Hu Yiting remembered that BOE in history in 98 years finally chose liquid crystal as the development direction from the three new display technologies, after four years of confusion and exploration, wasted a lot of time.

And BOE was not listed on the stock market at that time, trapped by financial pressure, has been able to make a small fuss in research and development, technology stagnated in the first and second generation line, until 2003, just from the Asian financial crisis to survive the South Korean Hyundai Group and because of overexpansion and fell into a debt crisis again, the debt-ridden Hyundai Group in order to repay debts, had to choose to sell its LCD business.

The reason why Hyundai Group endured the pain, mainly because there was another company in South Korea at that time, Samsung Electronics was also engaged in LCD panels, Hyundai Group in the LCD panel business not only can not compare with several Japanese manufacturers, but also in South Korea can not compare with Samsung, has been struggling between losses and small profits, so when BOE 03 January appeared with 380 million US dollars, Hyundai Group happily sold its 3.5 generation production line to the other party.

BOE relied on its own technology to quickly eat through the modern 3.5 generation line, in September of 03 year, it immediately invested 10.3 billion yuan to start the construction of the domestic fifth generation line, and began the road of counterattack.

Hu Yiting often thinks that if China's outstanding entrepreneurs and R&D teams can get sufficient start-up capital earlier, what will China's industrial pattern look like in the future?

BOE did not become a listed company until 01 years, obtaining financing from the stock market, if they can get sufficient financial support in 1996 this year, then the LCD panel industry pattern will appear earlier in China's rise phenomenon?

There are no ifs in history, but Hu Yiting now holds this golden key! Whether you dare to play depends on your courage and strength!

Hu Yiting knows that the LCD panel industry is a gold-swallowing monster, it is different from other traditional industries, its update and iteration speed is beyond imagination, if you want to keep the price unchanged, the performance of the display product must be more than doubled every 36 months, which is quite similar to the chip manufacturing industry, which needs to continue to invest in the construction of a new generation of production lines, and every upgrade needs to invest tens of billions of yuan to build a new factory.

Although he knew that this was a backward and money-burning business, Hu Yiting still decided to continue playing, even if he did not hesitate to lose money.

"Let me remind you that the LCD panel industry is not a fuel-efficient lamp.

Japan was the first to start in this regard, and they regarded the electronics industry as a national strategic pillar, so they invested a lot of government subsidies in all new technologies in the electronics industry.

As early as 1979, the Japanese government spent 770 million US dollars to organize 16 enterprises to launch the "Optoelectronic Basic Research Program" through the "Optoelectronic Industry Technology Association", and then funded another 820 million US dollars to establish the "Optoelectronic Technology Research Company" to conduct basic research on optoelectronic materials.

In addition, the Japan Science and Technology Agency, the Ministry of Posts and the Ministry of Culture have also provided funding for basic research in optoelectronics to their research institutes and national universities. Hu Yiting began to introduce relevant knowledge to his subordinates according to his memory.

Seeing that Hu Yiting began to popularize the knowledge of the LCD panel industry, everyone was surprised, and at the same time full of respect, thinking that Mr. Hu had already conducted research on this piece! His proposal today was really not a whim, but premeditated.

Hu Yiting continued: "So you see, the investment in the LCD panel is very powerful, and it must be burning money at the beginning, and it is burning a lot of money! The Japanese have burned billions of dollars into it, and we must be mentally prepared! Although we have the advantage of being a latecomer, we must also be prepared to burn more than a billion dollars!"

At present, in the LCD panel industry, in addition to Japan, South Korea is the best.

South Korea's national policy in the economic field has always been to closely follow Japan.

National pride makes Koreans very strong in all areas where they compare with Japan, especially in Japan's electronics industry, which is the pillar of the country.

Since 90 years, South Korea has been continuously throwing money in the field of LCD panels, under the pressure of an average annual loss of 100 million US dollars in the whole industry chain, from 1990 to enter the industry, has been losing until now!

Personally, I estimate that they will continue to lose money, and they will probably not enter the profit period until the next year, that is, in 97 or 98. ”

Luo Zheng suddenly asked: "Mr. Hu, why do you estimate like this? I look at the global electronic information reference released by the Electronic Information Institute, it is said that the past two years are the recession cycle of the LCD industry, and the loss gap of Korean panel manufacturers is still expanding. ”

Hu Yiting nodded: "I also read it, but I know why the Koreans have lost so much in the past two years, because they have not retreated in the two-year industrial recession cycle, relying on government subsidies to make counter-cyclical large-scale investment, desperately expanding production capacity for mass production, it is expected that by the end of this year, South Korea will be able to achieve a counterattack on LCD production capacity and pull Japan down from the first position in the industry."

So I guess South Korea is definitely planning to start a price war with the Japanese by relying on its huge production capacity from next year.

You must know that once the industrial profits decline, the enthusiasm of Japanese manufacturers to invest will decrease, after all, the production line of billions of dollars at every turn is not a casual decision to build a new one.

Once the technology is caught up by the Koreans, and the expected profits in the future do not seem to be high, Japanese manufacturers often choose to be conservative and dare not invest huge sums of money, once the industrial scale is overtaken by South Korea, it will fall into a vicious circle, and finally be suppressed by the opponent. ”

Luo Zheng nodded as if he didn't understand: "This is Mr. Hu's prediction, right? ”

Hu Yiting pursed his mouth, what prediction did his heart say, this is the truth Okay, I am telling you the direction of the industry now, basically nine times out of ten it will not be wrong, and history is not something that can be changed casually.

"Mr. Luo, do you know the way of replacing LCD panels?"

"Yes. ”

"You introduce you to everyone, and I'll drink saliva. Hu Yiting wanted Luo Zheng to "work".

Luo Zheng said disapprehantly: "As far as I know, the LCD panel is divided according to the size of the glass substrate under the LCD screen.

The current generation line and the second generation line are basically for nine-inch screen products, the size is 320*400 and 370*470, the third generation line and the fourth generation line are larger in size, it is 550*650 and 680*880, so that the maximum display can be made 14 inches, but the yield is not high, because only one piece is drawn on a board, it is difficult to remove the bad pixels, if there are many dead pixels on the panel, then it can only be cut into smaller screens to avoid dead pixels, so the LCD screen price is so expensive. Even so, we often see a screen with three or four dead pixels on the market, according to the current technical standards of Japan and South Korea, as long as there are no more than 9 dead pixels on the screen, it is qualified, many people can only consider themselves unlucky when they buy this kind of defective product, but many consumers don't know how to test it when they buy it. ”

Wu Hengyuan said: "That's too tricky, but if there are bad spots, sooner or later, they will be discovered, and when the time comes, they will definitely respond in their hearts." ”

Luo Zheng smiled and continued: "Now the third-generation line and fourth-generation line on the market belong to the experimental line that has just been put into production in the early stage, and the production capacity is not high. ”

Hu Yiting took over the conversation: "That's the case, we are ready to burn money when we enter the market now, and we must chase the laboratory technology to the size of the third and fourth generations as soon as possible, and then spend money to build a factory." ”

Luo Zheng said solemnly: "Mr. Hu, a line is a lot of money! If you don't say anything, it will cost three or five billion, right?"

Hu Yiting nodded: "It is estimated that more than 10 billion lines will be normal in the future." ”

Everyone in the board of directors was stunned when they heard this, and said that they just thought that the company was a cash cow, but they saw that Mr. Hu was about to spend so much money!