Chapter 326: Spending Other People's Money to Do One's Own Things

Now it is in the counter-cycle of the semiconductor industry. To put it bluntly, the industry is sluggish. And for Toshiba, what is even worse is that Korea and Taiwan are desperately grabbing its market.

Just five years ago, Toshiba and a group of Japanese companies still occupied half of the global semiconductor industry. But today, its market share is only about 30%.

It seems that the share is not small, but this 30% market share is not occupied by Toshiba alone. Hitachi, NEC, Panasonic, Sony, etc., are also sharing a piece of the pie inside.

In addition, in Korea, manufacturers such as Samsung, Hynix, Hyundai, etc., are constantly grabbing Toshiba's storage market.

Samsung likes to play counter-cycle expansion the most, constantly increasing production capacity, recruiting more technical personnel, and rolling other competitors to death, which makes Toshiba very uncomfortable.

Samsung and Korea are grabbing Japan's storage industry, and Taiwan is grabbing Japan's semiconductor foundry. Now the Asian semiconductor industry is forming a three-legged situation.

Toshiba's flash memory plant in Singapore was originally losing money. Before Dongling High-Tech came up with U-disks, the storage industry's products that could really be taken out were hard drives. Now the total market of the global hard drive industry is only a few billion US dollars.

Originally, the storage industry was in a sluggish period, and Samsung was desperately expanding production, fighting a price war, and constantly grabbing market share. It was difficult for Toshiba not to lose money.

This time, when negotiating with Dongling High-Tech, Murakami Masatsugu racked his brains and finally thought of a negotiation strategy, which was Toshiba's flash memory plant in Singapore.

Toshiba's flash memory plant in Singapore does have a production line that can mass-produce more than 10,000 silicon wafers per month. The equipment is considered mainstream equipment in the industry, and there are also some engineers and trained skilled operators inside.

But it can't stand that it is not making money now, and is constantly losing money. Taking this flash memory plant as a chip, selling it to Dongling High-Tech, being able to become a chip for today's negotiation, and also being able to throw off the burden of losing money, and even earning a sum, Murakami Masatsugu felt that this strategy of his was simply killing three birds with one stone!

After Murakami Masatsugu reported his plan to Chuanxi Gang, he didn't let him wait long. Chuanxi Gang agreed to his plan and even expressed Toshiba's board of directors' appreciation for him.

The plan was basically carried out according to Murakami Masatsugu's expectations. Now that it was time to bargain, he certainly wouldn't be soft-hearted.

"Li Zong, you know that 120 million is simply impossible. If Dongling High-Tech builds such a flash memory production base from scratch now, even if it spends 200 million US dollars, it may not necessarily be built!

Not to mention the production line with stable production capacity adjusted and trained skilled operators!" Murakami Masatsugu's head shook like a rattle.

"190 million US dollars, Dongling High-Tech is willing to take over this flash memory plant in its entirety!"

"600 million US dollars. If Toshiba's flash memory plant is willing to sell to Samsung, I am afraid Samsung, Hyundai, and Hynix are absolutely willing to accept this flash memory plant."

"But, does Toshiba dare to sell to Samsung?"

Li Dongling and Murakami Masatsugu bargained constantly, but their mouths didn't stop. Regarding Murakami Masatsugu's talk of selling the flash memory plant to Samsung, Li Dongling didn't care at all.

Toshiba selling the flash memory plant in Singapore to Dongling High-Tech and selling it to Samsung are two completely different concepts.

Selling to Dongling High-Tech, Dongling High-Tech might threaten Toshiba in the future, but in the short term, at least within three to five years, Dongling High-Tech still cannot threaten Toshiba. Toshiba is a bit guarded against Dongling High-Tech, but doesn't need to worry.

But Samsung is different. Samsung and Toshiba have started to fight with bayonets in the storage industry, desperately expanding. Toshiba dares to sell the flash memory plant to Samsung, which is completely like an old birthday star eating arsenic, tired of living!

However, between the lips and tongue, the selling price of the flash memory plant also constantly dropped. The frequency of Li Dongling and Murakami Masatsugu opening their mouths also slowed down. Both sides were clear that the price was fast approaching the psychological price of both sides.

"290 million US dollars. This price is enough for Toshiba to recover the money invested in this flash memory plant, and even earn a sum. In the future, there is no need to invest funds for this flash memory plant again."

Hearing this quote, Murakami Masatsugu was a bit hesitant. This price was not low. Toshiba being able to sell the loss-making goods and recover the money that had been thrown into the water was already quite difficult.

"300 million US dollars. Toshiba's flash memory plant in Singapore can be sold to Dongling High-Tech for 300 million US dollars!"

"Deal!"

Li Dongling paused, then said directly, not spending any more saliva with Murakami Masatsugu.

"But this transaction requires Dongling High-Tech to require Toshiba to leave behind the production equipment, engineers, technicians, and skilled operators of the flash memory plant!"

"No problem!"

Murakami Masatsugu laughed and said. He didn't want to play any tricks with Dongling High-Tech this time. Now several flash memory plants under Toshiba are reducing production. Taking away the engineers of the Singapore flash memory plant, Toshiba has no use for them, and still has to pay money to raise them. If he wants to drive people away, he has to pay a sum of severance pay. Toshiba is not willing to do a losing business.

"The acquisition fee of 300 million US dollars, Dongling High-Tech requires payment in installments. The first batch Dongling High-Tech can pay no less than 80 million US dollars, and the remaining acquisition fee will be paid off within four years!"

Acquiring Toshiba's Singapore flash memory plant for 300 million US dollars is definitely expensive. This is beyond doubt. But Dongling High-Tech needs this opportunity, needs to use this opportunity to enter the industry. Even if it is a temporary loss, to be honest, Dongling High-Tech and Shenzhou Storage can accept it. Entering the industry and not entering the industry are almost two completely different concepts!

Taking out 300 million US dollars in foreign exchange acquisition funds at once, the Yanjing Foreign Exchange Department probably wouldn't be willing first. For Dongling High-Tech, the burden is also a bit heavy. Paying in installments over several years will not have such great pressure.

Of course, there is one more critical point. Li Dongling is not prepared to use the cash in Dongling High-Tech's account for this acquisition fee, but to borrow from banks in Korea, Siam, Malaysia, Singapore, and Japan!

Now borrowing money from these overseas banks, and then exchanging it into US dollars from local banks and taking it out, when Soros comes, the Korean won, Thai baht, etc., will basically start to plummet, and the exchange rate with the US dollar will depreciate by at least two-thirds!

That is, borrowing 100 million US dollars worth of Korean won from a Korean bank, and then exchanging it into US dollars. After two years, you only need to exchange 20-plus million US dollars into Korean won to repay this debt.

Being able to use the money of banks in Korea, Siam, Japan, etc., to do Dongling High-Tech's own things, why not do it?!

Murakami Masatsugu heard Li Dongling say that he wanted to pay this acquisition fee in installments, pondered slightly, and agreed.

Toshiba doesn't need to worry about Dongling High-Tech defaulting on debt or anything. If Dongling High-Tech really dared to play like this, Toshiba's big teeth would probably laugh off.

Dongling High-Tech can be said to have quite a few industries in Japan. Dongling High-Tech is the largest shareholder of Japan's Bandai company. Dongling High-Tech's industries in Japan, such as Xiaolingtong, digital cordless phones, U-disk patents, etc., if Dongling High-Tech doesn't repay the money, Toshiba can swallow all of Dongling High-Tech's industries in Japan. These industries added together far exceed 300 million US dollars.

"In the future, Shenzhou U-disk will be organized into Shenzhou Storage Company under Dongling High-Tech!"

"Chen Tao, the technical department will draw out a part of the manpower to enter the Shenzhou Storage department. Shenzhou Storage will be temporarily managed by the technical department!

In addition, select a part of the manpower to go to Singapore immediately to take over the flash memory plant, and must understand the technology of this flash memory plant at the fastest speed!"

As soon as Murakami Masatsugu left, Li Dongling called a group of Dongling High-Tech executives to his office.

Hearing that 300 million US dollars were used to take over Toshiba's flash memory plant and establish Shenzhou Storage Company, Hu Zhixian, Chen Tao, Gao Peng, and others couldn't help but be surprised.

But Hu Zhixian and others didn't have any rebuttal. Things Li Dongling had already decided had no meaning for them to question whether it was reasonable. Not to mention, since the establishment of Dongling High-Tech, Li Dongling hadn't missed a single time. They had even less reason to question. The influence of an invincible founder in a company is almost unimaginable!

"Old Hu, you need to work hard to run a trip to Hong Kong. Dongling High-Tech Hong Kong company and Ning's Trading Company will assist you in borrowing this acquisition fee from Korean and Japanese banks!

This loan must be a long-term loan. Even if the interest rate is a few points higher, it can be accepted. It must be a loan of at least three years or more!"

After Li Dongling deployed to a group of Dongling High-Tech executives, Hu Zhixian, Chen Tao, and others responded and left.

The next day, Li Dongling and Li Dongyue, along with Yang Zhi Gao, Wang Yan, and a group of people, rushed to the Hanxi Provincial Capital Airport, preparing to go to Yanjing.

And Dongling High-Tech and Toshiba also announced on the same day through the media that the two sides had reached a U-disk cooperation agreement, and Toshiba would officially launch its own brand of U-disks!

The entire storage industry was full of wailing upon hearing this. The five major U-disk manufacturers were also officially released: Dongling High-Tech, PNY, IBM, Philips, and Toshiba. In the future, the global U-disk industry will basically be controlled by these five major manufacturers, and it also cut off the opportunity for other manufacturers to reach out to U-disks!

(End of chapter) ===== CHAPTER 327 =====