Chapter 510: Three Stars suffered huge losses and was forced to compromise

When competing with Apple, QingCloud’s biggest weakness is its insufficient technical strength.

Looking at the world as a whole, the only two companies that can compete with Apple in terms of smartphone technology are Samsung and Nokia. The former sold itself to the International Monetary Fund after 1998.

Samsung, Hyundai and a bunch of other so-called chaebols were also controlled by the capital of the bigwigs, thus starting the process of Korea replacing Japan and becoming the destination for a new round of international capital and high-tech transfer.

Samsung is destined to not help Qingyun fight against Apple!

It started from the day when Qingyun supported BOE regardless of cost and incurred huge losses, and resumed the Julong plan to break the monopoly of Samsung, LG, Sharp and other companies on LCD screens.

The two sides are rivals who will never stop fighting!
In 2010 alone, Samsung Semiconductor shipped 2600 million fewer LCD screens than originally planned, due to capacity constraints at BOE's Chengdu, Yanjing and Feicheng (trial production) sites.

More than half of them are used on LCD TVs, laptops, desktops, tablets, and smartphones, and Lenovo has the possibility of being acquired by Qingyun.

By then, Lenovo, China's two largest computer manufacturers, Qingyun Electronics' smartphone manufacturing business, and most of China's LCD TV manufacturers will say goodbye to Samsung Semiconductor completely.

Historically, semiconductor companies such as Samsung have relied on their technological monopoly and first-mover advantage to engage in high-price dumping, making it a bizarre fact that a single LCD screen accounts for more than 80% of the production cost of home appliance companies.

This will never happen again. Companies like TCL rely on low-priced screens supplied by BOE and a sound sales system provided by Qingyun to defeat foreign products in China.

The same technology only has a slight difference in display clarity, but foreign products sell for tens of thousands or even hundreds of thousands, while domestic products sell for three to four thousand. Consumers are not fools, so do they need to think about how to choose?
Chinese home appliance companies also took the opportunity to capture some markets in Southeast Asia, Europe and the United States.

In addition, BOE's Feicheng production line, and four new production lines in Pengcheng, Yanjing, Suzhou and Chengdu have begun to be put into production one after another. In 2011, Samsung Semiconductor is expected to set a new historical record.

Well, a loss record.

Because companies like Samsung also took advantage of the economic crisis to engage in counter-cyclical expansion, spending a lot of money but gaining nothing. Now that they have production capacity, the market has suddenly disappeared, which is very embarrassing.

For a semiconductor production line, whether it is the 6th or 8th generation, the daily depreciation and idling costs alone are astronomical figures. Coupled with the expected plunge in revenue, the entire Samsung Semiconductor management team went crazy.

Industry sales have exploded, and peers are making a lot of money, but upstream companies that have mastered the latest industry technologies are not only making no money, but are also coming to the conclusion after conducting sufficient market research.

If Qingyun Group does not compromise, Samsung Semiconductor will suffer an unprecedented loss of 2011 billion US dollars in 120???
It's simply a horror of slipping the world!

……

"Boss, I don't admit this. Samsung's loss of $120 billion has nothing to do with me. If you don't believe me, go find Wang Dongsheng from BOE and see how Samsung did it before. We are going to build a factory in Suzhou, and Samsung said they want to come too.

We have a 6.5-generation production line (actually it is used to produce flexible screens for mobile phones), and Samsung invested in an 8-generation line right after it came up. We have no objection to choosing the best local company if they want to develop, after all, business competition depends on one's own ability.

There is nothing to say about not being as skilled as others, but what did Sanxing do in the end?
The total investment is more than 20 billion US dollars! They only took out 800 million US dollars to fool people, which clearly shows that they are not sincere and just want to squeeze out BOE's production line.

Later in Pengcheng, Samsung and LG wanted to repeat the same trick, but it was Wang Shuji who personally stepped in to barely get the project off the ground.

In order to expand production capacity, we tried our best to beg for help from everyone, but the money was not enough. At that time, BOE's President Zhao Yanshun even wanted to go to Ordos to exchange coal mines for production lines.

Now that we have finally got it going, not only do you not support us, but you also want us to cripple ourselves and artificially cut off part of our production capacity to give to foreign companies like Samsung. I won't accept that."

Li Zehua, who was summoned to Yanjing temporarily, dared to slam the table to express his dissatisfaction even in front of the department leader.

I just heard him waving his hands and speaking excitedly, "Samsung still has the nerve to bring this up. They invested tens of billions of dollars to build factories everywhere. If they can't sell the goods, they just lower the price. No one is going to blame me for selling them at such a high price?
What's more, it is estimated that this year, due to the impact of Qingyun, shipments will be less than 5500 million pieces, and the operating loss will be as high as 70 billion US dollars, plus the loss of production lines and channels. Do you want me to laugh at you by saying this?
Hey, that’s not right!
5500 million pieces, only 70 billion? More than half of them are 29-inch to 60-inch LCD TV screens, right?

It sells it to us for 1400 to 6000 yuan per piece, but the actual cost is only a few hundred dollars? It's really a scam!"

Judging from the actual profits, if Qingyun had not emerged, Samsung, Sharp and other companies would have had a good year this year, and would have made at least hundreds of billions from the home appliance and computer industries.

No wonder he complains every day, it turns out he is really angry.

The director of the Economic and Trade Commission who was in charge of receiving him held back his laughter, coughed, and said seriously: "Mr. Li, when it comes to trade between countries, we must carefully consider the overall factors.

We cannot allow a certain industry factor to intervene and affect the overall situation. Look, this is an inquiry letter sent by the US Department of Commerce and Europe and South Korea.

Don't underestimate a piece of paper. If you don't agree, they will have sufficient backup plans. Anti-dumping investigations may be launched, and you will not be able to enter the Southeast Asian, European and American markets smoothly.

If necessary, we should sit down and talk to reach a compromise."

As they were talking, Zhao Yanshun from BOE came in late. "Leader, Mr. Li, I was just receiving an inspection from a senior leader from the hospital at the company. I'm sorry I'm late."

The institute he was referring to was, of course, the one that dealt with national affairs, and it was headed by a vice president. The director knew this news very well, otherwise he would not have been able to have such a friendly conversation with Li Zehua here.

After everyone greeted each other and took their seats, the director asked his secretary to give a copy of the information to Zhao Yanshun and asked for his opinion.

"The Korean side acted quickly. We were discussing the transfer of a semi-old production line, which was originally planned to be coordinated from LG's operating production capacity, but now it has been urgently stopped."

Zhao Yanshun did not hide anything, "As for the construction of the new factories in Pengcheng and Yanjing, there have been no problems with the equipment supply from Jiaobenji and America for the time being, but related companies have also sent us information.

It is said that the company may be subject to re-examination by the competent authorities in the near future, which may have an impact on the normal delivery of core equipment.”

“I know about this. I have already appointed someone to lobby for this. I spoke to Mr. Roosevelt this morning and he said it was not a big problem, but he would invest in building a new factory later.

For example, the Shanghai line, Xingcheng and Huangdao, and Yangcheng four new production lines of 8th generation and above, the negotiations may be greatly affected, and you may not be able to buy them even if you have money. "

Li Zehua's expression remained unchanged. "These people will take advantage of any bargain they can get. If they suffer a little loss, they will impose so-called blockades, sanctions and purchase restrictions. Globalization, hehe, being controlled by them is called globalization.

If they can't win, they will turn hostile immediately.

However, the secret negotiations with the chicken companies have recently made a breakthrough. In addition to money, Toshiba, Sony and other companies also want equity and management rights in certain special industries. The company is evaluating the pros and cons. "

"As long as it does not involve the core, we can agree to it. Only after we have solved the problem of whether there is a solution or not can we discuss the subsequent development."

The director drank tea and said slowly: "As for Samsung, does your company have any solution? Do you want the ministry to launch a dumping investigation into Samsung's domestic business as well?"

Qingyun and BOE are the technological brands that have been painstakingly supported by the higher authorities. Before the establishment of Qingyun, the local government of Yanjing sold all its resources to support the construction of BOE.

He even took out the interest-free loan quota of the state-owned enterprise without hesitation. To put it bluntly, this is the treatment you can get from your own son.

Qingyun?

Not to mention, just one micropayment Internet financial business has bound the interests of tens of millions of people in Southeast Asia, and countless people who control the power of resource allocation are indirectly involved.

The ambiguous attitude in the past has now turned into superficial perfunctory and secret cooperation. In short, in the face of massive interests, as long as Dongda can withstand the pressure, they can eat meat safely.

They are willing to cooperate actively. This alone has saved the country countless funds and resources. At the end of the year, eastern Guangdong alone pointed out in a report that it had made countless profits from trade with Southeast Asia.

Nanfang Electric Power and Guodian Corporation also reported that through their unremitting efforts, they have successfully opened up the electricity investment markets in many Southeast Asian countries, and will use energy to influence the smooth implementation of industrial manufacturing plans in the region in the future.

The two oil companies also reported similar achievements, saying that they have established connections with energy companies in Lijiaopo, Brunei, Siam and other places, and are preparing to actively respond to the "going global" strategy in the new year.

Even China Aviation Oil, which is controlled by airlines, has won the multinational aviation fuel business of several overseas airports for the first time.

The foreign trade system is undoubtedly the industry most affected. At the end of the year, the Textile Industry Association submitted a work report to the higher authorities, clearly stating that only the re-export share to Europe and the United States via Yunnan, Burma, Annan, Malaya and other countries would be increased.

The textile industry export is a barometer of foreign trade. In the cotton futures war at the end of last year, Qingyun successfully defeated the four major grain merchants and comprador groups, and not only earned a lot of profits.

It also indirectly supported the cotton planting and sales industry chain in Xiyu Province and Shandong and Henan provinces, allowing more companies and farmers to benefit from it and saving a large amount of special national support funds.

But soon after, many European and American countries began to retaliate by reducing the textile import quota allocated to Dongda and secretly planning to restrict the inflow of cotton products from the Western Region Province.

They also tried to manipulate the new round of import and export prices of agricultural products such as cotton to make up for previous losses.

Under normal circumstances, Dongda may not have many means of countermeasure, because the people below need to eat, and the domestic cotton production is not enough, so it has to continue to purchase from abroad, and it is inevitable to be ripped off by the four major grain traders.

Even if the higher authorities have foresight and support the domestic industrial chain, it will not put out the fire in a short time, because the cotton production in Western Region Province is very slow to take effect through policy adjustments, and the planting area cannot be increased without three to five to seven years.

But now, through market means, textile companies can go directly to the fields and sign unified procurement agreements with farmers through the Qingyun platform. Driven by interests, countless people are waving money.

People flocked to the Western Regions to contract land and started a new round of agricultural wealth creation. Qingyun Agriculture and Textile Enterprises took care of planting and purchasing, and Yunyunbang's mature system solved transportation, providing a complete one-stop service.

As for restricting import quotas?

Do ordinary people in Europe and America stop wearing clothes and using textiles?

As long as the consumer market still exists and the constraints of high labor costs in Europe and the United States still exist, local imports must continue. The so-called import quota adjustment will be transferred back and forth between only a few countries.

With the growth of Qingyun's business in Southeast Asia, it has tied up more and more allies. With just a small export quota, it doesn't even need to set up a factory in the local area, it can directly set up a trade agency.

Just hand in some documents and money, then go to the port and transfer the container's ownership to the local place. The textiles originally produced in China are transformed into products of a third country.

Then they are sold openly to Europe and the United States, and even related export companies are careful to follow the production standards of third countries to ensure that everything from the inside out is made in foreign countries.

Except that the company is producing while complaining about the unnecessary hassles and adding processes which slightly increases costs, everything else is normal.

The price has to go up. There is no cost for re-export trade, right? There is also an additional tax, which is tacked on to European and American consumers. The relevant cooperative enterprises are too lazy to care.

A piece of clothing only increases in price by a few dozen cents, what’s that a big deal?
When the time comes, you will take the customs declaration list to the tax department to apply for a tax refund, and you will get all kinds of subsidies. It is not fake at all, and there is no benefit. Who will cooperate with you in the anti-dumping investigation?

It is impossible that the higher-ups didn’t notice all these favorable changes, so how could they possibly move against Qingyun?

The communication with the above went smoothly.

Negotiations with Samsung and other related companies were relatively smooth.

Because it took time for the semiconductor industry to shift from China and Europe to South Korea and the Southeast Province, now the United States and China still have many core technologies.

Especially in the manufacturing of semiconductor display production equipment, China University of Political Science and Law has a certain say. They themselves saw the transfer trend and were unable to stop it, so they tried to join forces with Dongda to develop plasma technology.

Not only did they fail, they also suffered a huge loss, but now they are not allowed to make the last profit from LCD technology. This is something that Jiaobenji cannot tolerate.

As for America, the interests of the companies that sell equipment and hold shares in Samsung are not completely aligned. Just like the investors in various industrial funds under Qingyun, they may even fight over profits.

The uneven distribution made it difficult for related companies to coordinate a unified position. In addition, traditional capital and Squid Capital also stepped in to provide assistance because of the rifts that arose after the rescue of Wall Street.

As a result, the anti-proliferation investigation initiated by the US Department of Commerce seemed to be a bit anticlimactic.

Samsung is well aware that if the fight continues, Qingyun, which has the support of Dongda behind it, is destined to be difficult for it to control. The two sides continue to fight, only in the semiconductor display industry.

They will have to bear losses of tens of billions of dollars, a result that is unacceptable to both the Samsung Li family and the Wall Street capital behind them.

What's more, Qingyun is also actively developing its presence in the semiconductor industry, with the intention of completely replacing Samsung products. Even though the domestic technology lags behind by one or two generations, there are still people who will pay for it!

By exploring new approaches in the financial and financing markets, Qingyun is on the verge of gaining financial dominance in the local area, and the funding source will then be perfectly resolved.

A corporate alliance that has no shortage of money, has one person in charge, is willing to bear huge losses at any time, and has a huge domestic demand market to back it up, who wouldn't be scared?
When we start a business, we are looking for money, not to suffer, and certainly not to generate power with love.

On the one hand, Qingyun's negotiation team placed orders in the fields of solid-state drives, video memory, high-end LCD display technology, mobile phone screens, etc. (all areas that Qingyun will not be able to make breakthroughs in the next three to five years).

Qing Yun even creatively proposed that since Samsung's semiconductor production capacity cannot be digested, Qing Yun and BOE are willing to invest and take over the entire capacity in order to reduce Samsung's losses from overcapacity in the mid- and low-end markets.

"Take advantage of the situation."

Lee Jae-yong, who was far away in South Korea, was almost furious, but facing the investors' criticism, he could only swallow his temper and instruct the domestic negotiation team to continue the talks.

At the very least, an outcome that investors can accept must be negotiated. For example, home appliance companies must purchase a certain number of Samsung display screens, and Samsung Semiconductor must not suffer huge losses.

120 billion, that’s just the actual loss on paper, what about the loss caused by the estimated reduction in market share?
Samsung, LG, Sharp, and a large number of Southeast Asian, Chinese and European companies were expected to achieve sales of over 100 billion US dollars this year, but they were hit hard by BOE.

The sales volume may lose half, but Intel, BOE and other companies will have a good year, because more than half of the world's dozen largest companies in terms of shipments are in the Qingyun system.

Without its support, anyone who makes semiconductor display panels will be in trouble.

Before BOE's rise, everyone could band together to boycott, but who dares now?
As for launching an anti-dumping investigation, it is even more nonsense. On the day Samsung filed a complaint with the US Department of Commerce, Qualcomm and Google jointly came to Samsung, and even Intel and Nokia came to join in the fun.

Everyone gathered together to watch, wanting to see what price Samsung was going to make their biggest customer pay.

What can Samsung do?
He could only swallow his anger and suffer the loss before coming back to negotiate with Qingyun.

It's not that they haven't tried to divide and conquer, trying to negotiate with home appliance companies and PC manufacturers individually. They have used similar tricks very well in the past two or three decades.

But now, Qingyun suddenly appeared, slapped them in the face, and told them fiercely: Do you want to defeat us one by one, and use the tactics of bribery to break up the alliance?
Sorry, times have changed.

Qingyun has cheap substitutes and sales channels, and it controls the largest smartphone production in China and the second largest PC production share (it is currently targeting Lenovo, the first).

Almost all of the rural home appliance sales market, almost more than half of the e-commerce sales channels, as well as OEM and OEM business in Southeast Asia and large and medium-sized cities in China.

To put it bluntly, if Qingyun and BOE are determined to deal with one of the companies, it will suffer a lot if it doesn't die.

Who would dare to defect privately? Moreover, the chips offered by foreign capital are not worth mentioning in front of Qingyun. Only a fool would stand on the wrong side.

Samsung was in great distress as it had run into a stubborn person. It had the technical advantage but was unable to successfully control the situation.

Considering the sales interests in the country, they could only give in temporarily. However, Qingyun was getting more and more demanding and wanted to take the opportunity to purchase LCD display technology and production equipment manufacturing technology.

They refused without hesitation. What a joke! With BOE being included, the situation has already become very passive.

If we sell the core technology and let BOE fill in its development gaps, won’t we have to depend on others for a long time?
Even though the technology is more than ten years behind, Samsung and the industry alliance behind it will never give up.

At most, they agreed to sell part of Samsung's excess production capacity to BOE in the name of a joint venture, but they were limited to participating in daily management and sales.

Want to send people to participate in technology research and development, no way. (End of this chapter)