Reinventing the Millennium

The Christmas holiday in the United States is over, and on the last day of 2014, Yu Hong, co-founder of Yike, finally ushered in a special meeting in Washington.

The meeting was attended by two White House economic consultants and many analysts and investigators from Business BIS. On the Yike side, co-founder Yu Hong, US President Schroeder and Vice President of Legal Affairs Matthews attended.

This was a closed-door meeting, but the meeting had no clear purpose.

BIS investigators asked several questions about Yike's past business, including the subsidies it received when exporting music players from China, while analysts asked about user data on Yike's mobile phones.

Such questions are exactly what their respective identities are responsible for. To be more precise, BIS investigators are responsible for investigating potential violations, and analysts are responsible for assessing technical data, business conditions, and national security risks.

Yu Hong did not answer the questions in these two directions. Only Schroeder and Matthews gave reasonable and legal answers.

The BIS people fulfilled their duties, and a White House economic consultant began to inquire about the supply cooperation between Yike and ice core, exploring the relationship between the two that was obviously far closer than normal business.

Yu Hong responded: "In-depth technical cooperation is a powerful weapon in business competition. Nokia once maintained a long-term and deep cooperation with Texas Instruments. This is not uncommon. At the same time, Yike cooperates with Germany's SCHOTT and Japan's Sharp and other manufacturers have also maintained close mutual benefits."

Luca, another economic consultant who had not spoken much, suddenly asked: "The founders of Yike and Bingxin are the same person. This is the biggest difference. There are many ambiguities in the cooperation between Yike and Bingxin. Are there any inappropriate related-party transactions?”

Yu Hong replied without hesitation: "All business activities of Yike are in accordance with the company's articles of association, relevant laws, regulations and regulatory requirements, and have been approved or disclosed by internal decision-making bodies such as the board of directors and shareholders' meeting. Luca, I think you It’s already a very biased accusation.”

Luca asked a core question of this meeting: "No one in the company will claim that their related-party transactions violate regulations. Is there any problem with the related-party transactions between Yike and Bingxin? This will be an investigation direction, but for the sake of With respect for a company like Yiko, I would like to ask, has Yiko ever considered adding new wafer manufacturers?”

Yu Hong replied calmly: "Yike will select suitable suppliers based on business competition in the global market, and does not rule out adding more competitive suppliers at the right time in the future."

Luka nodded, put down the pen in his hand, and said seriously: "Mr. Yu, I think now is the most appropriate time."

The economic consultant from the White House obviously dominated the key part of this meeting. After Luka's words came out, everyone else focused on the co-founder of Yike.

Whether it is the employee role of BIS or the question issued today, the hint is quite obvious, no, this is explicit. Ice Core International's rush to 16nm has completely attracted the attention of the policy level, which has also affected the use of its process technology this time. of Yike.

Yu Hong glanced at the people across the conference table, remained silent for two seconds, and gave her own answer: "I don't think so."

Luka was very surprised to hear such a quick reply. He stared at the female CEO opposite him in surprise and suggested: "Mr. Yu, can you represent Mr. Fang? I think you should explain this meeting and our proposal exactly as they are. Tell Mr. Fang."

"Yike has always complied with the laws and regulations of different countries and regions around the world, and has not violated any business rules. Our company only provides consumers with the best electronic products." Yu Hong reiterated Yike's position and was very convinced. Said, "I am the co-founder of Yike, and I can represent Mr. Fang."

The two White House economic advisers looked at each other.

In fact, they felt this time was more of a friendly exhortation.

Luca looked at the three senior executives of Yike across from him and finally said: "I hope Yike can think carefully and make decisions carefully to avoid uncertainty in future business."

A closed-door meeting on the last day of 2014 ended.

However, after the formal meeting ended, Luka quickly walked out of the meeting room alone and expressed some personal views.

"Mr. Yu, look at your phone later. Intel's latest processor should have been released by now. They have come up with the same generation as Bingxin International, no, I should say better technology."

Yu Hong naturally knew about Intel's product launch plan announced earlier and said, "What do you want to explain?"

"Ice Core International's technology is certainly good, but it will never be the only one in the world, and its advantages will be difficult to maintain. It is necessary and necessary for Yike to change wafer manufacturers." Luca's attitude is very firm.

Seeing that Mr. Yu still wanted to speak, he spoke faster and lowered his voice: "If Yike is willing, we are willing to help Yike mediate wafer manufacturing with Taiji and Samsung."

Yu Hong raised her eyebrows in surprise.

Luka smiled and said succinctly: "I respect Mr. Fang very much."

Yu Hong guessed that this was Luca's intention. As long as Yike and Bingxin cut it in time, they might be able to continue to obtain competitive chips.

She didn't speak anymore, but nodded slightly: "I will convey it to Mr. Fang."

Luka stopped. This was the most sincerity he could do. No matter what, he couldn't let such an excellent chemical reaction between Yike and Bing Xin go.

First cut off the connection between Yike and Bingxin, the combat effectiveness of both companies will be reduced, then strengthen the restrictions on Bingxin to block domestic criticism, and finally consider whether to take additional actions based on Yike's performance.

But no matter what happens in the end, Yike's competitiveness will decline, and its huge market value will gradually weaken.

Luca does not want to take drastic and sudden measures against Yike. What this slows down is also to give those institutions that hold shares in Yike time to cut off the shares when they need to.

Although Mr. Yu at the meeting was relatively firm, he did not think that Yike had any choice now. As long as the policy side made noise about restricting ice cores, consumer electronics giants like Yike would not be able to hold on to the end.

Unless Mr. Fang is crazy.

However, that person is the most intelligent person in the world.

Luca even simulated the situation from Mr. Fang's point of view. The ice core encountered severe restrictions. Even if Yike chose to cut it, he would definitely get the understanding of the market and China.

Whether you are competitive or not, you have to decide whether your business can survive, right?

So, now just looking at the pressure and final time, the results are the same.

Luca reached out and touched the Mars 8.8 in his pocket. From a personal perspective, he had to admit that this is indeed a good phone.

…

Intel rushed to the market on the last day of the calendar year to launch a Core processor based on the 14nm process, which made many consumers look forward to it.

However, what is disappointing is that even though it is announced, it can only be pre-ordered now, and it will not be shipped until mid-January next year at the earliest.

In this case, it is inevitable that there is a suspicion of selling dog meat to others.

Fang Zhuo has returned to Shanghai from Luzhou. 10 a.m. in Washington is 10 p.m. in Shanghai. He has seen Intel's latest product information and is waiting for news of the closed-door meeting, preparing to jump into 2015 with it.

At 10:30 in the evening, he received a call from Yu Hong and listened to the content of the closed-door meeting and the informal communication from economic adviser Luca.

"Um."

"Good."

"knew."

Fang Zhuo didn't express any thoughts throughout the whole process, just gave such a general response.

After Yu Hong accurately conveyed all kinds of information, she listened to the "perfunctory" answer on the other end of the phone and didn't know what to say for a while.

She didn't speak, and the other end of the phone was quiet.

"No, Mr. Fang, what do you say?" Yu Hong broke the silence.

"Say something? What are you talking about? There seems to be nothing to say." Fang Zhuo thought for a while and said, "What you understood is very correct, and you can indeed represent it. What you said is what I meant. I don't agree with their ideas. , Oh yeah, I think they’re a little arrogant, nothing else.”

"Then what should we do next?" Yu Hong asked, "Luca's proposal..."

"Of course I rejected it, but there is no need to reject it so quickly. They can do whatever they want. Everyone will sell their stocks, and I will sell them too." Fang Zhuo said matter-of-factly, "He said he would mediate, and that reporter and Samsung can promise it, and the production schedule will be pushed back a little, and we have to be controlled by others. Bingxin has worked hard all these years not to do this, "cutting five cities today and ten cities tomorrow."

Mediation, mediation, there will always be a solution in the end.

Fang Zhuo believes that now is the best time for labor pains. The current situation can no longer just start from Bingxin's family and one place, but from the entire semiconductor industry in the mainland.

Closed-door meetings are a trend that is becoming more obvious, but it will take half a year to a year before this wind blows completely, and the shadow leaders of Bingxin must finish their work.

"Well, which camp does Luka belong to?" Yu Hong thought for a moment and asked.

"There is no clear camp. Even the shadow shareholders of Yike and Bingxin, they really want to see us, okay? When the stocks are sold out, they may even want to see the decline of the Yike family. This is not important." Fang Zhuo Said, "Bingxin has always been Yike's wafer manufacturing supplier. Even if Taiji is very willing to cooperate with us, Yike's temporary change of supplier may still cause a lot of adaptation problems."

Yike and Bingxin have also been working together for a long time, and they are now very comfortable. However, this may not be the case when the manufacturer is changed. For example, when Apple switched from Samsung to Taiji, it was also a joint design carried out more than a year in advance.

"Well, regardless of industrial development, objective conditions, or future situations, we cannot accept Luca's suggestion of boiling frogs in warm water." Yu Hong paused and then said, "Of course, the most important thing is that you Mr. Fang is unwilling.”

Fang Zhuo laughed loudly: "Yes, I don't want to."

Yu Hong suddenly thought of her exchange with the guy on the other end of the phone one night. At that time, when he was facing his own problems, he said, "Which man can refuse the opportunity to be a hero?"

She sighed: "Okay, Yike is yours."

"What? Do you have different opinions?" Fang Zhuo was still willing to listen to different opinions.

"No, I think this is Yike's best choice. I just want Mr. Fang to follow his lead." Yu Hong said seriously.

"Okay, there's no point in Washington anymore. Just let Mr. Kong and the others be there. You can come back after cleaning up." Fang Zhuo warned.

Yu Hong said "hmm" and didn't speak for a long time. She knew that the other party was not hanging up, so she said leisurely: "Yike is really troublesome. It's not easy to build such a company. Such a company that competes globally, I didn't expect that it might face A falling situation.”

"Building a great company is a huge challenge, and rebuilding a great company in a crisis is an even more exciting challenge." Fang Zhuo said optimistically.

Yu Hong's heartbeat suddenly beat, and she admired Mr. Fang's spirit.

"Okay, see you in Shencheng. In a few days, if there is no new movement here, I will go back."

Fang Zhuo smiled and said: "Sure, everyone at Yike is waiting for the American king to come back to guide the work."

End of call from Washington.

Fang Zhuo put down his mobile phone and looked at the night scene, as if he was looking at the Yike headquarters in the northwest, or even farther away.

It was already late at night, and although there were messages from abroad on his phone, he did not reply to them, but quietly entered the new year.

On the first day of the Gregorian New Year, Fang Zhuo had a simple communication with several close friends, saying that he was aware of the administrative attitude, but also reiterated that Yike's business interests should be protected under legal compliance, and Bingxin International Same thing.

Ice core has already encountered the restriction of not being able to purchase advanced equipment, so what else can it do?

Fang Zhuo was slightly resentful when discussing ice cores.

And just on the second day of the Gregorian New Year, he took the initiative to call Washington, and his resentment became particularly obvious.

"The purchase of ice cores has been restricted. Isn't this enough?"

"Okay, if you don't want to give it, you don't want to give it. Why don't you just broadcast the news about the fire in the factory and just destroy the outdated equipment we purchased!"

“Everything must be done in a mode!”

On January 2, 2015, the Netherlands reported an accident news about ASML. A fire broke out at its factory in Valkenburg, affecting the products of multiple customers.

It is reported that ASML’s shipment originally scheduled for Q1 will be postponed.

The cause of the accident is currently under investigation, and ASML has stated that it will take time to evaluate the specific losses and the scale of the affected production capacity, and will release the latest information to the market as soon as possible.

Affected by the accident, ASML's share price fell 0.5%.

Fang Zhuo was angry and criticized, and the "backward" equipment for ice core procurement was affected this time.

"You haven't put any restrictions on ice cores yet. If you really don't want to give them, just withdraw the permission!"

Smith, who was bearing Mr. Fang's grievances, comforted the head of Yike, while also thinking in his mind that the methods of these semiconductor manufacturers were always so rough.

The substrate and substrate caught fire, the storage and storage caught fire, and now even the equipment manufacturers are on fire... Can we still come up with something new?

Suddenly an idea occurred to him. He heard that ASML's current equipment was very difficult. He also thought about his son's teacher's call yesterday. Did he not bring his homework or write it?