Chapter 530 Technology Is Not the Only Factor (Bug Fix): The Silent Game

Dr. Zhang is very anxious, extremely anxious.

On the way to pick up Deputy Director Jiang Shangzhou at the airport, he kept subtly emphasizing that the 12-inch chip factory really couldn't be built, trying to persuade Boss Wang to stand on his side and fight against Deputy Director Jiang's delusional ideas.

However, he was unarmed and helpless.

Chiang Shang-yi has returned to Taiwan and reported to the company on the preparations for the Hong Kong Microelectronics Center.

So now there isn't even a professional to chime in.

However, Boss Wang himself was cold-blooded and ruthless, and with a "the more the merrier" mentality, he didn't care about his life or death at all, and clearly just handed him over to Deputy Director Jiang.

As for herself, she listened to the car radio with great interest, discussing recently popular Hong Kong singers with the driver.

It features Nicholas Tse, Joey Yung, Cecilia Cheung, Kelly Chen, and Eason Chan.

More than 20 years later, before Wang Xiao traveled back in time, they were the ones who were famous.

The next ten years should be considered the last glory of Hong Kong's entertainment industry. After that, it will decline and degenerate into something that is almost just for its own amusement, with virtually no presence in the outside world.

The radio station is playing their songs, one after another, and they all seem to be this year's top hits.

But Wang Xiao was surprised to find that these melodies sounded so unfamiliar to her.

She didn't know whether she had never heard of them before, or if she had heard of them but had long forgotten them.

She instinctively wanted to turn to the people around her and ask, "Shouldn't I have heard this song before?"

But after she said it, she suddenly realized that no one could give her an answer.

Because in this world, no one has ever experienced her life before she traveled through time.

This is a new world, not the same as the world she used to live in.

The bodyguards and assistants next to them were still discussing amongst themselves.

The assistant said he should have heard it before; he had heard "I Have to Go," although he didn't understand what was sung, he still recognized the melody.

Xiao Gao and Xiao Zhao insisted they had never heard of them, but they knew the singer's name and what he looked like; they had information about him online.

Zhang Rujing, listening from the side, was utterly speechless, feeling that Boss Wang was truly going to any lengths.

To avoid responding to his remarks, she would chat about anything and everything, and they would chat enthusiastically.

Unlucky Dr. Zhang could only follow along with a gloomy expression all the way to the airport.

Jiang Shangzhou wore a dark coat and dragged his own suitcase, looking quite elegant and scholarly.

However, the first thing he said to Boss Wang was a long sigh: "You've taken away all the top talents."

Zhang Rujing felt a chill run down his spine and wished he could hide behind something.

Everything requires people, and the semiconductor industry is even more focused on talent; one person can even turn the tide.

Wang Xiao had nowhere to hide, nor did he want to hide, so he just smiled and said, "Director Jiang, it's not appropriate for you to say that. You and your spouse are both top-notch talents. Who could possibly steal you away? It's clear that top-notch talents can't be lured away."

Jiang Shangzhou's wife, Professor Wu Qidi, is currently the president of Tongji University. She also graduated from Tsinghua University and holds a PhD from the Institute of Automation, Department of Electrical Engineering, Zurich. She is a returnee from a prestigious university.

How can a virtuous couple not be considered top-notch talents?

But Deputy Director Jiang didn't fall for that compliment and directly exposed Boss Wang's ulterior motives: "Don't try to fool me."

Among government-sponsored students like this couple, only one in a hundred return to China to develop their careers.

Most of them did not return.

That's why he's heartbroken; top talents are really leaving, and now even more are leaving.

However, human joys and sorrows are not shared. Boss Wang can still smile and say, "If top talents leave, there are still second-rate talents, right? Second-rate talents are not necessarily incapable of accomplishing great things."

She began to brainwash people in a serious tone, "Look at Japan and South Korea in semiconductors. When it comes to R&D capabilities, Japan is far ahead of South Korea."

This may sound a bit exaggerated—but for the sake of effect, Boss Wang would naturally have to use some drastic measures.

But no one, including Zhang Rujing, a genuine semiconductor expert, can say that she is wrong.

Because Japan's technological advantage is truly remarkable, and it's a widespread advantage.

From semiconductor materials (Shin-Etsu, SUMCO), precision equipment (Tokyo Electron, Nikon, Canon) to design and manufacturing (Toshiba, NEC, Hitachi, Mitsubishi), it has almost no weaknesses.

Under the leadership of the Ministry of International Trade and Industry (MITI), multiple companies collaborated on research and development over many years, overcoming numerous key technologies. This gave Japan's semiconductor industry a complete industrial chain and a strong technological foundation.

It is recognized as having top-notch quality and boasts an enviable high yield rate.

But so what?

Mr. Wang sighed, "South Korea acquires technology through technology licensing, reverse engineering, and hiring engineers from Japan and the United States at high salaries. In terms of R&D, it is still far behind Japan. But it has managed to catch up and, together with Taiwan, has put immense pressure on Japan's semiconductor industry, making it almost impossible for them to breathe."

There's really no way to refute that.

The rise of South Korean semiconductor companies enabled South Korea to quickly recover from the Asian financial crisis.

In 1998, the country was declared bankrupt, but this year it has quickly recovered from its decline. The economic growth rate is projected to reach around 9.5% this year.

This is the highest economic growth rate in South Korea since the 1990s.

Last month, when President Kim gave a public speech, he proudly announced that South Korea had completely overcome the currency crisis in just one and a half years.

Moreover, South Korea also became a net creditor nation during the same period.

Wang Xiao forcefully concluded: "This shows that R&D capability is not the only factor that determines the life, death and development of the semiconductor industry."

Deputy Director Jiang wanted to say that the examples she cited and her conclusions were not necessarily logically connected.

But Mr. Wang is, after all, a businessman, and he can't expect the other party to meet the standards of a scholar.

Moreover, the fact that South Korea quickly recovered from the financial crisis and its economy is still incredibly strong is truly astonishing and makes one curious about the secrets behind it.

Regarding the rapid development of South Korea's semiconductor industry, Deputy Director Jiang has also paid attention to their experience.

For example, South Korea focuses on memory chips, with Samsung as a representative, choosing to focus on DRAM, a technology with a high degree of standardization and a huge market size, as its main direction.

This avoids a full-scale war with Japan in the broader field of logic chips. It allows us to concentrate our efforts on a major breakthrough, focusing all our resources on this one area.

Interestingly, South Korea's DRAM technology originally came from Japan.

Samsung licensed its technology from Sharp to produce low-end 64K DRAM.

Modern Electronics obtained its technology license through Hitachi.

It's no exaggeration to say that South Korea's DRAM technology was inspired by Japan.

Then in 1998, South Korea surpassed Japan to become the world's largest DRAM producer.

Another example is counter-cyclical investment. Since the 1980s, South Korea has increased its investment and tried to gain market share during the downturn of the semiconductor industry.

Even during the financial crisis of 1997-1998, when South Korea was bankrupt, Samsung was also on its last legs, heavily indebted, but still increased its investment in the semiconductor industry.

Then, after weathering the most difficult period, the semiconductor industry fully recovered this year, and Samsung made a fortune.

As Mr. Wang said, in stark contrast, Japanese semiconductor companies are mired in difficulties this year.

Fujitsu announced its withdrawal from the DRAM chip market.

Nippon Electric and Hitachi suffered huge losses of $1.2 billion and $2.7 billion respectively last year, and this year they simply couldn't hold on any longer. Under the leadership of Japan's Ministry of International Trade and Industry, they divested their respective DRAM businesses and merged them this month to form Elpida.

Japanese media outlets have reported that Elpida is Japan's last hope for memory chips.

Thinking of this, Jiang Shangzhou, an official with a technical background, still subconsciously said something for Elpida: "NEC has strong production technology capabilities, and Hitachi is good at technology research and development. If the two merge, Elpida may very well become the world's most powerful memory manufacturer."

He emphasized, "Japan's semiconductor industry is still very strong."

As an official who has always paid close attention to the development of the domestic semiconductor industry, it was impossible for him not to say this for NEC.

When the country launched Project 909, the US government blocked American companies from participating. In addition, the world semiconductor industry was in a downturn at the time, so very few people were optimistic about Project 909. NEC took the initiative to approach us for cooperation.

Because it offered cooperation terms far more favorable than those of other foreign companies—for example, the originally planned 0.5-micron process was ultimately reduced to 0.35 microns, the shareholding was capped at 30%, and there were promises to help China cultivate talent and complete equipment depreciation and profitability within five years—Nippon Electric was even criticized by public opinion in Japan for signing an unequal treaty.

Emotionally speaking, he wouldn't feel good if NEC Semiconductor were to collapse.

Moreover, if NEC were to collapse, where would Hua Hong NEC get its technical support?

Don't forget, the bloody example of Degi Semiconductor is still there.

Because Texas Instruments sold its entire semiconductor business to Micron, Degi Semiconductor lost its technical support and ultimately had to sell itself to TSMC.

Taiwan has TSMC, which was able to acquire Degi Semiconductor and transform it into a foundry. Which company in mainland China can do that?

Jiang Shangzhou glanced at Boss Wang subconsciously, highly suspecting that the other party had already set his sights on Huahong NEC and was preparing to bring it under his wing.

Thinking about it that way, it doesn't seem like it's impossible.

After all, as far as he knew, Wuzhou already had the technology for 0.25-micron process technology and was conducting large-scale trials of 0.18-micron process technology.

If successful, she will take over Huahong NEC, whose technology will advance by leaps and bounds.

However, this matter is quite complicated because it involves complex issues of ownership and shares.

Boss Wang was unaware that Deputy Director Jiang had already assigned Huahong NEC to her; otherwise, she would have given him a thumbs up and praised him, saying, "You have guts!"

Unfortunately, she didn't think much of it; her goal was a 12-inch chip factory.

At this moment, her attention was focused on Elpida, which Director Jiang had just mentioned, and she couldn't help but chuckle.

Jiang Shangzhou was baffled by her laughter, unable to comprehend the young tycoon's thought process. What was so funny? He hadn't told a joke.

Wang Xiao couldn't help but laugh.

As a time traveler who had once paid attention to the history of the semiconductor industry, Elpida was, in her mind, an oddball, an oddball in the literal sense.

It certainly made a big splash when it was launched this month.

Nippon Electric and Hitachi each dispatched 400 elite personnel, preparing to pull off a major operation.

However, its subsequent development can only be described as complicated.

What impressed Wang Xiao the most was the incident involving their cleaning solution.

Yes, it's the cleaning solution needed for the etching process.

The cleaning solutions from Nippon Electric and Hitachi are incompatible.

Hitachi is known for its design expertise, but the products it designs cannot be directly manufactured in Hitachi factories.

The process flow determined by Nippon Electric's R&D center must be modified at Hitachi's equipment development center to meet the standards of Hitachi's factories before it can be put into production.

In other words, the merger of the two companies not only failed to leverage their respective strengths and improve efficiency, but also dragged them down to the point of exhaustion.

While others achieve 1+1>2, Elpida's relationship is one of mutual stabs, like a pair of estranged lovers forcibly bound together, only to torment each other.

However, these are all things for later, and Wang Xiao cannot discuss them now.

Therefore, she could only look for the problem at its source: "Director Jiang, have you noticed Elpida's organizational structure? The positions of the people from NEC and Hitachi are intertwined. The section chief is from NEC, the deputy section chief is from Hitachi, so the department head is from Hitachi and the deputy department head is from NEC."

Doesn't that sound wonderful? It's absolutely fair; there's no question of one swallowing the other.

But anyone who dares to think like that has never run a business or led a team.

Wang Xiao asked Zhang Rujing with a smile, "Zhang Bo, you're the general manager, don't you think their organizational structure is brilliant?"

Caught off guard by the sudden mention of the topic, Zhang Rujing forgot his nervous anxiety and concluded with a smile, "This is a disaster."

To put it simply, the news of Elpida's merger immediately attracted widespread attention in the international semiconductor industry.

He was initially quite optimistic, because Japan's semiconductor industry is indeed strong. He also looked forward to a powerful alliance, which is entirely a professional's vision for the industry's development.

However, Dr. Zhang himself is a manager, so he pays more attention to a company's management model than to technology.

With positions like those at Nippon Electric and Hitachi intersecting like this, unless all those in charge have reached a state of utopian harmony and are completely devoid of personal desires, the only possible outcome is severe mutual obstruction, a chaotic command system, and subordinates having no idea who to listen to.

However, a unique characteristic of Japan is its emphasis on treating companies as family, with lifetime employment systems leading many to stay with one company for their entire careers. Employees have an extremely strong sense of belonging to their former employers. Employees who came from Hitachi generally don't consider NEC as one of their own, and vice versa.

How can there possibly be a utopian society? We should thank God for protecting us so that we don't have to fight.

Did NEC and Hitachi really not anticipate this situation?

Absolutely impossible. Anyone who can build a large company is not a fool.

However, neither side was willing to relinquish control, and the Ministry of International Trade and Industry (MITI) was afraid that if one side took the lead, the other might refuse to divest its business, or even cause industry turmoil.

Therefore, all parties ensured that the merger could proceed smoothly, even at the cost of sacrificing management efficiency, and reluctantly accepted it.

Will Wang Xiao feel regretful or pity when Nalpida's fortunes declined?

Uh, no, that's not true.

To put it bluntly, the semiconductor industry was just a project she chose as an investment; she didn't have much passion for it.

Moreover, Elpida's poor performance is good news for her.

With 800 elite soldiers, if the company isn't doing well, they'll definitely have to find a way out for themselves.

By then, it will be much easier for Boss Wang to recruit more people.

In the semiconductor industry, or in any industry, those who want to succeed basically have to take advantage of others' misfortunes.

Although Jiang Shangzhou is a cross-disciplinary talent, having gone from scholar to official, he has never led a company before. So when Wang Xiao and Zhang Rujing spoke in unison, he suddenly realized: "This is indeed a problem."

Every team needs someone to make the final decision; otherwise, just going through the motions for a task can drag you out forever.

Wang Xiao clapped his hands, taking the opportunity to brainwash Deputy Director Jiang: "See? You can't just rely on R&D to develop semiconductors. The success of South Korea's semiconductor industry is due to the combination of national will, conglomerate capital, corporate strategy, and strong execution, taking advantage of industry cycles to break through. They focus more on speed and efficiency, quickly transforming R&D results into large-scale production and continuously improving processes. We're the same now. Even if all the top talents go to the Hong Kong Microelectronics Center, it doesn't mean the Shanghai Microelectronics Center can't achieve great things."

Jiang Shangzhou was both amused and exasperated. After going through all this trouble, the real question was still waiting for him.

He was truly grateful for her thoughtfulness.

Wang Xiao smiled and said, "You're welcome. It's all for the development of the semiconductor industry."

Jiang Shangzhou was so angry he almost laughed; she really didn't hold back.

Zhang Rujing suppressed a laugh, resolutely refusing to interrupt; he didn't want to get into trouble.

The car drove all the way to the hotel, where Jiang Shangzhou checked in, put down his suitcase, and immediately began his journey.

He complained to Boss Wang that this was a common tactic used by officials, hoping that the other party would feel guilty and make more concessions.

However, he was well aware that the Hong Kong Microelectronics Centre had already started the process, and the Hong Kong government would absolutely not allow it to be abandoned halfway.

So what he can do now is to take advantage of the fact that it has just started and do his best to help the Shanghai Microelectronics Center and Shanghai's semiconductor industry gain a foothold in this national-level strategic deployment.

Zhang Rujing was the one who introduced Jiang Shangzhou.

Although he was afraid that Director Jiang would really press him for the 12-inch chip factory, he was an honest man, and his explanation of Jiang Shangzhou to Tian Changlin was quite reasonable.

That's what he said: based on his understanding of the mainland semiconductor industry, he couldn't find anyone more suitable than Jiang Shangzhou to act as a liaison between enterprises, the government, and research institutions.

He is a true-blue second-generation Red Army soldier, his father being a veteran of the Red Army, giving him a powerful background.

He is a graduate of a prestigious university, having completed his doctorate in Switzerland. This gives him a natural advantage in recruiting overseas talent and communicating with technical professionals.

His wife is the president of Tongji University, and his university classmates are spread across various research institutions, which in turn connected him with domestic research institutions.

Therefore, if the Hong Kong Microelectronics Centre wants to establish a foothold in the commercialization of research results from the very beginning, then Principal Tian should meet with Director Jiang Shangzhou.

Once you two have talked it out, the subsequent work should proceed more smoothly.

Tien Chang-lin still has a lot of work to finish in the United States before he can fully devote himself to the construction of the Hong Kong Microelectronics Centre.

He would also be happy to meet with technocratic officials from the mainland.

So the two sides reached an agreement quickly, and Jiang Shangzhou went to see Principal Tian as soon as he landed in Hong Kong.

How should I describe this meeting?

Boss Wang's deepest feeling was that she didn't actually have to join in the fun.

Can you understand? There were clearly four people present, but her voice was nowhere to be heard.

Because the other three are all top students, no, they are academic geniuses, they are genuine and very accomplished PhDs.

She didn't even finish her master's degree, and her major isn't even relevant to this field. What can she possibly say?

She listened intently to a great deal about software-defined radio, low-power, high-gain RF chips, and voice-based interactive interfaces.

Although this topic was brought up by Ms. Wang herself, because she wanted to make smartphones.

But she still couldn't understand what they were talking about.

The worst part is that when these three people get excited, they start spouting English words, and they're using technical English words at that.

As everyone knows, professional English is notoriously difficult, regardless of the industry. Unless you're in the industry and have specifically studied it, even native English speakers are unlikely to understand it.

Besides, Mr. Wang's native language is Chinese.

She could only drink tea and drink tea, and then occasionally eat a small snack.

It wasn't until the two sides had their first minor argument.

Tien Chang-lin originally planned to conduct research and development in Hong Kong and focus on industrialization in Shanghai.

However, Jiang Shangzhou expects the Shanghai Microelectronics Center to do more than just industrialization; he also requires the establishment of a top-notch team to conduct application-driven research and development.

He needs technical support from the Hong Kong Microelectronics Centre in this regard.

Principal Tian tried to persuade Director Jiang that everyone should focus on their strengths, which would be more efficient.

However, Director Jiang wanted to persuade Principal Tian that his suggestion was actually the most effective.

Wang Xiao listened with great interest as they talked back and forth.

Zhang Rujing was extremely anxious and kept giving her meaningful glances.

Alright, Mr. Wang, stop eating your snacks and quickly smooth things over.

If two people really start arguing, how do they end it?

Oh dear, this is really worrying me.

This Mr. Wang is sometimes too eccentric, with an excessively optimistic attitude, always eager to watch the drama unfold.

Wang Xiao swallowed the last crumb of pastry in his mouth, clapped his hands, and made a definitive statement: "Alright, Principal Tian, ​​you should listen to Director Jiang on this matter."

She looked intently at the astonished man and spoke frankly, "There's no other reason. It's because the Shanghai Microelectronics Center definitely understands the mainland market better than the Hong Kong Microelectronics Center. This is something that no matter how much research Hong Kong does, it can never achieve. Because true empathy never truly exists in the world. Different ideologies, different ways of thinking, and different needs."

Director Jiang quickly picked up where she left off: "Principal Tian, ​​that's exactly what I meant. It's not that I don't believe the Hong Kong Microelectronics Centre can do well; on the contrary, I think it will definitely become a world-class R&D center. The Shanghai Microelectronics Centre is based on a deep understanding of the needs of the mainland market, and it conducts application-driven R&D. For example, the mainland needs low-energy-consumption and highly durable communication equipment. This is quite different from the current mainstream in the world."

He racked his brains and finally came up with an example, gesturing to Wang Xiao, "Mr. Wang is currently working on a municipal solid waste incineration power generation project in Shanghai. The equipment we imported is from Germany and Japan, but the living and eating habits of Chinese people determine that our waste has a low calorific value, so the foreign equipment is not suitable."

He mentioned Wang Xiao's suggestion to mix rice husks and straw with urban household waste to increase the calorific value.

He also mentioned the simple processing of waste cooking oil to replace fuel oil spraying and to aid combustion of household waste.

Then he emphasized: "This is the key to adapting to local conditions and getting things done."

Tian Changlin looked at Wang Xiao in surprise.

His perception of the latter was that he was a generous but demanding businessman who didn't know much about technology.

I never expected her to come up with such a technical solution.

Principal Tian is an authority in thermal science, and although his research is not in municipal solid waste incineration, he still has a lot to say about it.

He even couldn't help but remind the young businessman in front of him: "You need to be careful. Rice husks and straw are rich in basic metals such as potassium and sodium, as well as chlorine. During combustion, these substances form low-melting-point silicates, which adhere to the walls of the boiler's heat exchange tubes, forming hard coke and ash deposits. This will drastically reduce the boiler's thermal efficiency and cause severe corrosion of metal pipes, greatly shortening the service life of core equipment. If this problem is not handled properly, the resulting maintenance costs and downtime losses will be enormous."

Wang Xiao blinked, quite straightforward: "This isn't my responsibility; I'm only responsible for making requests."

Zhang Rujing chuckled and quickly turned his head away.

That's really typical of Boss Wang. She's ruthless when it comes to making demands, completely disregarding the well-being of those carrying them out.

Principal Tian smiled and said, "Yes, it's precisely because of the high standards that the technology keeps improving."

Jiang Shangzhou picked up his teacup, smiled, took a sip, and sighed inwardly.

Making demands is never a simple matter; it's actually a power struggle.

If the Shanghai Microelectronics Center cannot make demands, then it can only passively accept the research and development results of the Hong Kong Microelectronics Center and then try to achieve large-scale application.

To broaden our perspective further, the Hong Kong Microelectronics Centre defined the development and future of China's semiconductor industry.

This is definitely not acceptable, and it's extremely dangerous.

Therefore, he must strive for more say in the Shanghai Microelectronics Center, and he must market-oriented research and development in order to align with the overall interests and reduce political risks.

Today's topic is just the beginning.

Next, he will keep raising strategic questions that make both sides uncomfortable but unable to refute, forcing the entire cooperation system to be upgraded and iterated.

Ultimately, he is a government official, and he must maintain his basic stance.

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[Heart eyes] Yes, I went out last night and only got up to write this morning, so you guys want me to praise myself for actually being able to get up in the morning [rainbow fart] Being shameless is also a life strategy.