Chapter 427: Painful Patience

"This is not surprising, Samsung and SK's share of the world's storage chips exceeded 50% in the early years, and they just want to completely defeat some competitors who are not strong enough through price wars again and again. ”

Hu Yang has a full understanding of companies like Samsung and SK. Their goal is simple, to snipe at all competitors, and what they want is to monopolize in order to obtain excess profits.

Now the timing is very delicate, the new factory of Charm Semiconductor is about to achieve mass production, and Hu Yang has to guess that Samsung's move is to deal with himself.

After getting the news from Chen Jialin, Hu Yang immediately summoned Yan Hanzhang, Huang Tao, Yang Chenglin and Sa Hong Lilai Investment Building to discuss countermeasures.

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

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

"It's just such a thing, if Samsung wants to provoke a price war, no one can do anything. Now we need to discuss the countermeasures, how to survive this price war. ”

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

"The price war is not unusual, but it works. This is equivalent to fighting bayonets on the battlefield, winning or losing depends on strength and endurance, and there is no possibility of opportunistic shortcuts. ”

Yan Hanzhang shook his head, the price war is a matter of killing three thousand enemies and losing 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 for us is to let all the factories mass produce as soon as possible." Then reduce costs by improving yield. ”

"Lao Sa, tell me, do you have the confidence to improve the yield rate of each factory to an excellent level in the short term?"

Excellent grade, the yield rate needs to reach or exceed 95%, and the requirements of Populus euphratica are a bit high.

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

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 also a risk mass production stage. If you skip this step directly, once the yield rate is unstable, it will cause significant losses to the company. ”

Although Huang Tao also hopes to produce energy as soon as possible, he is more stable than Sa Hongli. What is the risk mass production stage? Isn't it to increase the output step by step, so as to avoid the heavy losses caused by the direct mass production problem.

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

"Well, I agree with Lao Sa. However, when it comes to implementation, one factory after another, it is important not to fully bloom. ”

Populus Hu decided to adopt a compromise method, although it was directly into mass production, but it was still necessary to put into production one after another, without rushing to the top.

This is actually a risk-averse strategy, but it is still a bit aggressive.

Seeing that Hu Yang made a decision, Yan Hanzhang, Huang Tao and Sa Hongli didn't say anything anymore. Sa Hongli was mainly in charge of production, and he went directly to Jianghan from the deep sea and decided to start large-scale mass production from Jianghan's factory first.

Just when Charm Technology was desperately releasing production capacity and improving the yield rate, Samsung took the lead in reducing prices for low-end products. Subsequently, SK and Micron both announced follow-ups, and for a while, whether it was the flash memory market or the DRAM market, the price began to fluctuate violently.

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

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

"All factories have a yield rate at or near an excellent level?"

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

"Of course it's true, I still dare to deceive Mr. Hu, you can't?"

Of course, Sa Hongli can't deceive Populus euphratica, and the thing of production 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 our full horsepower and full production, at least we can't be thrown away too much in this part of production. ”

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

Sa Hongli said that the company's current backlog of orders is serious, and if it can't be delivered on time, just in time for Samsung to fight a price war, it is very likely that customers will run away.

After the matter was settled, Sa Hongli notified Huang Tao and Yan Hanzhang and asked them to provide various logistical support, and he was only responsible for production.

What if you don't say that Sa Hongli is a "crazy man"? Many times, he slept three or four hours a day, ate and lived in the factory.

At present, the talents of Charm Semiconductor are sufficient, and Sa Hongli has dispatched senior technical personnel and excellent front-line employees from the Modu factory to enrich each factory, and the overall technology ramp-up is very smooth.

All kinds of qualified products are manufactured in large quantities from various factories and begin to be delivered to customers in a steady stream.

The priority supply direction of Charm Semiconductor's flash memory products is definitely the number one customer of Charm Electronics. The music mobile phone, camera phone, MP3 player, U disk, etc. of Charm Electronics have the best share in the domestic market.

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

Charismatic Semiconductor also has a big customer that is Mingkang Communications.

Another major customer group is the copycat machine represented by Jingli, the demand of this part of the customer is growing the most rapidly, and it has faintly surpassed the trend of Mingkang Communication.

Other customers include some manufacturers of USB flash drives, some manufacturers of low-end digital cameras, and a few foreign brand mobile phone manufacturers.

Overall, the sales of Charm Semiconductor's products are very good, and it is estimated that it will not take long to release more than 90% of the production capacity.

"Mr. Yan, you have to pay more attention to Lao Sa's body. How many years can he fight for as hard as he is? Let's pay attention to a trickle of water in business, and it's not okay to collapse the body. In addition, you and Mr. Huang discuss it, and you have to find a reliable helper for Lao Sa. ”

On the one hand, Hu Yang is very pleased, and 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 body, so he gave Yan Hanzhang a death order and did not allow Lao Sa to overwork for a long time.

"Okay, Mr. Hu. Recently, Mr. Sa was in Jianghan, and I flew to him in the afternoon. ”

Huang Tao is now in charge of the construction of the new factory, and he is so busy that Yan Hanzhang has to make a trip himself. Fortunately, the deep sea is not too far away from Jiang Han, and he will be able to come back tomorrow and the day after tomorrow if he goes today.

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

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

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

This price has less impact on Charm Semiconductor, which currently accounts for 40% of the company's shipments of low-end products, Samsung, SK and other companies have basically stopped production. The products of some other small companies are much worse than the products of Charm Semiconductor in terms of price and quality.

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

However, the impact on mid-range products is still very large.

"Mr. Hu, thanks to Mr. Sa and their efforts, and we started to expand production capacity early, otherwise this wave of price war is really not easy to bear. ”

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

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

The loss margin for mid-range products is about 2%.

"That's what Samsung wants to achieve, we lose money at the same price, and they make about 5% of the profit. ”

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

"Mr. Yan, according to your estimate, how long will it take for them to launch the price war this time? In addition, is there a way for us to lower some production costs and strive to make our mid-range products cross the breakeven point?"

Yan Hanzhang thought for a while and said: "I estimate that Samsung is prepared this time, and they will not stop if they don't defeat some competitors." There are only two ways for our mid-range products to reduce production costs. The first is to continue to release production capacity, at least to reach more than 96%. The second is to continue to improve the yield rate......"

Reducing costs is easy to say, but it's actually hard. In particular, when the yield rate reaches a certain value, every percentage point increase requires hard work and a long time.

Hu Yang nodded and did not speak. He roughly estimated in his heart that for every mid-range product sold by Charm Semiconductor for 100 million yuan, it would generate a loss of about 2 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 any more pressure on Lao Sa now, according to the current situation, the overall profit of Charm Semiconductor will be maintained at about 2%, but it will not be a comprehensive loss, at most it is a small profit operation. Mr. Yan, go back and take a rest. ”

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

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