Si Mingyu had no objection to Mr. Warren's approach. After all, the other party wanted to reduce investment costs, and for him, as long as he had the equipment to produce qualified chips, it would be fine.
Old man Warren also thought of Si Mingyu's approach. He was already satisfied with the annual profit of 2 billion US dollars for five devices, and he didn't want to take too much.
However, through this incident, Mr. Warren recognized Si Mingyu's abilities. Although Si Mingyu was only at an elite level in business, he was known for his tenacity and thoroughness. He was described as someone who was not good at building an empire, but more than capable of maintaining it.
So what are the benefits of this deal for Gates?
Microsoft is in the software business, and part of its revenue comes from games. It can be seen from Microsoft's acquisition of Blizzard that it attaches great importance to this business.
Games are increasingly demanding computer hardware. Some say this encourages players to upgrade their computers, driving hardware spending. What about the opposite? If hardware prices drop to a certain level, will players who originally hadn't planned to upgrade do so? With new computers, will game sales increase?
Of course, this is just speculation, and with so many game manufacturers on the market, it's not certain Microsoft will benefit from this opportunity. But at least cheaper chips can reduce the cost of their own consoles and increase profits. Si Mingyu agreed to supply Microsoft with the chips needed for the console at a 10% discount to the market price.
Although China imports a large number of chips each year and the amount is huge, a considerable portion of them are turned into industrial products and sold abroad, such as mobile phones, cars, computers, high-end electronic equipment, etc. In other words, domestic chip production is not even enough for China, otherwise it would still be sold at a bargain price.
As for the impact of the chip price cut on other international chip manufacturers, that's none of Warren Buffett and Bill Gates's business. They all invest in diversified investments, with some gains and some losses, but overall they won't lose money. For example, their investment in Si Mingyu's chip manufacturing company was a precautionary measure.
Now that the agreement has been signed, we can start implementing it.
TSMC has built a fab in Arizona, one of the 50 states, and plans to build a second one. To support the fab there, TSMC contacted ASML, and the two companies plan to jointly dismantle five EUV lithography machines and pack them for shipment to the 50 states.
The dismantled lithography machine will be loaded onto a ship and shipped away. It is hard to say whether the ship will sail east or west after it reaches the sea. In short, the formal sales agreement will be signed only after the things arrive at Si Mingyu's territory. By then, it will be too late for others to say anything.
After bidding farewell to Mr. Warren and Mr. Munger, Si Mingyu was invited to the shores of Lake Washington in Seattle to attend a banquet hosted by Mr. Gates.
Compared to Warren's house, Gates's is truly luxurious, with all the amenities exuding luxury. It's not the kind of place where a nouveau riche just piles up their money.
"Mr. Gates, I'm very happy to attend the banquet you organized." Si Mingyu presented a gift.
"Thank you, I like this gift very much. Let me introduce you to the others." Mr. Gates said happily.
There weren't many people at this gathering, or was it more like a small meeting? In short, it wasn't filled with music and noise like the young people's gatherings.
"Hi, everyone, please stop what you are doing for a moment. Let me introduce to you a friend from China, Si Mingyu from the East Asia Mingyu Group." Mr. Gates said as he stood at the door of the living room.
Seeing that everyone was looking over, he continued, "This child is the grandson of Ms. Li Yinghua, and his great-grandfather is Mr. Li Hongming."
"Oh!" After listening to Mr. Gates' introduction, several people reacted first.
Dongya Mingyu Group had only been established a few years ago, so it was common for some present to be unfamiliar with it. However, most people had heard of Ms. Li Yinghua, a highly capable and successful woman. Mention Mr. Li Hongming, and almost everyone present knew him.
Not to mention the fact that the Guoxing Company he founded had business dealings with many businesses in the fifty states at the time, and his close personal relationships with both Presidents Roosevelt and Truman, Mr. Li Hongming's legendary business life is still read by these leaders today.
How did Guoxing Company acquire such enormous assets? Simply engaging in entrepot trade in Hong Kong wasn't enough. The primary source of funds came from Mr. Li Hongming, who, with his exceptional foresight, had scooped up the assets during the Great Depression in the Fifty-State Commonwealth.
It's no exaggeration to say that any of his contemporaries, including the most prominent businessmen and wealthy individuals in the Fifty States, who had ever competed with him, suffered a brutal beating from him in business. Of course, at that time, China was extremely poor and weak, so Mr. Li Hongming used agents or sock puppets, which is why the outside world knows very little about him.
But this didn't include the people present. At this level, they knew the inside story. They also knew that Guoxing Company's vast assets had been inherited by this young man. This was a huge fortune that exceeded the net worth of Mr. Gates. Even out of respect for money, these people had to look up to Si Mingyu.
"Hello Mr. Si, I am Dean Garcia, Chairman of the Fifty State Bank. This is my daughter, Lilia Garcia."
"Hello Mr. Dean, hello beautiful Miss Lilia."
If you just look at it from the outside, it is hard to believe that the beautiful Lilia is the daughter of the gorilla-looking Dean, but this is not what Si Mingyu should care about.
The other dozen or so people, either with their wives or with their sons and daughters, came forward to greet Si Mingyu and introduce themselves, and Si Mingyu also introduced Zhang Ningxi and Lin Shirui to everyone.
It wasn't surprising to everyone that he had two girlfriends; it wasn't uncommon for someone to have more than a dozen wives. However, Dean had a different thought: since he already had two girlfriends, he probably wouldn't mind having another one, since his daughter was the right age.
It's not surprising that he has such thoughts. Lilia will be grateful to him if he can find a rich boyfriend for his daughter, even though he is Chinese and even though he already has a girlfriend.
This was an informal private banquet so everyone was very casual. After all, at their level, there was no need to use rigid etiquette to show their status, as long as they were not rude.
Si Mingyu had a very happy chat with everyone. After Mr. Gates' introduction, they all knew about the chip manufacturing company he owned. Being able to establish a company of such a scale must have deep connections with the Chinese government. In the eyes of everyone, this is a good thing, which means that it has a huge influence in China.
Everyone knows that having more friends means having more paths. No one can tell when you will need Si Mingyu to "do you a favor", so it is always a good idea to build good relationships in advance.
Just like Congressman Clausi Mosley, when Si Mingyu arrived, he called the airport and asked them to pay attention. He also came to attend the banquet today. Doesn't this strengthen the relationship a lot?
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