Reborn since 1993

Chapter 320 Spending other people’s money to do your own things
The semiconductor industry is now in a counter-cyclical period. To put it bluntly, the industry is in a slump. To make matters worse for Toshiba, Bangzi and Baodao are desperately trying to compete with it for the market.

Only five years ago, companies such as Toshiba and Nippon Benzene accounted for half of the global semiconductor industry, but today, its market share is only about 30%.

It seems that the share is quite large, but this 30% market share is not occupied by Toshiba alone. Hitachi, NEC, Panasonic, Sony, etc. also share a share of it.

In addition, on the Bangzi side, manufacturers such as Samsung, Hynix, and Hyundai are constantly taking away Toshiba's memory market.

Samsung likes to play counter-cyclical expansion, constantly increasing production capacity, recruiting more technical personnel, and killing other competitors. This makes Toshiba very uncomfortable.

Samsung and Bangzi are taking away Japan's memory industry, and Baodao is taking away Japan's semiconductor foundry. Now the Asian semiconductor industry is forming a three-legged situation.

Toshiba, the flash memory factory in Singapore, was already losing money. Before Tanglin High-Tech came up with USB flash drives, the only product that could really be used in the memory industry was hard drives. Now the combined market of the global hard drive industry is Just a few billion dollars.

The memory industry was already in a sluggish period. Samsung was also desperately expanding production, engaging in price wars, and constantly grabbing market share. It was difficult for Toshiba not to lose money.

During this negotiation with Donglin High-tech, Murakami Masaji racked his brains and finally came up with a negotiation strategy, which was Toshiba's flash memory factory in Singapore.

Toshiba's Singapore flash memory factory does have a production line that can mass-produce more than 10,000 silicon wafers in a single month. The equipment is considered mainstream equipment in the industry, and there are also some engineers and trained skilled operators.

"Mr. Li, you know that 120 million is simply impossible. If Tanglin Hi-tech builds such a flash memory production base from scratch, even if it costs 200 million US dollars, it may not be able to be completed!
Not to mention that there are production lines that have been debugged to stabilize output and skilled operators who have been trained! "Murakami Shoji's head shook like a rattle.

Basically, the plan is carried out according to Murakami Shoji's expectations. Now that it's time to bargain, he will certainly not show mercy.

However, I can't stand that it is not making money now and keeps losing money. I use this flash memory factory as a bargaining chip and sell it to Donglin Hi-Tech. It can become a bargaining chip in today's negotiations, get rid of the burden of losing money, and even make a fortune. , Murakami Shoji felt that his strategy was simply killing three birds with one stone!
After Murakami Shoji reported his plan to Kawanishi Tsuyoshi, he did not let him wait any longer. Kawanishi Tsuyoshi agreed to his plan and even expressed the Toshiba board of directors' appreciation for him.

However, in the midst of the war of words, the price of flash memory factories has also continued to drop. Li Dongling and Murakami Shoji have also slowed down in the frequency of opening their mouths. Both parties know that the price is almost reaching the psychological price of both parties.

If sold to Donglin Hi-Tech, Tanglin Hi-Tech may threaten Toshiba in the future, but in the short term, at least within three to five years, it is not possible for Tanglin Hi-Tech to threaten Toshiba. Toshiba is somewhat defensive about Donglin Hi-Tech, but there is no need to worry.

"But, does Toshiba dare to sell to Samsung?"

Hearing this quotation, Murakami Shoji was a little hesitant. This price was not low. It was not easy for Toshiba to sell the goods at a loss and recover the wasted money.

"For US$190 million, Tanglin Hi-Tech is willing to take over the entirety of this flash memory factory!"

Toshiba's sale of Singapore's flash memory factory to Tanglin Hi-Tech and its sale to Samsung are completely different concepts.

"For US$600 million, if Toshiba's flash memory factory is willing to sell it to Samsung, I'm afraid Samsung, Hyundai, and Hynix will definitely be willing to accept this flash memory factory."

But Samsung is different. Samsung and Toshiba are both starting to see red in the memory industry and are desperately trying to expand. Toshiba dares to sell its flash memory factory to Samsung. It's just like the old man who has eaten arsenic and is tired of living!

"Two hundred and ninety million US dollars, this price is enough for Toshiba to recoup the money invested in this flash memory factory, and even make a profit. It will no longer have to invest in this flash memory factory in the future."

Li Dongling and Murakami Shoji kept bargaining, but neither of them stopped talking. Li Dongling simply ignored Murakami Shoji's talk of selling the flash memory factory to Samsung.

"The Toshiba Singapore flash memory factory can be sold to Tanglin Hi-Tech for US$300 million!"

"make a deal!"

Li Dongling paused for a moment, and then said directly without any more fuss with Murakami Shoji. "But in this deal, Donglin High-tech requires that Toshiba must keep all the production equipment, engineers, technicians, and skilled operators of the flash memory factory!"

"no problem!"

Murakami Shoji laughed and said, he never thought of playing any tricks with Donglin Hi-Tech this time. Now several flash memory factories under Toshiba are reducing production and taking away the engineers from the Singapore flash memory factory. Toshiba will have no use. Toshiba is not willing to do a loss-making business if you spend money to keep it. If you want to drive people away, you have to pay a severance package.

"The acquisition fee of US$300 million is required to be paid in installments by Tanglin Hi-Tech. The first batch of Donglin Hi-Tech can pay no less than US$80 million, and the remaining acquisition fee will be paid off within the next four years!"

The purchase price of US$300 million to acquire Toshiba's Singapore flash memory factory is definitely expensive. There is no doubt about this. However, Tanglin Hi-Tech needs this opportunity and needs to take advantage of this opportunity to enter the industry, even if it is a temporary loss. To be honest, Tanglin Hi-Tech needs this opportunity. Hi-Tech and Shenzhou Storage are both acceptable. Entering the industry and not entering the industry are almost completely different concepts!
The Yanjing Foreign Exchange Department would probably be the first to be reluctant to spend US$300 million in foreign exchange acquisition funds in one go. For Dongling Hi-tech, the burden is also a bit heavy. If it is paid over several years, there will be less pressure.

Of course, there is another key point. For this acquisition money, Li Dongling is not going to use the cash in Dongling Hi-Tech's account, but will borrow money from banks in Bangzi, Siam, Malaysia, Singapore, and Japan!

Now borrow money from these overseas banks, and then convert it into US dollars from local banks and take it out. When Soros comes, the Korean won, Thai baht, etc. will basically start to plummet, and the exchange rate with the US dollar will depreciate by at least two-thirds!
That is to say, borrow 100 million US dollars worth of Korean won from Bangzi Bank, and then convert it into US dollars. After two years, you only need to exchange more than 20 million US dollars into Korean won to repay the debt.

If you can use money from Bangzi, Siam, Nippon and other banks to handle Tanglin Hi-tech's own affairs, why not do it? !

Murakami Shoji heard Li Dongling say that he wanted to pay the acquisition fee in installments. After a little consideration, he agreed.

Toshiba does not need to worry about Tanglin Hi-tech defaulting on its debts. If Tanglin Hi-tech really dares to play this way, Toshiba would probably laugh out loud.

Tanglin Hi-Tech has many industries in Japan. Tanglin Hi-Tech is the largest shareholder of Nippon Bandai Company. PHS has digital cordless phones, U disk patents, etc. in Japan, and Tanglin Hi-Tech will not return them. With money, Toshiba can swallow up all Donglin Hi-tech's benzene industry in Japan. The sum of these industries far exceeds 300 million US dollars.

……

"In the future, Shenzhou U Disk will be established as Shenzhou Storage Company under Dongling Hi-Tech!"

"Chen Tao, the technical department has allocated some manpower to the Shenzhou storage department. The Shenzhou storage is temporarily managed by the technical department!

In addition, select some manpower and immediately go to Singapore to take over the flash memory factory. You must learn all the technology of this flash memory factory as quickly as possible! "

As soon as Murakami Shoji left, Li Dongling called all Dongling Hi-Tech executives to his office.

Hu Xian, Chen Tao, Gao Peng and others were all surprised when they heard that it took over Toshiba's flash memory factory for US$300 million to establish Shenzhou Storage Company.

But Hu Xian and others did not refute anything. It was meaningless for them to question whether the matter was reasonable or not after Li Dongling had already decided it. Not to mention that since the establishment of Dongling High-Tech, Li Dongling has not made a mistake. However, they have no reason to question it. The influence of an invincible founder on a company is almost unimaginable!

"Lao Hu, I need you to make a hard trip to the port city. Dongling Hi-tech Port City Company and Ning's Trading Company will help you borrow the acquisition funds from Bangzi and Nippon Bank!
This loan must be a long-term loan. Even if the interest rate is a few points higher, it is still acceptable. It must be a loan with a term of at least three years or more! "

After Li Dongling made arrangements with the Dongling Hi-Tech executives, Hu Xian, Chen Tao and others left in response.

The next day, Li Dongling, Li Dongyue, Yang Zhigao, Wang Yan and others rushed to the Hanxi Provincial City Airport to prepare for Yanjing.

Donglin Hi-Tech and Toshiba also announced through the media on the same day that they had reached a USB flash drive cooperation agreement, and Toshiba became the last company to be authorized to produce USB flash drives!

The entire memory industry was filled with lamentations and complaints after hearing this. The five major manufacturers of U disks have also officially released their products. Donglin Hi-Tech, Bienwei, IBM, Philips and Toshiba will basically be eliminated in the global U disk industry in the future. These five major manufacturers have taken control and have also cut off other manufacturers' opportunities to reach out to USB flash drives!

(End of this chapter)