Rebirth of Northland Technology

Chapter 1994

War in Chechnya, Three Gorges construction started, Navigator 1.0 released.

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In front of the Fengtian Municipal Government Building, the city was decorated with lanterns, reflecting the snow-covered earth.

Manager Ding and Mayor Zhang, standing side by side.

At odds with the joyful environment, the face of Manager Ding Yiting was a sad, tightened frown.

Since the second half of 1993, the price of small panels has been falling steadily, and after more than two years of high profits, the TFT LCD industry has finally entered the trough.

As soon as we entered the fourth quarter, the LCD market collapsed, and the price of a 15-inch panel fell to around $1,000. The average price of a 17-inch CRT is still over $900.

The price of the 12-inch panel, which falls into the $400 range, is also approaching the price of the 14-inch CRT.

At this price, there is no way down.

Such low prices, of course, opened up the LCD panel market and directly threatened the survival of CRT displays. But the problem is that such low margins deal a fatal blow to the extremely high financial costs of Giant High Tech.

For historical reasons, Huge High Tech's production capacity was concentrated on small 12" and 15" screens, and was hit hard by the sudden price drop in LCDs.

Two other companies in the optoelectronics industry have also been affected by the collapse of LCD prices, but not as much.

Full Color's product focus has shifted to the 19+ inch TV market. Its products are in absolute monopoly and have almost no influence.

Lam LCD has also been affected, but they have just completed financing and are in a relatively healthy financial position. Not to mention, they already have two 3rd generation lines in production and are ready to move on to the 4th generation line.

Compared with Lin LCD, Tremendous Hi-Tech's entry into the LCD industry is not late, but due to the separation of the three companies, it has been stuck for more than a year on the issue of yield rate.

In the fast-moving high-tech industry, time is money. The loss of one year is fatal. Huge High-Tech has so far built only two second-generation lines and three third-generation lines.

Tremendous Hi-Tech also has a plan to enter the high-generation production line, but the problem is all stuck on one word: money.

Giant Hi-Tech's starter product, once a cash cow, the LED screen, has been losing market share and is no longer able to fund new industry upgrades.

With the collapse of LED prices, LED large screens have begun a rapid process of popularity.

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

With the two core products, large LED screens and small LCDs, falling into price competition, the road to equity financing for Giant High-Tech becomes increasingly difficult because of thin margins and lack of imagination.

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Ding Yiting felt that the past few years were simply too much to bear.

It turns out that he and Bai Xuesheng had a moment of brilliance at the University of Engineering.

Bai Xuesheng went to full color and met the wind to become a dragon.

Under Bai Xuesheng's influence, he also jumped ship and took over another subsidiary of Photonics, Huge High Tech.

With the exception of the first year, when he was somewhat successful, the rest of his life has been less successful every year.

Of course, the day also depends on who you compare it to.

Compared to local enterprises in Fengtian, as long as the enterprise can start working normally and spend normally, that is the standard of a good enterprise, Huge High-Tech is still the focus of the city government and the mayor's red man.

But the other brother units of the Department of Optoelectronics are not what they used to be.

Not to talk about the status of the world's top 50 full-color, just one of the full-color's Bincheng base, the huge science and technology has been dumped to nowhere, which makes two years ago, Ding Yiting returned to Bingcheng headquarters to protest against the full-color run Liao province to rob electricity, became a joke.

The colorful technology, which is from the same mother as Huge High Tech, has been taking a big step every year under the leadership of Feng Yan, Yuan Shuai and other young people. Its three major business groups, LED, IGBT, and solar cells, have all become the climate, and are in the absolute leading position in the international community.

Optoelectronic equipment is even more excessive, and has now swelled to the point where it is respected as an equipment group. The three subordinate equipment companies, once split, immediately ushered in a hot capital, and huge high tech nobody cares, forming a sharp contrast.

It's not necessary to mention the fact that even Lin LCD's Siping division is now similar in size to Huge High Tech. This is a great embarrassment to the proud and arrogant Ding Yiting.

He often reflected on what he had done wrong.

If time could start over, would things be better?

But the answer is no. The decision to separate the three liquid crystal companies was a foregone conclusion.

The decision to separate the three liquid crystal companies doomed Giant Hi-Tech to climb the yield rate by itself.

The other path of Giant Hi-Tech's development, bank loans, also encountered difficulties as the economic situation in Fengtian declined. The limited bank loans were used to save the lives of enterprises in Fengtian, which were suffering from business problems on a large scale.

This was not caused by Ding Yiting personally.

This is not because of Ding Yuting's personal reasons, but because of the environment.

Giant Hi-Tech would never have ended up in this situation if it hadn't been placed in Fengtian.

The company is now stuck here, if we talk about survival, after a series of internal tapping, several product lines, although the profit is thin, living is not a problem. But if you want to develop and upgrade your technology, don't even think about it.

The 800 million yuan capital to build a Generation 3 line is already an astronomical figure for Huge High Tech.

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This time, he and Mayor Zhang came out to greet the Daewoo Group from South Korea.

With the listing of Full Color, not only are there funds from all over the world to enter the LCD industry, but some enterprise groups are also placing heavy bets.

But these new enterprises, in general, are faced with the problems of industrial experience and industrial workers.

In addition to these, there is another problem, which is the de facto monopoly of the photoelectric department on several TFT core equipment.

These companies have also approached the optoelectronic, trying to buy 4 or 5 generation line equipment, but the answer, uniformly insufficient capacity, within a few years of capacity, have been booked by the three major LCD companies.

In this case, there is value in the acquisition of Giant Tech.

The acquisition of Giant Tech, or a large proportion of capital injection into Giant Tech, is the only choice to squeeze into the large-screen LCD industry.