Chapter 498: Expansion Against the Trend

"Mr. Clement, I don't interfere with anything else, but there are two," Ms. Liu told Clement after the first meeting of the company's management before leaving Germany.

"First, in terms of research and development, we must be world-leading in low-power memory and memory technology for mobile communications, at least not worse than SS company. We want to provide the best storage solutions for mobile communications. ”

"Second, within three years, shrink the mature production line, build no less than the production capacity of competitors in the mainland of China, and OEM ordinary products by Zhongxin International in the mainland.

In the future, the latest generation of high-end memory chips will be produced by the Saxony and Xiangjianglong factories, while ordinary products should be produced in mainland China. ”

"Large-scale production costs for the next three years will be lower than those of the competition. To that end, the budget you submit will be carefully considered by the board of directors and will not be affected by the current supply and demand situation. ”

"If this can be done, the board of directors will consider the issue of management's options in the future, otherwise it will ......"

Liu Ruoyi didn't finish speaking, but Clement still understood.

The time left for him is not long, but it is by no means short, in fact, Clement is still grateful to Liu Ruoyi for giving him such a chance to prove himself.

Of course, Qimonda has already built a factory in China, and the land and labor cost advantages here can be seen as long as they are not blind, and the related infrastructure is unparalleled in any country or region.

It's just that according to Liu Ruoyi's plan, in addition to factories in Germany, factories in other countries or regions will adopt the OEM model.

This means that in the United States, the production capacity of Baodao must be transferred to the mainland of China, and in Clement's heart, he actually agrees with this plan, because in this way, the cost can be completely reduced to a level with competitors.

Even because of the burden of the factory, the overall cost may be lower.

Several 70nm-class production lines are outdated and not subject to technical controls. Liu Ruoyi's plan was completely unaffected.

Clement took these things to heart.

For him, it was like a dream of rebirth, and there were many problems to be solved, such as OEM arrears, disposal of American factory workers, equipment relocation and rebuilding of production capacity in the interior of China......

Also mobile communication memory research and development!

Everything is an unavoidable event for the president, and these are enough for him to be busy for a long time.

Liu Ruoyi didn't have much to do, leaving a few engineers of Zhongxin International, on the one hand, he began to take over the training of 70nm production line technology, and the future 70nm production line will be transferred to Zhongxin International, which is just a beginning.

Liu Ruoyi generally won Qimonda, for the industry, some people applauded, and more people were singing down, thinking that a layman entering the core semiconductor industry was purely chaotic command.

Qimonda's life will not be better than before.

Liu Ruoyi chose to use her own private capital for the acquisition, so although many people are short, Liu Ruoyi does not have a listed company that needs to make an external announcement or worry about the impact of the stock price.

Although Qimonda's 70nm process has lagged behind the current mainstream process for two generations, there is a difference of 45nm in the middle and a big generation difference of 32nm, which seems to be a relatively low technology.

However, considering that the equipment of this process production line has the possibility of upgrading to 55nm after improving part of the process process.

For the mainland factory of Zhongxin International, which still uses 90nm and is researching 65nm, it has become very attractive.

More importantly, ordinary memory particles, such as 512Mbit memory and 256Mbit, are produced by 55nm process, and the cost is at least 50% less than that of 90nm.

For the same 12-inch wafer cut chips, the 90nm and 70nm processes produce 750-1050 chips and 1350-1420 chips per wafer respectively, with a difference of more than 40%, not to mention the more advanced 55nm process.

Therefore, technology is the most effective factor in reducing costs. Liu Ruoyi dared to take down this seemingly unsustainable memory factory, what she saw was the technological progress, she could burn money and burn it!

At the same time, it also plays out the cost space.

The routine of expansion at low tide is not only playable by Koreans, but also by Liu Ruoyi, who can play more ruthlessly than them!

Three years for Clement to rebuild an SS company's memory production capacity, Liu Ruoyi is another knife for the current shopping situation, waiting for Qimonda to announce this plan, I am afraid that the industry will not be as bearish as it is now.

Because this plan means that Liu Ruoyi is ready to reshuffle the market in blood, and at this difficult time, the weakly funded island memory manufacturers, except for a series of bankruptcies, Liu Ruoyi can't see any other way out.

Not only that, but the third memory of the East may not last long, and it will be affected by the blood of the eldest and the second.

In this round of reshuffle, the memory manufacturers in the two places, which are mainly based on the production lines of the East and the island, are destined to lose to Qimonda and Goryeo, which rely on the mainland.

The future memory market can no longer tolerate the current situation of more than 10 players, and at most there will be 3 to 5 companies left to struggle for the demand to resurge.

Now no one knows better than Liu Ruoyi where the future spring of memory is.

Liu Ruoyi, who returned to Xiangjiang, continued to read the memory market research report transferred by Vivian through a professional organization.

Liu Ruoyi was shocked to find that the island's total investment in memory has reached more than 30 billion US dollars, with nearly 20 12-inch wafer production lines, and its production capacity ranks first in the world.

However, the vast majority of these capacities without their own technology are foundries, but the continued decline in DRAM and NAND flash prices has completely exceeded market expectations, leaving these investments now in a quagmire.

The reason for this is that there are too many memory owners on the island, and everyone is a small and medium-sized factory with a scale of 50,000 wafers, while Goryeo SS Company is a super factory with a monthly production capacity of 150,000 wafers, and the operating cost is clear at a glance, not to mention that SS Company has its own core technology.

After seeing this, Liu Ruoyi knew it in her heart.

...

...

Clement's efficiency is better than before, and not just because of the carrot effect of the options offered by Liu Ruoyi.

More importantly, Liu Ruoyi simplified the decision-making process of the company's board of directors and greatly improved the decision-making efficiency.

Compared with the bloated board of directors in the past, Liu Ruoyi, who has an absolute controlling stake, can now make a decision, so that Clement does not have the burden of stumbling.

There is no doubt that this person can climb to the position of president of Qimonda.

What's more, now Clement still has a mentality of shame and courage.

He quickly sorted out the relationship between all aspects after the change of equity and came up with the reorganization plan.

Close all factories on the island and in the United States, and build at least 12 12-inch wafer 55nm process production lines in mainland China, increasing production capacity to the same level as SS Company in one fell swoop!

Qimonda's new plan became the last straw that overwhelmed the memory!

As soon as the news came out, the stock prices of the memory manufacturers listed on the island plummeted! Dongyang Elpida shook! Hynix trembled!

Even the current leading boss SS is also a little confused.

He said that the expansion against the trend is still just a rhetorical cannon, and it will take at least two or three years to really implement the action, and then it will depend on the situation. At present, there is a lot of excess capacity in the world for memory pellets.

Qimonda wants to build 12 new production lines?! At the first time, SS Company thought that this was just a mouthpiece, and there was no such possibility.

Even if a production line is transformed from a 55nm production line to a 70nm production line, it will cost less money, plus the factory, if you buy new equipment, it will cost about 1.5 billion US dollars.

That's going to cost nearly $18 billion, and who would be crazy to put so much into this quagmire!

If this was not said by the Germans, I am afraid that SS would have jumped out and directly said that the other party was bragging.

Even so, SS Company and the island company have the ambition to join forces to find the gunman to analyze this plan this time, and if Qimonda really insists on going its own way, the entire industry will be doomed together!

The memory market particles have fallen again, reaching the level of indiscriminate blows in the whole industry, and the memory particles are now all spot below the material cost price!

The enterprises on the island were the first to be unable to resist, and the big boss in the background went out to visit Liu Ruoyi and asked everyone to be released.

However, Liu Ruoyi had already made up his mind and was unwavering about it.

After a stalemate of one month, the relocation of the production line of Qimonda's US factory and the relocation of the production line of the foundry factory on the island was carried out as scheduled, and the Qimonda Suzhou factory changed hands to Jinhai Zhongxin International, and the plant was renovated towards a scale of 200,000 pieces per month, and the market is now beginning to truly believe that Qimonda is playing for real.

The big boss in the background of the island's memory, who is still gritting his teeth, can't hold on, this is an avalanche.

In order to recoup a little loss, now they have to think about stop loss.

If the Jinhai Zhongxin International Suzhou Super Factory is completed, the production line in their hands will be completely rotten in their hands.

At that time, just like TI's bid for Qimonda's U.S. factory, a 70nm production line will not even be able to sell for 200 million dollars!

Therefore, Liu Ruoyi immediately turned into a lively old market, and these bigwigs also moved Zhang Rujin out to intercede, saying that the Chinese do not have to embarrass the Chinese.

Liu Ruoyi saw that the situation was as she envisioned, directly shuffling small and medium-sized competitors out of the game, and finally did not rush to kill them all, announcing that she would fully accept the "overcapacity" on the island.

According to the average price of 800 million US dollars, 15 of them are of good quality, 6 are 90nm process, and 9 are 70nm or 65nm process.

According to this production capacity, it surpassed SS Company in one fell swoop.

This unexpected ending made SS Company stunned but helpless, but there was no money to buy the production line from Qimonda!

Although Goryeo is working with the strength of the whole country, its national strength is not endless, not to mention that it is still in the current crisis of a global financial system that lacks liquidity.

So I can only watch Qimonda frantically expand production capacity. Fortunately, after carving up these production lines on the island, SS felt that there was still a buffer time, and they would have the opportunity to regain the title of the first production capacity, and then they would find that even if they grabbed back these would not have a big effect at all.

Qimonda's capacity expansion plan is not the investment of Qimonda, but the money invested by Liu Ruoyi's cornerstone investment capital to provide funds for the memory OEM branch of Jinhai Zhongxin International in the mainland.

According to the current situation, at most 6 months after the successful relocation of these ready-made equipment, from the perspective of paper production capacity, Jinhai Zhongxin International has become the world's largest memory particle OEM and the second largest memory particle manufacturer.

Of course, things are not so simple, suddenly adding so many production lines, qualified operation engineers may not be able to keep up, and there are many problems to overcome such as the yield rate of production lines, so the mainland has opened perennial recruitment points in the Lion City and the island to attract unemployed engineers to work in the mainland.

In Liu Ruoyi's three-year plan for Clement, the second capacity expansion plan can reach the goal in less than a year!

The memory manufacturers on the island, which have been shuffled out of the market with large losses, have to transform to other aspects and begin to target the market of ST, NXP, Infineon and other manufacturers.

After all, there are more than 10 billion US dollars cashed out in hand, and there are also several production lines in hand that can be processed, and the production of embedded CPUs and analog devices is also good.

Although the other side of the strait is very welcome to join these skilled workers, it is not realistic to let these people move their families, and it is not so comfortable to abandon their wives and children to go alone, so except for bachelors who are more active, it is actually difficult for those who have families and jobs to leave.

However, Liu Ruoyi's feat still scared the semiconductor industry, and this time it was Liu Ruoyi who jumped to the front desk to do this, so the Chinese semiconductor king belongs to the strongman on the island, and the title of semiconductor queen undoubtedly falls on Liu Ruoyi's head.

Purely in terms of production lines, Liu Ruoyi's 12-inch wafer production line has surpassed its competitors.

The dragon factory has now built two 45nm/32nm 100,000 wafer production lines, but the next two new 28nm/22nm 100,000 wafer production lines have entered the equipment procurement stage, so that there are 19 production lines in hand.

In the face of this situation, the competitors on the other side of the strait in the crisis had to watch the opportunity slip away from their eyes, not because they didn't want to, but because in this extraordinary period, the landlord's family had no surplus food!

It is easy to talk about contrarian expansion, but what about the capital invested? Who has Liu Ruoyi's ability to not only survive the unprecedented financial crisis, but also make a fortune!

Not only the semiconductor industry has successfully expanded against the trend, but the financial industry has also gone against the current and begun to enter the world's top investment banks.

Even in the entertainment industry, through the acquisition of Marvel, it began to take an important step towards the true internationalization of Aurora Media!

Expanding against the trend, it became the strongest mark on Liu Ruoyi in late 2008 and early 2009.