Reborn since 1993

Chapter 1164: Soldiers will block it, water will cover it

The call was from Wu Xinyi, the general manager of Dongxin Semiconductor. You could tell how annoyed he was from his tone.

"Intel Continental is poaching domestic semiconductor suppliers, including JCET Group, which has received invitations to join Intel's supply chain!"

Wu Xinyi's tone was quite helpless; Dongxin Semiconductor really had no way to deal with Intel's blatant poaching.

This real, hard gap cannot be bridged in the short term.

Dongxin Semiconductor is also building its own semiconductor industry chain, mainly relying on domestic component suppliers and raw material suppliers, and wants to bring domestic chip suppliers into Dongxin's camp.

However, Dongxin Semiconductor only produces a few million chips each year, which means it can only fulfill orders for a few million chip components to its suppliers.

Intel, with its annual production capacity of tens of millions, can generate orders for its suppliers that are dozens of times greater than those for Dongxin.

When domestic semiconductor suppliers are simultaneously offered invitations by both Eastchip and Intel, which one will they choose? It goes without saying!

Faced with Intel's blatant poaching, Wu Xinyi was naturally annoyed, but more than that, he felt helpless. This gap in hard power is the most frustrating thing.

"Those who walk different paths cannot make plans together. Let those semiconductor suppliers who want to join Intel go their own way!"

Li Dongling said calmly to Wu Xinyi on the other end of the phone, "You can't keep someone who really wants to leave. What's that saying again? If you keep licking someone's boots, you'll end up with nothing!"
"However, these suppliers who switch platforms should no longer appear on Dongxin's supplier list!"

Since you've made a choice, you must bear the consequences. If you've chosen a side, you must stand firm to the end and never be a fence-sitter.

Currently, Eastchip is far inferior to Intel, so it's not unreasonable for some suppliers to choose to be opportunistic. But if one day Eastchip stands up and refuses to cooperate with these semiconductor suppliers, that would also be perfectly reasonable!

After a moment's thought, Li Dongling said to Wu Xinyi on the other end of the phone, "Dongxin Semiconductor can release an Dongxin Semiconductor Plan to support some small and medium-sized domestic semiconductor manufacturers!"

It's unlikely that major semiconductor suppliers will directly side with Eastchip. They are unlikely to risk offending Intel to support Eastchip. Ultimately, those who offer help in times of need are a minority.

However, Dongxin's chip factory will not be completed and start trial production until next year, so Dongxin Semiconductor still has some time to prepare.

If Intel suddenly pulls this stunt when Dongxin Hanxi's chip factory is completed and under construction, it will probably catch Dongxin off guard.

Faced with Intel's encirclement and suppression, Dongxin can only find new suppliers and support its own semiconductor suppliers, just like Dongling High-Tech built its component supply chain back then.

The second path is definitely much more difficult. The domestic semiconductor industry is already in a state of stagnation, and the entire industrial chain is fragmented.

Dongxin's attempt to reignite the industry chain is not something that can be done overnight; it will likely require a significant investment of time, resources, and funding.

However, the advantage is that after Dongxin builds its own semiconductor industry chain, it can avoid many risks by investing in these suppliers, and the entire industry chain is under Dongxin's control.

Even if, in the future, the American Capitol and certain important figures suddenly act irrationally and launch an attack on Dongxin, there is no need to worry that Dongxin's semiconductor suppliers will defect.

"That's all it can do!"

Wu Xinyi sighed and said that Intel's counterattack and tactics were faster and more intense than he had expected.

After hanging up the phone, Li Dongling shook his head and looked at Ren Yuefeng and the others in the office. "The wind may want to calm down, but the trees will not stop. It seems that this year is probably not going to be easy!"

“We expected Intel to retaliate, but we didn’t expect their methods to be so drastic!” Chen Tao couldn’t help but say.

Only "our own people" know where it hurts the most when you're hit!

Everyone present knew who Li Dongling was referring to; it could only be Chen Junsheng, the new chairman of Intel China.

"Intel provides customized chips to the mainland market, priced at $320, which is $30 lower than the cost price of Tianji."

It is estimated that suppliers of mainland computer manufacturers such as Samsung, Maxtor, Toshiba, and Sharp will also follow suit and lower their prices. The costs of other domestic computer brands are expected to come down soon.

The price war in the domestic computer market is about to become even more intense!

Zhang Ao, the head of Dongling High-Tech's marketing department, frowned and said that he could already imagine the domestic computer market turning into a battlefield. He estimated that the domestic computer market would become the most competitive computer market in the world.

"This day was bound to come sooner or later!" Li Dongling said calmly. The domestic market competition has been fierce for a long time, and the war will not stop until a winner is determined in the entire industry.

"Founder Computer will continue to wage a price war with brands like Linksys; we must defend our market share!"

Shenzhou computers cannot lower prices; for the next few years, Shenzhou computers must maintain their position at the high-end computer market!

Li Dongling instructed that since Intel and Lenovo were determined to wage a price war, then so be it, and Dongling Hi-Tech would fight to the end!
Anyway, if we compare Founder to Linkchip, even if Founder and Dongxin both lose money, Dongling Hi-Tech can still cover the losses.

As long as Hasee Computer can maintain its high-end brand, Dongling Hi-Tech will not lose money, and Hasee Computer can even make up for the losses incurred by Founder and Dongxin.

In the computer industry, profits are not determined by who sells the most machines. On the contrary, nearly half of the industry's profits are taken by high-end computers.

Ren Yuefeng, Hu Zixian, and Zhang Ao could all hear the determination in Li Dongling's words. It seemed that Dongling High-Tech would not back down an inch this time!
As for things like Founder voluntarily conceding defeat, ending the price war, or Dongxin bowing to Intel, those are unlikely to happen.

This war may last longer than any party expects, and its brutality may be shocking.

But at Dongling Hi-Tech, once Li Dongling made up his mind, the entire company was no longer in a state of dissent. Instead, it was set in motion and began to confront Intel head-on!
After Ren Yuefeng and others left the office, Dongling High-Tech headquarters began issuing various orders to its departments. The entire Dongling High-Tech organization began to prepare in an orderly manner for the upcoming challenges.

Intel's counterattack was fierce, but to say that it could kill Dongxin in one blow is wishful thinking. It is more like a protracted war, or even an invisible battle.

If Intel wants to cripple or completely drive Dongxin out of the commercial chip market, it must first remove the two thorns in its side: Shenzhou and Founder.

Otherwise, Shenzhou and Founder could continuously sell computers and purchase chips from Dongxin, thereby increasing Dongxin's revenue.

And expecting companies like Linksys and Great Wall to defeat Shenzhou?

First, we have to get past Founder Group. It's impossible to determine the winner in the short term, so while it looks dangerous, it's not like we can't hold out for more than a few months.

Autumn of 1998 had arrived, but Li Dongling still had a lot to deal with.

First, we need to wait for news from SVG in America. Regardless of whether the decision to sell lithography machines can be passed on Capitol Hill, Dongling High-Tech needs to take action.

Besides this matter, in the last quarter, Li Dongling needs to go to Hong Kong City, where there are also many things waiting for the philanthropist Li to handle.

Ning Wenke's baby is due soon, and Li Dongling will definitely go there even if he can make it in time for the baby's birth.

In addition, it is to ignite the fire of the Internet in the port city, so that the rich people in the port city who are always focused on land can feel the fervor of the Internet!
China.com, developed by Cyberport, is almost ready to launch. Li Dongling previously made a bold promise in front of many celebrities in Hong Kong: to get China.com listed on NASDAQ.

The philanthropist Li cannot break his promise. He has the reputation of being a powerful figure with an undefeated record since his debut, and he cannot break his vow in this matter.

Li Dongling didn't care about this empty title at all. He didn't have the idol image that people in the entertainment industry have, so why would he worry about his career collapsing?

However, this empty reputation will still be of some use for Dongling High-Tech in the future. For example, if they want to manufacture cars in the future, as long as the halo is still there, just by having that face of the philanthropist Li, they can call on suppliers and distributors to follow Dongling High-Tech and save a lot of trouble.

Send ChinaNet to NASDAQ, and let Cyberport help Yahoo! Mainland and other internet companies list in Hong Kong. That would probably ignite the internet fire in Hong Kong.

By then, the internet should have swept the globe, and Hong Kong has the potential to leverage the mainland internet market to become one of the world's internet hubs, outside of NASDAQ!

By that point, Cyberport had ignited the spark of the internet in the port city. As for how far it would go, that would depend on fate and a bit of luck; the unlucky ones wouldn't survive to the end.

As Li Dongling was planning for the final quarter, there was a knock on the door, and then Shen Xingyao, one of the chief assistants, walked in. "Mr. Li, Ed Frye from Microsoft has arrived in Pingyang and wants to see you!"

"He's come to Pingyang?"

Upon hearing that Ed Frye had come uninvited, Li Dongling instinctively felt that Ed's hasty arrival was probably not for anything good.

Tell Ed I'm going to see him this afternoon!

Regardless of Ed's motives, as Dongling High-Tech's most loyal ally in America, Li Dongling must meet with Ed; avoiding him would only cause problems.

Li Dongling felt that as Dongling High-Tech's strength continued to grow, its every move was now being watched, like an elephant behind a big tree, whose body could no longer be hidden.

However, these troubles are inevitable and must be faced sooner or later. There is no way to avoid them. When two armies meet on a narrow road, the brave will prevail. Only in a bloody battle can one find a sliver of hope!
(End of this chapter)