Chapter 490: Shameless Sharp
"Minister Yuanping, please speak."
Zhou Shuo frowned imperceptibly, not only did he not relax because of his smile, but he had a feeling of being targeted by a poisonous snake.
Hara Heisuke nodded and said, "Sharp's mention yƬ is very simple, that is a joint venture. ā
"Joint venture?" Zhou Shuo sneered in his heart, his face was silent, and he asked, "I don't know what Sharp means by this joint venture?" ā
"Cross-licensing is not appropriate for Sharp, but we can use the technology patents and part of the investment to set up a joint venture with a Chinese company."
Yuan Heisuke said eloquently: "Sharp is willing to inject the relevant patents of liquid crystal into the joint venture, and at the same time inject 300 million US dollars into it, and control 60% of the shares of the joint venture." China has invested another $200 million in capital to hold a 40% stake in the patents of high-voltage drive ICs and IPS. With a total investment of $500 million, you can directly go to a 4.5 generation production line. For China, which does not yet have the ability to manufacture LCD panels, it is already a very heavy breakthrough. ā
Zhou Shuo stretched out his hand and tapped on the table, his gaze swept over the faces of everyone in the Sharp negotiation delegation. Looking at their stereotypical expressions, they were silent for a long time.
"Minister Yuanping, I would like to ask a question."
"Zhou Sang, please feel free to ask." Hara Heisuke nodded and said calmly.
"High-voltage drive IC chips, our Fanhan Group can directly provide to the joint venture. IPS technology, I can also license to this company, but Pan Han Group will not put these two patents into this joint venture. This is the basic condition for the joint venture, can Sharp agree? ā
Yuan Pingsuke's face was gloomy, and he frowned and said, "Zhou Sang's sincerity is insufficient, right?" Sharp holds more than 300 important patents for liquid crystal production technology. There are thousands of related auxiliary patents. If you can't put these two technology patents into the joint venture, then 40% of the shares. I think China needs to provide at least another $500 million. ā
Sure enough, Zhou Shuo sneered in his heart.
In fact, it started with such a high-profile team sent by Sharp. He had already guessed what the other party was having. It's not that Zhou Shuo has any clever calculations, but because of Sharp's "antecedents".
This "ex-convict" is not something Sharp has done in the past, but something that will be done in the future. Its shamelessness and ugliness are simply a living scoundrel textbook.
The LCD industry is characterized by a strong cyclical nature, with troughs and peaks. This is related to East Asia's control of the entire LCD industry, and the law of LCD product upgrading, which directly affects the operation of the LCD industry due to the economic development of East Asia. In the process of industrial transfer, it is inevitable that once it enters the trough cycle, a large number of LCD projects will be cut.
This cuts the project which region. It can only be done in accordance with the laws of the economy. Whoever has the highest cost will naturally cut their project. The high labor and material costs of Japan and South Korea make it very difficult to compete with Chinese mainland in costs, and there is only one way out for technological upgrades to reduce costs.
However, LCD panel manufacturers know that it is a matter of time before they invest in the mainland, but they are delaying the time for investment. It is not hoped that the cost of technological upgrading on the mainland will continue to decrease, which will pose a threat to its own industry.
Sharp is not Lei Feng, and naturally hopes to delay the pace of technological progress in Chinese mainland as much as possible. But if everyone competes in a serious way, even if you block the technology, we will develop it ourselves.
It's not that the Chinese haven't been blocked. After a hundred years of blockade, all problems have been solved. Chinese are not afraid of your blockade, everyone has a fair competition in the market, and there is a ability to just face it!
No. Sharp's shameless cunning is here, it is not fighting with you for technology and cost in the market, but using lies and rogue tactics to create difficulties for you. Not just with you. Instead, it sets a trap for you in a dark corner.
In the process of Chinese seeking LCD panel production technology, Sharp's despicable and shameless behavior has continuously set new world records. Of course. Sharp also indirectly broke the Chinese dream of changing technology in the market and embarked on the road of independent research and development.
So. What exactly did Sharp do? How could Zhou Shuo be clear about their intentions behind their backs?
This is to say that 2007 was the stage of the cyclical trough of the LCD industry. LCD manufacturers around the world have fallen into a loss-making situation. Among them, there were three domestic companies in China that could produce LCD panels at that time, namely BOE, Longteng Optoelectronics and Shanghai Radio and Television.
Due to the backward technology of domestic LCD production lines, the highest generation is only the 4.5 generation line. In order to survive the harsh winter of the industry, the Ministry of Information Industry of the People's Republic of China took the lead in an industrial restructuring plan.
What is a Restructuring Plan? It is to merge these three domestic LCD panel companies. After the merger, this LCD industry group will coordinate the three companies to redivide the domestic market. BOE produces LCD screens for computers, Longteng Optoelectronics produces displays for laptops, and Shanghai Radio and Television produces LCD screens for TVs.
After dividing the sphere of influence in this way, the three companies can develop in harmony without falling into endless internal friction. At the same time, the production capacity of Shanghai Radio and Television is limited to the 5th generation line, which cannot adapt to the trend of TV development to large screens, so it also proposes to independently invest in the construction of a 6th generation line.
It can be said that if the restructuring plan is successful, China's LCD industry will have the basis to compete with the Japanese and South Korean LCD industries.
In this context, how can Sharp sit back and watch China's LCD industry consolidate? So it played the sign of a joint venture, just like the construction proposed by Zhou Shuo.
Don't you have three LCD panel manufacturers in China? It just so happens that there is a Chinese proverb called two peaches kill three soldiers.
Sharp and South Korea's LG all claimed to choose a partner in Chinese mainland to jointly build a 7.5 generation line mainly for the production of LCD panel front-end technology.
But what about the three LCD companies in China, which two should Sharp and LG choose to cooperate? The three companies all know that industry restructuring and merger are indeed good. But if Sharp is willing to come up with valuable technology to cooperate with it, who doesn't want to become a leader in the domestic industry all of a sudden? Instead of investing huge amounts of capital in the uncertain impact of the high-generation line, the joint venture with Sharp is really making money lying at home.
After all, no one knows better than these three companies, the higher the LCD panel development, the higher the technical requirements, the greater the difficulty, even if a huge amount of money can be raised, the technical bottleneck is still difficult to overcome.
Impacting the high-generation LCD production line, even if it is the reorganized Julong Group, it also has to take the risk of unknown.
Just after the lie was thrown, Sharp also began a "travel the world" style lobbying in China. From the Magic City's Shangguang Radio and Television to the South. The Beijing Municipal Government, from BOE in the imperial capital to the Fukatogawa Municipal Government, Sharp has repeatedly declared that it will cooperate with the party that gives the most favorable price conditions.
To put it bluntly, this is a conspiracy. Local government and business leaders would rather believe what they have than what they don't. After all, China is too eager for the technology of the monopoly of LCD panels in the hands of Japanese and South Korean companies.
This temptation continued until the abortion of the consolidation of China's LCD industry. At this time, it was suddenly discovered in China that both LG and Sharp had quietly retreated. Even though a number of agreements of intent have been reached and promised preferential investment policies by local governments.
Sharp and LG completely tore up their promises, withdrawing all negotiators, while treating the agreement as a pile of waste paper, not even bothering to issue any explanation. Of course, anyone with a discerning eye knows that they simply don't have any justifiable justification.
This is 2007, Sharp and LG teamed up to play a circle of China's LCD industry. By the end of the negotiations, the cyclical trough of the LCD industry has passed, and the three domestic companies have regained profits, and there is no pressure of losses, so there is naturally no need for "reorganization......
This is not the end, in 2009, Shanghai Radio and Television wanted to hit the high-generation production line again, but Sharp repeated the old tricks and wanted to cooperate again.
To this end, Shanghai Radio and Television raised funds from five shareholders, namely SAIC Group, Media and Radio Investment, Modu Industrial Investment, Modu International Group and Modu State-owned Assets Supervision and Administration Commission, and SAIC Group was the controlling major shareholder with 60.91% of the equity to solve the capital problem; Another 2.2 square kilometers of industrial land has been prepared for factory buildings, and there are plans to bring in large-scale talents......
The result? After more than two months of negotiations, Sharp saw all the efforts of radio and television as nothing, patted his ass and left. However, Shanghai Radio and Television, which has undergone major surgery, had no choice but to announce the divestment of some assets and enter restructuring without any hope of turning around its losses.
Chinese are not stupid, but again and again, how can you repeat and repeat? Sharp's means played twice, and it also educated the domestic LCD industry. Since then, China no longer expects to introduce technology mainly with foreign capital, but to take the independent model of BOE. Mastering one's own core intellectual property rights is the only way out for the LCD industry.
But this independent road is not easy to walk, BOE is a latecomer, every time there is a breakthrough in high-generation technology, Japanese and Korean companies will return to China. Aren't you BOE independent? Once a breakthrough is made in a certain generation, these Japanese and Korean companies will flock to the country. A large number of production lines of the same generation have been put into production in China, squeezing you BOE to continue to lose money, and you have to fall into a dilemma.
After experiencing what Sharp did in his previous life, and now in the face of Sharp throwing out the bait of the joint venture "again", if Zhou Shuo doesn't know what they are doing, it will be too much of a failure.
Of course, does Sharp really want to work together on the face of high-voltage driver ICs and IPS technology - does that matter?
Sharp, it's time for you to pay off your debts! (To be continued......)