Chapter 896
The DVD Year Arrives
The black Mercedes convoy smoothly glided into the underground parking garage of Pengcheng Century Building.
The engine was turned off, the door opened, and Lu Yang stepped out of the car. His feet touched the solid cement ground, and a familiar smell mixed with engine oil, dust, and the cool air from the air conditioner hit him.
He subconsciously straightened his back, trying to ignore the familiar soreness coming from his lower back.
That was a sweet yet annoying medal left behind by a fierce "farewell battle" in front of the floor-to-ceiling windows of a villa in Repulse Bay, Hong Kong.
"Oh my god, I'm finally back! This trip is killing me!"
Xiao Jun stretched dramatically as he climbed out of the other car door, his face radiant, a stark contrast to the barely perceptible weariness between Lu Yang's brows. He winked and leaned closer to Lu Yang, lowering his voice in a cheeky tone, "Hey brother-in-law, you haven't recovered from this 'overwork' yet? How about... I get you some tiger bone wine to help you recover?"
Lu Yang glanced at him expressionlessly, his disdain as clear as if it were etched on ice: "Get lost. If you utter another word of nonsense, the next time the little prodigy holds a board meeting, I'll have someone throw away my votes and not cast them for you."
Xiao Jun's smile froze instantly. He awkwardly touched his nose and dared not utter another word.
Lu Yang scoffed inwardly: 'Idiot, how can your greenhorns compare to my mature woman, who's been through a long drought and whose fighting power is off the charts?'
Without pausing for a moment, Lu Yang strode towards his private elevator.
The elevator doors slid open silently and closed quickly, shutting out the noise from the garage. In the cramped space, only the low hum of the elevator could be heard.
Lu Yang closed his eyes, his mind instantly switching channels. The decadent glamour of Hong Kong, the fierce competition at the auction, Du Lingling's gentle yet domineering affection... all receded like the tide, replaced by cold numbers, massive factories, and that colossal machine that cost a fortune and was waiting for "blood" to be injected.
Century Wafer Factory, located in Luzhou, inland China.
"Ding." We've arrived at the floor where the top-floor CEO's office is located.
The door opened, and the group's CFO and assistant, Lu Nini, who had been waiting there, immediately came to greet them.
"Chairman Lu," the CFO said quickly, with a hint of relief, "the funds from Hong Kong City have all arrived, HK$53 billion, not a penny less!"
"Okay." Lu Yang replied with only one word, and without stopping, walked straight to his office.
His voice was calm, yet carried an unquestionable command: "Immediately, according to the plan, transfer the remaining payment for the wafer fab project, plus the operating reserve for the next three months, totaling 15 billion RMB, to the designated account of Lin Chunsheng in Luzhou. Prioritize equipment debugging and the first tape-out."
"Yes, Chairman Lu! I'll get right on it!" The CFO didn't hesitate for a moment and immediately turned to carry out the order.
This money, like the sword of Damocles hanging over Lin Chunsheng and the entire wafer fab team, has been weighing on them for far too long.
More than a month ago, the core lithography machine and other precision instruments that had traveled from Europe to Luzhou were already standing quietly in the cleanroom, like a sleeping giant.
They are priceless, but because they lack sufficient "fuel," they cannot truly awaken and unleash their devastating manufacturing capabilities.
The places where money is needed afterward are like a bottomless pit.
Expensive chip raw materials, such as silicon wafers, photoresists, and specialty gases, as well as the sky-high salaries of top engineers and technical personnel recruited from around the world to operate and maintain these precision instruments, and the unavoidable huge trial-and-error costs of the most expensive debugging phase.
Every failed tape-out and scrapped wafer means the loss of real money.
Lin Chunsheng's phone calls have practically become a debt collection hotline. His tone has changed from hopeful at the beginning to anxious later, and recently, Lu Yang has been calling him almost every day, making his voice hoarse.
Fortunately, we didn't have to start from scratch.
The Century Group's chip lab's "secret weapon" is an extremely mature chip framework design, which has already been successfully taped out at the partner wafer fab in Singapore with a considerable yield rate, verifying its feasibility.
This means that what the Luzhou wafer fab is doing is essentially a successful "copy and paste": accurately replicating the process parameters and production processes that have been validated in Singapore on this brand-new, more advanced equipment.
As long as the precision instruments are properly debugged and the funding chain remains unbroken, success is almost inevitable.
All is ready except for the opportunity.
This windfall was the HK$53 billion that Lu Yang reaped from the Hong Kong auction, still tinged with the smell of gunpowder.
Now, the east wind has arrived!
The order to transfer funds was like a shot in the arm.
Lin Chunsheng, who was far away in Luzhou, replied to the confirmation message almost instantly. Even through the phone line, you could feel his excitement and relief, which were almost soaring to the sky.
The energy that had been suppressed for more than a month suddenly exploded.
The entire Luzhou wafer fab was like a machine that had been put on its highest power, with all parts running at high speed.
A few days later, a phone call came in that completely dispelled the last trace of weariness from Lu Yang's brow.
"Chairman Lu! It's a success! We've succeeded!" Lin Chunsheng's voice was trembling with excitement, even choked with emotion. "The second-generation 'Century Chip'! Successful tape-out on the first try! Yield... preliminary yield test results far exceed expectations! Meets all design specifications! Fully compliant!"
On the other end of the phone, Lu Yang's fingers tightened slightly as he held the receiver, and the corners of his mouth finally couldn't help but turn upwards, forming a truly relaxed and cheerful smile.
He could almost see the scene on the other end of the phone, in the cleanroom, where the technicians in their protective suits were high-fiving each other, tears welling up in their eyes.
Luzhou, the inland city on which he placed high hopes, has finally produced its first high-end decoding chip with independent intellectual property rights that has reached international commercial standards!
"Great! Excellent! Engineer Lin, thank you for your hard work! The whole team has worked hard!" Lu Yang's voice was steady and powerful, filled with sincere praise and affirmation. "Get ready, I'm going there in person to attend the successful tape-out ceremony! This is a milestone for our Century Group and for your entire technical team!"
"Yes, Chairman Lu! We're waiting for you!" Lin Chunsheng's voice was full of enthusiasm and pride.
The tape-out ceremony at the Luzhou wafer fab.
Outside the enormous cleanroom, separated by thick observation glass windows, Lu Yang, Lin Chunsheng, along with a group of core technical personnel and local government representatives, stood solemnly.
Inside the workshop, automated robotic arms operate with precision, and wafers gradually reveal complex circuit patterns under the "sculpting" of precision equipment such as lithography machines.
Finally, a wafer gleaming with metallic luster and covered with tiny chip units was carefully removed and passed out through a dedicated channel.
When Lin Chunsheng solemnly handed the wafer, which carried the hard work and hopes of countless people, and the first "Century Chip II" sample cut and packaged from it, to Lu Yang, thunderous applause erupted at the scene.
Flashes of light filled the air as cameras captured this historic moment.
This tiny chip is of great significance.
It fully meets the performance requirements of the core decoding chip in current mainstream international DVD players!
This means that Century Group's DVD player manufacturing companies, such as Little Prodigy and Little Genius, can finally break free from their dependence on foreign chip giants (such as ESS and C-Cube) and completely solve the "bottleneck" problem of capacity expansion!
No more having to be beholden to others, no more paying exorbitant patent licensing fees and chip procurement premiums! Self-production and self-sales will significantly reduce costs and dramatically increase competitiveness!
Lu Yang carefully examined the "Century Core II" in his hand, which was slightly larger than a fingernail but contained astonishing energy, feeling its cool touch and intricate structure with his fingertips.
He raised his head and his gaze swept over the excited crowd, finally landing on Lin Chunsheng's face, which was slightly haggard from excitement and staying up all night, yet still radiant.
"Mr. Lin," Lu Yang's voice, clear and powerful, resonated throughout the ceremony venue through the microphone, "You and your team have proven your irreplaceable abilities! Century Group will not let its contributors down! Keep up the good work. As I promised, promotions and raises are just the beginning. In the future, stock options for the wafer fab management are just around the corner! The future of Century Chips is in your hands!"
These words acted like the most effective stimulant, instantly igniting the passion and sense of belonging of all the technical staff.
The applause surged like a tidal wave once again.
After reassuring the "national treasure" technology team in Luzhou, Lu Yang, without stopping, brought the great news of the successful tape-out of "Century Chip II" to several core terminal manufacturing companies under the group, like a strong east wind.
Our first stop was Little Genius Electronics.
President Lu Youyi, Lu Yang's cousin, had already received the news and led his senior management team to warmly welcome him at the door.
When Lu Yang placed the "Century Chip II" sample and test report on Lu Youyi's desk, his honest and hardworking cousin became so excited that his face turned red. He slammed his hand on the table and exclaimed, "Great! That's fantastic! Yangzi, now we can finally hold our heads high! We no longer have to suffer the humiliation of those foreign devils! You tell us what to do, and we'll do it! We'll cooperate fully!"
Lu Yang smiled and nodded: "Brother, we have the chip. Next, we need to seize the market. I'm asking your R&D department to immediately launch a new project: develop a player that can play both VCD and DVD discs!"
Lu Youyi was taken aback, then suddenly realized, his eyes gleaming: "A compatible machine? Brilliant! VCDs are cheap now (around 1000 RMB), and almost every household has a disc library. DVDs, although with better picture quality (2800-5000 RMB), have fewer discs and are expensive, so many families are reluctant to switch. If there were a machine that could play both types of discs... that would be a killer feature! Yangzi, how did you come up with that? I'm impressed! No problem, I'll immediately gather the best people and concentrate resources to make it happen! A higher cost isn't a problem, as long as the volume increases, the cost will naturally be spread out! I think this thing will be mainstream for the next five or ten years!"
Lu Youyi's judgment of Lu Yang was almost unconditionally trusted and supported.
The second stop was Little Prodigy Digital.
President Xiao Jun was sitting with his legs crossed, bragging to his newly hired secretary about his "achievements" in Hong Kong. When he saw Lu Yang come in, he quickly sat up straight.
Upon hearing Lu Yang's plan and the news about "Century Chip II," Xiao Jun's eyes lit up: "Hey! This idea is brilliant! A compatible machine? It's promising! Absolutely promising! Users won't have to worry anymore, one machine can solve everything! Our Little Prodigy will definitely follow up with all his might! Chairman Lu, you point and I'll do it!"
Xiao Jun has always been enthusiastic about things that can make money and bring him fame, especially with the added benefit of his own company's chips.
However, the atmosphere was completely different at the third stop, BBK Electronics.
President Duan Yongping, a business elite known for his "daring to be second to none and striving to be first among the second" and his expertise in marketing, received Lu Yang with courtesy and thoroughness.
The spacious and bright office was filled with the aroma of tea.
Lu Yang also shared the good news about "Century Chip II" and his strategic vision for developing a VCD/DVD compatible player.
Duan Yongping listened attentively, his fingers lightly tapping the mahogany tabletop, a polite smile always on his face.
After Lu Yang finished speaking, he paused for a moment before slowly saying, "The news you brought, Chairman Lu, is indeed encouraging. The success of 'Century Chip II' has solved our core component supply problem, which is of great significance. As for the compatible machine project you proposed..."
He paused, his tone becoming quite serious. "This direction certainly has great market potential and represents a part of the future trend. However, as you know, Mr. Lu, BBK's current product line and R&D resources are also in a critical adjustment period. This project involves a huge investment and a wide range of issues. I need to convene the R&D, marketing, and finance departments for a detailed evaluation, weigh the pros and cons, and make the decision that best suits BBK's current development. Please rest assured, Mr. Lu, I will definitely give your suggestion serious consideration."
These words were perfectly watertight, acknowledging the value Lu Yang brought without making any substantive promises.
His attitude was respectful, yet it conveyed a sense of detachment and independent decision-making.
Lu Yang's smile remained unchanged, but his eyes became more profound.
He nodded: "Mr. Duan is a shrewd businessman. Under your leadership, BBK is thriving. Your caution is justified. This suggestion is for your reference only. I believe Mr. Duan will make the choice that is most beneficial to BBK."
The two exchanged a few more pleasantries, and the atmosphere seemed harmonious, but undercurrents were actually swirling beneath the surface.
After leaving the BBK headquarters building and getting into his car, Lu Yang's smile faded, and his fingers unconsciously tapped on the car window frame.
The atmosphere inside the car was somewhat tense.
Lu Nini, in the passenger seat, observed Lu Yang's expression through the rearview mirror. After hesitating for a moment, she reported in a low voice, "Boss, there's something... Our people inside BBK have sent word that President Duan has recently secretly formed a new R&D project team, drawing on many core engineers. The focus... seems to be on portable MP3 players. Moreover, the budget and level of attention invested are very high, it looks like they're going to go all out. Perhaps... perhaps it's precisely because this new project is consuming a lot of resources and funds that President Duan hasn't immediately responded to your suggestion of a compatible machine, choosing to temporarily shelve the evaluation."
Upon hearing this, Lu Yang abruptly stopped tapping on the car window.
He remained silent for a few seconds, his deep gaze fixed on the rapidly receding city streetscape outside the window.
MP3? Duan Yongping is indeed quick to sense opportunities and has already begun planning for the next big trend.
This is indeed a growth market with huge potential.
“Heh,” Lu Yang suddenly chuckled, breaking the silence in the car. His tone was unreadable. “MP3… is indeed a good direction. President Duan has a keen eye.”
He paused, his tone becoming unusually calm, even carrying a hint of capitalist ruthlessness and pragmatism. "Let him be. After all, BBK isn't a wholly-owned subsidiary of Century Group. Duan Yongping is the founder, the key figure; he has his own strategy and pace. Forced intervention will only backfire. As long as BBK continues to be profitable and keeps expanding, I, as a major shareholder with a considerable stake, will only receive more money in year-end dividends. His success in the MP3 market is also beneficial to me. Why not?"
The essence of capital is profit-seeking, not control. In companies where Lu Yang doesn't hold a core stake, sharing the fruits of success is more in line with his current core interests than vying for control.
A knowing glint flashed in Lu Nini's eyes, and she nodded, saying, "Understood, boss."
"Mm," Lu Yang responded, leaning back slightly and closing his eyes, seemingly somewhat tired.
But soon he opened his eyes again and asked, "By the way, how's the international patent negotiations going? Especially with the DVD patent pool, have Philips, Sony, and Toshiba softened their stance?"
Lu Nini immediately opened her tablet and pulled up a file: "I was just about to report to you. Regarding the VCD patents, our group owns more than 80% of the core patents globally, giving us a significant advantage in negotiations. Progress is relatively smooth so far; several major potential licensees are quite cooperative, and we expect to reach several important licensing agreements within the year, starting to generate stable revenue. But regarding DVDs…"
Her tone grew serious: “The situation is far more complicated. Although we have acquired approximately 35% of the core essential patents through the acquisition of WanYen and continuous investment in R&D, making us one of the single largest patent holders, the remaining patents are highly dispersed among members of the ‘DVD Forum,’ comprised of more than a dozen giants, including Philips, Sony, Toshiba, Panasonic, and Time Warner. Their patent pool is very powerful, making negotiations extremely difficult. They are using their combined advantages to demand extremely high licensing fees and cross-licensing terms, attempting to squeeze our profit margins and limit our expansion in certain regional markets. Philips and Sony, in particular, have taken the toughest stance, believing that as a latecomer, our share should be limited.”
Lu Yang listened quietly, his fingers tapping habitually on his knees again, his eyes sharp as an eagle's. Outside the window, the city's neon lights were just coming on, reflected in his deep pupils as if dancing with silent flames.
A patent war, fought without gunfire but concerning huge profits and international influence, is raging across the ocean.
Having just replenished ammunition for the domestic battlefield, it was time for him to turn his attention back to the broader and more dangerous overseas battlefield.
"Understood." Lu Yang's voice was calm and even. "Keep a close eye on it. Compile the latest negotiation minutes and analysis report and send them to me tonight. Notify the heads of the Legal Department and International Business Department that I need a detailed report tomorrow morning at nine o'clock in the first conference room."
"Yes, boss." Lu Nini quickly took notes.
The car merged into the evening rush hour traffic and headed towards the Century Tower.
Lu Yang leaned back in his chair, closed his eyes, and his mind raced through a complex landscape of wafers, chips, players, patent clauses, and the power struggles among industry giants. (End of Chapter)