Chapter 2953 Google's Envy

"I finally know why you decided to invest heavily in the chip industry," Lao Ma said as soon as Feng Yiping hung up the phone, "It's really fun to do such a business!"

"Boss, this is what we have invested nearly 30 billion US dollars, and it is supported by at least 50 billion US dollars of investment," Feng Yiping said.

Although the amount of investment so far is only nearly 30 billion US dollars, everyone can see that the at least 50 billion US dollars he promised will definitely be more, not less, which can be seen from the factories they are still vigorously building.

In the past two years, how many companies dare to invest so much?

At the beginning of 2009, Samsung's 10 billion US dollar investment that made all provinces in China very excited has not been implemented until now, so that not many places are willing to contact them now.

In fact, their 10 billion US dollar investment requires too much. The industry's initial estimate is that in order to make the promised 10 billion US dollar investment land, the subsidies in all aspects will add up to at least 30 billion RMB.

But even so, they often change their minds, take the conditions promised by A to negotiate with B, and then use the better conditions given by B as a basis to let C make an offer... That's normal.

At first they want land, then they ask for factories to be built for them, then an industrial park with international high standards, ultra-low floor area ratio and ultra-high greening rate, and then you must also subsidize, subsidize water, electricity, greening, logistics and other expenses by at least 500 million yuan every year...

In addition, they also require that the investment site must subsidize their investment, and the subsidy amount has gradually increased from 10% at the beginning to 30%, and it seems that this is not their final requirement...

Some leaders found out after being transferred that it was still the same project, but when they worked in their original province, Samsung's requirement was to exempt income tax in the first ten years, and now it is halved in the second ten years.

At first, they only required that a supporting expressway must be built from the main urban area to the park. Now, you must also build a corresponding subway for me...

The gradually increasing conditions are another matter. This is close to blackmail, especially the behavior of ignoring those senior leaders and playing with them at will, which is even more unacceptable.

The key is that there is another reference at this time. Feng Yiping announced his investment after them, but the investment that has been implemented is close to 30 billion US dollars. In comparison, Samsung's investment of only 10 billion US dollars has only heard the sound of boots, but no one has come down.

I also heard that they are also in South Korea at the same time, and they are also investigating and building new bases in various places...

Who wants to be played like a monkey?

Now the first- and second-tier cities in China have expressed that they have no love for that investment, and even the top leaders have said that we use such a huge subsidy to support a chip company whose production capacity is not controlled by us at a critical time. Is it appropriate?

There are also opinions on the Internet. It is a bit ridiculous to use our land, our funds, and our workers to subsidize and serve foreign companies, help them occupy our market, and suppress the development of our local companies.

—— Feng Yiping solemnly declares that such opinions and atmosphere have nothing to do with him and his company!

In short, at present, Samsung's investment is very difficult to land in China.

The opponent always knows the opponent best, so Feng Yiping understands better that the reason why Samsung's long-awaited investment has not been landed in China is not only their usual greedy nature, but also their stupidity of not recognizing reality - we didn't have a first-class chip company, so they had the opportunity to make any price, but now that we have one, they still do this.

The deepest reason is that they are still a little hesitant.

They are well aware of the iron law of the chip industry that if they don't continue to invest, they will die, but Feng Yiping's decisiveness in this regard really caught them off guard.

In just over two years, Feng Yiping has already invested nearly $30 billion, and it seems that the momentum of investment has not weakened. In other words, his investment of at least $50 billion is not just talk.

So, to invest or not, this is a big problem.

Invest, if you want to continue to maintain your dominant position, you must at least invest more than $30 billion accordingly.

But this is not enough for them to continue to lead, because Feng Yiping said, "at least $50 billion," "50 billion is not enough, I will invest $80 billion..."

If Feng Yiping really intends to invest $80 billion, then they will have to invest at least another $50 billion accordingly.

$50 billion, even tougher than Lee Kun-hee, he can't help but hesitate.

He hesitated, in addition to such a huge investment, it will change Samsung's capital structure again, and it will be more detrimental to his family's control - so he really envies Feng Yiping. According to their many detailed analyses, after Feng Yiping invested so much, the debt ratio of his domestic and foreign companies has not changed at all.

This shows that what Feng Yiping said at the beginning, "at least 50 billion US dollars have been prepared", was not just talk, he really has that much money in his account that can be taken out at any time.

He was also very envious of Feng Yiping's absolute autonomy for such a huge investment, and he could do it as he wished, but he currently did not have such power. Samsung's equity structure... Alas!

He was more hesitant about whether the market could be guaranteed after such a huge investment.

So he envied Feng Yiping's biggest market in the world.

And this was a more unsolvable problem than the funding problem.

In the end, if their own production capacity was higher, would they be able to compete with Feng Yiping in the Chinese market?

This was where he was really unsure.

Not to mention in China, even in South Korea, Samsung could not get the love of the people from the bottom of their hearts, but Feng Yiping was indeed loved by many people in China.

He also admitted that Feng Yiping's actions were really worthy of the love of the Chinese people.

This was the fundamental reason why he was currently undecided whether to maintain an equal investment with Feng Yiping or to take a small lead.

What prevented Samsung from making up its mind to make the corresponding investment was also the internal constraints.

Given that the memory industry has been losing money in recent years, Samsung's major shareholders, the bankers on Wall Street, are firmly opposed to their decision under such circumstances.

An additional $10 billion is acceptable, $20 billion, they can barely pass, but $30 billion or more... What gives you the courage to compete with Feng for more money?

This is the conclusion that makes Bill Gates and Buffett a little self-esteem, and it is now a consensus in the entire financial industry.

Because, except for Netflix, Feng Yiping's thriving companies in the United States have not yet been listed.

If they go public, Feng Yiping's net worth will be more than $100 billion? At least $200 billion!

In view of this, they tend to take a more rational response plan, although conservative.

That is, this market cannot be monopolized by one company after all. Instead of adding tens of billions of dollars in investment to maintain the first place in the industry under such difficult circumstances, it is better to maintain the status quo for the time being and ensure the second place in the industry.

This is also a good choice, isn't it?

If necessary and the opportunity is ripe in the future, it is not a bad idea to make additional investments to regain the dominant position...

--Feng Yiping once again solemnly stated that such opinions of Wall Street have nothing to do with him and his company!

Such resolute opposition has caused Samsung to waver between making additional investments and not making additional investments. As for Hynix and Micron, they can only survive at this time. As for Elpida, let's not talk about it. It will survive this quarter first.

This is also the main reason why Feng Yiping can become an ASML shareholder.

In the memory market, all horses are silent, and only Feng Yiping's company is advancing rapidly. Just like when it made Samsung and TSMC its shareholders, ASML also took the initiative to extend an olive branch to Feng Yiping last year.

Continue to boycott? You are kidding!

Their products are very professional and have very little versatility. If they can't get along with the industry leader, they are actually getting along with themselves.

There is another reason why their attitude can change so dramatically, that is, China's research and development in the field of lithography has made them feel threatened.

Although China still has a long way to go to catch up with them in this regard - China can be said to have not even solved the problem of whether it has or not.

But China's investment in this area is as decisive and bold as Feng Yiping's investment in the memory field.

In 5 to 10 years, they don't have to worry about their position being challenged, but if they continue to boycott with discrimination, no one can say whether the Chinese market needs them after 10 years...

"So," Lao Ma held his head with both hands and lay on the sofa with his legs crossed high, "It's easy to get things done with money!"

"Okay," Feng Yiping looked at his watch, "I still have to see Brin, and the film and television base may require you to go there first,"

"No problem," Lao Ma stood up, "I'll leave at noon,"

He couldn't help but say, "It's still easy to get things done with money!"

Because the investment in the Jiasheng Film and Television Base is as high as nearly 50 billion yuan.

…………

Feng Yiping picked up Brin downstairs, "Are you satisfied with the development of Google China?"

"Quite satisfied," Brin said.

What is satisfying is that, at present, Google's market share in the Chinese search field is just over 30%.

The reason why it is only relatively satisfied is naturally because such a market share is really very, very low compared with Google's share in other countries.

"Please, we have a bottom line, don't we?" Feng Yiping had to spread his hands.

Brin and others also agree with this point. They don't know how to do some of the things that their opponents do, but they don't want to do them, and they can't do them, so they can only lag behind at present.

"I'm going to leave tonight..."

"No, you have to attend the opening ceremony of the film and television base with me first," Feng Yiping said with a very firm attitude.

It's not easy to let you come to China, how can you not make full use of it.

"Many Hollywood stars will come, but you have to wait a moment now, I have to have a meeting with Facebook," he took his computer and prepared to go to the meeting room.

"I really envy you," Brin said suddenly.