Global Monopoly of Technology

Pete Wernick finally calmed down after being angry, and then called all the core executives of ASML to hold an emergency meeting overnight, and deliberately avoided some ASML shareholders, such as Samsung, Intel, and TSMC. directors.

"$25 million? The world's most sophisticated high-end lithography equipment sells for this cabbage price? Is he crazy?"

"How long does it take for the Côte d'Azur to recover $100 billion in R\u0026D costs?"

"Absolutely poor quality."

In the conference room, several executives who learned the news were also very shocked.

Pete Wernick said very distressed and helpless: "This is not a quality issue. The three aspects of Huaguo's large-scale production effect, supporting advantages and huge market determine that the production cost can be so low without reducing the quality. The Chinese people beat the international competitors with this advantage, have you forgotten the story of the 'balance bike'? They even sold a 160-dollar bike and still made a profit."

When this thing first came out, the price was as high as 50,000 US dollars, and the people who bought it at that time must have a problem with their minds.

This is the embodiment of large-scale production, supporting advantages and large-scale market, which translates into unparalleled international competitiveness. Many enterprises in China rely on these three magic weapons to be invincible in international competition, defeating international competitors one after another, thereby making The goods made in China are all over the world, and various countries are the largest trading partners with other countries.

In fact, ASML is very clear inside that the lithography machine is a monopoly + high-tech profiteering product, and they know the production cost of itself. There is profit to be made, but it will not be so lucrative. This is an objective fact. Any pure handicraft is nonsense.

Manufacturers such as Intel and TSMC have already calculated the production cost of the EUV lithography machine, and the evaluation price given is about 20 million US dollars, which is relatively reasonable, but ASML has monopolized the equipment, and only he can build it. It also holds the international pricing power. Even companies such as Intel have no choice but to pay so much money to purchase lithography machines.

Profit is not the core factor even if it is related to production cost and R\u0026D cost. The core that really affects profit is international pricing power. Whoever controls the price will have profit.

As soon as the Zixing lithography machine comes out, it means that ASML will lose its international pricing power for the lithography machine, and will instead be redefined by the Cote d'Azur and given a new price.

The most terrible thing is that the Cote d'Azur can even ignore the profits of lithography equipment,

This is what makes Pete Wernick feel desperate. The Cote d'Azur generates US$250 billion in revenue a year. Luo Sheng may really ignore the profit of lithography equipment, and he cares more about lithography equipment. Strategic significance for the entire Cote d'Azur, not how much money this device is expected to make.

Even if it is sold for 200 million US dollars, the market is only more than 20 billion US dollars a year, which is less than one-tenth of the company's annual revenue for the Cote d'Azur.

I don't care about this profit, it doesn't mean there is no profit. Cote d'Azur 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 small pattern, but look at the entire group. The company's overall profit performance.

Maybe the research and development of Zixing lithography machine is a money-losing product, but because of the willingness of Zixing lithography machine, other businesses in the Cote d'Azur have taken off, and the company has become more competitive. Just came out.

Obviously, mastering international pricing power is fundamental.

Pete Wernick said suddenly and unswervingly: "Everyone, ASML is going through the biggest crisis since the company was founded, so I propose to the board of directors to make an interim proposal to fully open the authorization and cooperation of EUV lithography machines. We can put the most advanced The lithography equipment is sold to Chinese manufacturers such as Huaxin International, to any customer who wants it, and all export restrictions are lifted."

The crowd was startled,

The chief operating officer said directly: "Pete, ASML is an international core member of SIA (North American Semiconductor Industry Association). SIA will not agree. I am not optimistic about this decision."

Pete Wernick said with a wry smile: "I don't want to either, but ASML is about to face an existential crisis, it may go bankrupt at any time, and the stock price will collapse again tomorrow. We have no choice."

Speaking, Pete's face changed, and then he said unhappily: "Do you know why I deliberately avoided the directors assigned by external shareholders? TSMC, Samsung, Intel, maybe they have already started to discuss the possibility of abandoning ASML internally. "

No one’s money comes from the wind. The total R\u0026D cost of ASML EUV lithography machine is about 20 billion US dollars. Samsung, TSMC and Intel have funded nearly 6 billion euros, and they have to pay for it. One 1 billions of dollars or more.

Next door to the Riviera, the Purple Star lithography machine has already killed ASML's products in the exposure system, and it is still sold so cheaply. More importantly, this can ease the current contradiction between the two parties, save procurement costs and earn the Greater China market. This is How to choose a business, as a capitalist, you can vote with your feet.

No matter how strong a business alliance is, as long as the interests are sufficient, it can be easily defeated.

Semiconductor manufacturers such as Samsung, TSMC, and Intel are indeed shareholders of ASML, but in fact, they have no interest in participating in shares at all. At the scale of ASML, these giants are not full enough to eat, and they have to share. I don't care about this profit.

In a sense, they are forced to participate in shares. The reason why they are shareholders of ASML is because, according to ASML's regulations, if you want to buy their most advanced products, you must participate in shares. Semiconductor giants such as Intel participate in shares for the lithography machine, not for the sake of the lithography machine. There is an essential difference between ASML's shareholding at that point of profit. ASML itself wants to bind these giants and let itself eat a lifetime of monopoly high prices.

Pete thought about it carefully and said again: "SIA will definitely try its best to block it. The game here is quite complicated. We must understand the key nodes in it before we can find the real way to survive."

Who would have thought that even a monopoly high-tech company like ASML would have said something like "survival" at this moment.

At this moment, Pete's mind suddenly became very clear, looked around everyone and said calmly: "First of all, the semiconductor industry will enter a situation of reshuffling, it is only a matter of time, the main contradiction is the contradiction between Luo Sheng and SIA, ASML does not have an absolute monopoly in the semiconductor equipment sector, and if it is indifferent or makes the slightest mistake in decision-making, it is likely to become the first victim of their game at the negotiating table."

Everyone nodded again and again, and one of the core executives at the meeting asked: "But the problem is Pete, doesn't your decision just push the company to the opposite side of SIA? Chinese people are not good at it, maybe we turn against SIA, Chinese people We will be graciously entertained because of this, but I think it is only short-term, and when the limelight passes and stabs us with a backhand, SIA will not only not save us, but will come to punish us for our betrayal."

The shopping mall is like a battlefield. This is a war without gunpowder smoke. It is confusing. It is the first problem to find out who is a real and reliable partner and who is a real competitor. Yes, it is a partner, not a friend. In the market Although they say friends, no one will really believe that there will be real friends on this board, at most collaborators.

Pete said: "To be soft on Luo Sheng does not mean to betray SIA. This decision is to increase the importance of ASML in this turmoil and make SIA pay attention to us."

As soon as these words came out, everyone present understood the BOSS's intentions.

This is to use the Côte d'Azur as a bargaining chip to negotiate with SIA before negotiating with the Côte d'Azur. This bargaining chip is that if your SIA dares to abandon me ASML, I dare to jump right back without any hesitation.

In this matter, the enemy of the enemy is the friend.

Obviously, Pitt thinks that SIA has a high probability of compromise at this time, because ASML’s move can be reversed by itself. The key is that it will get worse and worse after opening this hole. What about Japan’s Shin-Etsu Chemical? What about Samsung? These international members of the SIA saw that ASML's decision could not possibly be without a thought.

What's more, these multinational groups such as Samsung themselves have in-depth cooperation with the Côte d'Azur.

The entire industry is facing a situation of reshuffling. Some people have broken the rules of the game, and the future is full of uncertainty. At this time, everyone panics and will find a guaranteed retreat.

This is what SIA is most afraid of and most unwilling to see. The team that has been engaged by ASML is disillusioned, and if it is not handled well, it will face a domino-style collapse, and it will not be able to pull it back by then.

The core executives at the meeting couldn't help but nodded again and again. It turned out that they did not really want to "fall in the enemy", but put pressure on SIA on the condition of "falling in the enemy", establishing that ASML would not become the first victim in this big reshuffle. After that, negotiate with Luo Sheng or Côte d'Azur.

Obviously, in the current situation where the industry is about to be reshuffled, ASML can't survive on its own. Just relying on ASML to negotiate with Luo Sheng will only be humiliated, because there is no bargaining chip, why should I talk to others? do you cooperate? You don't have both product advantages and market size. Wouldn't it be better for me to eat you directly?

Not even mouthed.

So in the end, we still have to rely on SIA, we have to rely on Americans.

The temporary emergency meeting held by ASML late at night reached specific matters in less than half an hour, and Pete Wernick took a special plane to China in person the next morning.

Although this move is very shameless, Pete Wernick can also predict that his move will become a hot topic in the news that day. It is certain to be ridiculed and abused as a "traitor". Cote d'Azur just announced the Purple Star lithography machine, you The next day, he ran over so diligently, and the arrogant and cold side from before was in stark contrast to it.

It's really getting scolded from both ends.

Pete didn't want to be so humiliated, but he couldn't help it, his life was the most important thing.

This point is quite realistic for foreigners, no, it should be said to be very realistic.

The purpose of Pitt's trip is not to really negotiate specific results, but to show it to SIA. The key is one word - fast.

The action must be fast, it is worthless when it expires.

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