Chapter 853: Memory War (2)
27 April 1994.
Samsung Semiconductor, a subsidiary of Samsung Group, announced the official launch of DRAM memory products for the Pangu platform. The minimum factory price of 8MB memory module is only $30 per piece, which is about $10 lower than the normal factory price in the Pangu compatible hardware market. It's $20 cheaper than the retail price.
Samsung's cheap 8MB memory module quickly attracted the interest of Dell, HP, Sony and other manufacturers. Although the 8MB memory module is outdated in high-end configurations, at present, major compatible phone manufacturers, for the sake of shipments and profits, will still launch some entry-level products priced below $500. These entry-level products are very sensitive to hardware costs, and profits are basically squeezed out by lower hardware purchase prices.
Therefore, although Samsung has just begun to produce memory modules that meet the technical standards of Pangu compatible machines, after passing the compatibility test, it quickly obtained a large number of orders from machine manufacturers.
As Samsung began to launch the DRAM of the Pangu computer platform, Japanese memory manufacturers Hitachi, NEC, Mitsubishi, and Toshiba have announced that they have reduced the price of memory modules on the Pangu platform.
After entering the beginning of May, the price of 8MB memory on the Pangu platform was further reduced to $30.
……
After Samsung entered the memory market of Pangu compatible machines, the new venture version of the semiconductor company reacted quickly, not to fight a price war with Samsung in the Pangu computer market.
Because, most of the chip products produced by Xinchuang Semiconductor Company and Lishan Semiconductor Company were ordered by Pangu Computer Co., Ltd. And Samsung's memory modules, even if they are cheaper, cannot get orders from Pangu Computer Co., Ltd. for the time being.
Therefore, Samsung's memory can only be sold to Pangu compatible machine manufacturers and some individual consumers. The impact on the market share of the two manufacturers, Xinchuang Semiconductor and Lishan Semiconductor, is extremely limited.
Even so, Lin Qi couldn't let Samsung unscrupulously extend its tentacles to the Pangu computer market, but did not react accordingly.
Because, those who despise Samsung Semiconductor's words will soon pay the price. You must know that in the memory market in the future, Samsung Semiconductor will carry out rounds of price wars and squeeze out for global memory chip manufacturers. In the 80s, Japanese manufacturers almost monopolized two-thirds of the memory module market, and by the 90s, the market share of memory chips of Japanese manufacturers was still more than 40%. But...... After the 08 financial crisis, the entire Japanese memory manufacturers merged into an Elpida, Hitachi, NEC, Mitsubishi and other giants that should have been the semiconductor industry, and formed a Elpida company. Outcome...... Elpida is still miserable and bankrupt.
Under Samsung's subsequent rounds of price wars, a large number of memory chip manufacturers have gone bankrupt, and the Japanese manufacturers that originally occupied half of the country have even been swept out. On the market, memory modules and memory particles from Japanese manufacturers are no longer visible. The world's memory chip manufacturers have gradually increased from more than 50 in the 80s to less than 20 in the 90s. Later, at the beginning of the 21st century, it was further reduced to 5. Later, all the memory particle manufacturers in Europe and Japan were cleaned up, and only one old storage giant Micron was left in the United States. However, the Korean manufacturer Samsung is the first, SK hynix is the second, and Micron is only in the third place in terms of market share.
The memory chip market and later the flash memory market were similar. In the flash memory particle market, there are still only four companies that can independently produce original particles, in addition to Samsung, Hynix and Micron, the only remaining Japanese manufacturer flash memory particle is Toshiba.
In the memory market of later generations, because it is usually the winner, in the era of DDR4 memory modules, the lowest memory of 8GB was 160 yuan, and then, half a year later, it skyrocketed to more than 1,000 yuan. Even if Moore's law gradually fails, traditional industrial products should be developed over time, the process is becoming more and more mature, and the cost is getting lower and lower, so the price of the product should also fall. However, after the memory module entered the monopoly period, Samsung and other companies nakedly proved to the market that market monopoly is very unfavorable to consumers.
When seizing the market, Samsung can sell products at a loss. However, after the market share monopoly, Samsung will do whatever it wants for profits and increase prices crazily.
It is precisely because he knows that Samsung is terrible, so Lin Qi is absolutely unwilling to see Samsung's market share in the semiconductor industry further increase.
On the surface, products such as memory and flash memory should have a lower technical content than high-end products such as CPUs. Because there are many manufacturers, the profit is not very high. However, once the market is monopolized by a few manufacturers, it can really generate huge profits.
……
"Boss, rest assured, there is no technical difficulty in sniping Samsung Semiconductor, and it will not even affect the company's strategic development. After Hu Weiwu received Lin Qi's call, he said.
The current process technology applied in the memory market does not require the most advanced process, and the 1-micron process is outdated for CPU manufacturing. However, it can be transformed to produce 8MB~16MB memory modules.
Originally, the different markets of Xinchuang Semiconductor and Samsung were dislocated and developed. There is little communication, so for a long time, the well water does not interfere with the river water. However, now with the opening of Pangu computer technology standards, there is a certain degree of competition between the two in the memory market.
Now the competition is not fierce, but it is ...... If it is not contained, Samsung's impact on the market share of Xinchuang Semiconductor's memory, flash memory and other products will be bigger and bigger.
Therefore, after Samsung began to launch the DRAM memory module in the Pangu compatible machine market at the end of April, at the beginning of May, Xinchuang Semiconductor began to prepare for targeted containment.
On May 5, Xinchuang Semiconductor announced that it officially launched DRAM memory modules in the PC compatible machine market. An 8MB PC memory module costs only $35, and a 16MB PC platform memory module costs as little as $68.
Hu Weiwu, general manager of Xinchuang Semiconductor, said: "For a long time, users of Pangu computers can enjoy lower hardware prices. However, PC users need to use twice the price of Pangu computer users, and the traditional storage manufacturers in the market have overcapacity, and would rather give the excess capacity to Pangu computer users than reduce the price of memory in the PC market. Due to the huge price difference between the price of DRAM memory in the PC market and the Pangu computer market. The price of 8MB memory module in the Pangu computer market is only 30~40 US dollars, but the price in the PC market is as high as 100 US dollars, which is very unreasonable, so we decided to sell the most cost-effective memory module in the PC compatible machine market to PC users at a price of 35 US dollars. Gradually, let the unreasonable price difference between the memory module in the PC market and the memory module in the Pangu market gradually smooth out!"
Obviously, Hu Weiwu's high-profile declaration shook the industry more than Samsung Semiconductor's entry into the memory market of Pangu compatible machines. Because, although the memory module in the Pangu market launched by Samsung is very cheap, it is not yet cheaper than 3.5% off.
However, the memory module of the PC platform launched by the new startup semiconductor company has really refreshed the price to the lowest price in history. The market price of a memory module of $100 was brutally killed to $35......
Such a shocking effect is like putting a nuclear bomb into the PC market, and it quickly attracted the attention of the entire industry!