Global monopoly of technology

Pete Winnick finally calmed down after his anger, and then called all the core executives of ASML to hold an emergency meeting overnight, and deliberately avoided some of the shareholders of ASML, such as Samsung, Intel, and Cargo Semiconductor. Of directors.

"US$25 million? The world's most sophisticated high-end lithography equipment sells this cabbage price? Is he crazy?"

"How long will it take until the Côte d'Azur wants to recover the US$100 billion in research and development costs?"

"The quality is absolutely bad."

In the conference room, several executives who learned of the news were also very shocked. At this moment, you are all talking about me.

Pete Winnick said in distress and helplessly: "This is not a quality problem. The three aspects of China's large-scale production effect, supporting advantages and huge market determine that the production cost can be so low without reducing the quality. The Chinese people are relying on this advantage to defeat the international competitors. Have you forgotten the story of the "balance car"? They even sold 160 US dollars each and still had a profit."

When this thing first came out, the price was as high as 50,000 U.S. dollars, and the people who bought it at that time should also have brain problems.

This is the embodiment of large-scale production, supporting advantages and large-scale market, which has been transformed into unparalleled international competitiveness. Many Chinese enterprises rely on these three magic weapons to be invincible in international competition, and defeat one after another international competitors, thus allowing Products manufactured in China are spread all over the world, and various other countries are each other's largest trading partners.

In fact, ASML knows very well within ASML that the lithography machine is a monopoly + high-tech profiteering product. They know the most about its own production cost. ASML’s own extreme ultraviolet lithography machine even sells for 20 million US dollars. There are profits to be made, but it will not be so profitable. This is an objective fact. Any pure handicraft is nonsense.

Manufacturers such as Intel and Semiconductor Manufacturing have already calculated the production cost of the extreme ultraviolet lithography machine, and the estimated price given is about 20 million US dollars is relatively reasonable, but ASML has a monopoly on the equipment, and only he can make it. It also controls the international pricing power, even if companies such as Intel are shareholders of ASML, there is no way to purchase lithography machines or to honestly pay so much money.

Profit is not a core element even if it is related to production costs and R&D costs. The core that really affects profits is international pricing power. Whoever controls the price will have profits.

As soon as the purple star lithography machine came out, it meant that ASML would lose its international pricing power for the lithography machine, and the Côte d’Azur would redefine its value and assign a new price instead.

The most terrible thing is that the Côte d’Azur can even ignore the profit of lithography equipment. This is where Pete Winnick feels desperate. The Côte d’Azur generates $250 billion in revenue a year, and the profit of lithography equipment is Luo Sheng. Maybe it really doesn't look good, and what I care more about is the strategic significance of the lithography machine to the entire Côte d'Azur, rather than how much money this equipment makes.

Even if it is sold for 200 million US dollars, the market is only more than 20 billion US dollars a year, which is less than one-tenth of the company's annual revenue for the Côte d'Azur.

Not caring about this profit does not mean that there is no profit. The Blue Coast is a large group company. Luo Sheng never looks at the profit performance of a certain business segment of the company. It will be limited to a small structure, but look at the entire group. The company’s overall profit performance.

Perhaps the research and development of the purple star lithography machine is a loss, but because of the willingness of the purple star lithography machine, other businesses of the azure coast have taken off, and the company has become more competitive. This is earning, but the profit is based on other sections. It just came out.

Obviously, mastering international pricing power is fundamental.

Pete Winnick suddenly said: "Everyone, ASML is experiencing the biggest crisis since the company was founded. Therefore, I propose and make a provisional proposal to the board of directors to fully open up the authorization and cooperation of extreme ultraviolet lithography machines. We can put the most advanced The lithography equipment is sold to Chinese manufacturers such as Huaxin International, and sold to any customers who want, lifting all export restrictions."

Everyone was surprised on the spot,

The chief operating officer said directly: "Pete, ASML is an international core member of SIA (North American Semiconductor Industry Association). SIA will not agree to it. I am not optimistic about this decision."

Pete Winnick smiled bitterly: "I don't want to, but ASML is about to face an existential crisis and may go bankrupt at any time. Tomorrow's stock price will inevitably collapse again. We have no choice."

As he said, Pete turned his face, and then said unhappy: "Do you know why I deliberately avoided the directors assigned by external shareholders? Promoting Semiconductor Manufacturing, Samsung, and Intel, maybe they have already started to discuss the possibility of abandoning ASML. "

Nobody’s money comes from the wind. The total R&D cost of the ASML extreme ultraviolet lithography machine is about 20 billion U.S. dollars. Samsung, Liji Electronics, and Intel have funded nearly 6 billion euros, and they have to pay to buy one. 100 million dollars or more.

Next to the Riviera, the purple star lithography machine has already killed ASML products in the exposure system, and it is sold so cheaply. More importantly, it can alleviate the current contradiction between the two parties, save procurement costs and make money in the Greater China market. As a capitalist, you can vote with your feet on how you choose to buy or sell.

No matter how strong a business alliance is, as long as the benefits are sufficient, it can be easily defeated.

Semiconductor manufacturers such as Samsung, SPC, and Intel are indeed shareholders of ASML, but in fact they have no interest in participating in shares at all. At the level of ASML, these giants are not enough to eat three points, and they have to divide. I don't like this profit.

In a sense, they are forced to participate in shares. The reason why they are shareholders of ASML is because ASML’s regulations require that they want to buy their most advanced products. They must participate in shares. Semiconductor giants such as Intel participate in shares for lithography machines, not for ASML’s share of profits is essentially different. ASML wants to bind these giants and let itself eat a lifetime of monopoly high prices.

Pete thought about it carefully, and said again: "SIA will definitely try to stop it. The game inside is quite complicated. We must clarify the key points in order to find the real way to survive."

Who would have thought that even monopolistic high-tech companies such as ASML would say "survive" at this moment.

At this moment, Pete's mind suddenly became extremely clear. He looked around and said calmly: "First of all, the semiconductor industry will enter a reshuffle situation. It is only a matter of time. The main contradiction is the contradiction between Luo Sheng and SIA. ASML no longer has an absolute monopoly in the semiconductor equipment sector. If it is indifferent or makes the slightest mistake in decision-making, it is likely to become the first victim of the game between the two parties at the negotiation table."

Everyone nodded repeatedly, and a core executive at the meeting asked: "But the problem is Pete. Didn't your decision just now mean pushing the company to the opposite of SIA? Chinese people are not good at it. Maybe we have turned against SIA, Chinese people It will treat us with hospitality, but I think it is only a short-term. When the limelight passes, it will stabb us back. At that time, SIA will not save us, but will come up to make up for our betrayal."

Shopping malls are like battlefields. This is a war without gunpowder. It is turbulent. To figure out who is the real reliable partner and who is the real competitor is the first issue. Yes, it is the collaborator, not the friend, in the market. Despite talking about friends, no one really believes that there will be real friends on this board, at most they are collaborators.

Pete said: "Being soft to Luo Sheng does not mean betraying SIA. This decision is to uphold the importance of ASML in this turmoil and make SIA value us."

As soon as these words came out, everyone present understood the BOSS's intentions.

This is to talk to SIA with the Côte d’Azur as a bargaining chip before negotiating with the Côte d’Azur. This bargaining chip is that if your SIA dared to abandon my ASML, I would dare to jump over immediately without any hesitation.

On this issue, the enemy of the enemy is the friend.

Obviously, Pete believes that the probability of SIA's compromise at this time is extremely high, because ASML's move is even if it jumps on its own. The key is that it will get worse after opening this hole. What about Japan's Shin-Etsu Chemical?What about Samsung?The international members of these SIAs could not have no idea about ASML's decision.

Moreover, Samsung and other multinational groups have deep cooperation with the Côte d’Azur.

The entire industry is facing a reshuffle situation. Some people have broken the rules of the game, and the future is full of uncertainty. At this time, everyone panics and will find a way out.

This is where SIA is most afraid and most unwilling to see it. The team engaged by ASML is distracted. If it is not handled well, it will face a domino collapse, and it will not be able to hold it.

The core executives who participated in the meeting could not help but nod their heads. It turned out that they did not really want to "turn to the enemy", but put pressure on SIA on the condition of "turning to the enemy", establishing that ASML would not be the first victim of this major reshuffle. After that, negotiate with Luo Sheng or the Blue Coast.

Obviously, in the current situation where the industry is about to reshuffle, ASML can't survive on its own. Just relying on ASML itself to negotiate with Luo Sheng will only be humiliated, because there is no bargaining chip, why should I follow You cooperate?You have neither product advantages nor market size. Wouldn't it be better for me to just eat you?

I can't tell.

So in the end, we have to rely on SIA and the Americans.

The temporary emergency meeting held by ASML in the middle of the night reached a specific matter in less than half an hour. In the early morning of the next day, Pete Winnick took a special plane to China.

Although this move is very shameless, Pete Winnick can also predict that his move will become a hot news that day. It is certain to be ridiculed and vilified as a "traitor". The Blue Coast just announced the Purple Star Lithography Machine, you ah The next day, he ran over so diligently, the previous arrogant and cold side was in sharp contrast.

It was really scolded at both ends.

Pete didn't want to be so humiliated, but there was no way, his life was important, and if his life was gone, he would still have a good face.

This foreigner is quite real, no, it should be said to be very realistic.

The purpose of Pete's trip is not to really talk about specific results, but to show SIA. The key is one word-fast.

The action must be fast, the expiration date is worthless.

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