Chapter 597 [ASML's Road to Survival]
After being angry, Pete Venick finally calmed down, and then called all the core executives of Asml company to hold an emergency meeting overnight, and deliberately avoided some of Asml's shareholders, such as Samsung, Intel, and directors stationed by companies such as Fujimoto.
"$25 million? The world's most sophisticated high-end lithography equipment sells this price? Is he crazy?"
"What year will it take for the Costa 100 billion in R&D costs to be recovered?"
“The quality is absolutely poor.”
In the conference room, several executives who learned the news were also very shocked. At this moment, they were talking incessantly.
Pete Venick said very distressed and helplessly: "This is not a quality issue. China's three aspects: large-scale production effect, supporting advantages and huge market, determine that the production cost can be so low without reducing quality. The Chinese people rely on this advantage to defeat international competitors. Have you forgotten the story of the 'balance bike'? They actually sold $160 per unit and had profits to make."
When this thing was first released, it was sold at a price of up to 50,000 US dollars. The person who bought it at that time should have a problem with his mind.
This is the embodiment of large-scale production, supporting advantages and large-scale markets, which transform into unparalleled international competitiveness. Many Chinese companies rely on these three magic weapons to be invincible in international competition, defeating one international competitor after another, thus allowing Chinese-made goods to be spread all over the world, and various countries are each other's largest trading partners.
In fact, asml company is very clear that lithography machines are monopoly + high-tech products, and they are the clearest of the production cost. Even if the asml company's own extreme ultraviolet lithography machine is sold for US$20 million each, it will be profitable, but it will not be so profitable. This is an objective fact, and all pure handicrafts are nonsense.
Intel and Fuji Electric have long calculated the production cost of extreme ultraviolet lithography machines, and the appraisal price given is about US$20 million, relatively reasonable. However, Asml company monopolized the equipment, and only he could build it, so he had the international pricing power. Even Intel and other companies had no choice but to be shareholders of Asml. They still had to pay so much money to purchase lithography machines.
Profit is not a core factor even if it has something to do with production costs and R&D costs. The core that really affects profits is international pricing power. Whoever controls the price will have profits.
As soon as the Purple Star lithography machine comes out, it means that Asml will lose its international pricing power for lithography machines and instead redefine its value by the Costa delle of the Blue and give it a new price.
The worst thing is that the Costa à la Côte d'Azur can even ignore the profits of lithography equipment. This is where Pete Venick feels desperate. The Costa à la Côte d'Azur generates $250 billion in a year. The profits of lithography equipment Luo Sheng may really not look down on it. He cares more about the strategic significance of lithography equipment to the entire Costa à la Côte d'Azur, rather than how much money this equipment earns.
Even if it was sold for $200 million per unit, the market would be more than $20 billion a year, which is less than one-tenth of the company's annual revenue for the Costa del Sur.
Don’t care about this profit, it does not mean there is no profit. Coast of Blue is a large group company. Luo Sheng never looks at the profit performance of a certain business segment of the company. It will be limited to a very small pattern, but rather looks at the overall profit performance of the entire group company.
Perhaps the development of Zixing lithography machine is a loss of money, but because of Zixing lithography machine's willingness, other businesses on the Costa delta have taken off and the company is more competitive. This is profit, but the profit is just reflected in other sections.
Obviously, mastering international pricing power is the fundamental.
Pete Venick suddenly said unwaveringly: "Everyone, Asml is experiencing the biggest crisis since the founding of the company. Therefore, I suggest and make a temporary proposal to the board of directors to fully open up the authorized cooperation of extreme ultraviolet lithography machines. We can sell the most advanced lithography machines equipment to Chinese manufacturers such as Huaxin International, to any desired customer, and lift all export restrictions."
Everyone was shocked on the spot.
The chief operating officer said directly: "Peter, Asml is an international core member of SIA (North American Semiconductor Industry Association). Sia will not agree, and I am not optimistic about this decision."
Pete Winick smiled bitterly: "I don't want to, but Asml is about to face an existential crisis and may go bankrupt at any time. The stock price will inevitably collapse again tomorrow, and we have no choice."
As he said that, Pete's expression changed and then said unhappily: "Do you know why I deliberately avoided the directors sent by external shareholders? Weaving Jiji Electric, Samsung, Intel and other things, maybe they have begun to discuss the possibility of abandoning Asml."
No one's money is not blown by strong winds. The total R&D cost of Asml Extreme UV lithography machine is about US$20 billion. Samsung, Kuaiji Electric, Intel has funded nearly 6 billion euros, and it also has to pay to buy one, more than US$100 million.
On the Coast of Blue next door, the Purple Star lithography machine has already instantly sold asml products on the exposure system, and it is still so cheap. What’s more important is that this can ease the current conflict between the two parties, save procurement costs and earn money to the Greater China market. How to choose this transaction? As a capitalist, you can vote with your feet.
No matter how strong a business alliance is, it can easily be defeated as long as there is enough profit.
Samsung, Kuaiji Electric, Intel and other semiconductor manufacturers are indeed shareholders of Asml, but in fact they have little interest in participating in shares. At the size of Asml, these giants are less than three points full and have to pay for it, and they don’t even look down on this profit at all.
In a sense, it is forced to participate in the shares. The reason why it is the shareholder of Asml is because the company stipulates that if you want to buy their most advanced products, you must participate in the shares. Intel and other semiconductor giants have participated in the shares for lithography machines, rather than for the little profits of Asml. This is essentially different. Asml itself wants to bind these giants and let itself monopolize high prices for a lifetime.
Pete thought about it carefully and said again: "Sia will definitely try its best to obstruct it. The game here is quite complicated. We must clarify the key nodes in order to find the real way to survive."
Who in the outside world would have thought that even a monopoly high-tech company like Asml had already said something like "survival".
At this moment, Pete's mind suddenly became extremely clear. He looked around everyone and said calmly: "First of all, the semiconductor industry will enter a reshuffle situation. It's only a matter of time. The main contradiction is the contradiction between Luo Sheng and Sia. Asml does not have an absolute monopoly position in the semiconductor equipment link. If he is indifferent or makes a decision, he is likely to become the first victim of the game between them at the negotiating table."
Everyone nodded repeatedly, and a core executive at the meeting asked: "But the problem is Pete, your decision just now is not equivalent to pushing the company to the opposite side of Sia? Chinese people are not good at it. Maybe we turn against Sia, and the Chinese people will treat us kindly because of this, but I think this is just a short-term. When the limelight comes, they come and stab us with their backhand. By that time, Sia will not only not save us, but will come up to make up for it to punish our betrayal."
The mall is like a battlefield, and it is a war without gunpowder. It is a turbulent and turbulent question. It is the primary issue to figure out who is the truly reliable collaborator and who is the real competitor. Yes, it is a collaborator, not a friend. Although it is a friend in the mall, no one will really believe that there will be real friends on this market, and at most it is a collaborator.
Peter said: "Submitting to Luo Sheng does not mean betraying Sia. This decision is to raise the importance of Asml in this turmoil and make Sia value us."
As soon as these words were spoken, everyone present understood the boss's intention.
This is to use the Costa 1 as a bargaining chip to negotiate with Sia before negotiating with the Costa 1. This chip is if you Sia dare to abandon me asml, I will dare to jump right away without hesitation.
On this issue, the enemy's enemy is a friend.
Obviously, Pitt believes that SIA has a high probability of compromise at this time, because it would be fine if Asml's move turned around. The key is that it will get worse and worse after opening this hole. What about Japan's Shin-yue Chemical? What about Samsung? These international members of SIA cannot have no idea when they see Asml's decision.
What's more, multinational groups like Samsung themselves have in-depth cooperation with the Costa del Azure.
The entire industry is facing a reshuffle. Some people have broken the rules of the game and the future is full of uncertainty. At this time, everyone will panic and will find a way out of guarantee.
This is what Sia is most afraid of and reluctant to see. The team is disintegrated by Asml. If it is not handled well, it will face a domino-like collapse and will not be able to hold on to it.
The core executives at the meeting couldn't help but nodded repeatedly. It turned out that they were not really going to "subdate to the enemy", but put pressure on Sia on the condition of "subdate to the enemy". After establishing that Asml will not become the first victim in this major reshuffle, they will then negotiate with Luo Sheng or the Costa delle.
Obviously, in the current situation where the industry is about to be reshuffled, asml company cannot survive on its own. Just relying on asml itself to negotiate with Luo Sheng will only be humiliated because there is no bargaining chip. Why do I want to cooperate with you? You have no product advantages and market size, so I will not be better if I eat you directly?
I can't even pay back my mouth.
So in the end, we have to rely on sia and Americans.
The temporary emergency meeting held by Asml company late at night reached a specific matter in less than half an hour. The next morning, Pete Venic flew to China on a special plane.
Although this action is shameless, Pete Venick could also predict that his action would probably become a hot topic of news that day. It is certain that he was ridiculed and scolded as a "traitor". The Costa ça just announced the purple star lithography machine, and you ran over so diligently the next day. The arrogant and cold side of the previous one was in sharp contrast with it.
It's really a question of being scolded on both ends.
Pete doesn't want to be so humiliated, but there is no way. Survival is important. If his life is gone, he still needs a p-face.
Foreigners are quite realistic about this, no, it should be said to be very realistic.
The purpose of Pete's trip is not to really reach specific results, but to do it for Sia to see. The key is one word - fast.
The action must be fast, and it will be worthless if it expires.
...
Chapter completed!