Rebirth of Northern Technology

Chapter 618 Acquisition

December 1994

The Chechen War, the construction of the Three Gorges started, and Navigator 1.0 was released.

————

In front of the Fengtian City Hall, there are lights and festoons, and the snow-covered land is in a beautiful contrast.

Manager Ding and Mayor Zhang are standing side by side.

What is not in harmony with the happy environment is that manager Ding Weiting’s face is frowned.

Since the second half of 1993, the price of small-size panels has continued to fall. After more than two years of high profit, the TFT LCD industry has finally entered a trough.

As soon as it entered the fourth quarter, the LCD screen market collapsed, and the price of 15-inch panels fell to about $1,000. To know the average price of a 17-inch CRT, it is more than $900.

The price of 12-inch panels has fallen into the $400 range, which is also approaching the price of 14-inch CRTs.

This price is already infallible.

Such a low price, of course, opened up the LCD panel market and directly threatened the survival of CRT monitors. But the problem is that such a low gross profit has dealt a fatal blow to the huge high-tech with extremely high financial costs.

Due to historical reasons, the production capacity of Huge Hi-Tech is concentrated on small 12-inch and 15-inch screens, which was hit hard by the sudden price cuts of LCDs.

The other two companies in the optoelectronics department were also affected by the collapse of liquid crystal prices, but the impact was not so great.

The focus of full-color products has shifted to the 19-inch and above TV market. Its products are in an absolute monopoly position, with almost no impact.

Although Lin LCD has also been affected, they have just completed financing and their financial situation is relatively healthy. Not to mention, they have already put into production two third-generation lines and are ready to work on the fourth-generation lines.

Compared with Lin LCD, it is not too late to enter the LCD industry from the perspective of time. However, due to the large separation of the three companies, it has been stuck in the yield problem for more than a year.

In the fast-growing high-tech industry, time is money. The loss of one year is fatal. So far, Huge Hi-Tech has only built two second-generation lines and three first-generation lines.

Huge Hi-Tech has also formulated a plan to enter the high-generation production line, but the problem is all stuck in one word, “Money.”

Huge Hi-Tech’s initial products, the former cash cows, large LED screens, have been declining in market share, and can no longer provide funds for new industrial upgrades.

With the collapse of LED prices, LED large screens have also begun the process of rapid popularization.

Although Huge Hi-Tech has a certain reputation in the field of ultra-large screens above 20 meters, in this high-end market, although the profits are large, the market is too small, and the absolute value of profits is becoming less and less.

With the two core products, large LED screens and small-size LCDs, both have fallen into price competition. Huge Hi-Tech’s road to relying on equity financing has become more and more difficult because of thin profits and lack of imagination.

————

Ding Weiting felt that the past few years were simply memorized.

It turned out that at the University of Technology, he and Bai Xuecheng, suddenly bright.

Bai Xuecheng went to Quan Cai and became a dragon when he met the wind.

Under the influence of Bai Xuecheng, he also quit and took over another subsidiary of Optoelectronics, Giant Hi-Tech.

Except for his achievements in the first year, the days after that are not as good as one year.

Of course, life depends on who you compare.

Compared with local enterprises in Fengtian, as long as they are able to operate normally and spend normally, they are the standard of good enterprises. Giant high-tech is still the focus of the city government and the red man of the mayor’s house.

But the other brother units of the optoelectronics department are not what they used to be.

Regardless of the status of the top 50 full-color world, only one of the full-color Bincheng bases left the giant high-tech in unknown place. This caused Ding Weiting to return to the Bingcheng headquarters two years ago to protest the full-color run in Liao Province to steal power The matter became a joke.

Under the leadership of a group of young people, such as Feng Yan and Yuan Shuai, the colorful technology, which is the same as the same mother of Huge Hi-Tech, has reached a big stage a year. Its three major business groups, LED, IGBT, and solar cells, have all become the climate and are in an absolute leading position in the world.

Optoelectronic equipment is even more excessive, and has now expanded to the point where it is respected as an equipment group. The three subordinate equipment companies immediately received the enthusiasm of capital once they were split up, which is in stark contrast with the huge high-tech companies who are not interested in them.

Needless to say, Lin LCD, even the Siping branch of Lin LCD has a scale similar to that of a giant high-tech. This makes Ding Weiting, who is proud and arrogant, feel so embarrassed.

Ding Weiting also often reflected on what he did wrong?

If time can come back, can things turn for the better?

But the answer is no.

The decision to separate the three LCD companies is destined to be a huge Hi-Tech company to increase the yield rate by itself.

Another path for the development of Huge Hi-Tech, bank loans, has also encountered difficulties as Fengtian’s economic situation declines. Companies in Fengtian have extensive operating problems, and the limited loans from banks have been used to save their lives.

This is not caused by Ding Weiting’s personal reasons.

The environment is such that there are no eggs under the covering nest.

If Huge High-Tech hadn’t been placed in Fengtian, it would definitely not end there.

The company is stuck here now. If it is to survive, after a series of internal potentials, the profit of several product lines is thin, but survival is not a problem. But if you want to develop and upgrade technology, don’t even think about it.

The 800 million yuan of funds to build a third-generation line is already an astronomical figure for Huge Hi-Tech.

————

This time he and Mayor Zhang came forward and greeted Daewoo Group from South Korea.

With the listing of Full Color, it is not only all sources of funds that have entered the LCD industry, but some enterprise groups are also placing heavy bets.

However, these emerging companies generally face the problems of industrial experience and industrial workers.

In addition to these, there is another problem, that is, the de facto monopoly of several TFT core equipment by the optoelectronic system.

These companies have also contacted Optoelectronics and tried to purchase Gen 4 or Gen 5 equipment, but the answers they received were all insufficient production capacity. The production capacity within a few years has been booked by the three major LCD companies.

In this case, Huge Hi-Tech has the value of being acquired.

Acquiring Huge Hi-Tech, or injecting a large proportion of capital, to become the master of Huge Hi-Tech, is the only choice to squeeze into the large-screen LCD industry. Rebirth of Northland Technology latest chapter address: https:// /book/128175.htmlRebirth of Beiguo Technology Full Text Reading Address: https:// /read/128175/Rebirth of Northland Technology txt download address: https:// /down/128175.htmlRebirth of Northland Technology Mobile Reading: https://m. /read/128175/For the convenience of reading next time, you can click “Favorites” below to record this (Chapter 618 Acquisition) reading record, and you can see it next time you open the bookshelf! If you like “Rebirth of Northland Technology”, please recommend this book to your friends (QQ, blog, WeChat, etc.), thank you support! ( )