Chapter 853 Memory War (2)
April 27, 1994.
Samsung Semiconductor, a subsidiary of Samsung Group, announced that it will officially launch the .8mb memory stick of Pangu platform, with a factory price of only US$30, which is about US$10 lower than the normal factory price of Pangu compatible machine hardware market. Compared with the retail price, it is even cheaper than US$20.
Samsung's cheap 8mb memory stick has quickly attracted the interest of Dell, HP, Sony and other manufacturers. Although the 8mb memory stick has become outdated in high-end configuration, major compatible machine manufacturers will still launch some entry-level products with prices below $500 for shipment and profits. These entry-level products are very sensitive to hardware costs, and the profits are basically squeezed out by lower hardware purchase prices.
Therefore, although Samsung has just begun to produce memory sticks that meet the technical standards of Pangu compatible machines, after passing the compatibility test, it quickly obtained a large number of orders from whole machine manufacturers.
As Samsung began to launch the Pangu computer platform Dram, Japanese memory manufacturers Hitachi, nec, Mitsubishi, and Toshiba announced that they had lowered the price of Pangu platform memory sticks.
After entering early May, the 8mb memory price of Pangu platform was further reduced to US$30.
...
After Samsung entered the memory market of Pangu compatible machines, the new entrepreneurial semiconductor company responded quickly, not in a price war with Samsung in the Pangu computer market.
Because most of the chip products produced by Xinxing Semiconductor Company and Lishan Semiconductor Company were ordered by Pangu Computer Co., Ltd., and even if Samsung's memory sticks are cheaper, they cannot obtain orders from Pangu Computer Co., Ltd. for the time being.
Therefore, Samsung's memory can only be sold to Pangu compatible machine manufacturers and some individual consumers. It has extremely limited impact on the market share of the two manufacturers, Xinxing Semiconductor and Lishan Semiconductor.
Even so, Lin Qi could not allow Samsung to unscrupulously extend its tentacles to the Pangu computer market without making corresponding reactions.
Because those who despise Samsung semiconductor words will soon pay the price. You should know that in the later storage market, Samsung semiconductor has carried out round after round of price wars and exclusion of global memory chip manufacturers. In the 1980s, Japanese manufacturers almost monopolized two-thirds of the memory stick market, and by the 1990s, Japanese manufacturers still had more than 40% of the market share of memory chips. However... After the financial crisis in 2008, the entire Japanese memory manufacturers merged into a Erbida, Hitachi, nec, Mitsubishi, etc., which were supposed to be giants in the semiconductor industry, and formed an Erbida company in groups. As a result... Erbida still went bankrupt in miserably.
Under Samsung's subsequent rounds of price wars, memory chip manufacturers went bankrupt in large numbers, and the Japanese manufacturers that originally occupied half of the market were even swept out. In the market, there were no memory sticks and memory particles of Japanese manufacturers. The global memory particle manufacturers, from more than 50 in the 1980s, gradually less than 20 left in the 1990s. Later, the number of memory particle manufacturers in Europe and Japan was completely wiped out, leaving only one old storage giant, Meiguang. However, Korean manufacturers Samsung is the first, sk Hynix is the second, and Meiguang's market share is even third.
The memory pellet market is similar to the later flash memory market. In the flash memory pellet market, there are still only four companies that can independently produce original particles. In addition to Samsung, Hynix and Micron, the only remaining Japanese manufacturers' flash memory pellet fruit is Toshiba.
In the later memory market, because it is usually the winner, the ddr4 memory stick era, the lowest memory stick of 8gb was RMB 160, and then, after half a year, it soared to more than RMB 1,000. Even if Moore's Law gradually failed, traditional industrial products should have developed as time goes by, and the process is becoming more mature and the cost is getting lower and lower, so the product price should also drop. However, after the memory stick entered the monopoly period, Samsung and other companies nakedly proved to the market that market monopoly is very unfavorable to consumers.
When seizing the market, Samsung can sell products at a loss. However, after monopolizing the market share, Samsung will do whatever it wants for profit and raise prices crazy.
It is precisely because of knowing that Samsung is terrible that Lin Qi is absolutely unwilling to see that Samsung's market share in the semiconductor industry has further increased.
On the surface, the technical content of products such as memory and flash memory should be lower than that of high-end products such as CPU. Because there are many manufacturers, the profit is not very high. However, once the market is monopolized by a few manufacturers, huge profits can really be generated.
...
"Boss, don't worry, the sniping of Samsung semiconductors is not technically difficult, and it doesn't even affect the company's strategic development." Hu Weiwu said after receiving a call from Lin Qi.
The process technology currently used in the memory market does not require the most advanced process process. The 1-micron process process is outdated for CPU manufacturing. However, it can be modified to produce memory sticks of 8mb~16mb.
Originally, the different markets of newly-enterprise semiconductors and Samsung developed in a staggered manner. There was little communication, so it was a long time when the waters of wells were not interfered with. However, now, with the opening of Pangu computer technology standards, there is a certain degree of competition in the memory market.
Although the competition is not fierce now, if... without restraint, Samsung's impact on the market share of memory, flash memory and other products of newly-enterprise semiconductors will become increasingly large.
Therefore, after Samsung began to launch the Dram memory stick for the Pangu compatible machine market in late April, in early May, the newly-started semiconductor began to prepare for targeted containment.
On May 5, Xinzhan Semiconductor announced that it had officially launched a Dram memory stick.8mb PC memory stick in the PC compatible machine market, which was only sold for US$35, and a 16mb PC platform memory stick, which was priced as low as US$68.
Hu Weiwu, general manager of Xinxing Semiconductor Company, said: "For a long time, users of Pangu computers can enjoy a lower hardware price. PC users need to use twice as much price than Pangu computer users to buy Dram memory of the same capacity and specifications. Traditional storage manufacturers in the PC market are overcapacity, and they would rather give the excess capacity to Pangu computer users than lower the price to promote the memory stick price in the PC market. Because, the PC market and Pangu
There is a huge price difference between Dram memory prices in the computer market. The 8mb memory stick in the Pangu computer market is only $30 to $40, but the price of the PC market is as high as $100, which is very unreasonable. Therefore, we decided to sell the most cost-effective memory stick in the PC compatible machine market to users on the PC at a price of $35. Gradually, the unreasonable price difference between the memory stick in the PC market and the memory stick in the Pangu market is gradually smoothed out!”
Obviously, Hu Weiwu's high-profile declaration is more shocking than Samsung's semiconductor's entry into the memory market of Pangu compatible machines. Because, although the memory sticks launched by Samsung in the Pangu market are very cheap, the cheapness is not yet sold at a 35% discount.
However, the memory stick of the PC platform launched by the newly entrepreneurial semiconductor company really refreshed the price to the lowest price in history. The memory stick with a market price of $100 per piece was killed to $35 per piece...
Chapter completed!