Chapter 198 Bankruptcy Wave

The closure of Shengtang Semiconductor and its acquisition at a low price is just the beginning.

Its fall is like the first domino.

In the next half month, 18 of the more than 30 chip foundry companies in China filed for bankruptcy and entered the asset liquidation procedure.

Including Tianhong Semiconductor, Deyao Semiconductor, Ruijie Semiconductor, which are chip foundries with certain strength and reputation.

But they are about to suffer the same fate as Shengtang Semiconductor.

It is rumored that Longyao Company will take over and acquire these bankrupt foundries one by one, but the acquisition price is no more than 1 billion.

There are only about 10 chip foundries left.

Except for Huaxin International, which still has some funds and is struggling, other chip foundries are almost all trapped in the quagmire of capital shortage, insufficient orders, and serious talent loss. As time goes on, they are getting thinner and weaker, like a tightening noose, and are about to suffocate to death.

On the one hand, this is certainly related to the extinction-style commercial competition initiated by Longyao Company; on the other hand, some senior industry insiders can see it clearly:

"These foundries supported by policies and bank loans have all been abandoned."

"The total value of their assets exceeds 500 billion, which represents the country's determination to make this area bigger and stronger."

"But now this determination is no longer necessary, and there is no need to continue to support these foundries."

"According to the latest production report released by Longyao Company: In November, Longyao foundry's 7-nanometer chip output reached 350,000 wafers per month, and 5-nanometer chip output reached 60,000 wafers per month... This production capacity is five times the total of other domestic foundries, and it is still increasing explosively. In a few months, it will increase to millions of wafers per month. Next year, Longyao will produce more than 10 billion chips, ten times the number this year."

"Even the world's largest foundry, Titanium Collector The company only manufactures 10 billion chips every year. "

"Compared with the huge production capacity of Longyao Foundry, what other 30 or so foundries in China have any use value except occupying land, occupying funds and having low efficiency? They are just useless. It is better to remove the nutrition tube, close down and let Longyao Company take over, play the real value, create tax revenue and employment, and drive local economic development. "

"This world is very realistic, and the country is also very realistic. The strong prey on the weak and the fittest survive! Since the eldest, the second and the third can't beat the fourth, the throne can only be handed over to the fourth. This is natural, instead of meaninglessly tilting resources to support a group of helpless people. "

"I also hope that Longyao Company will continue to make persistent efforts, eliminate all competitors like a gust of wind sweeping away fallen leaves, first deal with the domestic market, then conquer overseas, become the only chip foundry giant in China, and finally become the only foundry giant in the world. The goal is not too ambitious, I believe you can do it! "

However.

Are the remaining chip foundry companies willing to wait for death?

Are you willing to let Longyao send someone to take over everything at a very low price?

Several OEM companies have thought about this idea. They raised the white flag to "surrender" to Longyao, offered all the factories, equipment, and talents, gave up 80% of the shares, reapplied to join the strategic alliance, and only asked Longyao to give them a way out. They will definitely make a new life in the future!

However, the reply from Longyao made them look green and red, and they were furious - they wanted factories, equipment, and talents, and the management must be replaced by people sent by Longyao.

The reason is simple: the brain determines the body, and if the body makes a fatal mistake, the brain must be replaced.

"Why replace us?"

"Don't you even give us a chance to correct it?"

"Too domineering! We are all shareholders. The management rights have been given up. We don't even have the right to speak and vote. We stand aside in everything. What kind of shareholders are we?"

"Just say everything and give it to them. Killing people is not enough! Paying compensation and ceding land is really too much!"

They felt endless humiliation, and their dignity seemed to be trampled on repeatedly.

However, they seem to have forgotten that a certain technology company in China, which was sanctioned and suppressed by a certain country, also enjoyed this kind of treatment.

Longyao Company is just copying the gourd and selling it now.

If you don't surrender, you will die.

If you surrender, the treatment will be even more humiliating.

What should we do?

Soon there were many concerns on the Internet about Longyao Company's monopoly of the foundry market.

"Longyao foundry is about to monopolize the domestic chip foundry market"

"Low-price dumping will not last too long. Once the Longyao monopoly era begins, foundry prices will skyrocket"

"Be wary of the harm caused by monopoly! ”

"The state must intervene. China's foundry market cannot be monopolized. At least three to five competitors must be retained"

It is said that in order to attract the attention of senior officials, Zhao Lujun, president of Huaxin International, went to many places and made appeals everywhere, hoping to attract attention and avoid the situation of Longyao's monopoly, which would be a disaster for China's chip industry.

But his appeal did not attract much attention.

Instead, it attracted a lot of ridicule on the Internet.

"Chip foundry is a fully competitive market, and there is no so-called monopoly."

"As long as foundry giants such as Sanxin Foundry and Titanium Collector are still there, Longyao is still far from monopoly."

"Brother Zhao, just give it a try. Does the monopoly have anything to do with your Huaxin International? Is it Ning Pei? When your company has the strength to compete with the first-tier international manufacturers, it will only lag behind Longyao Company's hard steel front. Feng’s strength, if you come out to discuss this issue again... let’s not embarrass yourself as a second-rate character.”

"Haha, you're a scumbag from elementary school with less than 60 points, but you don't know how confident you are to challenge a top student with 100 points. You can't get something in the exam room, but you still want the teacher to cheat on you and give you some extra points?"

"I think it doesn't matter if Longyao Company monopolizes the chip foundry market, because it's our company! It's better than being monopolized by foundry companies controlled by foreigners. If Longyao Company really increases prices significantly that day, our country will It is impossible to ignore it. Of course, this kind of thing is still far away. The dragon-slaying warrior has not yet turned into a dragon, so it is still early to worry about this kind of happiness. "

"I suggest Huaxin International surrender as soon as possible. Don't hold on any longer. Look at how your stocks have fallen. It's really uncomfortable to hold on to such a breath without dying."

"That's right, there is no shame in losing to one's own people, there is no shame in surrendering to one's own people. Put down the gun, stop resisting, the dumplings will be enough, the pork stewed with vermicelli will be enough."

But on December 1st.

Huaxin International made a decision that made countless people extremely angry and unacceptable.

It actually sold itself to a foreign company at an extremely low price, but it was not cheap for its own people!