In fact, the majority of the chip industry is not high-end chips, but low-end chips.

The public is all staring at the most high-end chip technology, and their eyes are all high-end chips in smartphones, which represent the highest technology content of the semiconductor industry.

But in fact, the demand for chip semiconductors is not just a mobile phone? There are many other industries that consume chips far more than smartphones, and the scale is far greater than that of the smartphone industry, but there are no electronic products that do not use chips.

High-end chips are important, there's no doubt about it.

However, it is also a basic objective fact that high-end chips do not account for much of the overall chip market.

It is precisely because of the localization of low-end chips that Fang Hong has no fear of being stuck by foreign countries that Fang Hong dares to speak out loud, otherwise he will never dare to show such an "arrogant" side as recently as he has done recently.

Moreover, only by maintaining the market share of low-end chips can the amortization of costs be realized, and only then can we invest in R&D of high-end chips.

This is true for domestic semiconductor manufacturers, and it is also true for those semiconductor manufacturers in the world, if they lose the low-end market share, it is no less than a kind of slow death for them.

That would be the equivalent of the foundation being siphoned off, and the edifice would definitely collapse.

Losing the low-end market share means that the cost amortization can not be done, and further will inevitably lead to no money to smash high-end chips in the future, the research and development of a new generation of high-end chips requires a large amount of capital, but the cost cannot be amortized, and there is no money to smash the research and development of the next generation of high-end chips, there is no sustainability of development, and naturally it will not be able to continue to lead, and standing still is not advancing or retreating.

But at this moment, Tian Jiayi raised his eyes and stared at Fang Hong and asked, "How can we break the move of the magnesium countryman?" ”

Fang Hong said with a smile: "There are many ways to cure this monkey in the south, the difference is which method is used to have the least side effects, for example, if you limit the electricity to this monkey, or if the electricity price rises or something, he will immediately have to scream in pain." ”

In fact, there is no need to analyze this or that chaotic technical indicators, it is enough to see a factor, just to see whether his demand for electricity has increased or decreased.

The fact that the demand for electricity is growing significantly indicates that his industrial development is growing rapidly, because the larger the industrial scale, the greater the demand for electricity.

A large proportion of Yuenan's demand for electricity is dependent on imports from its northern neighbors, and if you increase the price of electricity, your industrial production costs will have to increase, and if you pull a gate to cut off electricity, your factories may shut down, and finally those enterprises that can't withstand it will have to go bankrupt, while they could have lived.

Fang Hong said to himself: "This monkey has never been the key, staring at this monkey is a bit of a sacrifice, the key is still the old beauty, so the iron still needs its own hardness, the best solution is of course our own technology is more advanced, the cost is lower, so his dumping strategy will go bankrupt; The next level of solution, that is, to fight bayonets, the actual situation is likely to be this situation. ”

After a pause, Fang Hong and Tian Jiayi looked at each other and said, "The rule of survival in this is actually very simple, that is, what you can endure is unbearable, and what you can't do." Forbearance is a line, energy is a line, and between the two is the living space. If we can endure what we can't bear and what others can't, then our living space will be bigger than him, and in the case of losing both, you will have one more breath than him, you will be the winner, and you will be able to have the last laugh. ”

Speaking of this, Fang Hong retracted his gaze and added with a hint of a smile: "If Lao Mei engages in this kind of dumping strategy, it will make us very uncomfortable, but then again, isn't his Lao Mei uncomfortable?" His own semiconductor manufacturers in the United States will also be uncomfortable, dumping at low prices means giving up the profits that should have been eaten, and even more uncomfortable than us. ”

"The profit margins of semiconductor manufacturers in North America have been compressed, and they can still spend money on high-end research? More or less will definitely be affected to varying degrees, as long as they are affected by high-end chips, the plan to develop the next generation is stagnant or slowed down, which is a situation we like to see. ”

Tian Jiayi nodded again and again when he heard this.

You are madly chasing him and standing still, and if you take a step forward, the gap between you and him will be shortened by one step; And you are chasing him frantically and he is rushing forward, and when both sides take a step forward, in fact, the gap has not been shortened, only if he takes a step forward, you have to take two steps forward to shorten the gap by one step.

Fang Hong continued: "Therefore, if Lao Mei engages in a low-price dumping strategy, it is best for us to reduce costs from the technical level, if not, then fight a price war with them, he is cheaper and I am cheaper than him, see who can consume whom, see who can drag whom, see who can endure what others can't, see who can breathe more than the other party." ”

In the face of consumption, Fang Hong is not worthy of the opponent at all.

His confidence lies in the fact that today's Qunxing Capital retains terrifying leverage and currency derivative capabilities.

Now Qunxing Capital, as long as it increases leverage and slightly increases the scale of liabilities by 10%, it can leverage more than 800 billion liquidity.

The current debt level of Qunxing Capital has always been maintained below 10%, retaining a huge leverage space, Fang Hong has never used it, and would rather maintain a large capital cost expenditure every year than increase leverage, just to take it out when necessary.

Moreover, Qunxing Capital is not standing still, and it is also constantly growing and expanding. In a few years, the same 10% increase in the scale of liabilities will inevitably lead to a trillion-dollar amount of leveraged funds.

With the "money ability" of Qunxing Capital in the end, the semiconductor companies below can maintain a state of loss-making operation for a long time and fight a war of attrition with their opponents.

Fang Hong even very much hopes that the opponent can follow him, so that he can drag down the opponent's progress in the field of high-end chips and strive for more time windows for his own high-end chips to catch up.

Once it is tied in the high-end field, the entire situation will usher in earth-shaking changes, and the offense and defense will be easy from then on.

At that time, it will not be a question of whether he wants to engage in a low-price dumping strategy, but that Fang Hong wants to return the favor and reverse the low-price dumping strategy against the United States, and start directly from the high-end chip market.

Directly beat the high-end chips that are now selling to the price of cabbage, which is an absolute nightmare for those chip semiconductor manufacturers in the United States.

Once the high-end technology catches up, it is the beginning of the collapse of international semiconductor manufacturers, and those chip manufacturers in Europe and the United States will inevitably stage a spectacular scene of the tide of bankruptcy in pieces, and only the big factories with the foundation can be left to compete with them.

The essence of this world has always been a game of the law of the jungle, and Fang Hong didn't want them to live at all, after all, everyone else has put you to death, and being merciful to the enemy is cruel to yourself.

……