allonlinenovel Chapter 366 White-hot
Chapter 366 White-hot
Chapter 366 White-hot
Due to the strict blockade of lithography machine technology, the development of 0.35-micron mass production lithography machine, which was originally expected to be completed in half a year, was forced to be postponed for half a year.
During this year, Japanese companies actively improved DVD supporting products and enriched DVD disc content production.
Subsequently, the sales of DVDs by Japanese companies in overseas markets showed a good trend of steady growth.
Qingdao DVD's overseas sales also struggled and achieved steady growth.
However, due to severe limitations on chip availability, Qingdao DVD sales were only one-third of those in Japan.
The reason behind this is that, on the one hand, the United States has imposed a strict technological blockade on China in the field of lithography and chip manufacturing;
On the other hand, the small moves behind the scenes by Japanese companies have led to a shortage of chips in China, putting Qingdao DVD at a disadvantage in its competition with Japan.
Despite this, Qingdao Super VCD City has relied on its extremely attractive preferential policies.
The sales volume of Super VCD not only did not decrease, but instead grew against the trend.
Of course, this growth is caused by the increasingly complete supporting channels of the market and the growing size of the market.
Qingdao, Mayor's Office
"Mayor, the 0.35-micron lithography machine can realize the mass production of DVD chips."
Jiang Weimin's face instantly showed joy, "Great, it's time for us to perform. Notify the relevant departments to hold a meeting."
Jiang Weimin has waited too long for this moment. The Chinese DVD industry has finally reached a critical moment to break through difficulties and fight back.
At the subsequent meeting, Jiang Weimin made detailed arrangements for the work in an orderly manner.
The DVD industry quickly entered full-speed stocking mode, with major factories running at full capacity.
The production line runs 24 hours a day and workers work overtime just to meet overseas market demand as quickly as possible.
As Qingdao completed the preparation of a large number of DVDs, a fierce price war officially kicked off.
Qingdao's two models have been reduced in price by another hundred dollars each, seizing market share with their extremely impactful price advantage.
In addition, the overseas DVD market also started to subsidize home appliances, starting with a $50 subsidy and gradually increasing it to $100.
This move acted like a powerful magnet, attracting a large number of consumers and causing DVD's market share to gradually surpass that of Japanese companies.
At the same time, a large number of DVD disc manufacturing equipment were also put into the market, and the price of DVD discs began to become cheap, further promoting the development of the DVD market.
Just as Japan was anxiously dealing with this series of challenges, chipmaker Musk turned to Japanese companies.
"President Yamaguchi, China now has the ability to make chips and no longer allows us to make chips.
As our partners, you Japanese companies must make up for the orders we lost.”
President Yamaguchi frowned slightly. Although he was a little unhappy, he still responded politely: "No problem, I will arrange for the purchasing department to purchase an order of 500 million chips from your company!"
In Yamaguchi's view, this is already a considerable order, which can make up for the losses of Musk's company to a certain extent.
However, Musk was obviously not satisfied with this. He said coldly: "Five million pieces are not enough, at least 500 million pieces, and the price will increase by 1000%."
This request made President Yamaguchi look very unhappy.
"Mr. Musk, this is impossible, the company's board of directors will not agree!
We accept orders for up to 800 million chips! 800 million chips is enough for China's orders for two years.
Apart from the 200 million chips that Chinese companies customized at the beginning, you have only produced 350 million chips for China in total.”
Musk did not give in. "Mr. Yamaguchi, if it weren't for our company's constraints,
How can you have such a large market share? If we fully supply chips to China,
At least 70% of this market belongs to China. We can make more money than cooperating with you! And you have to consider the consequences of angering me!"
When President Yamaguchi heard Musk, he weighed the pros and cons and said in a softer tone:
"Mr. Musk, let's put it this way! Price increases are unlikely. We are in a price war with Chinese companies. How about 1000 million pieces!"
The two then went through several rounds of intense negotiations, with each side refusing to give in.
Finally, the two sides reached an agreement that Japanese companies would purchase 3 million chips within three years, with the unit price increasing by 1000%.
After Musk received the order, he immediately made a decision in his mind.
Since Chinese companies no longer purchase their own chips, they can buy them from other companies.
DVDs are so popular now, and many companies buy my chips. This way I can earn double the money.
After sending Musk away, Japan responded to Qingdao's price cuts and home appliance gifts.
The Japanese side was not to be outdone and also took measures to reduce prices and give away gifts.
However, they gave away DVDs, trying to attract consumers by enriching the content of the discs.
Qingdao adopted the strategy of "I will match whatever you give me" and was determined not to fall behind.
After two years, the two parties finally reduced the price of DVD from 2 US dollars to 490 US dollars.
With various subsidies, it has almost reached the cost line of Japanese companies.
However, the cost of a DVD in Qingdao plus subsidies is less than US$50, and Qingdao can continue to compete with Japanese companies on price.
The competition reached a fierce stage, and Japanese companies discovered that many places in China were already able to mass-produce DVDs and had a mature industrial chain.
In order to reduce costs, Japanese companies also opened factories in China and started fierce competition with Qingdao in the domestic market.
Due to the impact of chip supply, Jiang Weimin postponed the domestic launch of DVD for two years after the DVD was launched.
At this time, the domestic market had been firmly occupied by Super VCD, and the Super VCD chips produced in Qingdao were supplied in unlimited quantities in the country.
On the one hand, the chip production capacity is relatively large. On the other hand, if the chips produced in Qingdao are not sold, foreign chips will be sold in.
As chip supply stabilizes and output increases, costs continue to fall and prices also drop accordingly.
After the Japanese factory was built, the price of Super VCD had been reduced to 800 yuan, and the fierce market competition far exceeded Jiang Weimin's expectations.
However, this is actually the result of Jiang Weimin's indulgence.
As the products of some companies gradually stabilize in the market, some companies have also set their sights on overseas profits.
However, Qingdao has adopted a differentiated strategy in chip supply.
For private enterprises, if they want to expand overseas markets, Qingdao will cut off their chip supply to maintain its competitive advantage in overseas markets;
As for state-owned enterprises, it depends on how strong their connections are. If their connections are strong, we will turn a blind eye.
Without patent authorization from Qingdao and Japanese companies, it would be basically difficult for other companies' products to go abroad.
This series of measures has, to a certain extent, consolidated Qingdao's position in the DVD industry.
In foreign markets, even though the competition between Qingdao and Japanese companies was tremendous, they all tacitly excluded other competitors.