Chapter 900
Failure? Then let's be rivals!
“Among those of you here, some are comrades who fought alongside me, and others are my former rivals,” Zhang Zhongmou continued. “But today, we are sitting together not for competition, not for confrontation, but for the same thing.”
He paused.
"The future of semiconductors."
These four words echoed in the banquet hall.
No one spoke, but everyone listened attentively.
“I know that many of you here are watching and having doubts,” Zhang Zhongmou said. “What kind of success can a company starting from scratch achieve in Hong Kong? Did Zhang Zhongmou leave Texas Instruments because he had no other options? Was Lin Haoran’s investment in semiconductors just a spur-of-the-moment decision?”
He smiled.
“I’ve heard these questions before, and more than once.”
"But I want to tell you all that I, Zhang Zhongmou, am fifty-one years old. In my whole life, I have only done one thing, which is semiconductors. I will not joke with the reputation I have built up over the past twenty years, nor will I bring a group of old brothers who have followed me for more than ten years to Hong Kong for fun."
"Three months later, Oracle Semiconductor's first wafer production line was operational; six months later, the packaging and testing plant went into production!"
He looked at the people present.
"When the time comes, you are welcome to come to Hong Kong again to inspect the goods in person."
After saying that, he raised his glass.
"Come on, let's drink to the future of semiconductors!"
Everyone raised their glasses and drank them down in one gulp.
Lin Haoran sat in the main seat, looking at Zhang Zhongmou with a hint of admiration in his eyes.
This person not only has skills and prestige, but also a convincing aura.
No wonder he could bring together twelve industry giants in Hong Kong.
At that moment, a voice rang out from a corner of the banquet hall.
"Mr. Lin, I have a question."
Everyone looked in the direction of the voice and saw that it was Jerry Sanders, the founder of AMD.
Lin Haoran looked at the other person in surprise. The question wasn't directed at Zhang Zhongmou, but at him, the investor.
Surprised as he was, Lin Haoran nodded and said, "Mr. Jerry, please go ahead."
Jerry Sanders stood up, the AMD founder known for his sharp tongue, and stared intently at Lin Haoran.
Then he said, "Mr. Lin, you just said that you have money, time, and patience, but I want to ask a more direct question: what if you fail?"
The atmosphere in the banquet hall froze slightly.
Sanders continued, "No one has ever really succeeded with the foundry model. You invest astronomical sums of money, build state-of-the-art production lines, recruit top engineers, and then what?"
What will you do if, in three or five years, customers don't buy, the market doesn't accept it, and your technology can't keep up?
He looked at Lin Haoran, his tone calm but sharp.
"Will you cut your losses and leave the market? Or will you continue to burn money? If you continue, when will it end? If you cut your losses, what will happen to Dr. Zhang and his team? What about the engineers who came from Texas Instruments with Dr. Zhang?"
This problem is like a knife, piercing straight to the core.
Everyone present was looking at Lin Haoran.
Grove held his wine glass, lost in thought.
Kobayashi Koji adjusted his glasses, his gaze focused.
Galvin put down his napkin and listened attentively.
Xia Bo's expression shifted slightly, as if he too was waiting for an answer.
Zhang Zhongmou looked at Lin Haoran with some concern.
Jerry Sanders' question was really putting Lin Haoran in a difficult position.
Lin Haoran did not answer immediately.
He picked up his glass, took a small sip, and then put it down.
He looked at Sanders and smiled slightly.
“Mr. Jerry, that’s a very good question.”
He stood up, walked to the center of the banquet hall, and stood side by side with Zhang Zhongmou.
Before answering your question, I would like to ask everyone here a question first.
He glanced around at the audience, who were among the most powerful figures in the global technology industry.
"What do you think is the biggest barrier to entry in the semiconductor industry?"
No one answered.
Lin Haoran provided the answer himself.
"It's money."
"Technology can be accumulated, talent can be trained, customers can be developed, and markets can be expanded, but without money, all of this is just empty talk."
"How much does it cost to build a state-of-the-art wafer fab? It starts at several hundred million US dollars. How much does a complete production line cost? It also costs over several hundred million US dollars."
How much does a state-of-the-art lithography machine cost? Tens of millions of dollars, and these machines depreciate in value every year and need to be replaced annually.
He looked at the people below the stage.
"Everyone here, how much does your company invest in semiconductor research and development each year? One hundred million? Two hundred million? Five hundred million?"
I can tell you all that I, Lin Haoran, have more than ten times that amount of funds at my disposal at any time.
A slight commotion arose in the banquet hall.
Lin Haoran continued, "So, Mr. Jerry asked, what if we fail?"
He smiled.
"My answer is: if the foundry fails, I will go all out to enter the field of chip research and development."
The moment those words were spoken, the banquet hall fell into an eerie silence.
Grove's hand trembled slightly, and the red wine in his glass almost spilled.
Kobayashi Koji's expression froze.
Galvin's eyes widened.
The wine glass in Xia Bai's hand stopped in mid-air.
The presidents of Toshiba and Hitachi exchanged a glance, a hint of wariness flashing in their eyes.
Hans Becker of Philips and the representative of Siemens exchanged a glance.
AMD's Jerry Sanders, whose gaze was originally sharp, now became complicated.
Lin Haoran's smile deepened as he observed the reactions of these people.
“Don’t be alarmed,” he said. “This is just a backup plan for the worst-case scenario.”
"But I want everyone to understand one thing: I, Lin Haoran, am not short of money. I can bear failure, I can bear losses, and I can bear any cost."
"If the foundry route doesn't work, then I'll go into chip design. If chip design doesn't work either, then I'll go into equipment manufacturing. If equipment manufacturing doesn't work either, then I'll go into materials."
"In short, once I'm in the semiconductor field, I won't leave, and you shouldn't expect me to leave either. You should all know that I have enough capital to support my entry into this field."
He looked at the tycoons below the stage, their expressions complex.
"So now you should understand why I say I have patience."
"Because I have enough capital to try all the paths."
Silence fell over the banquet hall.
Is Lin Haoran going to enter the chip R&D market?
This is certainly not what they wanted to see, and in fact, that's why they came here in person.
They wanted to see if this so-called Oracle Semiconductor company truly intended to enter the semiconductor foundry field, or if it wanted to enter the chip R&D field or the lithography machine R&D field.
They were afraid—afraid that a new, wealthy, and influential competitor would enter the market and disrupt the existing order.
Zhang Zhongmou glanced approvingly at Lin Haoran. As expected of his investor, this answer was simply impeccable.
If Oracle fails, it will enter another field and become a competitor with the companies present. Who wouldn't be afraid of such a response?
There are currently 12 giants, but the market is limited, and they don't want another giant to come in and take away their market share.
Grove was the first to react.
He put down his wine glass and slowly stood up.
Then he said, "Mr. Lin, I admire what you said."
He paused, then continued, "But I also want you to understand something."
Lin Haoran looked at him and said, "Please speak."
Grove's gaze swept over everyone present before settling on Lin Haoran.
"The semiconductor industry is already highly competitive. There are Intel, Motorola, Toshiba, Hitachi, NEC, Philips, Siemens, Fujitsu, Mitsubishi, National Semiconductor, AMD, and many more semiconductor companies smaller than us. These companies have been fighting for over a decade, investing billions of dollars in R&D every year to gain market share."
If you were to come back, I strongly advise against it. It would only disrupt the existing market structure. I hope Mr. Lin will think this through carefully!
Kobayashi Koji stood up and said in English with a heavy Japanese accent, "Mr. Kobayashi, Mr. Grove is right. Although our companies are usually very competitive, we have a consensus that we do not want a 'disruptor' in the industry."
Galvin also stood up: "Mr. Lin, Motorola shares the same opinion. We would prefer to see a successful wafer foundry rather than a new chip design competitor."
The president of Toshiba stood up and said a few words in Japanese, and the translator immediately followed: "Toshiba supports Mr. Galvin's point of view."
Hitachi's president followed up: "Hitachi also supports this."
The NEC representative stood up: "NEC also hopes that Oracle Semiconductor's foundry model will be successful."
Hans Becker of Philips stood up: "The European semiconductor industry also needs a reliable wafer foundry partner."
The Siemens representative nodded in agreement.
The president of Fujitsu stood up and expressed his agreement.
A representative from Mitsubishi also expressed their opinion.
Charlie Spock, CEO of National Semiconductor, stood up: "Mr. Lin, I am willing to support the development of Oracle Semiconductor."
Finally, Jerry Sanders also stood up.
He looked at Lin Haoran and gave a wry smile.
"Mr. Lin, your move is truly brilliant."
"I originally wanted to ask you a tricky question, but you used one sentence to get us all on your side."
He raised his glass.
"AMD is willing to support Oracle Semiconductor's development."
All twelve leaders expressed their opinions.
Full support.
Lin Haoran watched this scene with a slight smile on his lips.
Sure enough, even though Oracle Semiconductor is just a newcomer to the semiconductor industry, they will be afraid as long as there is enough capital injection!
Semiconductors require massive R&D investment and a large number of highly skilled professionals, but neither of these are problems for him now.
So, these people were afraid.
He raised his glass and smiled, "Thank you all. I hope we can become partners in the future!"
Everyone raised their glasses and drank them down in one gulp.
The atmosphere in the banquet hall became lively again.
But this time, there was a subtle change in the warmth.
The way those industry giants looked at Lin Haoran was no longer one of scrutiny and suspicion, but rather a complex mix of emotions: admiration, wariness, respect, and a hint of relief.
Fortunately, what Lin Haoran just mentioned was only an "alternative plan".
Fortunately, he was willing to promise not to enter the field of chip design.
Fortunately, they had the opportunity to become Oracle Semiconductor's partner, rather than a competitor.
Grove walked up to Lin Haoran and whispered, "Mr. Lin, were you sincere when you said those words just now?"
Lin Haoran looked at him and smiled slightly.
"What does Mr. Grove think?"
Grove was silent for a few seconds, then said, "I think it's genuine, but I also think you're a smart person."
Lin Haoran smiled.
“Mr. Grove is a smart man; he knows when to advance and when to retreat.”
"Now, it's better to retreat than to advance."
Grove nodded, a hint of appreciation flashing in his eyes.
"Mr. Lin, you are right."
He paused.
"Intel's first trial order will be given to Oracle Semiconductor in three months. I hope that we can become long-term partners, and I hope that Oracle Semiconductor will not let us down."
Intel also wants to focus on research and development. If manufacturing can be outsourced to other companies, Intel can save a lot of money.
He believed that if this money were invested in more advanced chip research and development, Intel's development would be even faster!
Therefore, at this moment he also very much hopes that Oracle Semiconductor will seriously develop in the direction of contract manufacturing.
Given this, he naturally hoped that Oracle Semiconductor would succeed.
Lin Haoran extended his hand.
"Mr. Grove, it's a pleasure doing business with you."
The two hands are clasped together.
At this moment, the collaboration between Intel and Oracle Semiconductor officially began.
……
After the banquet ended, Xia Bai did not leave immediately.
He stood on the terrace outside the banquet hall, looking at the night view of Victoria Harbour.
The night breeze carries the salty scent of the sea.
Footsteps sounded behind me.
He didn't turn around.
“Mr. Xia Bai.” It was Zhang Zhongmou’s voice.
Xia Bai was silent for a few seconds, then said, "Dr. Zhang, today's banquet was a great success."
Zhang Zhongmou walked to his side and also looked at the night view in the distance.
"Thank you."
The two stood side by side in silence for a long time.
“Dr. Zhang,” Xia Bai suddenly spoke up, “tell me, am I really wrong?”
Zhang Zhongmou looked at him.
Xia Bo gave a wry smile: "It's been five years. I cut the semiconductor budget, halted your project, and invested the funds in consumer electronics. I thought I was on the right track, and Wall Street said I was on the right track too."
"But today, looking at these people, at their reaction to Lin Haoran, at their support for Oracle Semiconductor, I've started to have doubts."
He turned his head and looked at Zhang Zhongmou.
Do you think the future of consumer electronics is really brighter than that of semiconductors?
Zhang Zhongmou remained silent for a few seconds.
Then he said, "Mr. Schaber, I cannot answer that question."
"Because no one can predict the future."
He gazed at the night sky in the distance.
"But I can tell you one thing: semiconductors are the foundation, and consumer electronics are the application. Without semiconductors, there would be no consumer electronics. This principle will never change."
As for which has a brighter future and which is more worthwhile to invest in, let time tell. Besides, Texas Instruments has no way back now, has it?
Xia Bai remained silent.
After a long while, he sighed.
"Dr. Zhang, thank you."
He stretched out his hand.
Zhang Zhongmou looked at him and also reached out his hand.
The two hands are clasped together.
At this moment, the five-year feud was finally put to rest.
Xia Bai turned and left, disappearing into the night.
Zhang Zhongmou stood still, looking at Victoria Harbour in the distance.
The night breeze carries the salty scent of the sea.
He suddenly laughed.
Because he knew that from this day forward, Oracle Semiconductor had truly established itself.
With the support of twelve giants, Lin Haoran's funds, their own technology, and the hard work of their team, they have achieved great success.
This path will definitely lead to success. (End of Chapter)