Feng Yu had come to the US to acquire many companies. He has enough cash now, and it's time for him to do some strategic planning.
The PC industry will develop rapidly in the future, and the profits will not be low. Feng Yu owns Lenovo Group's shares now, but he is not satisfied with Lenovo Group's development model.
Lenovo Group is using other hardware manufacturers' main hardware and their own software and hardware. For example, the cooling fans are developed by Lenovo. But how much is it worth?
Lenovo Group's PC business is growing fast. After taking over Hua Xia, they start to expand overseas. Their first target is some underdeveloped countries in Southeast Asia and Central Asia.
Lenovo's PC business might seem to be doing well and is making money. But from a company's market value, you can tell which company is the most profitable.
Intel is now worth over 400 billion USD and is the leader in the hardware industry. How much is Lenovo's market value?
That means the more developed these PC manufacturers are, the more Intel will earn. The CPU is the most expensive component of a PC, and it is also the most technologically advanced component of a PC.
Feng Yu wants to acquire Nvidia is because he wants to own all the components in Lenovo's PC. This will lower Lenovo's cost and increase their competitiveness. At the same time, Feng Yu can get a share of the profits from those hardware manufacturers.
Feng Yu's original plan is to acquire CPU manufacturers. But now, there are only two well-known companies that own more than 95% of the market share. One is Intel, worth over 400 billion USD, and the other is AMD, worth over 50 billion USD.
He can't even afford to buy over the weak AMD. He doesn't even have a controlling stake in this company. But Feng Yu decided to sell off his Microsoft shares next year and acquire some of AMD's shares. As for Intel, he does not have any hopes of acquiring it now.
Also, Feng Yu had started to build a Crystalline silicon factory, and he can cooperate with AMD. Feng Yu even wants to set up the world's largest Crystalline silicon factory in the future to control the prices of some semiconductor components. This way, he can control Intel.
Feng Yu's next target was hard drives, and he had already contacted a company, a Fortune 500 company. Of course, Feng Yu could not acquire this company, and there was no hope of him becoming a shareholder. This company had sufficient cash and was developing well. The shareholders would not sell their shares.
But this company, due to the change in direction, is preparing to focus on tape storage technology. They are interested in selling their hard disk drive business.
Feng Yu had already arranged for people to contact them in advance. Originally, Feng Yu's plan was to buy this company's hard drive technology, including related patents.
But what the other party meant was that they would either sell the entire business to you, including production, R&D, sales, and all the technology and patents, or they would not sell it!
This company was called Kun Teng, and it had a bright future.
Fortunately, their hard disk drive technology was not bad, and the selling price was relatively reasonable. Because it included the production plant, the price reached 120 million USD. Ralph and his men had estimated that Kun Teng's hard disk drive business was only worth 100 million USD.
Kun Teng's technologies were still far from the top companies like Western Digital, Seagate, Maxtor, Samsung, etc., but it was not far from Hitachi, Toshiba, etc.
Feng Yu was satisfied with this. What he wanted was the technologies, and he can bring the related technologies back to China to set up factories in China. This way, the cost will be lowered.
Also, Lenovo was a big partner, and Feng Yu will not lose money. Also, Feng Yu still has the flash drive technology and the USB drive business. If they merged, Feng Yu's future development will not be too bad.
As for the mouse and keyboard technologies, Lenovo had already bought them, and Feng Yu does not need to worry about them.
Wind and Rain Electronics and Philips' LCD display technologies had been improving, and they are now the best in the world. Only Sony, Samsung, Panasonic, etc. can compete with them. As for the rest, Wind and Rain Electronics had left them far behind.
But Feng Yu was confident that those few companies would fail. Feng Yu had a plan. He will drag those few companies to a fork in the road and let them fail.
One week later, Feng Yu had acquired all the companies he wanted. Of course, he had spent a lot of money, but he felt the money he spent was worth it!
Feng Yu decided to work with Lenovo Group to start a PC revolution. They will lower the prices of desktop PCs by 20%. This way, those companies with insufficient funds will be in trouble.
If Lenovo Group continued to focus on the PC business, they might even lose money. If they don't do this, all their investments over the years will be in vain.
When these companies are in a dilemma, it will be the best time for Lenovo to grow. In Feng Yu's previous life, Lenovo will become the world's top PC manufacturer more than a decade later.
But in this life, Feng Yu wants to achieve this much earlier. If Lenovo's PC is the best, their sales will increase. Feng Yu's target is to increase Lenovo's PC sales to become the world's top PC manufacturer in five to eight years. Even the tablet PC must become the world's best!
Of course, to achieve this target, all the companies must first reach the world's leading standards and lower their cost.
So, Feng Yu's next step is to set up a few large factories in China to produce these products. This will bring in some income for the country, and Hua Xia's labor cost is much higher.
Other countries like Brazil, India, etc. have low labor costs, but the security there is too bad. Feng Yu still felt his country is the best.
Of course, Feng Yu must retain these factories in the US. After lowering the cost, the labor cost might be lower than the transportation cost. AIWA had set up more than a dozen factories all over the world because of the high transportation cost, and some products are damaged during the transportation.
PC is more expensive than Walkman, and it is more fragile. Feng Yu must set up factories in the US and Europe.
Other than the CPU, the monitor is the most important part of the PC. Feng Yu also wants to start production. In the past, Philips had been manufacturing Wind and Rain LCD monitors. It's fine if the quantity is not high, but if Feng Yu wants to mass produce, he needs to build his own factory.
But at this time, Feng Yu encountered a problem, or rather, a problem.
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