It is now the midsummer of 2009, and Wan Feng believes that Huaguang should also produce something for the world to see.
It’s time to let the world know Huaguang’s strength.
The first opponent Wan Feng chose was Sansheng.
Only by defeating the three major players will Huaguang have the capital to fight a decisive battle in the chip field in the future.
If you can't take down the three animals, don't expect to defeat Intel and Gaotong.
The financial crisis in 2008 swept across almost all industries, including the memory industry.
The price of DRAM chips plummeted from 2.25 million yuan to 0.31 million yuan.
But at this moment, the counter-cyclical trend that the three animals are used to playing came again.
Sansheng invested 118% of its total profits in 2007 in expanding its DRAM business, deliberately exacerbating industry losses and adding the last straw to the camel's back for its struggling competitors.
As a result, DRAM prices plummeted, falling below cash costs in the middle of last year and below material costs at the end of the year.
By this time, according to Sansheng's plan, the counter-cycle has come to an end.
Japan's Elpida also declared bankruptcy, so there are only three memory manufacturers left in the world: Samsung, Micron, and Micron.
Of course, it doesn't dare to bring down Micron. If it does, the Americans will make them pay the price.
Sansheng felt that he could clean up the mess and prepare to replenish his blood.
Wan Feng felt that the time was almost right.
Now is the best time to defeat the three animals. Isn't your counter-cycle coming to an end? You have also thrown away tens of billions of dollars.
Then I will help you to extend it for another half a year, or if not, a year will be fine. I will let you throw out a few hundred billion yuan and see how capable you are.
Therefore, Huaguang first launched the 100nm 1GB DDR2 memory, which dealt a fatal blow to the three companies.
The reason why Sansheng did not launch the 100nm 1GB DDR2 memory this year is that it wanted to wait until this cycle was over and other manufacturers collapsed so that it could rely on it to recover the investment losses during this period.
But what it didn't expect was that Huaguang Electronics, which had not made any moves in the memory field in recent years, suddenly appeared and cut off its retreat with one stroke.
This backup plan was broken, and Sansheng's plan to recover in the short term was completely shattered.
This was just the beginning. Half a month after China launched the 100nm 1GB DDR2 memory, its price dropped another 30 yuan to 69 yuan.
At the same time, some flash memories already on the market were also released by Huaguang one after another, and the prices were cut in half again from the bargain price.
Isn't the price of DRAM chips already at 0.31 million yuan? Let's see what happens if the price drops by half again.
In mid-August 2009, due to Huaguang's sudden move, the price of DRAM particles fell from 0.31 million yuan to 0.29 million yuan.
Micron, the world's third largest memory manufacturer, is now struggling. The United States itself is in the midst of a financial crisis, and it has nowhere to raise funds. After struggling until late August, Micron declared bankruptcy.
So now there are three memory players in the world: Sanyo and Huaguang.
When the price of DRAM chips fell to 0.27 million yuan in September, Hailishi encountered a tight capital chain situation.
By mid-September, Oyster Man finally couldn't stand the continuous decline and declared bankruptcy.
Several memory companies invested by Hailishi in China have begun to be sold.
The three companies were all busy with their own affairs at the moment, so how could they have the energy to acquire these assets? They watched helplessly as these assets were bought out in a package by a little-known Chinese company for 2 billion euros.
In this way, there are only two players left in the market: Sansheng and Huaguang.
Sansheng thought that the market would pick up this time, but they were surprised to find that the prices of pellets and products in the market were still falling.
Sansheng understood that Huaguang was going to fight it to the death.
At this time, technology is not important anymore, it all depends on who has stronger strength.
In October, the decisive battle between the two sides began.
Wan Feng prepared 20 billion yuan of funds for a decisive battle with the three animals.
If that is not enough, he still has 20 billion euros in liquid funds, and finally 10 billion euros in final funds.
This is all his assets now.
If these funds still cannot defeat the three animals, then he will have to ask for help.
Behind Sansheng is the support of the Han country and some Western capital. This is destined to be an extremely difficult war, but Wan Feng still feels that he has a chance of winning.
Financial personnel of Nanwan Group have been keeping an eye on Sansheng's industries in recent years, and preliminary estimates show that Sansheng's available funds are only around 20 billion yuan.
In the early stages of the counter-cyclical campaign it launched, it had already consumed at least 5 billion yuan in funds.
Since Huaguang entered the market, Sansheng has spent tens of billions of funds.
In this way, all the funds that Sansheng can mobilize should not exceed 5 billion.
At this time, Huaguang had only consumed 7 billion of the 20 billion yuan in funds in the first batch, and he still had 13 billion yuan in funds.
Sansheng still gritted his teeth and persevered, and when the funds ran out, the Han government took action.
The Han government and the capital behind Sansheng would certainly not let Sansheng collapse, so they took action secretly.
The two sides continued to fight until December and were still in a stalemate.
At this time, Huaguang had already used up the first batch of 20 billion yuan in funds and had already used its working capital.
Hundreds of billions of working capital have been consumed, and both sides are still in a stalemate.
If the situation continues like this, both sides will suffer losses.
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