There was a famous Moore's Law in the CPU field. It went as follows:
When the price remains the same, the number of components that can be accommodated on an integrated circuit will double every 1,824 months. The performance will also double. In other words, the computer performance that could be bought with every dollar would more than double every 1,824 months.
This law was also known as the "Law of Strong Cycles."
However, not only did this law not apply in the memory storage market, but it was also manipulated by people to create the "Law of Counter-Cycles."
Samsin was the best at using this law. They were like the founder of the industry.
Samsin took full advantage of the strong cycles in the memory storage industry. They relied on the government's blood transfusion. When prices fell, there was overproduction, and other companies reduced their investments, Samsin went against the trend and expanded production. Through large-scale production, the price of their products was further suppressed, forcing their competitors to withdraw from the market or even go bankrupt. This was known as the "Law of Counter-Cycles."
In the memory storage industry, Samsin had used the "Law of Counter-Cycles" three times. The first two times happened in the mid-80s and early 90s, allowing Samsin to start from zero and become the leader of the memory storage industry.
However, Samsin clearly felt that they were not playing big enough. Hence, before and after the 2008 financial crisis, they raised the "Law of Counter-Cycles" for the third time.
At the beginning of the year, Microsoft released the Vista operating system that consumed a lot of memory. DRAM manufacturers predicted that the demand for memory would increase, so they increased their production.
As a result, Vista's sales fell short of expectations.
DRAM oversupply and prices plummeted.
As a result of the financial crisis in 2008, DRAM
The price of DRAM dropped from 2.25
To 0.31.
Knives. Right at that moment, Samsin did something that left everyone dumbfounded. 'Shove 07'
In 2007, 118% of Samsin's total profits were invested into DRAM.
They expanded their business and deliberately exacerbated the industry's losses, adding the last straw to their struggling competitors.
The effect was obvious. The price of DRAM plummeted. In 2008, it fell below the cost of cash. At the end of the year, it fell below the cost of materials. At the beginning of 2009, the third largest German manufacturer, Qimonda, could not hold on any longer and declared bankruptcy. The memory storage players in Europe disappeared. At the beginning of 2012, the fifth largest manufacturer, Elpida, declared bankruptcy. Japan, which used to occupy more than 50% of the DRAM market, also lost its last card.
On the night that Elpida declared bankruptcy, the headquarters of Samsin in Gyeonggi Province was brightly lit. The next day, the stock price soared. The whole world knew that the Goreans had won again.
At this point, there were only three players left in the DRAM market: Samsin, Hynix, and Micron.
However …
Since the beginning of 20X8, there was a new player in the memory storage market, Purple Ray from Z country.
After Purple Ray had successfully produced the DDR memory chips, Samsin did not act rashly. Instead, according to the market's demand, they would occasionally reduce production and increase production. They stabilized the price within a range to ensure their own profits.
In 20X9, Dajiang Storage's NAND storage had achieved mass production. Its production capacity was astonishing, and it had already threatened Samsin's market share.
Even so, Samsin only lowered the price of NAND storage and did not make any moves.
In 20X0, Purple Ray achieved mass production of the DDR3 and successfully developed the DDR4. Samsin still did not make any big moves.
He didn't use the Law of the Fourth Reverse Cycle.
The reason was that the "Law of Reverse Cycles" might be difficult to replicate in other countries, but in Z country, it would only be more skillful. For example, Samsin and LG had successfully brought down Ri Nation's panel industry through counter-cyclical investments. The Z country's government had also followed suit. Through years of blood transfusion and subsidies, they had used money to build Orient Crystal and even seized a large share of Samsin's screen market.
In the face of an opponent like Z country, the Goreans had extreme fear in their hearts.
But it was already 20X1.
Looking at the rapidly growing Purple Ray, if they did not act now, they would not have the chance to do so.
The relevant professionals in Z country clearly knew that Samsin had not made any moves for the past few years because they were stockpiling "ammunition."
Ammunition to fight an earth-shattering war!
…
Gorean.
Samsin's internal mobilization meeting.
Li Jianrong clenched his fist and said,
"Everyone, the time for a decisive battle has arrived!
"For this day, we have prepared more than 300 billion US dollars in cash reserves. The government has also promised full support.
"And this time, what we're going to kill is a dragon, a super monster."
"Many shareholders have no confidence in defeating such a monster. Samsin is no match for the Z country's government. They have endless ammunition.
"I don't think so. I believe that we will win!
"Because our screen and storage technology are more advanced. Our yield and production efficiency are higher, and our production costs are lower. We have an innate advantage!
"Once the price war starts, they will be the ones to suffer greater losses. For every 1 US dollar we lose, they will lose at least 2, 3 US dollars, or even more.
"It's like a battle between a strong warrior and a dragon. Every strike of the sword will cause the dragon to bleed a lot, and the warrior will consume a certain amount of physical strength.
"Reducing the price by 30% or 50% is just the beginning. Because the performance of their products is not good enough, they must reduce the price by 60% or 70%. Otherwise, they will not be able to sell.
"If the price drops a little more, the Z country's government will have to cover the bottom line and fork out precious financial expenses to continue this war.
"But we can afford to lose 500 billion US dollars. Will the Z country's government be willing to pay a higher price to protect those few small companies? Will their people agree to use their pensions and their people's blood and sweat to participate in this meaningless competition?
"Good! Assuming the Z country's government can withstand the pressure from the people and persist until the end, our HBM flash memory should be available for large-scale commercial use. DDR technology in the market will be eliminated. What's the point of them winning? Will their people accept the fact that the government is spending hundreds of billions of US dollars just to protect a few lagging companies?
"No matter what, we will be the victors of this war. In front of the warriors with the best swordsmanship, even the scariest dragon will fall under our swords.
"I would like to call this war the 'Dragon Slaying War.' Everyone, please join this war with me. Create the glory of Samsin and write the glory of the Goreans!"
Listening to this speech that made everyone's blood boil, like a declaration of war.
All the executives of Samsin raised their fists high. Their faces were filled with fanaticism!
"Victory will belong to us, Seunmida!"
"Dragon Slaying! Dragon Slaying! "
"We are about to defeat the Z country! We will be national heroes! We will be worshipped by all the people! "
"In this universe, no one is a match for us, the Goreans!"
…
Xing Hai Technologies.
In the conference room of the executives.
Looking at Zhao Guo Wei, the chairman of Purple Ray Group, who had specially made a trip to Shang Hai, Chen Jin asked him a few questions that he was most concerned about.
"President Zhao, the Goreans are coming with a vengeance. What they want is the life of your company. Can Purple Ray stop them?"
"Just in time!"
Zhao Guo Wei smiled disdainfully. "I was just thinking of arm-wrestling with them."
"Oh, where does your confidence come from, President Zhao? Don't be careless and underestimate the enemy, "Ling Jun Dong interrupted and kindly reminded him.
"Purple Ray is no longer the same Purple Ray from a few months ago."
Zhao Guo Wei shook his head and said, "The Goreans will never believe that in just four months, we have increased the yield of the DDR particles from 20% to 99.7%, and the production efficiency has increased by 250%. In terms of production cost, we have reduced a 4GB DDR4 particle to about 3 yuan … This is definitely lower than the Goreans!"
"The last thing we are afraid of is a price war."
F * ck!
99.7%。
Wasn't the increase in the yield of Purple Ray's memory chips too shocking?
Even Chen Jin was very surprised. This was the true horror of the "Virtual Factory."
Zhao Guo Wei continued, "We are not afraid of a price war. What we are afraid of is lagging behind in technology. Therefore, our high-frequency DDR4, DDR5, and DDR6 are all being developed in parallel. The high-frequency DDR4 has been completed recently. We should be able to get the DDR5 within the year. The next generation of HBM memory chips is also being tackled by a team, but the results will only be out next year … I hope that this battle will drag on. As long as Samsin does not use their ultimate move, we have the confidence to win. "
"That won't happen."
Chen Jin nodded. "DDR memory chips are still the mainstream. Who would use their ultimate move right from the start? But we have to keep it a secret. Show the enemy that we are weak, and don't expose our ins and outs in advance. "
"I know, we take confidentiality very seriously."
…
Purple Ray's performance was impressive.
Plus, the country was backing them up.
Chen Jin was not particularly worried about Samsin's strong challenge. A three-year-old challenging an adult giant was just courting death.
However.
July 7th.
A piece of news from Zhongxin International made Chen Jin's body tremble.
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