Reborn since 1993

Chapter 1090 Open your eyes and tell lies

Birds of a feather flock together. Li Dongling pointed out to Papken the current landscape of the global semiconductor industry and the situation of SVG.

The era of fighting alone is over. In the future in the semiconductor industry, there will be collisions between camps!
Originally, the lithography machine industry should have been divided into three parts: Nikon and Canon from Japan, ASML from old Europe, and SVG from America.

But now, it has become Nikon and Canon against ASML, while SVG has become a lone player and is about to be eliminated.

Even American chip manufacturers such as Intel, AMD, Texas Instruments, Motorola and others are unwilling to purchase its machines, and instead purchase them from Nikon and ASML.

When SVG doesn’t even have its own base, it’s pure dreaming for it to compete with Nikon and Canon!
"SVG's current situation is already quite dangerous. If it takes another step back, it will not lead to a bright future, but a complete exit!"

"Mr. Papken, do you want to see SVG's brands all acquired by ASML and other competitors?"

Li Dongling gave Papken a technological version of the Longzhong Strategy. In Li Dashan's words, SVG was completely useless and was about to face the Bian Que Trilogy.

Papken was silent for a while. What Li Dongling said was the truth and he had no way of refutation.

If he could get orders from chip manufacturers like Intel, would he go to areas restricted by the Wassenaar Arrangement pushed forward by America to get orders?

“A good story always has twists and turns, and only with a surprising ending will it be remembered by people.

Now, the story of SVG has not yet reached its finale. It depends on whether Mr. Papken is willing to let it have a new ending.

Let Papken's career not be marked by the words "the last president of SVG".

He is the one who led SVG out of the quagmire, fought against Japanese benzene lithography machines, supported half of the semiconductor industry in America, and made the semiconductor industry in the birthplace of semiconductors great again! "

Papken is also a veteran and has long developed antibodies against the poisonous chicken soup.

But now, after listening to Mr. Li's poisonous chicken soup, Papken's heart was in turmoil and he could not calm down.

The most well-known person about an empire, apart from its founding monarch, is the person who can turn the tide and create a revival when the empire is in decline. This is tantamount to rebuilding the empire.

At a time when the entire American semiconductor industry is being suppressed by Japan, if Papken can lead SVG to defeat Nikon and Canon.

Then he has accomplished an epic achievement and rebuilt the American lithography machine industry. His name is probably no less famous than the eight traitors of Fairchild Semiconductor and the founder of Intel!

How could such a title not be stimulating for Papken, who might be unemployed at any time?
Seeing that Papuken's attention had been drawn, Li Dashanren continued, "SVG needs to establish its own camp as soon as possible.

This includes rebuilding the supplier industry chain, production plants, chip company customers, etc. This is the last chance!"

At this time, Papken also understood what Li Dongling meant, and said with hesitation, "But Dongxin is a mainland company..."

"But now, apart from Dongxin, which other partner can SVG find?"

"Is it more important that the gentlemen sitting in the office of the Federal Trade Commission of the United States, who don't care about the life or death of SVG, or that SVG survives?"

"Dongxin can purchase SVG's lithography machines to keep SVG alive!
In addition, SVG can look for new suppliers of lithography machine parts outside of America, including China, where the cost is currently the lowest in the world.

Dongxin can exchange equity with SVG, making SVG one of Dongxin's shareholders, and can provide SVG with foundry production of lithography machines, allowing SVG to regain its price advantage over Nikon and Canon. "

"Another and most important point," Li Dongling leaned forward and stared into Papken's eyes, "SVG lithography machines can now enter the mainland market.

In the future, China will be the largest producer of chips in the world and the region with the strongest demand for chips. With the Chinese market, does SVG still need to worry about not having orders? "

Papken picked up the coffee on the table and drank it in big gulps, not even minding the bitterness.

It is still uncertain whether mainland China will become the largest production and demand region in the global chip industry.

But it is a fact that the mainland is becoming the world's largest foundry industry base.

Orders for various electronic products such as mobile phones and computers are pouring into the country, and what Li Dongling said back then, "made in China", is also becoming a reality.

Once China becomes the world's largest electronic product foundry production and assembly site, the demand for chips will begin to grow explosively.

By that time, Intel and other foreign chip manufacturers will build factories in China, either for the domestic market or to reduce costs.

And local chip manufacturers in mainland China will definitely emerge, and at that time, the demand for lithography machines will also grow explosively.

Papken was struggling. It was hard to say whether SVG could become the third camp in the lithography industry if it joined forces with Dongxin, but it was foreseeable that it could survive in the short term without worrying about bankruptcy next year. "The Federal Trade Commission and Capitol Hill are not easy to pass!"

Papken expressed his concerns to Li Dongling, which showed that he was actually somewhat moved.

SVG has reached a crossroads of life and death. If no changes are made, it will really collapse.

If SVG outsources the foundry and assembly of lithography machines to Doxin Semiconductor, and SVG only focuses on design and R&D, it will indeed be able to reduce a large part of the cost, which is equivalent to getting rid of a burden.

It can also obtain orders from Dongxin and enter the mainland lithography machine market, which are all good for SVG.

However, the Federal Trade Commission and the Federal Department of Justice are the only issues that give Papken a headache. After all, selling lithography machines to Dongxin is a violation of the Wassenaar Arrangement.

If we hand over all the lithography machine foundry to Dongxin, what is the difference between this and moving SVG to Hanxi?
Isn't this just trampling on the face of the masters on Capitol Hill in America?
“But SVG’s biggest rival right now is Nippon Semiconductor, and Dongxin can become SVG’s ally!”

Li Dongling reminded him that America now regards Nippon Semiconductor as a thorn in its side and is trying every means to dismantle it. As for Doxin Semiconductor, it is probably not even in the eyes of the Federal Trade Commission.

"In order to defeat the opponent, some necessary risks need to be taken."

“Also, President Papken, you can tell the gentlemen on Capitol Hill that it was SVG that invested in DOCOM and it was SVG that wanted to enter the world’s largest semiconductor market in the future.

It is SVG that has earned dividends from the development of the mainland semiconductor industry for America, and it is SVG that is establishing and dominating the new global semiconductor order! "

Li Dongling's words left Papken dumbfounded.

It is obvious that Mr. Li is a kind-hearted person who wants SVG to dismantle itself and move the production of SVG's lithography machines to Doxin Semiconductor.

According to Mr. Li, SVG had won the game. SVG had taken advantage and invested in Dongxin. Dongxin would be SVG's lackey in the future.

The door to the entire mainland chip market has been opened by SVG. In the future, all the dividends from the mainland chip market will be earned by SVG for Wall Street and Americans. If this is not a win, what is it?

"In addition, companies such as Goldman Sachs, Walden International, and Microsoft will also fully support SVG!"

These companies have all boarded the pirate ship and are all shareholders of Doxin Semiconductor. If Doxin cannot get SVG's support and complete its listing, they will not be able to recover the money they invested in Doxin.

Only after Dongxin goes public can Dongxin's shareholders get huge returns.

Various thoughts flashed through Papken's mind. For SVG, cooperating with Doxin Semiconductor might not guarantee its survival, but not cooperating would mean a dead end. How could Papken choose?

Extending his hand to Li Dongling, Papken said, "I can only guarantee that SVG and I will do everything we can to ensure that the cooperation between SVG and Dongxin Semiconductor is approved by the Federal Trade Commission!"

"If the cooperation between SVG and Dongxin Semiconductor is allowed by America, Dongxin Semiconductor can exchange 10% of the equity with SVG!"

Li Dongling looked at Papken and said, it is difficult to say who will benefit and who will suffer in this equity exchange.

But Dongling Hi-Tech needs SVG's tiger skin. With this tiger skin, Dongxin Semiconductor can act openly in the future, whether it is going to NASDAQ for listing or purchasing various equipment, it can do things under the title of SVG.

"make a deal!"

After thinking about it, Papken agreed. For SVG, this was definitely not a loss.

"Dongxin Semiconductor can prepay a deposit of 20 million US dollars to SVG!"

This money was said to be a deposit, but in fact, it was given to Papken as public relations fees.

If SVG and Dongxin Semiconductor want to be allowed to cooperate in the United States, a public relations company in Washington will definitely need to take action.

SVG is extremely poor now and owes a lot of debts. It is wishful thinking to expect it to spend money on public relations. The money can only be paid by Dongxin first.

How can the gentlemen on Capitol Hill and Commissioner Smith be willing to help SVG solve its problems if they don't get the public relations fees?

After Li Dongling finished talking with Papken, the two sides began to work out a letter of intent. Of course, this contract will only take effect after the Federal Trade Commission agrees to SVG's cooperation with Doxin Semiconductor, otherwise it will be a piece of waste paper.

When Wu Xinyi, Lin Qijian and Papken all signed their names on the contract, the agreement to form a third camp in the semiconductor industry was preliminarily finalized.

Next, it will not be something that Li Dongling and Doxin Semiconductor can solve. It depends on whether Papken’s performance in America is up to par, and whether the public relations company and Wall Street institutions such as Goldman Sachs can provide support.

Also, some luck is needed!
(End of this chapter)