my life reset

Chapter 427 Endurance of Pain

Chapter 427 Endurance of Pain

"It's no surprise that Samsung and SK accounted for more than 50% of the world's memory chips in the early years. They just want to completely defeat some competitors who are not strong enough through repeated price wars."

Hu Yang has a full understanding of companies like Samsung and SK.Their goal is very simple, that is to snipe all competitors, and what they want is monopoly in order to obtain excess profit returns.

The timing is very delicate now, Charm Semiconductor's new factory is about to achieve mass production, so Hu Yang has to guess that Samsung's move is to deal with itself.

After getting the news from Chen Jialin, Hu Yang immediately called Yan Hanzhang, Huang Tao, Yang Chenglin and Sa Hongli to the investment building to discuss countermeasures.

Among these people, only Sa Hongli came from Shanghai, and the others are currently in the deep sea.

In order to wait for Sa Hongli, the meeting was postponed for one day. Two days later, these talents gathered in the investment building.

"That's the thing. If Samsung wants to start a price war, no one can do anything about it. What we need to discuss now is how to survive the price war."

Hu Yang's words are not alarmist. What the giants are best at is to use price wars to defeat their opponents, and then grab excess monopoly profits.

"The tactic of price war is not uncommon, but it is very effective. This is equivalent to bayonet fighting on the battlefield. Winning or losing depends on strength and endurance, and there may be no chance of opportunism."

Yan Hanzhang shook his head. Price wars kill three thousand and lose eight hundred. To put it bluntly, it is a question of who can afford it.

Huang Tao thought for a while and said, "Mr. Hu, the only way we can do this is to get all factories to mass produce as soon as possible. Then we can reduce costs by increasing the rate of good products."

"Lao Sa, tell me, do you have the confidence to raise the yield rate of each factory to an excellent level in a short period of time?"

For the excellent level, the good product rate needs to reach or exceed 95%, and the requirements for Populus euphratica are a bit high.

However, Sa Hongli still looked disapproving: "What's so difficult about this? I have personally debugged the equipment in each factory, and the trial production is very good. At present, the customer introduction stage has come to an end. I suggest It can immediately enter the mass production stage."

Sa Hongli has always been so combative. He is not blindly optimistic, but has absolute confidence in the company's production process.

"Mr. Hu, it stands to reason that after the customer introduction stage, there is still a risky mass production stage. If you skip this step directly, once the yield rate is unstable, it will cause heavy losses to the company."

Although Huang Tao also hopes to mass produce as soon as possible, he is more stable than Sa Hongli.What is the risk mass production stage?Isn't it just to increase the production step by step, so as to avoid the major losses caused by the direct large-scale mass production problems.

Speaking of which, Huang Tao's suggestion is the most scientific.

"Well, I agree with Lao Sa's opinion. But when it comes to implementation, one factory will come one by one, and it must not be fully blossomed."

Populus euphratica decided to adopt a compromise method. Although it is directly entering mass production, it still needs to be put into production one by one, instead of rushing.

This is actually a strategy to avoid risks, but it is still a bit radical.

Seeing that Hu Yang made a final decision, Yan Hanzhang, Huang Tao and Sa Hongli stopped talking.Sa Hongli was mainly responsible for the production. He went directly to Jianghan from the deep sea, and decided to start mass production in Jianghan's factory first.

When Glamor Technology was desperately releasing production capacity and improving the yield rate, Samsung took the lead in cutting prices for low-end and mid-end products.Subsequently, both SK and Micron announced their follow-up, and the prices of both the flash memory market and the DRAM market began to fluctuate violently.

Under the price transmission, the prices of products such as U disks, SD cards, mobile phone memory cards, and computer memory sticks have also begun to loosen, and the trend of price reductions has gradually emerged.

In the following period of time, Sa Hongli frequently shuttled between Jianghan, Shenhai and Shanghai. In less than a month, all factories began to enter the mass production stage.

"The yield rate of all factories is at or close to the excellent level?"

When Hu Yang received the call from Sa Hongli, he still couldn't believe it. In such a short period of time, the yield rate of all factories reached or approached 95%.

"Of course it's true. How dare I deceive Mr. Hu?"

Of course Sa Hongli couldn't deceive Populus euphratica. The production work is a high degree of division of labor and cooperation, and every link is recorded.

"Haha, I believe you. Lao Sa, from now on, we will increase the horsepower and produce at full capacity. At least we can't be left behind by others in terms of production."

Hu Yang issued an order to produce at full capacity, which was actually Sa Hongli's suggestion.

Sa Hongli said that the company's current order backlog is serious. If the delivery cannot be made on time, just in time for Samsung to fight a price war, the customer is likely to run away.

After the matter was settled, Sa Hongli notified Huang Tao and Yan Hanzhang and asked them to provide various logistical support. He was only in charge of production.

How about saying that Sa Hongli is a "lunatic"?It was frightening that he was desperate.Most of the time, he only sleeps three or four hours a day, and eats and lives in the factory.

At present, Glamor Semiconductor has sufficient talents. Sa Hongli recruited senior technicians and excellent front-line employees from the Modu factory to enrich each factory, and the overall technology climbed smoothly.

All kinds of qualified products are produced in large quantities from various factories and begin to be delivered to customers continuously.

Charm Semiconductor's priority supply direction for flash memory products must be the number one customer of Charm Electronics.Charm Electronics' music phones, camera phones, MP3 players, USB flash drives, etc., are among the best in the domestic market.

In the Southeast Asian market, the products of Glamor Electronics have also performed well, and have begun to enter the European and South American markets.

Another major customer of Glamor Semiconductor is Mingkang Communications.

And another big customer group is the Shanzhai mobile phone represented by Jingli. The demand of this part of customers is growing the fastest, and it has a faint tendency to surpass Mingkang Communication.

Other customers include some U disk manufacturers, some low-end digital camera manufacturers, and a small number of foreign brand mobile phone manufacturers.

Overall, Glamor Semiconductor's product sales are very good, and it is estimated that more than 90% of its production capacity will be released in a short time.

"Mr. Yan, you need to pay more attention to Lao Sa's body. How long can he work so hard like him? We are a company that pays attention to a long-term flow of water. We can't ruin our body. In addition, you can discuss with Mr. Huang and the others. Find a reliable helper for Lao Sa."

On the one hand, Hu Yang is very pleased that the team led by Lao Sa is a team that is particularly capable of fighting.On the other hand, he was also a little worried about Sa Hongli's health, so he gave Yan Hanzhang a death order and did not allow Lao Sa to overwork for a long time.

"Okay, Mr. Hu. Mr. Sa is in Jianghan recently, and I will go to him by plane in the afternoon."

Huang Tao is now in charge of the construction of the new factory, so busy that Yan Hanzhang had to go there himself.Fortunately, Shenhai is not too far away from Jianghan, so he can come back tomorrow after going today.

Glamor Semiconductor is actively preparing for the battle, and Samsung suddenly announced a price reduction plan.

Except for some high-end products, Samsung has lowered the prices of almost all products to near the cost line.

This cost line refers to Samsung's own cost line. If many companies follow this price as a guide, the products they sell will definitely lose money.

This price has less impact on Glamor Semiconductor. Samsung, SK and other companies have basically stopped producing low-end products that currently account for [-]% of the company's shipments.The products of some other small companies are much lower than those of Glamor Semiconductor, both in terms of price and quality.

In terms of low-end products, Glamor Semiconductor is invincible, and the current price system does not need to be adjusted at all.

However, the impact of mid-range products is still great.

"Mr. Hu, thanks to the hard work of Mr. Sa and the others, and we have expanded our production capacity early on, otherwise this wave of price wars would not be easy to overcome."

During this period of time, Yan Hanzhang focused on Charm Semiconductor.After returning from Jianghan, he has been paying attention to the impact of the price war on the company.

He sent Hu Yang the latest report today. According to the data, Charm Semiconductor's mid-end products are currently booming in production and sales.However, due to the low shipping price, this part of the product is actually a loss.

Mid-range products lost about 2%.

"This is what Samsung hopes to achieve. At the same price, we lose money, and they have about 5% profit."

Hu Yang knew that whether it was Yan Hanzhang, Sa Hongli, or all the employees of Charm Semiconductor, everyone had done their best.

"Mr. Yan, according to your estimation, how long will they start the price war this time? In addition, is there any way for us to lower the production cost and try to make our mid-range products cross the break-even point?"

Yan Hanzhang thought for a while, and said: "I guess Samsung and the others came prepared this time, and they won't stop unless some competitors are defeated. There are only two ways to reduce the production cost of our mid-range products. One is to continue to release production capacity, at least to reach more than 96%. The second is to continue to increase the yield rate."

Reducing costs is easy to say, but difficult in practice.Especially for the yield rate, when it reaches a certain value, it takes hard work and a long time to increase it by one percentage point.

Hu Yang nodded, but did not speak.He roughly estimated in his heart that for every 200 million mid-range products sold by Glamor Semiconductor, there will be a loss of about [-] million yuan.

This part of the loss can be offset by the profits of low-end products, but the company's overall profit situation is not optimistic.

"Don't put pressure on Lao Sa and the others now. According to the current situation, the overall profit of Charm Semiconductor will be maintained at about 2%. It will not be a total loss, and at most it will be a meager profit operation. Mr. Yan, you go back and take a rest. .”

Hu Yang sent Yan Hanzhang away, he understood that what is needed in this situation is patience.

(End of this chapter)