Chapter 899
Two Giants Gather!
Time is like an arrow, the sun and the moon are like a shuttle.
Before we knew it, it was March 20th.
Hong Kong residents were surprised to find that Hong Kong had become lively again in the past two days.
Just like that grand wedding of the century a little over a month ago.
Although the level of liveliness is not on the same level, the citizens can still feel it.
A large number of international journalists have returned to Hong Kong, and it is common to see well-known international media outlets on the streets.
Reporters carrying cameras and microphones traversed the streets of Central, Tsim Sha Tsui, and Mong Kok.
The hotel industry is once again experiencing a peak in occupancy. Hotels such as Peninsula, Mandarin Oriental, and Xiangjiang Hotel are receiving non-stop booking calls. Front desk staff who just went through a "wedding war" a month ago are now back to working non-stop.
At the same time, Lin Haoran and Zhang Zhongmou also got busy.
Zhang Zhongmou, in particular, had to make seven or eight trips to Kai Tak International Airport almost every day.
The heads of those semiconductor giants have mostly arrived in Hong Kong in the last two days.
At 3:30 p.m., Zhang Zhongmou arrived at the airport arrival hall again, next to Lin Haoran.
The two stood at the VIP exit of Kai Tak International Airport, watching planes landing one after another on the tarmac, and an indescribable feeling welled up in their hearts.
Of the 12 representatives from semiconductor giants, 11 have arrived so far, leaving only one representative.
In five minutes, Intel CEO Andy Grove's private jet will land at Kai Tak International Airport.
At 3:45 p.m., a Boeing 727 VIP plane landed smoothly on runway 13 at Kai Tak Airport.
The aircraft was not painted with any airline markings, except for a simple blue logo on the tail, the iconic "Intel Inside" blue ring.
Zhang Zhongmou stood in front of the huge floor-to-ceiling glass window, squinting as he watched the plane taxi, turn, and slowly approach the tarmac.
In his 23-year career in the semiconductor industry, he had countless dealings with this company and with this person, and he even had the opportunity to become the CEO of this company.
But at this moment, watching the plane land in the city, a strange feeling welled up inside him.
This should be Grove's first time visiting Hong Kong.
It was also the first time that Zhang Zhongmou, as the host, welcomed this old friend.
"They're here," Lin Haoran said softly.
Zhang Zhongmou nodded.
The two walked together into the VIP area.
Andy Grove, president and CEO of Intel, is one of the most powerful figures in the semiconductor industry.
He was wearing a dark gray suit and his signature gold-rimmed glasses. He stood at the entrance to the VIP area and glanced at the dense residential buildings surrounding Kai Tak Airport.
Zhang Zhongmou went to greet him.
"Andy!"
Grove saw him, smiled, quickened his pace, and the two shook hands and embraced at the bottom of the gangway.
"Dr. Zhang, it's been a long time." Grove's voice was as steady as ever.
"I didn't expect you to come in person," Zhang Zhongmou said with a smile.
Grove smiled and said, "How could I not attend your press conference?"
The two released each other, and Grove's gaze passed over Zhang Zhongmou and landed on the young man behind him.
He was a young man in a dark suit, with a composed demeanor.
He stood there, not going forward, but just smiling and watching them.
Grove recognized him.
Lin Haoran.
That young man who conquered global public opinion a month ago with his wedding.
The Eastern tycoon whom Fortune magazine called the "builder of an invisible empire".
The person who convinced Zhang Zhongmou to give up his position as president of Intel and choose to cooperate in Hong Kong.
Andy Grove did not attend the last wedding, after all, Lin Haoran and Intel did not have any apparent cooperation or interaction.
To this day, the other party is still unaware that Lin Haoran already holds more than 7% of Intel's shares.
Zhang Zhongmou stepped aside and introduced, "Andy, this is Mr. Lin Haoran, an investor in Oracle Semiconductor."
Lin Haoran stepped forward, extended his hand, and said in fluent English, "Mr. Grove, I've heard so much about you. Welcome to Hong Kong."
Grove took his hand and looked the young man over carefully.
He looks younger than in the photos and more composed than described in the magazines.
There was a depth in his eyes that was beyond his years.
“Mr. Lin, I have long admired your reputation,” Grove said. “I still admire your prediction of the US stock market decline, and I even heard about your wedding in the United States; it was quite a shock.”
Lin Haoran smiled and said, "Mr. Grove, you flatter me. Please, the car is waiting outside."
The three walked out side by side, followed closely by several bodyguards or assistants.
Grove walked along, looking at the surroundings of the airport through the floor-to-ceiling windows: "This is Kai Tak? It's more unique than I imagined."
He was referring to the world-famous runway that stretches into Victoria Harbour, making it seem as if planes are passing through buildings when landing.
“The pilots need to be skilled,” Zhang Zhongmou said with a smile. “When I landed the plane last month, my palms were sweaty.”
Although Zhang Zhongmou came to the United States from Hong Kong and lived there often as a child, Hong Kong didn't have so many tall buildings decades ago.
Hong Kong today is vastly different from Hong Kong of decades ago.
"When I landed for the first time, I almost thought I was going to crash into those rooftops," Zhang Zhongmou added, his tone tinged with emotion.
Grove laughed, looking at the dense residential buildings around him: "It does take some courage."
The three walked to the parking lot, where a black Rolls-Royce had been waiting for some time.
Li Weiguo respectfully opened the car door, and Lin Haoran stepped aside to gesture, "Mr. Grove, please."
Grove nodded and got into the car.
Zhang Zhongmou and Lin Haoran boarded the vehicles from either side, and the convoy slowly drove away from the airport.
The car was spacious and quiet, a stark contrast to the hustle and bustle outside.
Grove looked out the car window at the unfamiliar city.
Skyscrapers, busy streets, and bustling crowds.
It was much more prosperous than he had imagined.
He had heard of Hong Kong many times, as it was often mentioned alongside New York and London as one of the four major cities in Hong Kong, but this was his first time visiting.
After all, in Intel's eyes, Hong Kong's technological level is not outstanding.
There is actually one of Intel's production lines here, which produces low-end chips.
Such a small arrangement didn't require the company CEO to come in person.
But that's not his main focus.
He turned his head and looked at Lin Haoran sitting opposite him.
“Mr. Lin, I’m curious,” Grove said bluntly, “why would you invest in the semiconductor industry? As far as I know, your business empire is mainly concentrated in real estate, retail, energy, and finance.”
Lin Haoran smiled, but instead of answering directly, he asked in return, "Mr. Grove, what do you think of the prospects for the semiconductor industry?"
To be honest, he'd heard this question far too many times.
When he met with the leaders of the previous 11 semiconductor giants, he was asked this question by almost all of them.
Grove stated without hesitation: "In the next decade, semiconductors will be the core of the global technology industry. Without semiconductors, there will be no computers, no communications, and no intelligent devices."
Lin Haoran nodded: "I agree with you."
He looked at Grove and continued, "And I believe that the semiconductor industry will undergo a profound transformation in the next twenty years."
From vertical integration to specialization, from the IDM model to the separation of design, manufacturing, and packaging and testing, companies that try to do everything themselves will find it increasingly difficult.
Companies that focus on a particular aspect will become increasingly stronger.
Grove's eyes narrowed slightly.
These words coincided with his inner judgment.
Intel's success today is due to its decisive shift to microprocessors after its failure in memory technology, focusing on its core competencies.
Companies that want to do everything and are unwilling to give up anything are being gradually eliminated by the market.
Grove nodded and continued, "So, your investment in Oracle Semiconductor is because you are optimistic about the wafer foundry industry?"
Lin Haoran did not answer directly, but instead asked, "Mr. Grove, do you think the wafer foundry model has a future?"
Grove was silent for a few seconds.
To be honest, he hadn't seriously thought about this issue before.
Intel's model is IDM, which encompasses design, manufacturing, and packaging/testing.
This has been the mainstream model in the semiconductor industry for the past few decades.
However, he also sees that this model is facing challenges.
Building a state-of-the-art wafer fab already costs over a billion US dollars. And that number is growing rapidly as technology advances.
In the future, how many companies will be able to afford such investments?
Fewer and fewer.
What about companies that can't afford it?
They will either be eliminated or outsource manufacturing.
This is the opportunity for wafer foundry.
Grove looked at the young man before him, a hint of surprise rising in his heart.
This wealthy Eastern businessman, who looks to be under thirty, has remarkably profound insights into the semiconductor industry.
“Mr. Lin, you’re right. Wafer foundry is indeed a very promising area,” Grove replied confidently.
Lin Haoran smiled.
“I am honored that Mr. Grove would say that.”
He paused, then continued, "But for the wafer foundry model to succeed, two conditions are required. First, sufficient technological accumulation to make products as good as, or even better than, those of IDMs. Second, enough customer trust to make them willing to entrust you with the most core manufacturing process."
He looked at Grove with a calm gaze.
"In terms of technological accumulation, we have Dr. Zhang. He has been in the semiconductor industry for 23 years. The team he led and the products they produced are recognized by the industry."
"We need time to build customer trust, but I believe that as long as we adhere to the principles of neutrality, professionalism, and reliability, time will be on our side."
Grove remained silent for a long time after hearing these words.
He wasn't thinking about what Lin Haoran said, was he?
He was thinking, if these words were true, if Oracle Semiconductor could really do what they said, how would the future landscape of the semiconductor industry change?
More and more companies will outsource manufacturing to Oracle Semiconductor.
Companies that insist on the IDM model will face increasing cost pressures.
Ultimately, the industry will split into two categories: fabless companies that focus on design and foundries that focus on manufacturing.
Those IDM companies that do everything either need to transform or be eliminated.
This is not alarmist.
This is an inevitable law of industrial development.
Grove took a deep breath and looked at the young man in front of him.
“Mr. Lin,” he said, “I admire your judgment on the semiconductor industry.”
Lin Haoran smiled and shook his head: "Mr. Grove, you flatter me. I am just a theorist. The one who truly understands the technology is Mr. Zhang Zhongmou."
Grove nodded.
He certainly knew Zhang Zhongmou's value.
But now he realized even more clearly that this young man in front of him was not to be underestimated either.
He not only has vision and judgment, but also a convincing aura.
No wonder Zhang Zhongmou was willing to give up his position as president of Intel to cooperate with him.
The car eventually arrived at the Peninsula Hotel in Tsim Sha Tsui.
This hotel, with a history of over fifty years, is a legendary landmark in Hong Kong.
The fountain in front of the main entrance, the doormen in white uniforms, and the iconic marble staircase in the lobby all exude an old-fashioned elegance and nobility.
Grove looked up at the building as he got out of the car.
He had stayed in countless top hotels around the world, and of course he had heard of the Peninsula Hotel.
Putting aside everything else, photos of this hotel frequently made headlines last month after the wedding of the century.
“Mr. Lin,” Grove said, “this is too much of a show of courtesy.”
Lin Haoran smiled and waved his hand: "Mr. Grove has come from afar, so it's only right. Please rest and adjust to the time difference. I've prepared a welcome dinner at the hotel tonight, and I hope you can join me."
Grove nodded. "Thank you, Mr. Lin. See you tonight."
Zhang Zhongmou accompanied Grove into the hotel lobby and personally escorted him to his room.
The room is on the top floor, facing Victoria Harbour.
Outside the floor-to-ceiling windows, the sea and sky blend into one, and the towering buildings of Central on the opposite shore offer a panoramic view of the city's prosperity.
Grove stood by the window, looking at the scene, and remained silent for a few seconds.
“Dr. Zhang,” he suddenly said, “when you decided to come to Hong Kong, did you ever imagine that things would turn out this way?”
Zhang Zhongmou walked to his side, also looking out the window, and replied, "I had thought about it, but I didn't expect it to happen so quickly."
Grove turned to look at him.
"All twelve companies are here. To be honest, when I sent out the invitations, I thought it would be good if half of them came," Zhang Zhongmou said with some emotion.
Grove was silent for a few seconds, then said, "Do you know why they all came?"
Zhang Zhongmou nodded: "Because they are afraid."
"What are you afraid of?"
"I'm afraid of missing out, afraid that if I really make a name for myself, they won't catch up," Zhang Zhongmou laughed.
Grove sighed, "You're still so lucid."
Zhang Zhongmou smiled and continued, "Andy, see you tonight."
……
At 7 p.m., all the crystal chandeliers in the Regent Ballroom of the Peninsula Hotel were lit up, illuminating the entire banquet hall in a magnificent golden glow.
This is the Peninsula Hotel's largest banquet hall, which has hosted countless members of royalty and heads of state.
But tonight, a special group of people are sitting here. They don't wear crowns or hold scepters, yet they hold the lifeline of the global technology industry.
Intel, Texas Instruments, Motorola, Toshiba, Hitachi, NEC, Philips, Siemens, Fujitsu, Mitsubishi, National Semiconductor, AMD!
The heads of all twelve semiconductor giants were present at this moment.
Lin Haoran and Zhang Zhongmou stood at the entrance of the banquet hall, personally welcoming each distinguished guest.
One by one, renowned figures in the global technology industry entered the Regent Hall.
Texas Instruments President Peter Schaffner arrived a little later.
When he entered the banquet hall, everyone was already seated.
Zhang Zhongmou personally went up to him and led him to sit at the head table.
Previously, they had a superior-subordinate relationship.
Now, they meet at this table as equals.
As Schaber sat down at the head table, his gaze swept over the seats around him: Grove, Kobayashi Koji, Galvin…
These familiar faces are all looking at him now.
He nodded slightly as a greeting, then picked up his wine glass and took a sip.
Texas Instruments holds a very special position in the semiconductor industry. It is one of the founders of the industry, a "veteran" of many semiconductor giants, and a standard setter for countless technologies.
Many of you here have been partners, competitors, or even admirers of this company.
Ironically, this pioneer of the semiconductor industry is now abandoning the semiconductor field and instead allocating most of its R&D funds to consumer electronics.
However, it was precisely because Texas Instruments did not pay much attention to semiconductors that it provided an opportunity for other semiconductor companies to rise.
The industry giants present knew very well that they owed their current success, to some extent, to Xia Bo's strategic transformation.
If Texas Instruments had continued to pour huge sums of money into semiconductor R&D as it did a decade ago, with its technological accumulation and talent pool, how could it have developed so rapidly?
But now, Schaper is personally dismantling Texas Instruments' semiconductor business unit bit by bit, driving away top engineers one by one, and cutting off cutting-edge research projects one by one.
Many engineers at companies like Intel, Motorola, Toshiba, Hitachi, NEC, Philips, Siemens, Fujitsu, Mitsubishi, National Semiconductor, and AMD were originally from Texas Instruments.
Now, there's another one: Oracle Semiconductor.
Grove raised his glass and gestured towards Shabe across from him.
Xia Bai paused for a moment, then raised his glass and clinked it against the glass from a distance.
They each took a sip, their eyes met, and then they looked away.
Zhang Zhongmou was the first to stand up, raised his glass and said to everyone, "Everyone, thank you very much for coming."
His voice wasn't loud, but in the magnificent banquet hall, every word was clearly audible.
"I've been in this industry for over 20 years and have seen countless situations, but I really didn't expect what I'm seeing today."
He smiled and his gaze swept over every face in the room.
Grove, old friend.
Galvin, an old friend.
Kobayashi Koji, an old friend.
Xia Bai, his former boss, the person who once marginalized him.
It also includes the heads of Toshiba, Hitachi, Fujitsu, Mitsubishi, Philips, Siemens, AMD, and National Semiconductor.
Twelve people, twelve industry giants, were all seated here at this moment. (End of Chapter)