Reborn since 1993

Chapter 819: bargain hunting
If this return to Southeast Asia is handled properly, the Southeast Asian market will become Dongling Hi-Tech's base. In the future, the Southeast Asian market may bring sustained and stable revenue to Dongling Hi-Tech, just like the domestic market.

For Dongling Hi-Tech, the domestic market is naturally Dongling Hi-Tech's base camp. Whether now or in the future, the domestic market is Dongling Hi-Tech's biggest reliance.

After going overseas, the markets that can serve as Dongling Hi-Tech's basic base also have different levels of priority.

In recent years, Dongling Hi-Tech has been fully operating the old European market, then the North American market and the African market, but in fact, the Southeast Asian and Asian markets are given priority over these markets!
Because both the North American and old European markets may undergo changes, and there is only one reason for this: they are too close to America!

But relatively speaking, old Europe and America are not on good terms with each other and have conflicts of interest. Dongling Hi-Tech's risks in the old European market are much less than in America.

The Southeast Asian market, on the other hand, is relatively "safer" and the reason is very simple. These markets are very close to the mainland and belong to the mainland's civilization circle. To put it bluntly, these markets will belong to the domestic sphere of influence in the future!
In the Southeast Asian market, even if Dongling Hi-Tech encounters some bad things, it will never be directly banned in America like the Chrysanthemum Factory and Character in its previous life.

Dongling Hi-Tech will make the Southeast Asian market its basic base, and in the future it will have domestic, Southeast Asian and even Asian markets.

With this market that occupies the largest population in the world, Dongling Hi-Tech will not be invincible when competing with those overseas giants, but at least it will not have to worry about being used underhandedly and being defeated in one wave.

Li Dongling's eyes passed over the executives of Dongling Hi-Tech. "In addition to entering the Southeast Asian market, companies such as Dongfang Optoelectronics also need to find suitable acquirers to narrow the gap with overseas manufacturers such as Nippon Benzene!"

South Korea and Japan will definitely suffer heavy losses this time. It is impossible for them to swallow up companies like Samsung and LG, but it is possible to cut some meat from them.

Chips and lithography machines are closely watched by America, and Dongling Hi-Tech will not be able to obtain them easily, but memory sticks, LCD panels, etc. are possible!
Oriental Optoelectronics' LCD panel technology is indeed quite different from that of Sharp, Panasonic and others.

Although Oriental Optoelectronics has been trying hard to catch up since its establishment, its first TFT LCD panel production line has not yet been put into production.

What Oriental Optoelectronics can offer now is the STN screen, which has a relatively low technical threshold. Its Shenzhou computers are all equipped with STN screens.

But STN screens are not as good as TFT screens, this is a foregone conclusion. When TFT LCD panel technology matures and is mass-produced, the cost will be reduced. Whether it is LCD TVs, desktop computers, laptops, or future mobile phone screens, they will all enter the FTF LCD panel era!

Japanese manufacturers such as Sharp, Panasonic, and Toshiba have already made breakthroughs in the technology of 3.5-generation LCD panel production lines and are now sprinting towards the fourth-generation LCD panels. It is not too late for LCD panel technology to mature.

If you want to catch up with the technology of LCD panel manufacturers such as Sharp, sometimes you need some opportunities to overtake on the curve!

Upon hearing Li Dongling's words, Miao Xuguang, one of the two general managers of Oriental Optoelectronics, couldn't help but brighten up.

In fact, Oriental Optoelectronics now has two general managers, Miao Xuguang, who is in charge of the TFT LCD panel business, and Tang Qinliang, who is in charge of the STN panel business.

Currently, Oriental Optoelectronics still mainly relies on STN panels to make money, but this does not mean that TFT LCD panel technology is no longer important.

In fact, Miao Xuguang is under a lot of pressure. He has spent so much money but has not been able to mass-produce TFT LCD panels. In terms of technology and patents, he is also suppressed by Sharp, Samsung, Hyundai and LG.

Another point is that although the panel industry has determined that STN is not the mainstream screen in the future, the competition between plasma and LCD panels is becoming increasingly fierce.

The plasma screens led by Panasonic have almost crushed LCD screens in their prototypes, if it weren't for the high failure rate of plasma panels and their ridiculously high prices.

In addition, Panasonic has monopolized the plasma panel technology and patents, not giving other manufacturers even a sip of the soup. Perhaps now plasma panels have become the mainstream in the panel industry.

Even so, there are countless people in China who are fascinated by ion panels and are convinced that they are the future of the panel industry, spending a lot of money to develop them.

For example, Changhong, one of the three major companies in the A-share market, invested the equivalent of 2 billion US dollars in the research and development and establishment of plasma production lines in its previous life. The final result was that Changhong’s CEO Ni retired in disgrace.

But that is a matter for the future. Now the plasma panels are showing their edge, and coupled with the slow progress of Oriental Optoelectronics' LCD panels, Miao Xuguang is somewhat doubtful whether choosing LCD panels is the right path.

"Mr. Li, does the headquarters really support Oriental Optoelectronics' acquisition of overseas LCD panel production lines?" Miao Xuguang asked Li Dongling while gritting his teeth.

Nowadays, LCD panels are synonymous with burning money. Whether it is research and development technology or setting up production lines, it is quite expensive.

To acquire a third-generation LCD panel production line, I am afraid it would cost at least several hundred million US dollars, which is by no means a small amount. Of course, if it can acquire a LCD panel production line, Oriental Optoelectronics will be able to fully understand the third-generation LCD panel technology and gain a foothold in the LCD panel industry, instead of being in an embarrassing situation like it is now.

As for the future, between LCD panels and plasma, who will become the winner in the panel industry, even Miao Xuguang cannot predict it. Not to mention him, even Sharp, the current leader of LCD panels, probably can't guarantee it...

"Are there any suitable targets at Oriental Optoelectronics?" Li Dongling asked Miao Xuguang.

"Hyundai or LG's third-generation LCD panel production line!"

"Samsung, Hyundai, LG and other Korean companies, as well as Sharp, Hitachi and other Japanese companies, are the most technologically advanced companies in the global LCD panel industry, and they have already built third-generation or even 3.5-generation LCD panel production lines!
Given the current situation in Korea, Hyundai is the most likely company to sell LCD panel technology and production lines!" Miao Xuguang said.

Giant companies such as Daewoo and Kia have gone bankrupt one after another, and even the entire country of South Korea is on the verge of bankruptcy, which has frightened the Korean chaebol giants. At this time, it is very promising to buy an "insignificant" industry like LCD panels from South Korea, and the difficulty is not as great as it will be a few years later.

At present, the technology of LCD panels is not yet mature. In addition, the technical route competition with plasma has not yet ended. LCD TVs and smart phones have not yet exploded, so LCD panel production lines have not become a constraint in China.

"If we want to acquire an LCD panel production line from South Korea, how much money will it cost?" Hu Zixian, who was in charge of Dongling Hi-Tech's purse, asked Miao Xuguang.

"Probably...more than 300 million US dollars!"

"call!"

After hearing Miao Xuguang's words, all the executives of Dongling Hi-Tech in the suite couldn't help but breathe heavier.

An acquisition of several hundred million dollars would definitely not be a small project even in the past, not to mention the current situation in Southeast Asia, which is in a precarious situation and desperately short of dollars.

"If we buy this LCD panel production line, how big will Oriental Optoelectronics be in the LCD panel industry compared to manufacturers like Sharp? When will it be able to go into mass production?" Ren Yuefeng pondered for a moment and asked.

"If we can acquire Hyundai's third-generation LCD panel production line and fully master the technology, Oriental Optoelectronics may be one or half a generation behind Sharp and other manufacturers in terms of technology!"

"As for mass production and commercial use, the technology may need to be further improved!"

Miao Xuguang spoke frankly that buying this LCD panel production line was equivalent to giving Oriental Optoelectronics an entry ticket into the LCD panel industry.

As for when the LCD panel technology will mature and begin to be used on a large scale, to be honest, he dare not guarantee it. But if Oriental Optoelectronics does not make the acquisition, it will have to rely on its own exploration, and it is not known how many years it will take.

Hearing that they had to spend hundreds of millions of dollars to buy an opportunity, many Dongling Hi-Tech executives in the suite showed some worry on their faces.

Now they have some understanding of why technology companies spend so much money on technological research and development, and that even after spending so much money, there is no guarantee of any results, and it is very likely that the money will be wasted.

For a moment, Ren Yuefeng, Hu Zixian, Chen Tao, Miao Xuguang and others all looked towards Li Dongling. In Dongling Hi-Tech, the one who could really make the final decision on whether to take the risk of this acquisition was still the head Li Dongling.

"Make an offer to Hyundai and buy Hyundai's LCD panel division as a package, including technicians, patents, and production lines!"

Li Dongling made the decision without much hesitation. Even if it was just an opportunity, Dongling Hi-Tech would not miss it. If he missed this opportunity to buy at the bottom, in a few years, even the "outdated" panel production line would not be so easy to get.

In the past, BOE spent $400 to 500 million to acquire a third-generation LCD panel production line nearly five or six years later. At that time, the LCD panel production line had already entered the sixth generation!
Panels and chips are the future of the electronics industry. Just like Samsung Electronics, it can earn 1.5 trillion yuan in revenue a year, and panels are definitely its cornerstone!
Regardless of whether LCD panels make money or not, almost all electronic products cannot do without them. If Dongling Hi-Tech does not have LCD panels, Samsung, Sharp and other manufacturers may use this trick to control Dongling Hi-Tech in the future.

Miao Xuguang was cheered up when he heard Li Dongling's decision, but Li Dongling had not finished speaking yet.

"In addition to offering an offer for the LCD panel department from Hyundai, we are also acquiring LCD panel technology and patents from Samsung, LG, Sharp and other companies!"

(End of this chapter)