Chapter 1398 Arms Race

"Sharp and Jinling Panda have reached an agreement that the two parties plan to establish a joint venture and jointly invest 300 billion yen (about 3.07 billion US dollars) to build a 6th generation LCD panel production line in Jinling. After the 6th generation line is put into production, it will continue to Start the construction of the 8th generation line.

   The relevant LCD panel production technology required by the joint venture company is all authorized and transferred by Sharp, and this is the first time that a foreign-funded enterprise has transferred more than 5 generations of LCD panel production lines to the mainland of my country. "

   "AUO plans to spend US$1.2 billion to set up a wholly-owned subsidiary in Lucheng to build an 8.5-generation LCD panel production line, which is also the first mainland 8.5-generation panel project invested by an enterprise in Yizhou.

   In addition, AUO also secretly participated in the foundation stone laying of the 8.5 generation line project of Lucheng Longfei Optoelectronics behind the back of Yizhou.

   Their idea should be that if Yizhou does not release direct investment, or the project approval progress is too slow, they will indirectly participate in Longfei Optoelectronics and complete the goal of building a factory on our side. "

   "Chi Mei Electronics plans to invest 23.6 billion yuan to build an 8.5-generation production line in Focheng, with an estimated annual output of 5.76 million LCD TV display panels."

   "LG and Yangcheng have reached an investment intention to invest 30 billion yuan to build an 8th-generation production line locally. At present, the project is waiting for the approval of the country."

   "Samsung announced to invest 2.2 billion US dollars to build a 7.5-generation line in Xuzhou. At the same time, it also said that there would be no government subsidies, and a separate semiconductor factory would be built in Xuzhou."

   "Innolux, a subsidiary of Futukang, has recently completed the acquisition of Tongbao Optoelectronics, a panel company jointly invested by Compal Computer, Uni-President Group and Philips Group, and the acquisition of Chi Mei Electronics is also nearing its final end.

   After the merger of Innolux, Topo and Chimei, the three companies will surpass AUO to become the largest LCD panel manufacturer in Yizhou, ranking third in the world in terms of market share. "

  …

   In the large conference room of Fuxing Industrial Group, in addition to Xia Jingxing, Skyworth CEO Zhang Xuebing, Lin Bing, Zhu Zhaojiang, Deng Yuanjun, Liu Hai and others all sat upright, listening intently to Liu Xiaoduo's business intelligence information.

  Huang Dongsheng also came to listen, looking straight at the document in Liu Xiaoduo's hand, as the other party kept reporting the factory building information, the expression on his face gradually became a little numb.

  Xia Jingxing has been paying attention to Huang Dongsheng's face. When Liu Xiaoduo finished reading, he immediately asked Huang Dongsheng, "How do you feel? Do you feel a little excited after listening to it?"

  Huang Dongsheng has a black question mark face, and he has some worries in his heart. This time, the panel manufacturers in Japan, Bangguo, and Yizhou have been provoked in a rush. The stimulation is quite exciting, but the pressure is not so great!

  Xia Jingxing saw that Huang Dongsheng didn't answer, he knew that the other party must be shocked by this series of news, he said with a smile: "BOE has put a big torpedo this time, blowing out all the big fish and small shrimp.

   These bulls, ghosts, snakes and gods all came to the mainland to build factories in neat order, just in time to catch them all in one go, not letting one go, which saved us a lot of trouble. "

  Huang Dongsheng smiled wryly.

  Although he knew that BOE's recent series of actions would cause drastic changes in the global LCD panel market, he did not expect such a big change, and the big ones were a little shocking.

  The six major LCD panel manufacturers have announced investment projects in the mainland in the last month, which together add up to nearly 200 billion yuan.

   In terms of limelight, it is no worse than BOE’s some time ago.

   But also from the side, BOE really pierced the sky this time. It stood in the spotlight for the first time and became the most beautiful boy in the global LCD panel market.

Before BOE announced that three 8.5-generation lines would be put into production, the 8.5-generation LCD panel production line was the sub-top technology in the entire industry, second only to Sharp's 10th-generation line, and it belongs to the high-tech industry that is prohibited from being transferred out in various countries and regions. .

  In the past, Japan, Bangguo and Yizhou did not consider building factories in the mainland at all, not only because of the fear of technology leakage, but also because the production cost of LCD panels was not considered.

  Because no matter how high the price of the panel is, the mainland enterprises have to pay for it obediently, who made you not master the relevant technology.

   This is also true. TV manufacturers want to take delivery from foreign panel manufacturers, not only do they have to endure high prices, but there is not even any negotiation on the billing period - I am Samsung, pay immediately, or the panels will be sold to others.

   In a word, the Chinese color TV companies at that time were completely kneeling to survive, and rushing to send money to buy things, they had to look at other people's faces and listen to other people's nasal voices.

   Now, with major foreign LCD panel giants setting up factories in the mainland, it is foreseeable that the production capacity of large-size LCD panels will be excessive, and the price will also avalanche.

  BOE may just put into production the Gen 8.5 line next, and it will fall into the quagmire of a price war.

   But for TV manufacturers and ordinary consumers, these news are definitely good news.

  The era of exploitation of LCD panel technology is gone forever, and Chinese LCD panel manufacturers led by BOE stood up in blood and fire.

   The only regret is that I am a little sorry for the investors. BOE's behavior belongs to igniting itself, illuminating the entire LCD panel industry chain and thousands of households.

   However, the situation of BOE in this life should be much better than in the previous life, and Vision Capital took the initiative to jump into this 100 billion pit for millions of retail investors.

   For Xia Jingxing, investing so much money does not necessarily mean that there is no benefit at all.

Terminal equipment such as Skyworth TV, Fuxing mobile phone, and Honor mobile phone can reduce panel procurement costs. The second is that as long as BOE can sweep out major LCD panel manufacturers earlier than its previous life, it will be able to upgrade in the OLED industry and gradually erode LCD. Before the market, enjoy the dividends of the LCD market for several years.

  Because of the huge cost of production line construction, BOE in the previous life turned the panel battle into a fuel-filling tactic. There was no quick and messy clearing, resulting in itself not sharing too much industry development dividends.

   On the contrary, foreign manufacturers such as Samsung and LG have made enough money to retreat, calmly eliminated and sold the LCD industry, and took all the money they made to the AllinOLED industry.

   This time, Xia Jingxing intends to launch rounds of saturation attacks, even if he loses hundreds of billions of dollars, he will sweep these stinky fish and rotten shrimps off the poker table.

   If you are not crazy, you will not survive. Without this ruthlessness, you will not be able to gain enough market share. Ultimately, the industrial upgrading will be slowed down by a beat, and the victory will be greatly reduced.

The Asian Financial Crisis broke out on the eve of the turn of the century. The Japanese behaved conservatively and did not dare to continue to increase investment in the LCD panel industry. The overtake of the industry leader Sharp.

   At that time, Sharp also ridiculed the arrogant and ignorant behavior of the Chinese people, ignoring the law of the industrial cycle.

  The result is that the strong is Hengqiang. Samsung and LG have joined forces to share 50% of the global LCD panel market share. After enjoying the dividends of industry development for 20 years, BOE won the throne of the fading LCD industry.

   This style of play is a bit similar to the Internet industry. It burns money to form competition barriers, first burns money to grab the market, and then monopolizes the market to manipulate prices.

   At present, Xia Jingxing has invested the first 5 billion US dollars in the LCD panel industry, and he will unswervingly invest the second and third 5 billion US dollars.

  Samsung and LG may still be able to withstand huge investment losses for the time being, but Yizhou and Japanese manufacturers are hard to say, the first to send them to hell.

   In short, it is you who stabs me, and everyone hurts each other.

  Either like a red-eyed gambler who loses, constantly throwing chips into the field, increasing sunk costs, and being unable to get off the table;

  Or hurry up and stop loss and exit.

   There is no third way to choose, the fight is who has more gambling capital and who has more confidence in the cards in their hands.

   Will Xia Jingxing, who knows the demand of China's LCD panel market in the next ten years and also masters the downstream industry of LCD panels, be afraid of Allin's chips?

   Therefore, he is not at all worried about the recent series of demonstrations or counterattacks by this group of bulls, ghosts and snakes.

  The big deal is to start an arms race and see who can't stand the disintegration and collapse first.

   Chapter 1398 was sealed. It’s really hard not to write about these bad things. Let’s ask which technology industry is not blocked by technology. If you completely bypass it, you can only write about the Internet.

  

  

   (end of this chapter)