Faced with unpredictable investment risks, American venture capital companies have become very cautious in their investment mentality and have stopped injecting capital into loss-making Internet companies.
The lifespan of an Internet company is measured by its consumption rate, that is, the speed at which it spends its existing capital. Many Internet companies have been depleted of funds on their books, cannot borrow funds from banks, and have to go through bankruptcy liquidation.
Support industries such as advertising and shipping have scaled back operations as demand for services falls.
Smart venture capital funds around the world have sold off Internet technology stocks on the Nasdaq market, and funds have begun to leave the United States and go to China and Southeast Asian countries and regions.
With the bursting of the Nasdaq Internet technology stock bubble, 73 Internet technology companies have filed for bankruptcy and liquidation so far. Investors are worried that the Internet companies they invested in will be bankrupt and liquidated, so they sell their stocks one after another. The bad news is amplified and the news is trembling. Buying orders dropped sharply.
On May 17, the Federal Reserve continued to raise interest rates by 0.25% despite the plummeting Nasdaq index, causing the Nasdaq market to fall by 1.95% that day. To make matters worse, the plunge triggered a series of chain reactions, and pessimism in the Nasdaq market spread in.
Short-selling institutions have predicted that the Nasdaq index will fall to 2,000 points. They predict that the U.S. GDP will show negative month-on-month growth in May, causing Greenspan to step down. Calls for the Federal Reserve to raise interest rates are rising. Faced with huge pressure from the economic downturn, the U.S. Department of Commerce GcA’s decision to apply for a large export order of US$1.6 billion requires even more caution.
Knowing the development trend of the global economy, the collapse of the Nasdaq index is irreversible. This year is a presidential election year. Vice President Er and California Governor B are making speeches everywhere for votes. The current Democratic government is facing the pressure of economic decline.
Sun Jian was not worried that the U.S. Department of Commerce would veto this semiconductor production line. Even if it was vetoed, pGcA would order from Nikon. Nikon was forced to refuse, and Guozhi Computer Company would entrust GZ-cx3 to TSMC for production.
A 180n process semiconductor production line purchased by TSMC from GcA is scheduled to be put into trial production in October this year.
The U.S. Department of Commerce only allowed GcA to export a 180n process semiconductor production line to pGcA after weighing the pros and cons.
This 180n process semiconductor production line will be put into trial production in November, only 2 months later than TSMC.
Due to the emergence of Dawn Toshiba Wafer Company (ttFAb) and pGcA Wafer Company (pGcAFAb), they accounted for nearly 70% of domestic wafer production. ttFAb now has two 6-inch wafers and 1u process technology, and one 8-inch wafer. wafer, 500n process technology, a 350n process technology semiconductor production line, pGcAFAb now has the country's first 8-inch wafer, 500n process technology, a 6-inch wafer, 800n process technology, an 8-inch wafer, 250n process technology, For a semiconductor production line with 8-inch wafers and 500n process technology, two wafer companies can outsource manufacturing, accounting for 60% of the wafer production in the domestic market.
pGcAFAb has become the largest wafer company in China and the most advanced wafer company in mainland China. Once this 180n process semiconductor production line is completed, the level of advancement will be on par with TSMC and Samsung Wafer Company.
Foxconn has built a factory in Pengcheng since 1988, but TSMC has not yet built a factory in mainland China.
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Bang bang...
On May 24, under the witness of Sun Jian, Yu Jianguo and others, Li Changjie and Adrian signed a formal agreement to purchase a 180n process semiconductor production line on behalf of pGcA and GcA respectively. Sun Jian also signed a formal agreement with Li Changjie and Ai Derian signed his name under his signature, and the audience burst into applause.
As the legal person and chairman of the two companies, GcA’s orders or expenditures exceeding US$50 million must have the signature of Vice Chairman Yu Jianguo, and orders or expenditures exceeding US$100 million must have the personal signature or telephone approval of Chairman Sun Jian. Only GCA's cFo Allen can admit that this is the company's financial principle formulated by Sun Jian.
Sun Jian receives the company's financial statements from Allen every week.
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"The U.S. economy is an important engine for world economic development, and the United States is also the center of global technology development. With the bursting of the Nasdaq Internet technology stock bubble, it is foreseeable that a large number of Internet companies will go bankrupt and liquidated. The decline of U.S. GDP is also inevitable, and the market Demand in all aspects will decrease, and the rapid development of the semiconductor industry is not sustainable. GcA must reduce unnecessary investments in the second half of the year and be prepared to live a hard life. The company's senior management must have a clear understanding."
Chairman Sun finally came to GcA. He will definitely call all directors to GcA headquarters to hold a board meeting to guide the company's development direction. This is responsible for all shareholders.
Five of GcA's 12 directors are from INtEL, Ib, tI, Ad and HP. They have made appointments in advance. All five directors came to GcA headquarters on time. They also like to listen to Chairman Sun's opinions very much and benefit from them every time. Quite frankly, no matter how busy I am, I will always find time to attend the board of directors. If I can't come, I will send a representative to attend.
"Mr. Sun, will the global demand for personal computers decrease?"
Vice Chairman Yu Jianguo, cEo Adrian, o Brody, cto Thompson, cFo Allen, cho Adonis and other directors were stunned. GcA achieved its best results in history last year. Although this year’s results are Not as good as last year, but not too bad either.
Amit, a director from Intel, raised his hand to ask a question. He is an Indian-American.
When American companies hold board meetings, directors raise their hands to ask questions when they have doubts. Everyone expresses different opinions. Sun Jian has long been accustomed to brainstorming and gains something from every meeting. It is not the case that the chairman and general manager of a domestic listed company speak one after another and then raise a question. A vote of hands and the board is complete.
In high-tech companies in Silicon Valley, many Indian Americans serve as senior executives of the company. It is difficult for Chinese Americans with low-key personalities to enter the senior management of the company. Most of them work as programmers and engineers.
"Mr. Amit, the growth in demand for personal computers in the United States will inevitably decrease, and Europe will also be affected. However, demand for computers in China will continue to grow. Overall, the global demand for personal computers will not decrease."
"Thank you Mr. Sun!"
Amit breathed a sigh of relief. The hidden richest man in the world is very low-key and never expresses his views on international politics and economy in public. AtIc sold out all the Intel stocks he held at a high level before March and has predicted the Nasdaq. Due to the bursting of the Internet technology stock bubble, Intel's stock price had plummeted 21% by yesterday's close, theoretically entering a bear market.
"Dean Thompson, how long does it take for the EUVLLc Alliance to successfully develop EUV?"
"I'm sorry, Chairman, I don't know either."
Thompson is not worried that Chairman Sun, who attaches great importance to research and development, will reduce GcA’s allocation to the EUVLLc alliance.
