Chapter 597
Chapter 597
At this time, on the other side of the ocean.
In the office building of the Chip Alliance headquarters.
Wilson, the president of the alliance, and the alliance members in the semiconductor industry.
During this period, through various channels, they have been paying attention to the progress of Longguo’s research and development of lithography machines.
Therefore, at this time, the alliance members are also watching the military interview live program of the Bureau Chief.
And when they heard the Bureau Chief repeatedly say that Longguo’s decision to develop a 10nm lithography machine was purely forced.
If the West cancels the “chip restriction order” now, Longguo will continue to implement the economic concept of “it’s better to buy than to make”.
The executives of the companies in the Chip Alliance, one by one, suffered heavy losses due to unsalable products.
Immediately, the director’s heartfelt speech resonated deeply.
Richard White, the president of Qualcomm, angrily pounded the table and cursed:
“Those guys on Capitol Hill who did nothing are a bunch of selfish bastards!”
“They are enjoying our taxpayers’ money while doing things that seriously damage our interests!”
“If it weren’t for this damn chip restriction order, we would have lost Longguo, a major customer.”
“How could the chips we produced face a sluggish sales situation like today?”
Richard White’s angry voice had just fallen.
Zachary Ross, the president of Intel, who was blond and blue-eyed and sitting in front of the member seat, also echoed indignantly:
“I agree with Mr. White’s remarks!”
“The emergence of hydrogen-oxygen water engines has only ruined the interests of those oil tycoons, but what does this have to do with our semiconductor industry?”
“But the shameless people on Capitol Hill have forcibly tied our chip alliance to their chariot.”
“Under the blockade of the chip restriction order, Longguo is indeed facing the dilemma of no chips available, but will our chip alliance have a better life?”
“Have those inactive bastards on Capitol Hill ever considered losing Longguo, the world’s largest chip importer?”
“Who do we sell the chips we produce to? How can our semiconductor companies survive?!”
Zachary Ross’s words immediately caused a round of applause.
This temporary meeting was held secretly in the office building of the Chip Alliance headquarters today.
Sitting in the audience were the presidents and executives of semiconductor companies such as Qualcomm, Intel, AMD, Inveda, Phase One, etc.
All of these people, without exception, were capital giants in the Western semiconductor field.
But as the economic war began, the United States officially banned the export of chips to Longguo.
These capital giants who made a lot of money from Longguo by exporting advanced chips also suffered huge losses in their interests.
As the saying goes: Those who cut off people’s financial resources are like killing their parents!
Those congressmen on Capitol Hill who formulated the “chip restriction order”.
Naturally, they became the targets of the major members of the chip alliance, and they all hated them to the point of gnashing their teeth.
At this time.
Inveda executives followed suit and stood up and said:
“Gentlemen!”
“We can’t sit and wait for death and continue to allow those politicians to damage our interests!”
“Now there is no one to pay for the mountains of chips, and everyone’s funds cannot be recovered.”
“The supplier can’t break the contract, and the company can’t lay off a large number of employees.”
“If this continues, under heavy pressure.”
“I’m afraid that in the near future, the giants of our chip alliance may also go bankrupt!”
Inveda executive Oliver Watson’s words.
Let this group of blond and blue-eyed foreigners turn pale.
Even the atmosphere at the scene suddenly became depressed again.
Because what Oliver Watson said just now hit the pain points of the alliance members.
The chip restriction order blocked and sanctioned the semiconductor industry in Longguo.
Indeed, it has made the three giants led by Qualcomm, Intel, and Inveda in the United States very uncomfortable.
This kind of strategy hurts the enemy by 1,000 and hurts itself by 800.
It is not just as simple as making the chip alliance lose the huge consumer market of Longguo and the chips unsalable.
If it is just like this, the three semiconductor giants with deep pockets will lose a lot of profits, but they can continue to consume.
At least they won’t be as anxious as they are now.
Because the current chip alliance is facing difficulties and pressures from many aspects.
The unsalable chips have led to the inability to recover funds, which is just one of them.
What really gives them a headache is that even if the chips produced now are piled up like mountains, the warehouses are full.
But the production line cannot be stopped, and even the production capacity cannot be reduced.
Because when using lithography machines to produce chips, the raw materials and spare parts involved.
There needs to be a complete industrial chain that can provide long-term and stable supply.
This huge project is far from being completed independently by a company or even a country.
There are at least more than 5,000 upstream, midstream and downstream industrial chain suppliers involved in this!
Whether it is Qualcomm, Intel, or Inveda.
All chip manufacturing giants have signed long-term procurement agreements with industrial chain suppliers.
A large amount of raw materials are continuously shipped to the company from all over the world every day.
Moreover, many raw materials have a short shelf life and cannot be stored in the warehouse for a long time.
As soon as the goods arrive, they must be sent to the production line immediately.
But these raw materials sent across the ocean are also a huge expense, and a large amount of money needs to be spent every day!
Break the contract? Don’t need the raw materials for the time being?
Doing so, let’s not talk about whether it will affect the reputation of your company.
The liquidated damages that need to be paid to each supplier alone are an astronomical figure!
And…
If the company breaks the contract and stops purchasing raw materials.
Then the chip production line will have to stop production.
Wouldn’t the company employees who have nothing to do have to take paid vacations in vain?
What? !
Find a reason to lay off the employees? !
If you do this, you will get into trouble again.
And it’s a huge trouble!
That is the organization that countless American capitalists are terrified of: the trade union!
If anyone dares to lay off a large number of employees without compensation, the labor unions in the United States will block the factory gates and march in the streets.
If the company bosses cannot give an answer that satisfies the labor unions.
Then the company’s factory buildings may be demolished at any minute, and there will be another wave of zero-dollar purchases.
After this, the company can basically declare bankruptcy directly.
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