Chapter 431: The Minimum Demand
"If I hadn't seen it with my own eyes, I would've found it hard to believe that even after four years, the founders of Xinghai are still living together like they did in the early days of the startup."
Bill Gates, Su Yuanshan, Chen Haomin, and Tang Wenjie walked into the study on the second floor, appearing like courteous guests. In truth, if one were to count the number of times they'd met, Gates had actually seen more of Chen and Tang than of Su. Especially Chen Haomin—he used to personally lead the browser team to work at Microsoft, often grabbing lunch there while he was at it.
Because of that familiarity, he didn't act reserved. He sat comfortably on the couch, legs crossed, chatting casually.
It was September, the warmest month in Silicon Valley. San Francisco's Mediterranean climate meant year-round temperatures hovered in a pleasant range: no lower than five degrees Celsius in winter, and just over thirty degrees at most in summer—and even that barely lasted a week.
Su Yuanshan, ever the relaxed host, simply grabbed a watermelon from the fridge and sliced half of it to serve to his guests.
Watching Su cut the watermelon, Gates smiled with amusement and asked with genuine curiosity, "I heard there was an incident involving racial discrimination at Xinghai over watermelon?"
"Huh? Really? How come I didn't know?" Su replied as he deftly removed all the seeds from the watermelon before handing a slice to Gates, then another to Chen Haomin. He looked puzzled. "Discrimination over eating watermelon? Did it offend a Black guy or something?"
He asked this in Chinese.
Chen Haomin chuckled and nodded, replying in English, "There are a lot of Asians at our company, and sometimes we remind the kitchen to prepare watermelon as a post-meal fruit. Then one day, a new Black colleague joined the team, and unfortunately, a Chinese teammate casually handed him a slice after lunch…"
"And that caused offense."
Su was left speechless. "How did you handle that?"
Chen just chuckled. "Ask Yiwen later. She dealt with it."
Su's curiosity flared instantly. "Later? No way. I want to know now." He nudged Tang Wenjie. "Senior, what happened exactly?"
Tang laughed. "Yiwen gave the guy a proper scolding—really laid into him."
Su's eyes nearly popped out of his head. "A Black guy took that lying down?"
"It was mostly a misunderstanding," Tang said with a sly glance at Gates, "and honestly, when we talk about racial discrimination… why would Black people be the only ones claiming that? And you know your sister-in-law's temper. She'd rather take someone to court than endure any injustice."
Su thought for a moment. Indeed, that was very much Yang Yiwen's temperament.
"So, what happened to that guy afterwards?"
"He turned out to be quite capable. He's now leading a team under me, optimizing memory recycling processes."
At this point, Gates, who had been silently enjoying his watermelon, interjected, "If this had happened at another company, the outcome would've been completely different."
He looked at Su Yuanshan meaningfully. "That's what makes Xinghai different from other companies."
"Mr. Gates, are you complimenting Xinghai on being more inclusive?"
"If that's how you interpret it… then yes," Gates said with a chuckle.
Su smiled and shook his head.
He understood. Gates was implying that Xinghai's "genes" allowed it to gain advantages in certain areas. But Gates conveniently overlooked the fact that this same DNA also caused Xinghai to suffer from a fair amount of bias.
Just look at the stock price—Xinghai's valuation still hovered around $50 billion. Given its profitability and influence in the industry, it should at least be twice that to be accurately valued.
Not long after, Ye Rudai came upstairs to invite everyone down for dinner. Since Gates had driven himself over, they refrained from drinking and instead enjoyed a dish of spicy boiled fish prepared personally by Qin Si.
Of course, Gates got thoroughly overwhelmed by the spiciness.
…
After dinner, Qin Si brought up a plate of fruit. Su Yuanshan invited Gates back into the study, while the others remained downstairs to clean up.
"Miss Qin Si will be the chairwoman of the Xinghai Fund," Su Yuanshan said directly once they were seated again. "I believe her investment record over the past four years in Silicon Valley is proof enough that she is an exceptionally rare and competent investor."
To be praised with such strong words by Su Yuanshan for the first time, Qin Si couldn't help but feel a bit flustered. She quickly waved her hand. "It was just luck. You're giving me too much credit."
But Gates looked at her with a warm smile. "I don't think Su is wrong. Miss Qin, you're one of the most insightful female investors I've ever met."
Qin Si's eyes sparkled as she smiled lightly. "Is that because I bought Microsoft stock early?"
Gates burst out laughing. "That doesn't count."
…
After their laughter died down, Gates turned to Su Yuanshan with a more serious expression. "Su, first you must understand something—Microsoft is no longer just my Microsoft."
"Yes, I understand. Just like Yuanxin and Xinghai are no longer solely mine," Su replied, nodding empathetically.
At the height of his power, Gates had held more than 60% of Microsoft. When the company first went public, he still owned nearly 45%. Even after years of reducing his stake, he still held over 35%—making him the largest individual shareholder by far.
But as both of them understood, once a company grows to a certain size, it's no longer just about shareholding. It's about the collective will of the enterprise.
This is even more true for a company like Microsoft—what China would call a "pillar of national livelihood."
"So I can't bring Microsoft into the Xinghai Fund," Gates said firmly. "I can only join your fund in a personal capacity."
Su felt a twinge of disappointment, but truthfully, bringing Gates on board—even personally—was already his minimum demand.
At this point, Qin Si glanced at Su and smiled. "Then Mr. Gates, how much are you planning to invest in the Xinghai Fund? And in what form?"
"Oh, and by the way," she added, "we've recently done some rough calculations—the combined equity valuation of the companies controlled by the Xinghai Fund has already exceeded 200 billion dollars."
"And that's based on Xinghai's current stock price and using a conservative P/E ratio of 12 for the other firms. As more unicorn-level companies under our umbrella go public, that valuation is only going to rise."
"This is a summary of the Fund's holdings and equity stakes. Please take a look."
As she spoke, Qin Si pulled a document about half a centimeter thick from her briefcase and placed it in front of Gates.
"If it's too much, you can just browse the table of contents."
Gates took the file and flipped it open. After just glancing at the index, his eyes were already spinning.
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Chapter 432: Two Heads
What shocked Gates wasn't how much money Xinghai Fund had. In fact, he immediately saw through the little trick Qin Si had played—using P/E ratios to value unlisted companies was, at best, a blurry calculation. That said, considering Qin Si's professionalism, it wasn't impossible that all the data she presented held genuine reference value.
What truly shocked him was how deeply involved Xinghai already was across so many sectors. In fact, it could be said that behind a majority of emerging software and internet companies in Silicon Valley, one could find Xinghai's shadow. Some of these companies had already gone public, while others were preparing to do so.
"Are you trying to become the godfather of the internet?" Gates looked up from the documents, staring at Su Yuanshan.
"No," Su replied, also looking up from the papers, his tone calm. "I just have more confidence in the future of the internet than anyone else." He paused, voice softening. "And precisely because of that, I'm exhausted."
Gates paused, his gaze growing contemplative and deep.
"Since the founding of Xinghai Ventures, I haven't withdrawn a single cent from it. All dividends from Xinghai Technology and Xinghai Trading have been reinvested. And as you can see, we emphasize long-term investment and management." Su pressed his lips together, weariness evident on his face. "I still firmly believe in that vision. And I also believe, if we could work with Microsoft, the future could be even brighter."
Gates was silent for a few seconds before he slowly nodded.
Besides focusing heavily on multimedia, Windows 95 had formed a deep partnership with Xinghai on internet applications—preinstalling their browser system-wide. And the browser was offered free of charge. In addition, Microsoft and Xinghai had collaborated on various foundational internet software and database development projects.
As one of the platforms carrying the future of the internet, Gates was naturally inclined to believe in its potential.
Not to mention, Wall Street capital had already caught the scent of opportunity. Huge amounts of speculative money had begun to pour in, pushing the Nasdaq index ever higher. Investors were practically behaving without thought—any company that went public with even a whiff of "IT" around it was guaranteed to be feverishly hyped.
This created a situation where, even though Xinghai's portfolio companies were rapidly increasing in value, maintaining sufficient controlling shares meant they had to continue making heavy follow-up investments.
In simple terms, Su Yuanshan was running short on money.
"Let's exchange shares," Gates said after a long silence. "I'll transfer a certain percentage of Microsoft shares to you, but those shares won't carry voting rights."
Qin Si glanced at Su Yuanshan but didn't say a word.
From a capital perspective, she understood Su very well—he was fully aware of the speculative frenzy entering the internet space and was certainly not as purely long-term focused as he claimed to be.
In truth, Su was simply waiting for the right opportunity—for the peak of the bubble.
Of course, so was every other investor. The only question was, who could see the peak most clearly?
As for other matters, Qin Si had some general guesses.
She knew Su had a persistent sense of crisis. He paid particular attention to how his companies were treated in the U.S.—from policy to regulation.
At first, she thought this was simply a habit he'd picked up from spending too long in China, where policy determined everything. But a conversation with Yang Yiwen had made her rethink it.
Yang Yiwen had said: "Which of Yuanxin or Xinghai's successes came from policy?"
That woke her up.
So now, Qin Si believed that many of Su's recent moves were intended to dilute the national identity of Xinghai—and himself. To make them more international.
But… if Mr. Gates was transferring non-voting shares to Xinghai, then how much voting power would he hold within the Xinghai Fund? Or, to be precise, how much control would Gates have over the Fund itself?
More importantly, given Su Yuanshan's usual respect for others, what would happen if he and Gates could not reach a consensus in the future?
"Right," Su nodded. "I've never had the intention of controlling any company—not even Yuanxin."
His expression grew more serious. After a moment of silence, he said quietly, "All I hope is that, when the time comes, my opinion will be respected and understood."
Gates gave him a long, deep look, then suddenly smiled. "Su, they say in Silicon Valley that you always have a way of persuading people. After today, I believe that rumor."
"Haha, that's only because I always stand on a shared foundation," Su said with a laugh.
…
After watching Gates drive away, Su Yuanshan and Qin Si slowly walked back toward the villa.
Everyone inside was already gathered at the entrance—but still held onto a bit of restraint and formality.
"That was not easy," Su said, smiling first at Ye Rudai, then nodding at Zhou Xiaohui, before finally sighing softly at Yang Yiwen. "Sister-in-law, can I get an extra drumstick?"
"It's the middle of the night. Where am I supposed to find a drumstick?" she replied.
"Just kidding… come on, let's talk inside."
The group returned to the living room, and all eyes turned toward Su Yuanshan and Qin Si.
Just because they hadn't participated in what was clearly a conversation that could shake the capital world, didn't mean they weren't paying close attention. In fact, they knew that this meeting would have long-reaching consequences for them all.
"Let Sister Qin Si explain first," Su said after thinking for a moment, scratching his head with a sheepish smile. "You go ahead."
"Well," Qin Si began, "to put it simply, the earliest offshore entity registered under Su will now become Xinghai Fund, a top-tier private equity investment firm. For now, the only shareholders are Su and Mr. Gates."
"Three people," Su corrected. "You're also a shareholder."
Qin Si quickly waved her hand in embarrassment. "I'm too insignificant."
But that wasn't quite right. Qin Si would be stepping out of Xinghai Ventures and becoming chairwoman of Xinghai Fund, directly managing all its affairs. There was no way she could do that without holding shares.
That said, as she mentioned, her money… truly was insignificant.
But was this about money?
No—it was about power and influence. When she had first joined Xinghai, Su had even joked that Morgan Stanley, where she worked at the time, was just a minor investment firm. That had infuriated her. Yet in just a few short years, she was now in a position to lead a fund that could, in some respects, rival Morgan Stanley.
It was something she never imagined would happen—not even in her wildest dreams.
Seeing his fiancée blushing with pride, Chen Haomin gave a soft cough from the side. Containing his excitement, he pulled out a cigarette and offered one to Tang Wenjie.
"Old Tang, have a smoke."
"Xiaoshan's here… no smoking," Yang Yiwen glared at Tang Wenjie, her expression stern, masking the faint flicker of melancholy in her eyes.
Seeing Qin Si rise so high—if you asked her whether she was jealous, she'd never admit it. If you asked whether she was envious, she still wouldn't admit it.
But one way or another, she couldn't help but feel a swirl of emotions she couldn't quite name.
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Chapter 433: To Stay or To Return
Yang Yiwen's sudden shout made Tang Wenjie flinch visibly. Beside him, Qin Si pressed her lips together in a smile and slapped the cigarette out of Chen Haomin's hand, scolding, "You behave too."
Su Yuanshan chuckled and shook his head. If it were just the guys in the room, he would've let it slide. But with several women present, it was naturally better that no one smoked.
"The reason Xinghai Fund only has three shareholders for now is mostly due to considerations for the future."
Su hadn't noticed the flicker of emotion in Yang Yiwen's expression, but he did understand that it was time to explain to everyone the long-term plans for Xinghai Fund and Yuanxin Ventures.
"In the future, you all will have two choices. Either return to the homeland and join Yuanxin Holdings, or wait a little longer and enter Xinghai Fund."
Yang Yiwen's eyes widened slightly, and she cleared her throat softly.
"Anyway, those are your two retirement options," Su continued with a grin. Turning to the visibly captivated Ye Rudai beside him, he asked smugly, "Leaf, would you say this counts as 'if I become rich and powerful, I won't forget my old friends'?"
Ye Rudai blinked in surprise at the question but eventually nodded obediently. "It does—though is it really okay to praise yourself like that?"
Su responded with pride, "It's not okay. But if none of you praise me, my vanity goes unfulfilled, and then I get irritated."
Everyone: "…"
Yang Yiwen gave him a light slap and asked in a low voice, "Enough boasting. How much is Gates bringing in?"
"It's hard to say just yet—roughly a billion shares. But after the stock swap, they can't be sold immediately. It'll have to be done gradually to avoid destabilizing Microsoft's share price," Su explained patiently. "But that's not the important part. What matters is that Mr. Gates is with us."
"I think Gates just saw how profitable the Xinghai system is," Chen Haomin interjected with a laugh. "Xinghai Tech aside, just Xinghai Ventures and Sister Sun's ocean trade arm are enough to support a capital structure in the hundreds of billions."
"Senior Brother Chen, that's where you're wrong," Su said, smiling as he shook his head. "Gates isn't doing it for the money. If he were, he would've long ago teamed up with those Wall Street guys. As far as I know, both Soros and Buffett have been eyeing Gates and his fortune for a while now."
"Rather than simply making money, Gates is more interested in ensuring Microsoft's healthy development while branching into non-financial areas—put simply, he wants to fulfill his dream."
Tang Wenjie laughed. "Then he should just run for president."
"Haha, I actually asked him that. He said he wouldn't—if he really wanted to and ended up getting elected, then I'd be the most legendary investor in our country's history. Even Fan Li would have to step aside."
"In your dreams!" Yang Yiwen crushed Su's fantasy without mercy. Laughing, she said, "To run for president in this country, the first rule is that you can't have close ties with foreign capital—let alone ours. By choosing to enter Xinghai Fund, Gates has effectively given up on a political career."
Everyone nodded in agreement.
After all these years in Silicon Valley, if they didn't know that much, they might as well pack up and leave.
Su nodded with a smile, but his tone grew more serious.
"That's why you all should understand—just relying on us, Xinghai will never reach the absolute top level in this country."
"It has nothing to do with technology or market strategy. It's purely about Xinghai's bloodline."
The room fell silent at that remark.
After a moment, Su stood up. "Alright, I'm going to take a shower…"
…
As Su left, Chen Haomin exchanged a glance with Tang Wenjie. Understanding immediately, they both stepped outside.
Lighting up cigarettes, they exhaled with contented sighs.
"So, Old Tang, what are you planning?" Chen asked, leaning against the doorframe.
"I've got two more years before I graduate. After that, I'll probably go back to the mainland," Tang replied, arms crossed, lips pressed together in thought.
He and Yang Yiwen had discussed the question—stay or return—many times. The fact was, Su Yuanshan had sent him overseas to eventually support the wafer fabrication process back home. Logically, he should return.
Yang Yiwen agreed, to an extent. But she had other considerations. The wafer fab industry valued seniority and experience. Even though Tang Wenjie was Su's senior, he couldn't just walk in and expect to land a top position. It might be better to help build a fab with Cyrix here first, achieve some technical breakthroughs, and then transfer those innovations home later.
There had long been murmurs at Xinghai about spinning off the Cyrix team as a subsidiary. The only reason it remained just talk was the lack of a good opportunity to present it to Su.
If Yuanxin couldn't secure Intel's authorization, Cyrix could never go independent.
But now that Su had obtained Intel's authorization, it meant Cyrix's spin-off would soon be on the agenda. In fact, at Cyrix, Claude had already teamed up with GPU lead Scott to petition Carly about building a wafer fab…
It was easy to foresee that if Cyrix and 3DFX—one CPU team and one GPU team—both went independent, they'd likely collaborate to establish a fabrication plant.
When that happened, Tang Wenjie would be the natural choice to lead the whole project.
And frankly, he agreed with Yang Yiwen's logic. It made sense.
But deep down, he didn't like it.
What he truly wanted was to work with his junior brothers to grow Yuanxin into a powerhouse.
"What about you?" he asked Chen. "You planning to stay here?"
"Yeah, pretty much no other option," Chen shrugged and flicked off some ash. "But Old Tang, I think… whether you stay or go, you'd better ask Su's opinion."
"Hm?"
Chen nodded with a smile. "If he tells you to stay, stay. If he tells you to go back, then go back. Trust me—he won't steer you wrong."
He paused, then added in a lower voice, "You're his senior, so sometimes you think things are casual, that you can take them lightly. But they aren't. So I really suggest you ask him."
Tang hesitated, then slowly nodded. "Alright. I'll ask him now."
…
Later, after Su Yuanshan had showered, Tang knocked on his door.
Under the glow of the desk lamp, Su and Ye Rudai were discussing a research paper together.
"Not interrupting, am I?" Tang flopped onto the bed, giving the two of them a playful smirk.
"If you've got something to say, just say it," Su replied, not even turning around.
"Yeah… I've got something to ask you."
Su turned to look at him. Seeing Tang hesitate, he glanced at Ye Rudai. She picked up the paper and her pen, smiled knowingly, and quietly left the room—gently closing the door behind her.
"Should I stay here… or go back?" Tang asked.
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Chapter 434: The "Yuanxin" Launch Event
Su Yuanshan was a bit surprised by Tang Wenjie's question. "If you want to stay, stay. If you want to go back, go back."
"…I want your opinion."
"My opinion?" Su walked over to the bed, pulled out a chair, and sat in front of Tang Wenjie, looking him seriously in the eyes. Seeing the confusion on Tang's face, Su suddenly smiled. "My opinion is—you should stay."
"Huh? Why?"
"Because the Xinghai Fund has a spot reserved for people like you." Su lowered his gaze and said gently, "Our alliance with Gates is just the beginning. In the future, Xinghai Fund will bring in more world-class entrepreneurs. If Yuanxin is our base in China, then Xinghai must be our base globally."
"In that space, I need people who will stand beside me."
"Besides, staying here will keep you constantly exposed to cutting-edge technologies. You'll be able to bridge the gap between domestic and international developments. Frankly, staying here is more meaningful than going back right now."
Tang opened his mouth, then gave a bitter smile. "Looks like you and my wife have the same opinion."
"She's more forward-looking than you are."
"…"
"Well, she's a woman—more detail-oriented." Su chuckled. "And she's gotten used to living here over the years. I heard she's been buying properties all over?"
"Yeah… that money-burning woman. She buys places and doesn't even live in them."
"Tsk… you don't get it. That's called financial planning. Buying property now is a sure bet." Su teased.
"…"
"So I'm staying then?"
"Yes. Your work now leans heavily toward theory. Honestly, it's more suited to the environment here."
After sending Tang off, Su returned to his desk.
Tang Wenjie's paper, after several revisions, had finally been submitted to IEEE Access and was currently under review. Based on Su's experience, the chances of it getting accepted were high.
If the paper passed peer review, it meant that Tang Wenjie—the inventor of the FinFET (Fin Field-Effect Transistor) architecture—would be recorded in the history of semiconductors.
However, at this point, Tang still had no idea of the importance of his own contribution. He was still tangled up in whether to stay or return…
In truth, Su had another reason for asking Tang to stay—he hoped that by keeping the FinFET patent and its inventor in Silicon Valley, he could prevent the U.S. from developing a parallel nanoscale architecture independently.
Su knew all too well the strength of American tech. If the U.S. decided it needed a technology, it wouldn't take long for it to marshal both capital and talent to develop it from scratch.
Back when Su had to split EDA (Electronic Design Automation) out into a separate entity, it was precisely because he needed it to become an international product. Only by distributing ownership and creating a multi-stakeholder structure did he manage to have EDA accepted in Silicon Valley, given its high threshold and collaborative nature.
Even so, investors were still constantly lobbying EDA's management to shift its R&D center and personnel to the Valley.
Thankfully, Jiang Wanchao had held his ground, deflecting the pressure with various excuses. Otherwise, even if the higher-ups back home had forbidden the move, the loss of talent and technology would've been hard to stop.
Three days later, after a courtesy visit to Texas Instruments and a quick detour to tour Custom, Su boarded a flight back to Silicon Valley.
At the same time, Yuanxin's CPU launch event was being held at the Expo Center in Shanghai.
…
Gao Xiaodi was full of confidence. He had replaced his usual short-sleeve casual shirt with a crisp new white dress shirt and a stylish tie.
Standing before a crowd of journalists and industry peers, he methodically introduced the new Tenglong CPU, model YX-100—a name they had debated for a long time before finally settling on it.
"Tenglong" meant a soaring dragon. It was a bit old-fashioned, sure, but carried an auspicious message.
"The YX-100 runs at a frequency of 100MHz. In terms of clock speed, it's reached an internationally advanced level. Of course, I'm sure many of you here already know that Xinghai and our architecture share the same roots. But their 'Thor' series still runs slightly slower than ours."
"In addition, the YX-100 CPU houses 8.5 million transistors, features 128KB of high-speed L2 cache, supports superscalar architecture, dynamic execution technology, enhanced multimedia 3D instruction sets, and more."
"This means that the Tenglong series CPU is not only competitive in clock speed—it's also at the forefront in terms of process technology, architecture, and other innovations."
"So, without further ado, let's take a look at the benchmarks."
As Gao clicked his mouse, the projector displayed his computer screen on the big screen behind him.
"These are test results from mainstream benchmarking software. For comparison, we're benchmarking not only against Xinghai, but also against Intel. I can say with full confidence—our CPU matches or exceeds any foreign product in its price range!"
He scanned the crowd.
In addition to journalists and professionals from the industry, there were also distributors from across China, Southeast Asia, and neighboring regions.
Yuanxin had a very clear strategy: its first-generation CPU would not be launched into the Western-dominated international market. Instead, they would pursue a strategy of "surrounding the cities from the countryside"—entering emerging and regional markets first to avoid provoking larger players too soon.
…
As Gao finished the presentation, Bureau Director Zhang, seated in the front-center row, led the applause.
Gao then invited him onstage for a closing address.
"Friends," Director Zhang began, not bothering with a prepared script, "I'm very glad to be here today to celebrate the launch of our first domestically produced central processing unit."
He looked over the audience with sharp eyes, his tone full of emotion.
"For the past forty years—or even the past hundred—the world's technology has developed at a breathtaking pace. Meanwhile, we have been held back for many reasons."
"But now, thanks to reform and opening-up, and the efforts of generation after generation of professionals dedicated to the semiconductor industry, the first domestically produced CPU has finally been born—here, in Shanghai."
"This is a product that Yuanxin can be proud of. It's an achievement that the entire semiconductor industry should be proud of."
"On behalf of the industry, I extend my heartfelt congratulations to Yuanxin!"
The crowd erupted in well-timed applause.
And on the faces of many attendees, meaningful smiles appeared.
—Except for a few invited guests from other regions. Though they too were smiling, their expressions clearly showed a sense of reluctant admiration.
That director… sure knew how to seize the moment.
…
"I sincerely hope that Yuanxin Technology will continue its efforts, achieving even greater breakthroughs on the road of core innovation. Here in Shanghai, we will support the development and innovation of the semiconductor industry with concrete action. We will support the chip industry, and we will support every tech company striving for progress."
"Thank you, everyone."
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Chapter 435: External Resistance, Internal Stability
Due to the ongoing development of direct flights between Shanghai and San Francisco, Gao Xiaodi's team had to first transfer in Hong Kong. Coincidentally, they arranged a meeting in the Special Administrative Region with Su Yuanshan, who had just returned.
Gao Xiaodi's trip to Silicon Valley to negotiate with Intel wasn't just backed by his CPU team—it also included Yuanxin's deputy head of legal affairs, Yu Yuru.
When Yu Yuru was first introduced to Yuanxin by Yang Yiwen, she had taken a long time to make the decision. After all, back then Yuanxin was just a small firm. She had already used her connections to prepare for entry into the municipal court system. Since joining Yuanxin, she had kept a low profile, but thanks to her network—both personal and through her alma mater—Yuanxin was now firmly embedded in China's political and legal system. In that realm, the company was unshakable.
Of course, at Yuanxin's current scale, even if it didn't have a legal department, it could still wield considerable influence at the provincial and national levels. As long as they didn't go too far, Yuanxin could basically operate unchecked. Thus, the legal team's primary function was focused on handling business contracts—especially those involving foreign companies—and managing a wide range of patents.
With Gao Xiaodi and Yu Yuru heading to Silicon Valley together, it was clear: they were determined to bring the Intel contract home.
…
"I heard the secretary turned our launch event into a Shanghai investment conference?" Su Yuanshan joked as the three of them chatted in the Internet Center's office.
"Heh, if you put it that way… then yeah, that's kind of what happened." Gao couldn't help but laugh, remembering the scene from two days ago. "I heard it pissed off the folks from Wuxi so badly that they went to lodge a complaint with the higher-ups."
Su burst out laughing.
Wuxi had been designated by the central government as the "Chip City." With funds from the 909 Project secured, Huajing had finalized its contract with NEC to import a 0.5-micron process line. The first phase of the project had already broken ground, and production was expected to begin in the first half of 1997.
Now that Yuanxin had paved the way and funds were readily available, Huajing shed its previous submissive attitude when negotiating with NEC. They confidently demanded several terms that would've been unthinkable in the past: full process technology transfer, process upgrades, local engineer training, and more. Surprisingly, NEC had a change of heart. Seeing the massive potential of China's semiconductor market, they not only agreed to all the terms but even promised to act as exclusive distributors for the products.
Exclusive distributors… it was practically "poverty alleviation."
However, NEC did have one condition: the formation of an independent joint venture. They wanted to enter the domestic market not merely as an equipment supplier but through an actual operational presence.
After multiple rounds of negotiation, the central government approved the collaboration.
When Su Yuanshan heard the news, he had simply muttered, "Huahong is done."
In the previous timeline, NEC had done something similar—partnering with Shanghai to create Huahong NEC. But in this altered reality, due to various factors, "Huajing NEC" was founded two years earlier.
This meant that even without Yuanxin, China was now only one and a half generations behind international process standards—and this was before the upcoming leaps in fabrication. In any case, that was a fortunate development.
Today, with Huajing, Huajing NEC, Zhongxin, and a host of semiconductor projects spearheaded by the Chinese Academy of Sciences and the Ministry of Electronics settled in Wuxi, the city was living up to its nickname "Chip City." But Shanghai had capitalized on Yuanxin's CPU launch to stage an even grander show, stealing the spotlight. No wonder Wuxi had filed a "complaint."
Of course, Su knew the complaint was mostly posturing—the real goal was to secure more favorable policies and resources. The central government had always encouraged regulated regional competition.
Beijing preferred a setup where one region received strong support, and others, driven by pressure, rose up on their own initiative.
"What about the distribution channels?" Su asked once the laughter subsided.
Given the long-term nature of their strategy, Su had instructed the CPU division at the beginning of the year to build its own sales and distribution infrastructure.
At the mention of distribution, Gao's expression grew more serious. "From a publicity and political standpoint, our launch event was a huge success. But on the distribution side, most players are still in wait-and-see mode. Apart from Chengdian Gaoke supporting us, we're still negotiating with other domestic integrators. You have to understand… just recently, our WTO entry team reached a bilateral agreement with the Americans on the semiconductor sector."
"That's had a pretty big impact on us." Gao took a sip of tea and muttered, "Damn it, Xinghai's domestic office is wining and dining clients every day. It feels a lot like 'pacify the internal before resisting the external.'"
Su cleared his throat in response.
He was well aware of Xinghai's activities. After all, Cyrix had successfully broken into the domestic market with its low-end CPUs, and earlier that year, the high-end "Thor" series had naturally inherited that market position.
With the second round of negotiations by the WTO entry team—particularly those that affected the semiconductor industry—now complete, it meant that some American semiconductor products would enter the Chinese market with significantly reduced tariffs. On top of that, other policy changes favored U.S. tech companies investing directly in China.
CPUs were among the products covered in this list.
This was a carefully balanced decision by the central government and also the result of lobbying from the U.S. side.
Frankly, Su himself had played a significant role in shaping the outcome of that agreement.
His view had always been simple and direct: certain industries must be protected to prevent devastating competition. But others? They could only improve by confronting the "real enemy" early on.
(Incidentally, when China joined the WTO, the semiconductor industry wasn't heavily protected. Many restrictions were lifted, and tariffs were relatively low.)
"There will be some impact," Su admitted after coughing, "but we have one advantage no one else can replicate. Technical costs can always be overcome and eventually equalized. But labor costs? That's a whole different story. Unless they build factories in China, we'll continue to enjoy the benefits of our workforce advantage for a long time."
"So basically… we're cheap labor," Gao grumbled.
"Cough… well, no need to say it like that." Su laughed awkwardly. "Honestly, even after decades of reform and opening-up, our biggest advantage is still our demographic dividend—our labor force. And that eventually transforms into spending power…"
"…Alright. So basically, focusing on the domestic market isn't a mistake?"
"No, for now, it's not a mistake," Su said, narrowing his eyes. "We're starting in the countryside. But one day, we're going to drag Intel, Xinghai, and AMD off their thrones."
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