares.
"What are those idiots on Wall Street doing now? They used to lead us to reap the rewards from all over the world, but now they can't even protect a single entity."
"We need to advise that good-for-nothing to prohibit foreign companies from investing on Wall Street!"
This time, the angry investors decided to break their silence and chose to hold an offline protest.
The entire American industry seems to associate Transsion with…
I wish I could skin them alive and tear them apart.
In an effort to quell the protests as quickly as possible, the U.S. Department of Commerce’s Office of Semiconductors convened another emergency meeting.
"This time we have to send a professional investigation team; they've decided to copy our technology."
"We have endured so much, and now the world's scientific community no longer has the same awe towards us as before."
Use this incident to re-establish authority.
"What are you trying to establish your authority over?"
Their chips have now appeared online, and their main control architecture and interface methods are completely different from those of our company.
Moreover, the technology is much faster than our draft…”
"To put it bluntly, our technical solutions aren't even worth them stealing."
The conference room fell into a complex emotional state once again, and the crowd that had been shouting earlier fell silent...
"This won't work, that won't work either."
If you ask me, I'd say we should immediately implement export controls to restrict the sale of equipment and materials to Transsion.
"Aren't you done being the clown yet?"
Their entire industrial chain has long been domestically produced, from equipment to materials, and they hardly rely on American suppliers.
Sanctions serve no purpose other than pushing us to the opposite side completely.
The meeting lasted for half a day, and his temper grew increasingly irritable, but in the end, he couldn't come up with an effective solution.
In the end, the semiconductor industry leader in charge of this operation said:
"A bunch of idiots! Can't they come up with an effective solution?"
"Boss, how about we just drop this?"
"Never mind, do you know how much tax revenue these semiconductor companies provide us every year?"
"You think you can solve this by simply saying you don't care anymore!"
"Boss, I don't think we need to be nervous."
In Chinese terms, time is the best solution to all problems.
I think this principle applies to us as well. Huaxing currently only produces ultra-high-end and high-end series, but we can also sell low-end products.
This is also the path to survival that Chuanyin left us; they didn't exterminate us completely.
Upon hearing this, many people in the conference room nodded in agreement.
After all, that makes a lot of sense. They're not dead; they just can't get high-profit orders.
However, while high-profit orders are very lucrative, the volume of shipments is too small.
"Yes, that's a good idea, we won."
"We did win. Although they launched high-end technology, they also abandoned the low-end market."
A winning mentality instantly spread throughout the meeting, and the previously somewhat disheartened crowd became more interested.
But soon everyone present sighed; they all sighed in unison.
After all, the so-called global division of labor is just a pie in the sky they've painted for China, a path with no future.
But now, under the threat of a private enterprise, they have also embarked on this path, and even need to deceive themselves.
…………
Seoul, the land of kimchi, the headquarters of Samson Electronics
Business Division President Kim Ki-nam just finished a video conference with the head of the China region.
But just then, his secretary brought him some very bad news:
"President, something bad has happened."
Three Chinese mobile phone manufacturers have already suspended our orders for high-end flash memory.
At the time, they were threatening us that if we didn't lower the price of low-end storage by another 30%, they would abandon the order.
Furthermore, several PC manufacturers have also joined this battle, eagerly anticipating Transsion's storage solutions.
Just as Kim Ki-nam was about to go to the president's office to report on the matter, he heard what Lee Jae-young's secretary said and immediately went to the conference room.
Lee Jae-young has raised a very crucial issue:
After solving the flash memory problem, how quickly will Huaxing be able to release memory chips, and at what price will Sansang set them?
On his way to the office, Kim Qinan kept thinking about a question: their introduction of 128 floors meant they had cracked all the solutions between 32 and 128 floors.
How many routes are there?
Why couldn't they leave San Sang a glimmer of hope, like a chip? Slowly, they could have been exploited.
After all, it takes at least 3 to 4 years for the entire industry to upgrade its technology.
And they...
Lee Jae-young on the other side was also very angry. After all, storage was the foundation of Samsang's business, and the mobile phone flash memory was the most important part of it.
When he arrived, he heard the question Lee Jae-young asked:
"Tell me, how should we deal with this situation?"
"Yes, the Chinese market reacted faster than we expected."
Right after their press conference, several mobile phone manufacturers requested to postpone their flash memory orders and wait for Transsion.
In theory, if we don't come up with any solutions, our market share will drop significantly.
However, after our probing, we found that these manufacturers are quite cunning.
"They never intended to purchase Transsion's solutions; they just wanted to use this to pressure us into lowering the price?"
"Mr. Li from the Marketing Department is right, they're trying to profit from both sides..."
At this point, Lee Jae-yong, who had been panicking, felt less worried.
"That's right. Although the TFS2.0 standard has been recognized by consumers, it is too expensive and will not be recognized by manufacturers."
Because all manufacturers know that the group of value-conscious consumers online will not buy it.
They're willing to spend money, but they don't understand the technology, so the type of storage they use is irrelevant to the manufacturers.
After listening to their analysis, Kim Ki-nam immediately stood up and reported to Lee Jae-yong:
"Based on our experience, reducing the price of 2.0 flash memory by 25% will lead to a corresponding price reduction for consumer-grade computer hard drives."
Use price advantages to retain users.
Anyway, our technology is independently developed and manufactured, and the price is what it is.
"I disagree with this plan." Before anyone could even think about it, the vice president in charge of cost accounting immediately expressed his refusal.
"UFS 2.0 was only put into mass production last year."
$23 billion has been invested in research and development, and less than 30% of the costs have been recovered so far.
A 25% price reduction means a loss of eight dollars for every unit shipped.
The company will lose at least $15 billion for the whole year. This isn't protecting the market; it's self-harm!
"I disagree too..."
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