Rebirth 99 to become a car giant

"Mr. Cao, Nanshan Chemical's photoresist production has not yet fully increased, so you have directly lowered the price of photoresist."

"JSR, Shin-Etsu Chemical and those former giants turned out to be paper tigers."

Xu Jun has also been paying attention to photoresist during this period.

Since Nanshan Chemical officially announced that it has mastered a full set of photoresists for chip production, including EUV photoresists, the entire market has begun to undergo tremendous changes.

And when Nanshan Chemical directly announced the parameters and guide prices of various types of photoresists, the market environment became even more different.

So-called giants such as JSR and Shin-Etsu Chemical have all followed suit by cutting prices.

I thought that through this method, Nanshan Chemical's photoresist could be nipped in the bud.

This reminded Cao Yang of an interesting case in the automobile industry in his previous life.

In 2008, BYD successfully developed ABS. Previously, BYD's ABS was supplied by Bosch at a price of 2,000 yuan per set.

At this price, everyone would think it is too expensive. It is no wonder that many models could not afford ABS in the early days.

After learning that BYD had the ability to develop its own ABS, Bosch immediately negotiated with BYD and asked BYD to stop mass production.

BYD will naturally not agree to such an unreasonable request.

At this time, Bosch began to use the trick of reducing prices, adjusting the ABS supply price to 800 yuan a set.

This price was lower than BYD's own production cost at that time.

The key is that the quality of the ABS produced by BYD itself is not up to standard, and many algorithms and so on are not good enough.

But in order to completely kill BYD's ABS project and allow itself to monopolize the industry, Bosch directly lowered its sales price to the cost price.

In the end, BYD disbanded the ABS project team and its members were assigned to other projects.

This was not over yet. A few years later, Bosch wanted to increase the price of BYD's ESP. BYD did not say anything and silently began reverse research and development, and finally successfully developed its own ESP.

Like ABS, the performance of the ESP developed by BYD itself is definitely far behind that of Bosch. It is even an exaggeration to say that the ESP produced by BYD is basically electronic waste.

But Bosch was still in a cold sweat, fearing that the emergence of BYD ESP would shake Bosch's monopoly on this part.

So they immediately went to negotiate with BYD. Bosch once again resorted to a price reduction trick, saying that it could supply BYD at cost price, while selling to other manufacturers besides BYD would still cost a high price.

Bosch's cost price is lower than BYD's, and its performance is even better. BYD naturally chose to disband the ESP team.

Bosch then continued to have a monopoly on this part.

There is no money to be made from BYD, but a lot of money can be made from other OEMs, and the overall profit margin is not low at all.

This time, photoresist companies such as JSR and Shin-Etsu Chemical obviously want to use similar methods.

It's just that they are not as bold as Bosch and show the cost price right from the start.

If JSR can directly reduce the price of EUV photoresist that originally cost 10,000 yuan per liter to 1,000 yuan per liter for sale, it is estimated that Nanshan Chemical's EUV photoresist will be difficult to sell to other customers in the short term besides selling it to itself.

That is to say, the scale of Nanshan Semiconductor is large enough to support the output of Nanshan Chemical.

Otherwise, it would be really difficult for Nanshan Chemical to cope with the price reduction tactics of JSR and other companies.

"These companies had a very comfortable life before and made easy money for so many years."

"Now that we are being hit, there is naturally enough room to lower prices and they want to kill us."

"But they underestimated Nanshan Chemical's cost advantage."

Cao Yang is not afraid of a price war between JSR and himself.

Normally, if the chemical industry can maintain a profit margin of more than ten points, it is considered good.

There is no need to maintain a profit margin of hundreds of percent for every material, it is unrealistic.

Therefore, if JSR cuts prices, Nanshan Chemical can follow suit.

Until JSR is unwilling to follow.

"You, Nanshan Chemical, have become a price butcher this time. You just lifted the table and stopped the photoresist giants from playing."

"I estimate that JSR and other companies hate the plans put forward by relevant departments in the United States and Japan to suppress Nanshan Semiconductor."

"If they hadn't forced you like this, Nanshan Chemical's photoresist project might not have progressed so fast."

Xu Jun also has some understanding of the situation of Nanshan Chemical.

Although some photoresists have been produced before, the output and types were limited.

How is it like now, when thousands of R\u0026D personnel are mobilized to develop photoresist products in a short period of time.

Under this intensity, any photoresist can be broken.

Research and development from zero to one is very difficult, but the difficulty of research and development from one to two has dropped several levels at once.

Nanshan Chemical has experience in photoresist research and development, and there are mature products in the industry for reference.

Under such circumstances, it is almost inevitable to break the blockade in the short term.

Of course, only Nanshan Chemical has this strength.

If it were SMIC and other companies that were targeted in this way, they would probably be waiting to close down.

Or just beg for mercy, accept punishment, and wait for someone to lead you away by the nose.

"The United States always likes to make small moves. It feels that China should occupy the low end of the industrial chain as a matter of course, and does not want us to enter the high-end industrial chain."

"This situation cannot continue forever."

Various companies in the Nanshan System have probably become the most hated companies by relevant departments in the United States.

Every time there is some technology in China that breaks through the US blockade, it is often related to companies in the Nanshan Group.

In recent years, because of China's breakthroughs in this area, many companies in the United States have made a lot of money less.

As a capitalist country, if you let companies make less money, you will make the actual controllers behind the scenes in the United States make less money.

They must be thinking of various ways to deal with the companies in the Nanshan Group.

Nanshan Equipment, Nanshan Carbon Fiber, and Nanshan Special Steel, aren't they all targeted in this way?

Fortunately, the companies in the Nanshan Group are very competitive and are not afraid of others dealing with you!

"Indeed, not to mention other things, in the chip industry alone, Nanshan Equipment and Nanshan Semiconductor have made a very large contribution."

"In the past, 99% of chips relied on imports, but now this proportion is declining every year."

"In a few years, when the production of Nanshan Semiconductor has completely increased and everyone has slowly accepted your chips, the external dependence of the chips will soon be reduced to less than 50%."

"As for chip production equipment, I estimate that it will soon be recognized by all chip companies and begin to achieve complete localization."

Xu Jun is now very optimistic about the development of Nanshan Equipment and Nanshan Semiconductor.

In the past few years, they have been targeted by the United States several times.

But not only did it not stop the pace of development, but it developed faster and faster.

Companies like this are really rare in China.

"Although our chip industry alliance now produces all chip processing equipment, many semiconductor companies still use imported equipment."

"It will still take some time for them to completely change their views."

When Xu Jun mentioned chip equipment, Cao Yang couldn't help but feel a little emotional.

Nanshan Semiconductor's production lines must all purchase equipment from China.

However, equipment from SMIC, Huahong and other manufacturers are still mainly imported.

Even the newly invested factories this year purchased a large amount of imported equipment.

This situation is also quite speechless.

"We can work together to make some suggestions to relevant departments through the Chip Industry Alliance and impose some additional tariffs on imported chip equipment."

"We even introduced some special domestic equipment purchase subsidy funds to support the development of domestic chip equipment like the development of new energy vehicles."

Xu Jun's proposal immediately made Cao Yang's eyes light up.

Before this, he was unwilling to take advantage of relevant departments.

After all, Nanshan Group is not short of money, so there is no need to make a fuss over some funds.

But if relevant departments introduce policies that can make technologically and cost-competitive chip production equipment popular in the country, this is obviously a good thing.

So he agreed to Xu Jun's proposal without any hesitation, and immediately arranged for Pan Jinxing to be responsible for this matter.

But while Cao Yang and Xu Jun were planning the chip industry equipment, the situation in the photoresist market was in complete chaos.

"Mr. Wang, we did almost nothing, and the purchase price of photoresist dropped by 70%."

"JSR didn't say anything about signing a long-term contract. They directly stated that the price of photoresist would drop by 30% in one month, 50% in two months, and the settlement would be based on 30% of the current price after three months. "

Yang Bingning was chatting with Wang Anguo in a very complicated mood.

Although SMIC is also doing some verification and analysis of Nanshan Chemical's photoresist, it has no plans to use it.

However, the emergence of Nanshan Chemical directly helped them save a lot of money in purchasing photoresist.

This situation was something they had never thought of before.

“Don’t companies in the Nanshan Group always promote that they rely on technology to get orders?”

"Since when did you start a price war?"

Wang Anguo has been paying attention to photoresist these days.

The current situation also left him speechless.

I didn’t guess the beginning, nor the ending.

"The price of photoresist from JSR and other companies has dropped. If Nanshan Chemical did not engage in a price war, neither we nor other semiconductor companies would be able to abandon JSR and switch to a photoresist that has never been used before. "

“So even if Nanshan Chemical’s technology is relatively advanced, it’s useless without price support.”

After Yang Bingning said this, Wang Anguo stopped worrying about this issue.

However, how to deal with Nanshan Group companies in the future is still a big problem for him.

It's just that he hasn't figured it out yet and can only choose to wait and see.

…

Changes in the photoresist industry are naturally noticed by various chip giants.

Samsung also has a semiconductor factory in China, and it also purchases photoresist from companies such as JSR.

To some extent, they are also beneficiaries of this photoresist price reduction.

But the people at Samsung are not happy at all.

"I didn't expect that Nanshan Semiconductor would survive again this time."

"Their vitality is like cockroaches, they are so tenacious."

Li Zailin took a sip of coffee with great disappointment.

The bitter taste spread from the tip of the tongue to the heart.

Originally, when the United States and Japan were targeting Nanshan Semiconductor on photoresist, he was very much looking forward to seeing the news about Nanshan Semiconductor's suspension of production.

In this way, Samsung will lose one of its biggest rivals in China.

Even the suspension of production of Nanshan Semiconductor will directly affect the development of companies such as Honor Technology.

By then, Samsung will not only be able to sell semiconductor components better in China, but it will also be able to expand its market share in products such as mobile phones and computers.

But it didn't take long for him to wake up from his sweet dream.

No wonder he was in a very bad mood.

"The chemical material of photoresist has also been conquered by Nanshan Chemical in such a short period of time. This is indeed beyond many people's expectations."

"However, there are not many special things that have happened to Nanshan Group in recent years."

"I think in the future when dealing with matters involving Nanshan Group-related companies, we may have to consider looking at it from a different perspective."

It can be said that Chaihang is now considering Samsung wholeheartedly.

Although he had vaguely felt that it would not be easy to stop production of Nanshan Semiconductor, his expectations were not that high.

But when he saw that Nanshan Semiconductor had survived, he was still in a bad mood.

"The United States is so unsatisfactory. Can't they find some more targeted solutions?"

"Every time we deal with Nanshan Semiconductor and other companies, we can be easily defeated."

"In the long run, who will be afraid of their punishment in the future?"

Li Zailin couldn't help but feel a little resentful towards his friendly businessmen in the United States.

He is aware of this move, and American chip companies such as Intel, Apple, Texas Instruments, ON Semiconductor, and Micron are all involved.

Originally, he thought that with so many giants joining forces to deal with Nanshan Semiconductor, they could definitely kill it.

Unexpectedly, not only did he not kill him, but he actually made his life more comfortable.

In the future, the cost of purchasing photoresist for Chinese chip companies will decrease, and the cost of producing chips will also decrease.

He is a little worried that one day Chinese companies will price chips at cabbage prices.

That's something Samsung has a hard time accepting.

"I think the United States will not give up on containing Nanshan Semiconductor easily."

"We can also ask the headquarters to promote this matter and see if there are any other ways."

When Chai Hang said this, Li Zailin couldn't help but nodded.

He planned to have preliminary communication with the headquarters later to see if he could find some new solutions to deal with Nanshan Semiconductor.

Otherwise, it will be increasingly difficult to suppress Nanshan Semiconductor in the future.

This is a situation Li Zailin really doesn't want to see.