"Boss, in fact, the DRAM chip business is estimated to lose at least 500 million profits this year, because Xinchuangxin is a listed company, some small and medium-sized shareholders in the A-share market are actually opposed. I think we don't need to make DRAM memory chips, and focus on making CPU chips with XRM and ARM architectures, so that we can maximize profits. Hu Weiwu said suddenly.

Lin Qi said with a smile: "DRAM memory chips, we must not give up. If you give up, it may be a good choice in five or ten years, but in the long run, you will definitely regret it. Even Intel, which survived by cutting low-profit DRAM projects with high-profile publicity in the early years and concentrating on making CPUs with x86 architecture. But in fact, Intel Corporation, if it does not cut the DRAM memory project, a few years later, the price of memory chips has risen and it is profitable again. Samsung only began to enter the game when Intel cut the DRAM chip project, and now Samsung Semiconductor has become the fastest growing and most promising project within the Samsung Group. Intel has actually regretted it, but it is embarrassed to practice on its own, so it has taken action to pick up the DRAM business that was cut ten years ago. Just don't, this piece of business has been cut for too long, the team has been disbanded, and it doesn't have the right to speak in the market. The new entrepreneurship department makes memory chips, not for the profit of DRAM chips, but because it is an indispensable and important part of the consumer electronics industry. If, moreover, the production capacity is increasingly monopolized by a few manufacturers, if we can't produce, the supplier can do whatever he wants in terms of price, and take the goods at what price, completely depending on the face of others. Even, when there is an urgent need for supply, it is possible to be choked by the opponent, delay the supply or increase the price of supply. If the supply of DRAM memory is limited, then the CPU shipments of Pangu and Kirin will also decrease. To put it simply, we can't trust the free trade market too much, you can buy anything with money, it's a lie. For example, if other parts are supplied to manufacturers, but there is only a problem with the supply of DRRM memory, then the shipment of computers, mobile phones, servers and other products will be suspended, and chip factories like Xinchuangxin, which rely on orders from the Pangu computer market, will naturally be affected. Of course, we can't explain it to consumers, and we can't say that we don't trust the free trade system, but we draw a big pie, tell stories, and talk about burning money in the memory field in order to be profitable in the future. In the future, the market share should be at least one-fifth of the global DRAM market shipments! In order to achieve this goal, shipping at a lower price is just a strategic means!"

To tell the truth, in the 94 years of the world, the development environment of the domestic semiconductor industry is even better than that of more than ten years later.

More than a decade later, although China's electronics industry is more developed, and the scale of GDP is even larger. However, the semiconductor industry chain is not as complete as it is now.

At present, after more than 10 years of development, the domestic semiconductor industry chain cannot be said to have reached the international leading level. However, basically, the industrial chain is complete, the production cost is low, and it is only one generation behind the most advanced level in the world.

The most advanced process level in the world is 0.35 microns, and the domestic is to achieve industrial mass production of 0.5 micron process. In essence, the chips produced by the 0.35 micron process now have less than one thousandth of the output value of the entire semiconductor industry. The products produced by chip factories with 0.5 microns and lower process levels are the mainstream process at this stage.

In a sense, there is basically no process inferiority in the domestic semiconductor industry. Even...... Because Chinese manufacturers can produce and research and develop independently, the chip industry has even been expelled from the limelight of the high-tech industry. Many media figures at home and abroad said that the electronics industry is already a sunset industry, and that biomedicine and genetic engineering, in which the United States has an absolute advantage, are high-tech.

Of course, the person who said this probably felt weak in his heart. The scientific and technological content of the chip industry is not reduced by experts with one mouth. After all, compared with the traditional manufacturing industry, the chip industry has a very high threshold, and there are not many countries in the world that have the ability to engage in chip manufacturing.

In addition to the high requirements for equipment and capital in this industry, the training of industrial practitioners is also very difficult. The later it gets, the higher the threshold.

In later generations, domestic memory chip manufacturers such as Unigroup and Jinhua invested tens of billions of dollars in the field of memory chips, but the market share was not even 1%. Mainly because, in addition to the core equipment that needs to be imported from abroad, it is more critical to ...... It is also difficult to train qualified industrial workers. As a result, if the product wants to be put into production, the difficulty is relatively large.

After all, even if it is Intel, it has been a few years since the 14nm card was struck, and it is difficult to break through 10nm. In fact, Intel's equipment is already the best, and the reason why the 10nm process continues to be delayed, and more importantly, the people who use the equipment have not been able to adapt to the process.

Equipment such as lithography machines is equivalent to embroidery needles. But what level of flowers can be embroidered, not only depends on the precision of the needle, but also on the level of the person.

At present, the DRAM chips of Xinchuang Core have long been mass-produced and can be seen everywhere in the market. The market share of the global DRAM chip market is more than 2%, which is far more than the domestic Unigroup and Jinhua market share in later generations.

Of course, only 2% of the market share is not safe at all, and the number of DRAM chip suppliers in the future has even been reduced to 3 companies. Samsung Semiconductor has a market share of nearly 50%, and the other two manufacturers, Hynix has a market share of more than 20%, and Micron has a market share of nearly 20%.

This is not because the demand for DRAM market is shrinking, but because the DRAM market has been in a fierce price war every few years. Even, in the event of a financial crisis, large manufacturers such as Samsung will expand production against the trend and fight a price war, and continue to run on manufacturers that do not have the advantages of technology, scale and cost to withdraw.

For any industrial product, if you want to achieve low-cost production, the best solution has the advantage of scale. Manufacturers with scale advantages not only have cost advantages, but also have bargaining power.

Therefore, Lin Qi feels that the DRAM chip of Xinchuangxin must achieve at least 20% market share in the future in order to adapt to the future market competition environment.

It's like how the memory chip manufacturers in Japan and Europe were wiped out? It's not because the market share of Japanese and European memory manufacturers is too scattered. None of them alone has the advantage of scale, so giants with scale advantages such as Samsung, Hynix, and Micron have been broken one by one in round rounds of price wars.

The DRAM chip market, as a field that pays attention to scale advantages, is bound to be the stronger the stronger. The market share must be continuously improved in order to be eligible to survive.

Hu Weiwu nodded and said, "Boss, I understand how to do it!"

……

In October 94, Xinchuangxin announced that the ex-factory price of 16MB memory modules was reduced to $25. Through practical actions, it is announced that the price of the memory module market will continue to dive.

Previously, 8MB memory modules were the hardest hit area by price diving.

The price of 16MB memory sticks has remained stable above $35 per stick, even in September. Whether it is a compatible machine manufacturer or an ordinary consumer in the market, they all feel that the cost performance is not as cost-effective as the 8MB memory module.

Basically, most manufacturers with DRAM chip production capacity are more restrained to avoid the 16MB memory module being hit by the price to the point of unprofitable.

However, the price war does not stop with the will of individual manufacturers.

In fact, as long as there are industry giants that continue to fight price wars, then other manufacturers will have to endure the risk of greater losses unless they endure a decline in market share and a decline in the capacity utilization rate of chip factories. Otherwise, once the giants with the top market share launch a price war, other manufacturers will have to respond.

Xinchuangxin brazenly launched a 16MB capacity memory module price reduction, mainly because Xinchuangxin's main business is not a memory module at all, and it doesn't matter if this market loses.

After all, the annual profit of CPU and other main businesses has exceeded 3 billion yuan, and it is growing. Therefore, no matter how bad the memory module is, it will only reduce the total profit scale.

As for the price war in the CPU market, it is impossible to fight a price war, and the core patented technology of the CPU of the XRM architecture is mastered by the new entrepreneurship department itself. There are three manufacturers in the world that can produce XRM chips, all of which are authorized by the new entrepreneurship department.

It is precisely because of this that the shipments of the Pangu computer market are stable, and the shipments and profit margins of XRM chips are also indestructible.