Canon executives were speechless at Yamashita Nishimatsu's words.
You don't know the cost of money until you're in charge of the household.
The Canon Group is no longer the company it once was, and many of its products have been outcompeted by Chinese products.
Canon's cameras, lenses, digital cameras, medical equipment, etc., cannot compete with Zeiss cameras; Canon electronics cannot compete with China's Haier; Canon's semiconductor equipment cannot compete with Wujiang Microelectronics; and even its printing business is in jeopardy.
In order to get out of its predicament, Canon Group has no choice but to cut off its loss-making and hopeless businesses to reduce operating costs and concentrate its efforts on developing its own advantageous projects.
Canon's lithography machines may have been a good project in the 1980s and 90s, but now they have become a burden on the group and must be disposed of. The lithography machine business cannot be allowed to drag the entire Canon Group into the abyss.
The words of Hiromatsu Yamashita, head of Canon's lithography equipment division, clearly failed to impress the group's top management.
Not long after, news spread within Canon's lithography machine company that the group was going to cut its lithography machine business and lay off a large number of employees, causing widespread panic.
The situation is almost the same for Nikon's lithography machines as for Canon's.
Two brothers in misfortune met their end together.
However, Wujiang Microelectronics, having successfully completed its IPO and raised a huge amount of funds, is preparing to make a big push and plans to recruit semiconductor talent from all over the world.
On March 10, Canon took the lead in announcing that it would abandon its lithography machine business and carry out large-scale layoffs.
Nikon followed suit, announcing on March 11 that it would cease its lithography machine business.
The global lithography machine market has undergone a dramatic transformation, with only Dawning lithography machines and ASML lithography machines remaining.
ASML lithography machines, on the other hand, are a junior subsidiary cultivated by Wujiang Group. Wujiang Group began its strategic planning early on, secretly holding 51% of ASML's shares.
In order to prevent MCU Corporation from monopolizing the chip manufacturing industry, the United States has been trying to support ASML. Although the effect has not been very obvious, there have been some results. At least in the field of low-end lithography machines, ASML is still doing well.
Wujiang Group is also willing to purchase a batch of ASML lithography machines. They cannot allow ASML to "die," just like Intel and AMD in their previous relationship. If Intel had a monopoly on x86 CPUs, it would easily have faced sanctions from antitrust authorities. Therefore, Intel has also provided some technology to AMD in reverse, aiming to ensure their mutual dependence.
Moreover, the market needs healthy competition, and ASML's development can also put some pressure on Wujiang Microelectronics, spurring it to continue its growth. If Wujiang Microelectronics becomes complacent and takes the lead, then a stagnant market will not be conducive to promoting technological innovation.
By the end of March, Wujiang Microelectronics had expanded again, with its workforce exceeding 150,000 and its market capitalization surpassing 6 trillion RMB, shocking the world. Major investment institutions were ecstatic; in just one month, Wujiang Microelectronics' market value had increased by 2 trillion RMB, representing a 50% return on investment—truly a remarkable miracle!
It's important to understand that for capital management institutions, especially those managing large amounts of capital, it's actually quite difficult to find a good project that can accommodate a huge investment.
Some startups may see their market value multiply several times after their IPO, but that depends on their size.
Suppose an investment institution invests over 10 billion yuan in Wujiang Microelectronics and makes a 50% profit, that's 5 billion yuan. But what about those small startups that only make a few times their initial investment? Their total market value is at most a few hundred million or a billion yuan. The investment institution says that this profit isn't even enough to fill a tooth gap.
Global capital management giants like BlackRock, Vanguard, State Street, and Capital Group are rarely seen in venture capital firms because they generally don't invest in startups but instead invest directly in established, successful companies.
If Wujiang Microelectronics alone can generate such huge profits, what about the other companies in the Wujiang Group that are preparing to go public?
Capital is going crazy again!
In April, following Wujiang Microelectronics, Wanjiang Real Estate made a strong entry...
(End of this chapter)
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