Chapter 288: The Dispute Between the Prefecture and the Court

TFT LCD panel technology only began to fully mature when it reached the fifth and sixth generations, allowing for large-scale mass production. By the seventh generation, it had completely driven televisions and computer monitors with those big-butt cathode ray tubes, as well as STN screens, out of the mainstream high-end display screen industry.

It was also at that time that the smartphone era arrived, and the combination with LCD panels became an invincible killer weapon. Since then, mobile phones, computers, tablets, car display screens, etc., have all begun to enter the LCD era!

So when hearing Miao Xuguang say that Dongfang Optoelectronics was going to start R&D from the first-generation TFT LCD panel, Li Dongling had no disappointment, and not even much surprise.

What kind of urine are Japanese and Korean companies? They are famous for being unreliable and going back on their word. There are simply too many companies that have been pitted by them. It is not just domestic ones that have been pitted; how many have been pitted by them in countries like Siam and Malaysia?

If you really place the hope of Dongfang Optoelectronics' LCD panels entirely on Japanese and Korean companies, you will definitely be pitted to the point of being bruised and swollen in the end.

And Dongfang Optoelectronics independently developing TFT LCD panels, although there is a generation gap with Xia Pu and Samsung, as long as the generation gap is controlled within one or two generations, there is hope for catching up. The most fearful thing is not even seeing the other party's taillights, which will make people feel desperate.

"Dongfang Optoelectronics' TFT LCD panel department should develop new-generation panel technology at the same time as producing a generation of panel production lines in the future!"

"Before the end of next year, we must develop the first-generation TFT LCD panel production line, start the R&D of the second-generation LCD panel, reserve the technology of the third-generation panel, and the generation gap with LCD panel companies like Xia Pu, Samsung, LG, and Hyundai cannot be widened. We must retain the opportunity to catch up and even surpass their technology! In addition, every time Dongfang Optoelectronics develops a generation of LCD panel production lines, it must occupy the absolute market!" Li Dongling instructed Miao Xuguang.

In the previous life, how did BOE fight with companies like Xia Pu and Samsung? In the early stage of BOE, the technology was indeed not as good as Xia Pu and Samsung, but it fought steadily. Although it lagged behind by one or two generations of technology and could not get high-end panel orders, it grabbed all the mid-to-low-end markets!

Xia Pu, Samsung, and LG might not have cared about the low-end at first, and even abandoned the mid-range panel market. After all, the profit was too low, and the investment in panel R&D was too large. They must do high-end screens with the highest profit, and intentionally or unintentionally left the low-end and even mid-range panel market to BOE.

Wang Dongsheng could imagine the scene when BOE joined forces with Dongfang Optoelectronics to fight a price war in the screen industry with Xia Pu and Samsung. On one hand, they had to do R&D, and on the other hand, they had to invest huge funds to build factories to produce screens. Finally, the screens produced had to be fought in a price war. Thinking about it made his head ache.

If you can't win, there is only one other way: after being beaten down, announce bankruptcy and sell yourself, or be acquired by a deadly rival. Besides these two ways, there is no other way.

Without chips and screens, no matter which industry Dongling Gao Ke enters in the future, it will be controlled by others. If Dongfang Optoelectronics cannot produce them, then Dongling Gao Ke will have to go down to the field itself!

Wang Dongsheng just sighed. In the previous life, he could lead BOE to fight with Japanese and Korean screen panel manufacturers for so long in adversity. If he were not a person with a tough character, he would have retired long ago.

"In this world, if you want to be a winner, how can you get it easily? In the screen panel industry, Dongfang Optoelectronics must definitely do it!"

Li Dongling said, anyway, Dongling Gao Ke must definitely engage in the screen industry. Screens and chips are not like other industries. Other components can be used if they are barely enough. In these two industries, if you don't have them, you don't have them. Once you are strangled by companies like Samsung and Qualcomm, you can really be beaten to the bone and marrow, and sucked dry of the last drop of blood.

Hearing this, Miao Xuguang breathed a sigh of relief. Li Dongling's words were basically support for him and agreement with the plan he proposed.

When the pace slowed down and began to be caught up by BOE, the game was over. First, Xia Pu was played to death, and the brand was sold. After Samsung mixed in the high-end screen for decades, it was also caught up.

But when BOE completely occupied the mid-to-low-end panels and impacted the high-end screen market, companies like Samsung and Xia Pu had a sense of crisis. But in the mid-to-low-end panel market, BOE had absolute right to speak by virtue of cost and scale, and Xia Pu and Samsung could not grab it at all.

The key is that Wang Dongsheng cannot see the signs of the end of this screen war. Once involved in this arms race in the screen industry, there is no qualification to exit. If you want to exit, there are only two ways: either the winner takes all, defeats all opponents, and grabs more than half of the global screen industry market!

Samsung's proud counter-cyclical, that is, expanding significantly when the panel industry is sluggish, rolling peers to death, and then occupying the entire market, also sat on wax when encountering BOE, because BOE played this trick more skillfully than Samsung, and was bolder!

Finally, Xia Pu and the others were forced to desperately develop the high-end market. Although the profit of high-end screens is high, the mid-to-low-end panel market was grabbed by BOE, and they had no way out at all. They could only grit their teeth and climb up all the way, because the old six behind their butts was chasing too fiercely.

Wang Dongsheng sighed, "If we do this, then this war will become a war of attrition. The R&D funds and costs that Dongfang Optoelectronics and BOE need to invest are really too high!"

The situation of BOE in the previous life was much worse than it is now. Now BOE has the existence of Dongfang Optoelectronics, and Dongling Gao Ke can provide them with a lot of orders and R&D funds. Life is much better than in the previous life.

"Hoo!"

Clenching his fists, he smashed his fist on the desk, Wang Dongsheng said in a deep voice, "BOE will follow!"

"It's just that with the current technical reserves of Dongfang Optoelectronics plus BOE, if we want to catch up with Xia Pu and Samsung's LCD panel technology, I'm afraid it will take several years of effort to have a chance!"

Even if you want to fight for your life with the other party, you can't beat them if you can't beat them, especially in technology. This kind of gap is not a problem that can be solved by shouting a few words. There is no shortcut to technology. Latecomers must have walked the road that the former walked to have a chance to catch up and even surpass the other party.

Miao Xuguang was also silent when he heard Wang Dongsheng's words. There is no way. Even if Dongfang Optoelectronics can dig more people, it is impossible to dig away all the technical personnel of Xia Pu, Samsung, LG, and Hyundai, and the core technical big shots are even more strictly guarded by the other party.

Even because of digging people, manufacturers like Xia Pu, Samsung, and LG have already fought many lawsuits with Dongfang Optoelectronics. Just for the liquidated damages paid for those technical personnel dug over, as well as various lawsuit compensation, it has already reached hundreds of millions of US dollars. If it were an ordinary small company, it would have been unable to hold on. Now, among global panel peer companies, some companies have even started to let technical personnel sign non-compete agreements, explicitly prohibiting them from joining Dongfang Optoelectronics. In the future, the difficulty of Dongfang Optoelectronics digging people will definitely increase further.

"Heaven helps those who help themselves. As long as Dongfang Optoelectronics does well, I believe there will be a chance!"

Hearing Li Dongling's words, which carried a little meaning, Wang Dongsheng couldn't help but have some doubts, not knowing what Li Dongling meant.

In fact, for Dongfang Optoelectronics, whether it can dig people and get the latest LCD screen technology or even production lines, Li Dongling is not too worried.

At the latest by the year after next, Soros will come to cut leeks with Huaerjie. At that time, Japan and Korea will both be unlucky. Li Dongling didn't think about taking food from the tiger's mouth on Huaerjie, grabbing banks, insurance, energy, securities, giant companies, etc., in Japan, Korea, and other places, but moving a few LCD panel production lines from Samsung, Hyundai, and LG, and pulling these technical big shots of panel companies down from the rooftop and inviting them to the country, is it not too much?!

At that time, Xia Pu, Samsung, LG, and Hyundai will all be in jeopardy, selling industries everywhere to get through the difficulties. Dongfang Optoelectronics kindly saves them in times of distress, and collecting a little interest should be reasonable. After all, US dollars do not distinguish between camps. Are Huaerjie's US dollars US dollars, and the US dollars in Dongfang Optoelectronics' hands are not?!

As for Dongfang Optoelectronics independently developing the first-generation TFT panel production line now, it is definitely beneficial. At least there is technical reserve. Even if new production lines can be bought back in the future, if Dongfang Optoelectronics' personnel cannot learn, wouldn't it become a joke.

In the future, Dongfang Optoelectronics needs to rely on itself. The technology brought back from Japan and Korea can only be a catalyst, allowing Dongfang Optoelectronics to shorten the gap with Japanese and Korean panels. The two sides stand on the same starting line. You can cut their leeks once, but you can't cut them all the time.

After reaching the fifth-generation LCD screen, the sixth, seventh, eighth generations, and even transitioning to OLED screens, AMOLED, there will be no wool for Dongfang Optoelectronics to pluck. It must rely on itself. At that time, I am afraid that other manufacturers will follow behind Dongfang Optoelectronics, touching stones to cross the river...

Dongfang Optoelectronics did not promote it with great fanfare, but after Li Dongling arrived, Dongfang Optoelectronics' two major panel business departments, STN and TFT, still started in full swing. These two major departments, one is the present of Dongfang Optoelectronics, and the other is the future of Dongfang Optoelectronics.

The entire Dongfang Optoelectronics began to be busy for a while, and manufacturers in the panel industry probably wouldn't think that today would be the beginning of the global panel war!

Yanjing, in the conference room of Microsoft's office building, another fierce dispute was ushered in.

Du Jiabin, as the president of Microsoft Greater China, sprayed angrily at Walter, the chairman of Greater China in front of him, "You don't understand the mainland market at all. Seattle sending you here is simply a disaster!"

"So, are you questioning the decision of President Bill Gates and the Microsoft Board of Directors?" Walter was dressed as a typical American professional manager elite, with office struggle skills fully filled. How could someone like Du Jiabin, who came from a technical background, play tricks better than an old slicker like him?

Directly using a trick to divert the disaster, pulling the tiger skin to pull the big flag, made Du Jiabin hold the subsequent words back into his belly.

Du Jiabin was somewhat helpless and aggrieved. Since he took office as the president of Microsoft Greater China, this kind of dispute had never stopped. In the final analysis, it was still Microsoft's "prefecture and court dispute" in the mainland!

Microsoft is collectively referred to as the Greater China market in the mainland and Asia, but in reality, it has two operating systems. One manages the mainland market, and one manages 12 branches in more than a dozen markets such as Hong Kong, Treasure Island, Singapore, Malaysia, etc., managing more than 7,000 employees and 20,000 large and small partners.

But this system has a BUG. Like Du Jiabin, who is the president of Greater China in name, he can actually only manage the mainland market, while the overseas market is managed by Walter, the chairman of Greater China.

This involved the problem of buck-passing. Who manages whom, and whether Walter is qualified to point fingers at Du Jiabin's mainland market, is the most core problem. In the future, the problem that has plagued Microsoft in the domestic market for more than ten years is this. The prefecture and court dispute between Microsoft Mainland and Microsoft Greater China will continue.

(End of chapter) ===== CHAPTER 289 =====

(End of this chapter)