America: My Time

Chapter 616 The Impact of the European Layout

Chapter 606 The Impact of the European Layout

Many investors are now withdrawing from China. They have not received the desired profits in a short period of time and cannot withstand the dissatisfaction of their shareholders, so they have to prepare to leave. In contrast, John's investments in China are progressing rapidly, and even the automotive industry has yielded considerable results, with a large number of parts entering the US and British markets every year.

“Boss, those guys are different from John. John can make decisions on his own, while those guys are responsible to the shareholders. How can they accept losses year after year and not getting the profits they want? In contrast, John doesn’t care about short-term losses and has even made a ten-year commitment. That’s something other companies can’t do!”

"Yes, those guys only saw the immediate profits and were wary of China's investment environment. They didn't see John's crazy investments. If you said that this little fox had poor investment acumen, I'm afraid no one would believe it. He dared to make such crazy investments in China. What else did those guys have to hesitate about? They were just too greedy! But what do you think John is trying to do by investing so much money in China this time to build a semiconductor industry chain?"

"I think John definitely has a deeper plan. His understanding of the semiconductor industry is much better than those old guys. Once his supply chain succeeds, he will probably be able to crush those old guys in terms of production costs, especially in the low-to-mid-end market, where he can completely take the initiative. He is involved in the entire production process, from wafers to chip manufacturing and packaging. I even suspect that this guy might have a new plan. Is ASUS really just a foundry, just manufacturing for Nvidia? And this time, ASML also received a considerable order for lithography machines."

"ASML? That Dutch company, the one under Bell Labs. Nvidia and ASUS use their lithography machines. It seems this previously overlooked company has grown up!"

"Boss, it's not just Nvidia and ASUS using their lithography machines; AMD is using them too. After all, they're in cahoots with Nvidia. Intel is now facing their combined pressure. If it weren't for those old guys acquiring Game World and reaching agreements with Apple and IBM, Intel would probably have been strangled by Nvidia and AMD long ago. I have to admit, John's vision in the semiconductor chip field is truly remarkable. Their acquisition of ASML and the massive investment they made back then led to their current success. Actually, many people say ASML was very lucky to be acquired by Bell Labs during an industry downturn, receiving huge financial support, which is why they are where they are today. But many people don't see that. Now they've mass-produced 2500 lithography machines, and their market share is second only to GCA, Canon, and Nikon!"

Jimmy is also very concerned about the situation in the semiconductor industry, especially Bell Labs. After the frenzied sale, they are still burning money like crazy. ASML alone has burned through hundreds of millions of dollars for lithography machines, not to mention their own efforts. It is precisely because of this crazy money burning that ASML has the strength it has today.

Many people are now paying attention to John's operations in Europe, so many of his plans have been scrutinized again. Even his plans for East Germany have been discovered, especially his plans for optical lenses. He has completely broken free from West German influence and has developed his own production capabilities. It is impossible for him to cut off ASML's supply chain.

"So, John's investments in the semiconductor industry have already reached the top of the industry?"

"Yes, ASML's rapid development is astonishing. Many people now regret accepting John's proposal to place 2500 lithography machines in China, but it's too late. John has already completed the transportation of the lithography machines; 15 machines have already arrived in China, and the remaining five are on their way, for a total of twenty machines deployed in China. Now, with the maturity of 8-inch technology, ASML has entered the research and development of a new lithography machine! In their plan, they will complete the development of the next generation of lithography machines within two years. If they can achieve this, it means they will directly surpass Canon and Nikon of Japan and stand at the top of the lithography field!"

"Jimmy, what are the chances? What are Asma's odds of success?"

"I don't know. Perhaps only Bell Labs themselves know. After all, only they know how much technology and patents they possess. John has never been stingy with his support for Bell Labs! As John's European expansion becomes more visible, many people are not only eyeing ASML but also Nokia. Those old guys are getting uneasy! Nokia now has considerable production capacity, and most importantly, Bell Labs controls ARM in the UK. It can be said that John now possesses strong production capabilities in Europe as well. His semiconductor strategy is more ambitious than many people realize. He not only has a production line in the US but also has similar capabilities in Europe!" "Those old guys are now worried that this little fox, John, will expand in Europe and affect their semiconductor plans. So they're getting restless again, and some are targeting this little fox, John!"

"Yes, that's how it is! However, I think they need to be wary not only of Europe, but also of Asia, Taiwan, and China's massive investments. Will that be okay? Besides, I don't think those guys should continue to provoke John at this time. Nobody knows what other trump cards John has up his sleeve. After all, his understanding of the semiconductor industry is far superior to theirs!"

"It's no use. As long as these old guys get greedy again, they won't give up. It seems there will be a big battle among them in the semiconductor field. I wonder who will win. The competition in the semiconductor industry is getting more and more frantic. With the entry of the Koreans, the strength of the Japanese, and the plans of those old guys, John's layout in Europe has been exposed. It looks like the competition in the semiconductor industry will become more and more terrifying."

As John's European operations were gradually exposed, many people felt the pressure, especially the older generation. They had thought that by getting everything they wanted from John, they could gain an absolute advantage in this field. Now it seemed that they had underestimated John's plans; he also had operations in Europe.

Similarly, the Europeans were also shocked by John's strategy. Although they knew that John was expanding in Europe, they did not expect that ASML, an unknown small company, would have such strength. Unfortunately, they found out too late. Now the company has successfully occupied a significant share of the market.

"That's absolutely true. Even Europe itself is shocked by John's strategic planning. If it weren't for the frenzy of British acquisitions, no one would have imagined that John's layout in the semiconductor field was so impressive. He had already made comprehensive preparations years ago. It would be a lie to say that this guy wasn't wary of Japan, after all, the giants in the lithography field are Canon and Nikon. Now ASML has received a lot of help from East German Zeiss and has completed the manufacturing of optical lenses. It can be said that they have now completed their layout in the entire industry chain, and the only thing missing is to enter the memory chip market. I heard that John is going to South Korea this time, ostensibly to watch the Olympics, but many people are wondering if it's a cooperation with Samsung, a cooperation on lithography machines, or even a cooperation on semiconductor chips!"

"Impossible. Cooperation on semiconductor chips is impossible; those old guys won't agree. Lithography machines are still a possibility, after all, those old guys have been secretly supporting the confrontation between South Korea and Japan. But who knows what changes will occur this time? Nvidia's situation is making many people uneasy. Their development in the chip field is getting faster and faster, and those old guys are under a lot of pressure. If their semiconductor plans fail, the price they pay will be too high!"

Morgan Stanley's bigwigs were well aware of how formidable these old guys' strategies were in the semiconductor industry. Moreover, this was not the power of a single conglomerate, but a combined force. Failure under these circumstances would have a huge impact on them, and there were already considerable internal disputes over interests.

By abandoning the development of memory chips and focusing its efforts on its core competencies, Nvidia has accelerated its R&D pace, along with the development of supporting equipment. As a result, Nvidia is now on a fast track, putting significant pressure on Intel. Moreover, with ASUS's PC market share continuing to grow, the older generation is also worried.

"No way, John wouldn't choose to have a semiconductor industry war with those old guys at this time, would he? And the White House wouldn't accept it either!" Jimmy looked at his boss in surprise, shocked by these words.

"You might think it's impossible, but those old guys are too ambitious and too greedy. They want to control the entire semiconductor industry, to control the entire American industry. Do you think that's possible? Those guys in Japan are easy to deal with, but John, this little fox, isn't so easy to deal with! Bell Labs' crazy investment in communications and the licensing of wafer technology all show that they are prepared and have a plan." At this point, Morgan couldn't help but sigh. Perhaps this semiconductor war is just the beginning of John's confrontation with those old guys, after all, the profits in the entire industry are too great.

(End of this chapter)