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Chapter 85 Suppression

The semiconductor technology circle in November is destined to be uneasy.

Leading by Xinyue Chemical, the global photoresist giant suddenly cut prices significantly, which shocked everyone who is concerned about the semiconductor industry.

People were surprised that in order to deal with Xingchen Technology, which had just been established for half a year, giant companies actually made such heavy moves, as if they were going to force Xingchen Technology to death.

How much has the price of photoresist been suppressed now?

The profit margins of the world's 17 giants have gone from about 60% to single digits!

The new industry entrant Xingchen Chemical has invested heavily in equipment and R&D, hiring experienced experts and engineers with high salaries, coupled with global patent registration and low utilization of new equipment capacity, so every ton of photoresist is required to pay one ton of money.

Sources familiar with insider information show that one of the important reasons why international giants have taken such heavy hands is that Xingchen Technology has a big appetite.

Their current annual production capacity has reached 6,000 tons, and the second phase plan has reached an incredible 15,000 tons!

Although photoresist is the most used consumable in the semiconductor and display industries, Xingchen Technology's crazy production capacity planning obviously requires one goal to win half of the photoresist industry!

That is, the second phase of the project has just reached the land acquisition stage. If Xingchen Technology is really put into production smoothly, Level 4, Level 5, and Level 6, these three highest-level and most profitable photoresist varieties, Star Tech will become the world's largest supplier!

You should know that the annual global sales of high-quality photoresist is only 50,000 tons. Star Chemical's first and second phase plans have reached 21,000 tons, accounting for 42% of global sales. Can the giants not be anxious?

Even if the giants can withstand the impact of the 6,000 tons of production capacity of Star Chemical this year, what about next year? It will take out another 15,000 tons of production next year, which will be a fatal impact on the market. Moreover, who can guarantee that Star Chemical will not have the third phase?

By then, the Xingchen chemical process will mature and the cost will drop, ensuring that a large number of international giants will die!

Judging from the previous encounters, Xingchen Technology is definitely a tough guy. As long as they enter an industry, the industry will immediately flow into blood.

So, don’t wait for Xingchen Chemistry to start, and first join forces to kill this guy who is impacting the market. On this issue, the giants have highly consistent attitudes.

In domestic professional forums, people from all walks of life are talking.

"No wonder those international giants are going to kill themselves. It turns out that Xingchen Technology has such great ambitions!"

"You only know that the toughest group of people in the technology industry has never been a hype. Do you know how many periods of Star Optics have been expanded?"

"How many periods?"

"The second phase of the factory has just been built, and the third phase has begun again. The planned area is the sum of the first phase and the second phase!"

"So awesome!"

"It's so awesome! And it's not just Xingchen Optics that are crazy expansion. Xingchen Display and Xingchen Electric have only been put into production for a few days. The second phase of the project will not be completed until the beginning of next year. Now there are three phases planned!"

"It sounds very satisfying. I fully support Xingchen Technology's expansion, but the problem now is that Xingchen Chemical has invested billions of dollars and was blocked by giants as soon as it was put into production. What should I do?"

"Yes, if you don't produce, the equipment and factory buildings will be scrapped. If you produce, you will lose one ton. Xingchen Technology's current front line is very long and it is moving forward in multiple fields. Can they afford to pay?"

"Oh, it's a pity. It's been a big deal that I finally got the top domestic photoresist. The giants are really ruthless in their efforts."

"If you want to blame, you blame Xingchen Technology for not knowing how to keep it confidential and leaked such a major news in advance."

"Stop saying sarcastic words here and leak news. Have you ever done a supply chain? The main raw material of photoresist, polymer resin, must be purchased from major manufacturers, project planning must be approved from major rights departments, production equipment must be purchased and customized, patents must be registered, and any link will leak news."

"What the above is saying is that this is making photoresist, not atomic bombs, so news cannot be completely blocked."

"You are right. Anyway, the sword of the 17th giant has been raised. It depends on how Xingchen Technology deals with it. We can't do anything except silently support it."

......

Baoshan, Xingchen Technology Headquarters.

In the conference room, there was a tense atmosphere, and the company's management gathered together.

Hong Tao's straight and thick lines had already become angry and were shouting and beating and killing.

Virgo Li Moran continued to remain silent, holding a small notebook in his hand, constantly writing various response plans.

Luo Jia remained silent and slowly tapped his fingers on the table.

It has always been his habit to prepare for the future, but Luo Jia did not expect that it would cause such a big rebound.

This is probably not just a matter of fear of losing the market, but because Xingchen Technology has taken decisive actions in multiple fields before, which has put huge psychological pressure on the other party. The greater the pressure, the greater the rebound.

Simply put, those international giants hate Xingchen Technology to the point of gritting their teeth, so they would rather use this strategy of killing one thousand enemies and sacrificing some interests to defeat Xingchen Technology's aura.

At this time, Luo Jia's phone suddenly rang.

Everyone suddenly became quiet. Everyone knew that in the meeting, the phone could still be called, and the other party must be a very important person to the company.

"It's Mr. Tang from SMIC." Luo Jia glanced at the number and said to everyone.

Then he answered the phone, and Tang Boyun's voice was very heavy on the other side of the phone.

"It's also difficult for us to handle it. The semiconductor foundry industry also has to compete for prices." Tang Boyun said, "If we use all your photoresist, the cost disadvantage is too great. UMC, Grofond, and our old rivals will take the opportunity to seize the market share of SMIC."

"But, although we can't use all your products, half of them are still OK!" Tang Boyun said firmly, "Come here as soon as possible and sign the contract. You can open the price yourself."

Luo Jia hung up the phone and told everyone about the matter.

There was a sigh in the conference room. At this time, SMIC stood up and supported it with full support, which moved everyone, but everyone always felt uncomfortable.

Afterwards, Luo Jia received another call from Mr. Wang of BOE, which means the same. If all photoresist manufactured by Star Technology is used, the pressure will be too great, but BOE has joined hands with several major domestic display giants to solve some of the pressure on Luo Jia.

Just after Mr. Wang’s phone call was finished, Mr. Ren from Huawei called again.

A few minutes later, Luo Jia put the phone on the table and shrugged, "Mr. Ren said that from now on, the four giants will pay us cash and not suppress our payment period for one to half a month. To put it bluntly, I just want to help us solve the financial pressure."

"Before the meeting, I received a call from Mr. Li. The eight TV giants said the same thing, and they should try to reduce the accounting period as much as possible. If we want to use money, they will pay us."

Everyone was very excited.

Hong Tao said, "Did you see it? At the critical moment, you still have to rely on friends! We don't directly enter the market, but look for partners with weight. This move is the right move! We Xingchen Technology doesn't have much, we have many friends!"

Li Moran said, "Since you have the support of downstream companies, you should be able to survive this level."

At this time, Luo Jia suddenly laughed, and a sharp light burst out from her eyes.
Chapter completed!
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