Rebirth 99 to become a car giant.

Chapter 960: If you are strong enough, your opponent will bark helplessly
"Mr. Cao, the main market for the semiconductor components we export is Polar Bear. Whether it is various chips or memory, Polar Bear occupies more than 40% of the market share."

"The rest are the Southeast Asian and European markets, which account for another 40% of our market share, and other markets occupy about 20% of the market in scattered pieces."

"The anti-dumping investigation conducted by the United States in conjunction with several other places will not have a significant impact on our chip exports."

Because of the anti-dumping investigation, Hu Yingang had the opportunity to personally report the situation of Yingang Trade to Cao Yang.

Naturally, Zhang Jing from Nanshan Semiconductor also attended the report meeting.

"Isn't Europe also involved in the anti-dumping investigation?"

Cao Yang can fully understand that the polar bear market is not affected.

The relationship between there and the United States is currently tense.

Not to mention helping to ban Nanshan Semiconductor, the more America suppresses Nanshan Semiconductor, the more likely the polar bear will support it.

"The semiconductor components we export to Europe are mainly high-end automotive-grade chips, which are already very valuable."

"These chips are imported from Europe because local manufacturers are unable to produce them."

"If anti-dumping duties are imposed on these chips, they will still have to import them from us in the end, but the cost will be much higher."

"I don't think the Germans and French would do something like this."

"Even if it really happened, it would basically have no impact on us."

"After all, even if the cost of a car increases by a few hundred dollars, it may not be reflected in the selling price."

"Even if it is reflected in the selling price, it may not affect the sales volume of the whole vehicle."

After Hu Yingang's explanation, Cao Yang roughly understood it.

If the chips exported to Europe are all high-end chips, then there is really no need to worry too much.

No matter what kind of anti-dumping investigation it is, it is often not aimed at high-end products.

When have you ever seen a country conduct an anti-dumping investigation on luxury goods?
You will only be investigated if you have a large enough quantity and everyone can produce it, but you have messed up my domestic industry by taking advantage of your price advantage.

This time, the United States joined forces with several countries to hastily launch an anti-dumping investigation, which was more of a case of much ado about nothing.

To a certain extent, it is also a precautionary measure to avoid a sharp increase in export sales of Nanshan Semiconductor.

"Mr. Cao, my view is similar to Mr. Hu's. The actual damage to us caused by this anti-dumping investigation is relatively limited."

"As long as we are strong enough, our opponents can only bark helplessly."

"I am not a listed company either, so I don't need to worry that these rumors will cause the stock price to fall."

Zhang Jing added his own opinion.

Obviously, he is not worried about the anti-dumping investigation.

China's semiconductor industry has developed to the point where it can no longer cause panic if others simply suppress it.

More than 90% of Nanshan Semiconductor's sales are achieved in China. Even if less than 10% of its export share disappears completely, it will not cause any serious damage.

Moreover, judging from the current situation, the export share will not be affected too much at all.

"Yes, now Nanshan Semiconductor has taken the lead in developing a 7-nanometer process chip, which is a representative of advanced technology in the industry."

"Who knows, our export volume may even go up a level next time."

Hu Yingang and Zhang Jing were talking to each other, and it was obvious that neither of them took this anti-dumping investigation seriously.

"Since we don't have to worry about the impact of this anti-dumping investigation, the prices of chips exported to Europe that other semiconductor manufacturers cannot produce will be increased by 30% starting next month."

"The reason is that due to the anti-dumping investigation, the company's production and operation have deteriorated, and the amortization costs of various equipment have increased, so the price has to be raised."

As soon as Cao Yang said this, Hu Yingang and Zhang Kyoto were stunned.

Should we raise prices for customers in the European market at this time?
If you do this, won’t the other party be mad at you?
"Boss Cao, will this force the other party to switch out our chips?"

Hu Yingang said a little worriedly.

After all, semiconductor companies such as Infineon, NXP, and Texas Instruments all produce a large number of automotive-grade chips.

People don't necessarily have to use Nanshan Semiconductor's products.

"Automotive-grade chip certification takes time, not to mention whether other manufacturers have similar chips that can be used."

"Even if there is, according to the practices of car companies such as Volkswagen and BMW, it will take at least a year or two to complete the certification."

"The chip ordering cycle is usually about half a year, and they dare not not order until they are sure that there are alternative products available."

"By the time they find alternative products, our new generation of high-performance smart cockpit chips and other products will be on the market."

"Unless BMW doesn't want to use the most advanced chips in the industry, they will have to buy them from us."

After Cao Yang said this, Zhang Jing and Hu Yingang couldn't help but nodded.

As long as Nanshan Semiconductor's products can be guaranteed to always be ahead of the industry, it will have a say.

Especially in the field of smart cockpit and autonomous driving, high-end automotive-grade chips are the advantages of Nanshan Semiconductor.

Other chip manufacturers, such as Intel, Samsung and TSMC, which have relatively advanced technology, have either just started to get involved in this field or have not developed this market at all. TSMC only does foundry work and will not take the initiative to do it.

Therefore, it is very likely that Nanshan Semiconductor will continue to maintain its advantages in automotive-grade chips.

After all, we are already leading the industry, so it would not be surprising if we continue to lead.

"It's okay to give it a try, and let those people know that we, Nanshan Semiconductor, are not so easy to control."

Zhang Jing felt that what Cao Yang said made sense.

You are obviously technologically advanced, so why do you ask others to live the same miserable life?

It also makes those customers feel aggrieved.

Nanshan Semiconductor also wants to try to turn Party B into Party A.

Therefore, even though the profits of high-end chips are already considerable, it seems possible to continue to increase prices.

Anyway, high-end products are never priced based on cost.

This is even more true for scarce products.

Nanshan Semiconductor already has its own internal countermeasures and will implement them soon.

But some other companies were unaware of the situation and thought that Nanshan Semiconductor was going to be in trouble this time.

"Mr. Wang, Nanshan Semiconductor has been targeted again this time. I estimate that their sales will be greatly affected in the future."

After Yang Bingning saw the news that Nanshan Semiconductor was suppressed, although he couldn't applaud or celebrate, he was still in a good mood.

SMIC used to be the leader in China's semiconductor industry, but now this position has been taken away by Nanshan Semiconductor.

So it is naturally impossible for him to have any good feelings towards Nanshan Semiconductor.

Of course, given the booming status of Nanshan Semiconductor, he did not dare to show his disgust to others.

Even some new factories have begun to purchase equipment from Nanshan Equipment.

“Didn’t they just announce they were going to build four new plants?”

"This anti-dumping investigation should have an impact on the sales of Nanshan Semiconductor. Is it possible to adjust the construction plan in the future?"

SMIC certainly does not want Nanshan Semiconductor's production to increase so quickly.

Regardless of whether there is direct competition or not, the increase in production capacity of the entire semiconductor industry will definitely not benefit SMIC.

After all, these will affect the supply and demand of chips.

"I haven't heard any news about this yet, but there should be some impact to some extent."

Yang Bingning really hopes that the sales volume of Nanshan Semiconductor will be greatly affected, but without any specific information, he dare not speak carelessly.

"Nanshan Semiconductor was founded later than us, but it broke through the 7-nanometer chip technology so quickly, while we haven't even put the 28-nanometer chip factory into production yet."

"Do you have any way to improve our chip process technology to 14 nanometers?"

Wang Anguo doesn’t dare to think about jumping directly to the 7-nanometer process.

However, he feels that it is possible to evolve to the industry's mainstream 14nm process technology with some effort.

Of course, there are many ways to make this effort.

Be it poaching people or stealing technology, as long as it can be done, it's fine.

Wang Anguo doesn't particularly care about the process.

"Nanshan Semiconductor's employee benefits are first-class in the industry, and many domestic technical personnel are proud to work for Nanshan Semiconductor."

"And there we can get access to the most advanced technologies in the industry. It will be difficult for us to recruit people on a large scale."

"And the relevant technical personnel are likely to have signed non-compete agreements. Even if the other party wants to come, they will have some concerns."

"But it's not impossible to find a way to get some of the technical information."

"On this basis, we will study the 14-nanometer process technology, which will be less difficult."

Yang Bingning didn't dare to make boastful statements easily.

It would be embarrassing if we agreed to this but failed to do it when the time comes.

After all, SMIC's attractiveness is definitely not as high as Nanshan Semiconductor.

"Hasn't our factory already started purchasing equipment from Nanshan and other domestic manufacturers?"

“Is it possible that by purchasing their equipment directly, we will have the production technology for 14-nanometer process chips?”

Wang Anguo mentioned an idea again.

In a chip factory, equipment is definitely very important.

This is the premise of everything.

"Directly purchasing equipment can only enable us to master the 14nm process technology, but we need to accumulate experience in parameter setting and adjustment of various equipment by ourselves. The other party will not tell us, and even the equipment manufacturers themselves are not sure which parameters are most suitable."

After hearing what Yang Bingning said, Wang Anguo couldn't help but reveal a disappointed expression.

He very much hopes that SMIC can keep up with the pace of industry development.

But now it seems to be getting further and further away.

……

"Amoha, the price of the smart cockpit chips that the headquarters bought from Nanshan Semiconductor has increased. The original price was quite high, and now it has increased by 30% in one go."

"The headquarters has asked us to investigate what is going on and whether there is a conflict between the Huaxia branch and Nanshan Automobile Group again."

Phillips drank his coffee while he told Almoha to work.

The Huaxia branch also uses Nanshan Semiconductor's smart cockpit chips, and he has confirmed that there has been no price increase.

So the pressure is not on him now.

Now I am just helping to clarify the situation. "We have a good relationship with Nanshan Automobile Group and there is no conflict."

In the past two years, Aimoha has been personally overseeing the cooperation with Nanshan Automobile Group.

After all, in China, if you want to offend any manufacturer, you should avoid offending Nanshan Automotive Group, otherwise you will definitely be very sad.

Aimoha has completely figured this out.

"Why did the price of Nanshan Semiconductor's chips increase for no reason?"

"I haven't heard that they have any special problems."

"By the way, the headquarters said that the explanation given by the chip traders was that Nanshan Semiconductor raised its prices because it was under anti-dumping investigation."

“But I don’t think there seems to be any connection between these two things.”

Phillips found this matter completely incomprehensible.

It's so weird, I don't know what's going on.

"I think this anti-dumping investigation is quite strange."

"Most of Nanshan Semiconductor's output is consumed in China."

"Those international consumer electronics giants and automobile giants don't use their chips much."

"Even the chips we purchase ourselves are not that many, at least compared with the overall production capacity of Nanshan Semiconductor, it is nothing."

Although Phillips is German, he finds it a bit difficult to understand why Europe and the United States have jointly launched an anti-dumping investigation on Nanshan Semiconductor's chips.

Although the investigation has just begun, the final results are not yet out.

But this matter is disgusting.

But he felt that this matter might not actually cause any trouble for Nanshan Semiconductor.

"Phillips, do you think it's possible that this is Nanshan Semiconductor's retaliation for this anti-dumping investigation?"

"The purpose of the anti-dumping investigation is to impose anti-dumping duties, but now they are simply raising prices first, telling others that they are not afraid of price increases."

Aimoha feels that things related to Nanshan Group of Companies cannot be speculated using common sense.

When Chinese companies encounter anti-dumping investigations, most of them try to find ways to resolve the issue. The more aggressive ones will try to file a lawsuit.

But they completely ignored it and instead raised the price of their own parts. It seemed like they were showing weakness, saying that they were not dumping, but raising prices.

But in fact, it means that even if I raise the price, it will not affect my sales.

I'll even raise the price and make some money while you can't live without me.

Anyway, no matter which possibility it is, it is definitely not Nanshan Semiconductor admitting defeat.

"Find an opportunity to communicate with Nanshan Semiconductor and see how they explain it."

"Since the headquarters has asked, we have to respond in some way."

Phillips didn't want to spend too much energy on this matter, so he directly assigned the job to Amoha.

And Aimoha was obviously just getting by, responding to the question casually.

I didn’t even want to ask, I just made up a reason and replied.

……

"Ayang, uncle asked me yesterday whether I needed help from the relevant departments regarding the semiconductor anti-dumping investigation?"

Although Cao Yang is very busy every day, he usually makes it home in time for dinner unless there is something particularly important.

The anti-dumping investigation of Nanshan Semiconductor has caused quite a stir on the Internet, and naturally many people are concerned about Cao Yang's reaction.

As the pillar of China's semiconductor industry, relevant departments are naturally worried about the impact this investigation will have on the development of Nanshan Semiconductor.

"Not yet. For now, they just said they were going to investigate us, but they haven't announced the results yet."

"It doesn't matter even if someone really accuses us of dumping."

"Anyway, those countries won't buy our ordinary chips from us."

"As for high-end chips, if they can find alternatives, they will naturally not buy from us; if they can't find them, they will have to buy them anyway."

"And we have to consider whether to sell it to them."

After Cao Yang said this, Fang Sisi breathed a sigh of relief.

It seems that this incident has very limited impact on Nanshan Semiconductor, which is good.

She was really a little worried about the impact on the development of Nanshan Semiconductor.

After all, this is the hope for China's chip industry to catch up with and surpass international levels.

If you rely on other manufacturers, you will just have to follow in their footsteps.

"America is now beginning to bring in its allies to suppress us. Although the effect this time is very limited, this is a bad sign."

Fang Sisi is in charge of Weibo and has a better understanding of changes in public opinion.

She is also relatively clear about the international survival environment of Nanshan-based companies.

Overall, the situation is definitely not that optimistic.

Of course, she wasn't sure when things would really get bad.

"That's normal. Throughout history, no boss would tolerate threats from his second-in-command."

"If you look at World War I and World War II, they essentially conform to this law."

"So America will continue to suppress Nanshan-affiliated companies and China in the future. This is inevitable."

"In the past, it was our Nanshan Group companies that were at the forefront and were caught in the crossfire. In the future, I estimate that more companies will be suppressed."

We are almost entering 2015, and some things will soon become clear.

So Cao Yang felt that it didn’t matter if he said it out.

This will make you appear to have a good vision and a long-term perspective.

"If this is the case, the entire international trade situation will probably change greatly in the future."

"Perhaps the export of complete vehicles of our Nanshan Automobile Group and the export of Honor Technology's products will be greatly affected."

Fang Sisi frowned and said a little worriedly.

Although the United States has never been able to completely suppress Nanshan Group's companies in the past, if its methods continue to upgrade in the future, the situation may slowly change.

This was something she didn't want to see.

"It's not surprising. Sooner or later, some changes will happen and we will be affected."

“However, we have made great efforts to develop the domestic market, and some of our products have always been competitive internationally.”

"So even if it is affected, it is definitely still within the tolerable range."

"America wants to bring us down, but that's impossible."

Cao Yang is still very confident about this.

And by then, China will definitely not just be suppressed without any measures to fight back.

Isn't it that the reason why Cao Yang has attached so much importance to the development of military products by Venusstar Technology in recent years is to cope with some situations in the future?

Only when the strength of China as a whole is enhanced can the global position of Nanshan-based companies be consolidated.

Otherwise, it's just a big piece of fat meat, and anyone can come and bully you.

……

Various means of suppression were used, but it seemed that people didn't care at all.

Samsung is definitely the most hurt in this situation.

Over the years, Samsung's investment in the semiconductor industry has been absolutely huge.

I had already tasted a lot of benefits, but I didn't expect the situation to change so quickly.

On the one hand, many Chinese manufacturers are no longer looking to Samsung to buy chips, but are instead looking to Nanshan Semiconductor.

On the other hand, the sales of Samsung's own mobile phones, computers and other products have now declined, which means that the number of semiconductor components consumed has also dropped significantly.

Under the dual influence, Samsung's sales of semiconductor components have dropped by almost 40% compared to its peak period.

The key is that this trend has not stopped, and the situation may become even more difficult in a few years.

In this case, Samsung absolutely hates Nanshan Semiconductor.

"President, I think if we want to completely suppress Nanshan Semiconductor, there may be only one way to go."

"That is to maintain the leading position in chip technology and lower the chip cost than Nanshan Semiconductor."

"Only this kind of upright plan can really achieve a greater effect."

Li Zairin knew that what he said was unpleasant to hear.

But he still had to say it.

Otherwise, the headquarters would always force the Chinese branch to find ways to deal with Nanshan Semiconductor.

If this were so easy to accomplish, why would we need headquarters to keep pushing us?

Li Zairin took action early on.

"It's easy for you to say, but it's not that easy to do it."

Li Zailin's face darkened.

He also wanted to defeat all his competitors fairly.

But things are not that simple.

All good things happen to you, do you really think you have great luck?

"I think ASML is the one most likely to fall behind, as long as its core equipment such as lithography machines can keep up with the pace."

"We can also quickly break through the 7-nanometer process technology, and even further break through the 3-nanometer process technology."

"It won't be so easy for Nanshan Semiconductor to overtake us by then."

Li Zairin is now frantically shifting the pressure to R&D and equipment manufacturers.

Otherwise, it would all stay with him.

"I will arrange for someone to communicate with ASML again. We will also send a group of technical personnel to support them and strive to make new breakthroughs in lithography machines as soon as possible."

Although the plan Li Zairin proposed may not be a very good plan, but in the absence of a better option, Li Zairong had no choice but to give it a try.

(End of this chapter)