Sail across the sea

Chapter 418 How could this be a waste of time?

Fujiki and Iwai received a very disappointing reply. Yun Zhongming told them that Fenglin Institute was applying for international patents for its i-line and KrF photoresist formulations and manufacturing processes. Moriya Company could obtain patent licenses, but exclusive buyouts were impossible.

“We are not interested in this approach. We don’t want to waste our time on pointless competition,” Fujiki said to Yun Zhongming and Bi Liansheng, his face clearly showing his displeasure.

“We are very sorry,” Yun Zhongming said. “Our superiors have instructed us to participate more in the international market and learn from advanced foreign experiences. Therefore, we have decided to produce our own photoresist and sell it on the international market. As a result, it is no longer possible to grant Moriya an exclusive license.”

"What? You're also planning to produce photoresist?" Fujiki asked, somewhat surprised.

“Of course,” Bi Liansheng interjected.

Fujiki's words were really hurtful. Why can't we produce the technology we developed ourselves?
Fujiki realized he had misspoke and quickly corrected himself, "Sorry, what I meant was, do you plan to sell your photoresist outside of China?"

“Yes, this is a requirement given to us by our superiors,” Yun Zhongming said.

His statement was half true and half false. The true part was that the Science and Technology Commission did indeed make such a request to the Fenglin Institute, while the false part was that the idea was initially proposed by the Fenglin Institute to the Science and Technology Commission, which merely issued instructions on the Fenglin Institute's request report.

Yun Zhongming omitted the fact that Fenglin had taken the initiative to request this, ultimately because he lacked confidence and was afraid of being looked down upon by the two Japanese.

As it turned out, Yun Zhongming's concerns were not unfounded. Upon hearing Yun Zhongming's reply, Fujiki Suke bluntly retorted:
"If I may be so bold, your wish is very good, but you may be underestimating the competitive pressure in the international market."

"Are you saying that our products can't enter the international market?" Bi Liansheng asked.

Fujiki gave Bi Liansheng a slight bow, whether as a sign of respect or apology was unclear. He said, "What Mr. Bi said is exactly what I was thinking."

"Why is that?" Bi Liansheng asked. "If your company's products can enter the international market after obtaining our patent license, why can't our products, as the original creators of the technology, enter the international market?"

Fujiki gave a reserved smile and said, "Mr. Yun, Mr. Bi, I understand your feelings very well, and also the feelings of your superiors. But you must admit that China has been out of touch with the international market for too long, and its understanding of the rules of the international market is relatively limited."

"At the same time, customers in the international market have very limited understanding of China. Integrated circuit production has very strict requirements for the quality of raw materials, and customers will not rashly use products from a manufacturer that has no application experience, especially when that manufacturer is from China."

"So, according to Mr. Fujiki, Chinese companies will never be able to enter the international market?" Bi Liansheng asked indignantly.

Fujiki still wore that smug smile. He was experienced; he knew that when trying to deceive someone, using such an expression could create psychological pressure on the negotiating opponent, making it seem as if everything he was saying was utterly ridiculous.

"Actually, our Chinese friends don't need to be so anxious," Fujiki said in a sincere tone. "For a country's products to gain recognition in the international market, it takes patience. Japan faced the same problem 30 years ago. It took us 30 years of accumulation to finally gain recognition from European and American companies."

"How did you do it?" Yun Zhongming asked instinctively.

Fujiki's words were incredibly enticing, making one irresistibly want to know more details. And in doing so, the initiative in the conversation shifted into Fujiki's hands. "As a developing country—and I don't mean to be rude, but I'm not just talking about China today, but also Japan 30 years ago—it was too hasty to immediately launch high-tech products into the international market. Japan's strategy back then was to focus first on the production and sales of labor-intensive products, allowing the international market to accept the Japanese brand and reputation, and to recognize the work ethic and integrity of Japanese companies."

"Then, we gradually upgrade the technology of our products, from low-end to mid-range, and finally to high-end. This process takes decades."

"Photoresist is undoubtedly a jewel in the crown of technology, possessing extremely high technological content. Introducing China's highest-grade industrial product directly when the international market has not yet accepted even basic industrial products is something that international users would find difficult to accept."

Fujiki spoke slowly and deliberately, with a hint of persuasion.

“But the i-line photoresist and KrF photoresist we developed this time have indeed reached the international advanced level. We have searched the literature, and the performance indicators of the i-line photoresists currently available on the international market are not as good as ours,” Bi Liansheng argued.

Fujiki nodded and said, "I admit that the i-line photoresist that your institute has launched this time is indeed comparable to fine chemical companies in Japan and Europe in some performance indicators, and it also has its merits compared with Moriya's products. This is a very good development."

"However, business and scientific research are different. In business, in addition to considering whether the technology is advanced, the brand and reputation of the manufacturing company must also be considered. As I said before, users in the international market do not understand China, so why should they believe that your products have reliable performance?"

“They can test the products,” Bi Liansheng said.

Fujiki smiled and said, "For large international companies, testing products manufactured by an unknown company is a waste of time."

“How could this be a waste of time…” Bi Liansheng’s voice trailed off.

He genuinely didn't understand how the international market worked, and even if he wanted to argue with Fujiki, he wouldn't know where to begin.

If it were a Chinese institution, such as the Fenglin Research Institute, upon hearing that a company in another country had produced a new product with superior performance compared to traditional products, they would definitely be interested in learning more about it and spending some time testing the product; it would be entirely worthwhile.

But according to Fujiki, large international corporations wouldn't stoop to doing that.

Because...they are large international corporations!

For example, if Bi Liansheng's flashlight breaks, he will definitely take it apart to repair it. He will use pliers, screwdrivers, soldering irons and other tools to work on it for an entire afternoon. He will feel a sense of accomplishment when he finally fixes the flashlight.

Foreigners are different. I've heard that when their TVs break, they just throw them away. No, they don't even have to break; they just throw them away because they think they're old and get a new one.

That's how foreigners do things!

(End of this chapter)