Chapter 180: Stern Warning

Translator: Nyoi-Bo Studio  Editor: Nyoi-Bo Studio

“Zhong Xin International is so flustered that they forgot about Moore’s Law!”

“Skipping 10-nanometers and directly making 7-nanometers? Are they pulling off a Great Leap Forward in the chip manufacturing industry?”

“Are you joking, Zhong Xin International? Why are you so scared as to issue a military pledge? Tackling 7-nanometers within 10 months? If you can create advanced chips just by shouting slogans, chips from the Z nation would have long been on the top of the world!”

“Please respect the scientific laws! In the chip field, spend what you should spend. Wanting to gain by trickery will only put you in the wrong path and you will never manage to create any chips.”

“I don’t understand, why is Zhong Xin International so flustered? You still have Xing Hai Technologies’ billion-unit chip order. Mossy Electrics producing the 5-nanometer chip will hardly affect your business. Just follow your existing plans, there’s no need to disarray yourselves.”

A veteran stockbuyer said, “I invested more than 500,000 dollars buying Zhong Xin International’s stocks. Some time ago, its value rose to 1.5 million. Originally, I did not intend to sell them, as I was very positive about the company’s future developments. But their response this time is too flustered. They have forgone their principles and are destined for failure! I am no longer optimistic about this company and I intend to sell off all my stocks.” Stock buyers were mostly smart people. They all had strong judgmental and analytical skills. The longer they were in the stock market, the better they got at seeing things. They had a significantly lesser chance of being tempted by the so-called “Military Pledge,” as they only believed in the principles of science and common sense. The “performance” by Zhong Xin International’s leadership and their oath of “mass producing 7-nanometers in 10 months” was absurd and destined for failure. Aside from wasting large amounts of funds, it would not yield any outcome. Therefore, the stock buyers emptied their hold one after another.

Zhong Xin International’s stock price continued to fall as much as 20%. While the stock price was low, Xing Hai Technologies’ stock market trader bought Zhong Xin International’s shares in abundance. Their shareholding ratio had reached 35% and thus became the largest shareholder for this chip foundry enterprise.

Chen Jin’s goal was to push Xing Hai Technologies’ shareholding ratio towards Zhong Xin International above 40%. Adding up with the 5% held by Zhang Weijing, Chairman of Zhong Xin, and another 5% held by the other members of Zhong Xin’s board of executives such as Liang Meng Nan and Yang Ming, the total shares held by the executive members of Xing Hai Technologies and Zhong Xin International combined would be above 50%. This way, no matter what ideas and demands the other shareholders had, they could not influence or interfere with the decision-making of Chen Jin and the others. Therefore, in terms of stability in management, Zhong Xin International would be much more stable than Mossy Electrics.

The reason was that capitals from institutional investors from the M nation, Holland, and Germany had occupied more than 80% of Mossy Electric’s total shares. They had ripped off most of their dividends. It was said that Zhang Zhongmou, the founder of Mossy Electrics, was rather helpless in this matter. It was the same for Samsin. International capital constituted for more than 70% of their total share. As chip foundry was a capital-intensive industry, it was inevitable for the industry to lodge foreign capitals. The price they had to pay was losing a large portion of their shares and relinquishing their powers of equity control.

Chen Jin, who liked to rule over everything, would of course not let capitals ride over his head and become his “dad.”

…

Soon, the military pledge by Zhong Xin International’s management team of “mass producing 7-nanometers within 10 months” had spread overseas to the ears of their business counterparts. In Gorea, the President of Samsin, Li Jianrong, said, “Directly making 7-nanometer? Skipping 10-nanometer? Within 10 months?” His expression was as if he had misheard something. Am I hallucinating?

“Hahahaha, yes! Zhong Xin International’s CEO Zhang Wei Jin said so in front of the media,” said his assistant while he laughed hysterically.

“Hahaha! Hahahaha!” Li Jianrong abruptly held his stomach as he rolled on the tatami. His laughter was extremely exaggerated, as if it was capable of triggering an earthquake.

After a moment, he said while holding his cramped belly, “Okay, I’ve heard the funniest joke in the whole world. Perhaps that Mr. Zhang has the powers of a sorcerer. After 10 months, ‘Poof,’ and there you have it, the 7-nanometer chip. But for the Z’s to have the ability to mass produce chips of this level, give them another ten years and they will still be unable do it! They will never surpass us!” Li Jianrong’s face was full of disdain and mockery.

…

At Treasure Island, on the grass in the vestibule of a villa, the current chairman of Mossy Electrics, Liu De Ming, said to 90-year-old Zhang Zhongmou, “Old man, have you heard about the things going on at Zhong Xin International? They intend to wrap up 7-nanometers within 10 months. How do you view this matter?”

The elder, with a head full of grey hair and holding a walking stick, had a sense of pity flashing across his pale and hearty eyes. He sighed. “Zhang Wei Jin is a respectable opponent. I’ve confronted him in the past. He lost, but still, he managed to get his Zhong Xin International to the third place in the world. This is an impressive feat. This time, however, there is no chance for him to mount a comeback. Zhong Xin International’s stocks will only plunge again. Now, Zhang Wei Jin is not qualified to be our opponent.” The elder shook his head. 7-nanometers? Even Mossy Electrics, who had deep technical foundations, took five years to subjugate the technology. And now, Zhang Wei Jin actually claimed that they would do it in only 10 months.

Maniacs. They would only crumble upon themselves. This was what he had in mind.

…

After a month, on the 8th of December, Google’s founder Larry Page flew from M nation to Shang Hai and requested to meet Chen Jin. Inside Xing Hai Technologies’ conference room, the two met again.

“Mr. Chen, I used a whole month going through the arrogant members of the Ministry of Commerce. They’ve agreed in principle to give Xing Hai Technologies the ‘Trusted Company’ treatment. As long as your company abides by the rules of the M nation, the ministry will not interfere with Xing Hai’s normal business activities and harm your company’s interests for no reason. They promised to provide tax incentives as well. Be rest assured for your company to develop your business in the M market.” Larry Page guaranteed him as he spoke, smiling all the while.

“Trusted Company?” Chen Jin gave him a weird look. “Does the Ministry of Commerce of your country trust us so much? Are you sure that they will be giving Xing Hai such good treatment?”

“Yes, I spent a whole month ensuring this.”

“What about the other companies from Z? Hua Yao, ChinaSat, Da Mi, are they in the list as well? Will the M nation renege on us? Can your country make commitments in the form of legislation that the business environment of tech companies from Z in the M nation will be improved?”

“Uhm…” Larry Page shuffled as he said, “I can only get an exemption for Xing Hai Technologies. About the other enterprises from Z, I really can’t do anything. Every country places great importance in their own national defense and the safety and privacy of its own citizens, including the Z nation. Some of my country’s practices are not inappropriate at all.”

Chen Jin spread his hands. “Then I’m sorry, Xing Hai Technologies will not go to M. We would not like to do our business with jitters in an overall unfriendly atmosphere. Xing Hai Technologies is reluctant to leave an impression that we have seemingly taken an advantage in the eyes of some of your country’s parliament members. As your country is an expert in withdrawing promises, I’m not convinced by the ‘Trusted Company’ banner promised by your country’s Ministry of Commerce; it is only a verbal guarantee after all.” Chen Jin was expressionless as he crossed his legs and said, “Mr. Page, please return. My answer remains intact: unless the overall business environment of your country is improved radically, Xing Hai Technologies will not set foot in your country.”

What?

Larry Page’s face changed. It became somber and hostile. With a deep voice, he warned, “Mr. Chen, I’m warning you in good faith, do not cross the lines. M’s national policy is not decided by merchants like you. The only thing that merchants can do is earn moneyl the more, the better. This applies to you as well. Do not make futile attempts to influence the policies in any country! The smart learning program in the Little Star learning machine is not your company’s private belonging, its CPU is using our framework and its operating system is the Android system developed by Google. Although this is an open-source system, do not forget, without the technology from M, the Little Star learning machine would be nothing but air! Mr. Chen, please do not stray further on the dangerous path. If your company is reluctant to share technical information on intelligent learning and attempt unauthorized possession, Xing Hai Technologies will become our primary target. You will be faced with an infinite number of patent infringement lawsuits and sign yourselves on the list of sanctions in many countries. This kind of consequence is not what you can afford.” Larry Page had finally shed all pretense of cordiality and gave out a stern warning.

“Heheh, threatening when discussions won’t work, huh?” Chen Jin laughed as his voice gradually became chilling, “Mr. Page, thanks for your ‘kind’ reminders. Xing Hai Technologies is not afraid of any challenge. Soon, we will be able to make our own chip, our own OS, and our own ecosystem of software. Your intimidation is futile. Xing Hai Technologies welcomes all forms of challenge! We will not rely on any Western technology! We’ll see to that!”

“You——” Larry Page stood up, pointed his finger, and stared at him for a while. However, he did not see even the slightest bit of fear on Chen Jin’s face. He heavily snorted, swung his hands, and left.

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