According to reports, this story begins at an entirely unscientific moment: Zhou Ziye, a designer who rose from creating counterfeit mobile phones, suddenly time-traveled back to the year 1984.
...As soon as she finished speaking, the eldest princess stood up, bowed to Xing Baohua, and said, "Sorry!"
Xing Baohua smiled slightly at him, then said to Lee Kun-hee, "Chairman Lee, my computer factory will soon be producing these computers. I've already reached a strategic partnership with Bill Gates of Microsoft since I came to the United States! I also want to reach a strategic partnership with Samsung Semiconductor."
Lee Kun-hee thought for a moment and asked, "Apart from memory, we can provide all other electronic components."
"Why is the memory not working?" Xing Baohua wondered.
"Contractual restrictions: Two years ago, we had just started producing memory and signed supply contracts with several major international manufacturers. However, due to our failure to see the treacherous nature of the capital market, we became their slave factory."
After Lee Kun-hee explained, Xing Baohua understood. They had fallen into a trap. The contract restricted Samsung Electronics' development; they first tied them up with orders, specifying a certain number of units to be completed within a year, with prices varying according to market conditions.
Yes, global chip prices have forced Japan and the US to lower their prices, and Samsung has no choice but to follow suit, but the goods still need to be delivered.
The only way out was for Samsung Semiconductor to go bankrupt, thus avoiding the need for deliveries. However, this was precisely the situation the Japanese saw.
"Do you know how many types of rice products there are now? Do you know the current rice production capacity? Do you know how much profit rice will generate in the next three years?" Xing Baohua asked the head of Samsung.
Seeing the other party shake their head, Xing Baohua said, "I need a large amount of memory. One million units per year. I won't settle with you at the current market price; I'll add 10% to your cost price."
Samsung is currently selling its products at a loss. Although Xing Baohua ordered one or two million US dollars worth of goods, it's negligible for a massive system like Samsung.
As expected, Lee Kun-hee remained largely unmoved, seemingly deep in thought, before saying, "Your quantity is still too small to make up for our losses."
This is the truth. It's not that he didn't want to take Xing Baohua's orders, but he was afraid that Xing Baohua would also cheat him. After all, he had orders to produce, and even though he was losing money, he gritted his teeth and supplied the goods for the sake of his reputation.
However, once the products are separated, the supply on the other side will be insufficient. The capital has already calculated their production capacity and will not allow Samsung to free up other production lines for other manufacturers.
Even if Xing Baohua's conditions are agreed to, another production line would still need to be built, and the cost of that would certainly not be something that Xing Baohua's small production volume could cover.
Xing Baohua picked up his coffee, took a casual sip, and then said to Lee Kun-hee with a smile, "Chairman Lee, DaMi Technology is just starting out, and its production capacity is insufficient, as you have seen. There is a serious shortage of goods on the market."
Seeing the other party nod, the guy continued, "I've already used 60% of the profits for expansion, and the remaining 20% is for research and development."
Lee Kun-hee looked at Xing Baohua calmly without interrupting.
Xing Baohua continued, "Production capacity will develop in the next year or two. Don't worry that we can't take all your goods. At that time, I'll make sure you can't supply the goods."
“Well then, congratulations to Chairman Xing. In your words, congratulations on getting rich!” Lee Kun-hee said, the last sentence in broken Mandarin.
Why does Xing Baohua sound like she's cursing when she's offering congratulations?
“President Li, you’ve seen the current situation. We’re all being suppressed by Western capital. Why can’t we join forces to fight back?” Xing Baohua was actually about to say that he made billions of dollars in profits every year and wanted to show off!
But who's on the other side? The third son of Samsung! Money is nothing to them. You can ask for hundreds of billions and they might even take a second look at you, but a few billion isn't enough.
Why could Samsung Semiconductor grit its teeth and bear losses of hundreds of millions? It's because they're incredibly wealthy; such losses are insignificant to them. Furthermore, Lee Kun-hee firmly believed that memory prices would rise.
Technology is also divided into different levels; it depends on who controls the technology.
Samsung's third son clearly saw through the true nature of Xing Baohua's company: it had little technological content and was just an assembly plant.
In terms of usage volume, it's a trivial matter for Samsung Semiconductor; the usage is insignificant, and whether or not it's supplied doesn't matter.
To be honest, I just look down on Xing Baohua's factory because it lacks technological content.
The reason for this collaboration is simply because they value Samsung's technological capabilities. But let's hear what kind of collaboration this is all about.
"Please speak!" Lee Kun-hee said politely to Xing Baohua.
"Did you know that we had lithography machines in China in the 1970s?" Xing Baohua asked with a question.
“I know, the technology is outdated. It’s very difficult to catch up with the current technology,” Lee Kun-hee pointed out bluntly.
"I've copied a few units, and they're currently being installed and tested. I've also developed an upgrade plan based on the old machines, and we're currently researching and developing them. By the end of the 1980s, we'll be able to produce laboratory-grade sub-micron chips, which means we'll be entering the nanoscale era."
Xing Baohua said proudly.
Unfortunately, Lee Kun-hee poured cold water on the idea by saying, "We have already entered the nano era."
That's infuriating, but it's the truth.
"Aren't you ashamed to be deliberately suppressed and forced to sell at a loss through contractual tricks? I'm Chairman Li, here with sincerity. I need the goods, you need to make money, and we can even jointly develop the most advanced products." Xing Baohua couldn't contain his anger any longer and became completely furious.
The noise was a bit loud, which displeased Lee Kun-hee's bodyguards. One of them tried to stand up, and Xing Baohua's bodyguard followed suit, glaring at the Korean man.
Lee Kun-hee didn't even look at his bodyguard, casually waving him to sit down.
He said to Xing Baohua, "Tell me about your cooperation. I hope your plan won't disappoint me."
The other party remained calm throughout, which annoyed Xing Baohua, making her feel like she had to beg them.
Koreans look down on everyone, especially us, and they have a lot of prejudice against us, probably because we used to travel to their place in a tank.
Xing Baohua was also an arrogant person. After wasting so much breath, he got annoyed when he saw that the other party didn't care.
Without asking for the other person's consent, he casually took out a cigarette from his pocket, lit it, and took a puff. He said calmly, "Do you want to make another enemy or another friend?"
"You're being unreasonable. You're not even qualified to be Samsung's friend?" Lee Kun-hee's face was also filled with anger, probably because Xing Baohua was watching him smoke, which angered him.
Knowing that negotiations were no longer possible, Xing Baohua left with a harsh statement: "Samsung's future enemy will not be the US-Japan alliance, but the wrath of the US. Please remember my words."
"Farewell!" he said, standing up to leave. He then addressed the eldest princess, "Beautiful little princess, my promise to you remains valid."