Reborn since 1993

Chapter 1167 Using a tiger's skin and waving a big flag

"SVG will surely create new miracles under your leadership, Papken!"

"Tomorrow, I think the entire American semiconductor industry and the world will hear news that could change the entire industry."

"A small step for SVG will be a giant leap for global semiconductors, and will usher in a new era for human civilization!"

Over the phone, Li Dongling painted a rosy picture for Papken, telling him that his performance the next day would be a major event for the entire American technology community.

He's not just fighting for SVG; he's not alone. He's fighting for the future of global semiconductors.

Papken understood that Li Dongling was feeding him toxic motivational speeches, but he was still deeply moved by what he heard.

The consultant lawyers, public relations personnel, and people from the Washington lobbying firm that SVG just invited only told Papken what to pay attention to tomorrow and what to say, but none of that was as interesting as Li Dashan's toxic chicken soup.
Papken has drunk his fair share of toxic chicken soup, but Li Dashanren's toxic chicken soup still gives one a sense of mission, as if a great responsibility has been bestowed upon him.

After giving Papken a dose of toxic advice, Li Dongling called Zhou Hualiang, president of Dongling High-Tech North America Group, and Larson, who was in charge of legal affairs for Dongling North America.

Compared to Papken, Li Dongling definitely trusts "his own people" more.

"What are Papken's chances of winning tomorrow?" Li Dongling asked into the phone.

"Thirty percent!"

Larson's voice came through the phone, "We've been building momentum for SVG all this time. Right now, American public opinion is sympathetic towards SVG, and some people tend to support SVG, believing that it represents the last hope for American domestic manufacturing!"

Goldman Sachs and Walden International also used their connections, and some members of Congress on Capitol Hill also expressed their support for Papken.

But Lee, you need to understand, anything can happen on Capitol Hill, and it all depends on how Papken performs tomorrow!

A 30% probability may not seem high, but in reality, on Capitol Hill, the probability is not low.

Inside the American Capitol, it appears to be divided into two factions: the Republican Party and the Democratic Party. However, in reality, it is further divided into numerous smaller groups that act as advocates for the interests of different regions, industries, and groups of people in America.

This time, the Capitol Hill forces pushing for the export of SVG lithography machines to mainland China and their sale to Dongxin Semiconductor are Capitol Hill members who advocate for Wall Street!
This is a completely different force from the Rust Belt legislators who previously represented America's traditional manufacturing states.

If it were Congressmen representing the Rust Belt pushing this, it would have no chance at all. To put it bluntly, the status of the Rust Belt rednecks in America is declining day by day, and New York is always making fun of the rednecks.

Given Wall Street's influence on Capitol Hill, coupled with the encouragement of some neutral members of Congress and the media, and considering Papken's performance that day, there was a chance that SVG could bypass the Wassenaar Arrangement restrictions and pass the review of the American Trade Commission.

"Continue to build momentum in the media!"

"In addition, the public relations budget can be increased further!"

Li Dongling said to Larson, "The bulk of the funding has already been paid, so there's no need to skimp on the remaining amount."

The hearing that Papken attended didn't actually generate much buzz in America. After all, SVG, a "traditional" company that is on the verge of bankruptcy in America, is not something that ordinary Americans pay attention to, except for companies in the industry. They would rather spend their time reading gossip and scandals about Hollywood stars. Isn't that more exciting?
On the other hand, Dongling High-Tech is paying close attention to the situation on the other side of the ocean.

Wu Xinyi came to Pingyang to get the latest news as soon as possible, knowing that Li Dongling would be the first to receive the information.

Ni Guangnan, Huang Lingyi, Lin Zijian, and others from Dongxin Semiconductor are also paying close attention to this matter. They know that the SVG hearing is related to whether the reins on Dongxin Semiconductor can be loosened!

"Take a break, the hearing can't possibly end this quickly!"

Inside the conference room at the headquarters of Dongling High-Tech, senior executives including Li Dongling and Ren Yuefeng were waiting for news from across the ocean.

Li Dongling kept checking the documents sent by various departments, discussing the odds with Ren Yuefeng in a low voice. When he saw Wu Xinyi pacing back and forth anxiously in the office, he couldn't help but speak up.

Wu Xinyi looked somewhat embarrassed. He knew he had lost his composure, but today was extremely important for Dongxin Semiconductor.

"Silicon Maps has been rumored to be selling MIPS Technologies, and companies such as Intel, AMD, Sony, and ARM are interested in MIPS's MIPS chip architecture."

"If we miss this opportunity, Dongxin may never get the MIPS architecture again in its lifetime!" Wu Xinyi said.

By acquiring MIPS and obtaining the MIPS architecture, Dongxin has filled a gap in its capabilities and will no longer have to worry about being controlled by others in the future.

If MSP is acquired by another company, especially by Intel, given the current relationship between Eastchip and Intel, Eastchip will face severe bottlenecks, endless lawsuits, and bans on sales in various overseas locations.

For Dongxin, whether or not it can acquire Meipusi is not a matter of optionality, but a matter of life and death.

"Once the hearing is over, the dust will settle!" "If the sale of SVG fails, and Dongxin cannot use the SVG brand to conduct business or acquire Meipusi, then we'll have to find another way!"

After signing his name and closing the document, Li Dongling spoke to Wu Xinyi.

There are fewer chip architecture companies now, but they're not all dead. If we can't get MIPS, then we should try to find a way, using a shell company in Hong Kong, to see if we can acquire ARM in the UK.

This path, though difficult, is still a hope. However, ARM is not yet fully developed and is currently only working on mobile chip architecture. It will probably be a long time before it develops computer chip architecture.

However, this is still a path, better than having no path at all. If the acquisition of Meipusi fails, ARM can be used as an alternative.

Even if they acquire Meipusi, they could also acquire a portion of ARM's equity, just to be on the safe side.

……

In Washington, D.C., in front of the Capitol, after a flurry of media flashes, Papken, his fingers slightly white as he clutched documents, took a deep breath and walked into a hearing room in Rayburn Building.

Upon entering, Papken saw that all 22 members of Congress who were to ask questions at today's hearing were present, along with nearly a hundred people, including the media. In terms of scale alone, today's hearing was quite large.

Of course, it depends on who you're comparing them to. For example, when Bill Gates, Facebook founder Mark Zuckerberg, and CEO Zhou of Font International attended the Capitol Hill hearings in his previous life, the scene was incredibly crowded, with long lines of people wanting to enter and watch the hearings...

Papken had barely sat down when he was immediately bombarded with questions.

Richard, an Elephant Party senator and one of the 22 members of Congress who participated in the hearing, is a veteran conservative hardliner from Texas who fought in the Cochinchina War. He aggressively questioned Papken.

“SVG Corporation, and Papken, do you know what you're doing? You want to sell lithography machines to our potential competitors.”

"Should we get them to produce chips for weapons like satellites and missiles, and then use those chips to attack America?"

This question is tantamount to killing someone's spirit; it's like directly accusing Papken of treason.

"The lithography machine that SVG is exporting is a 365-nanometer lithography machine, not the most advanced 248-nanometer or 193-nanometer lithography machine."

"Furthermore, the lithography machines we export will have security and protection measures in place to prevent the loss of America's lithography technology!"

Papken said, but before he could catch his breath, another senator, Henderson, pressed on, "But according to the documents we received, SVG's plan is not only to export lithography machines, but also to outsource part of the lithography machine assembly business to Hansi Semiconductor in mainland China. How do you explain this?"

“SVG needs to survive. In the past three years, SVG has laid off more than 3000 people, and just this week, I am about to sign off on another 450 layoffs!”

SVG's current competitors are Japanese companies like Canon and Nikon, and traditional European companies like ASML. If SVG wants to sell lithography machines, it must reduce costs. This means it needs to relocate the assembly of some low-end lithography machines to regions like mainland China to lower costs. This won't affect SVG's technology leakage and will also reduce costs!

"According to Chapter 7 of the Federal Export Administration Act, products such as lithography machines that may be used in the military industry are strictly prohibited."

Aside from the military industry, Papken, have you considered what impact it would have on the Federation if the SVG decision led to the development of lithography machines across the ocean?

Another member of Congress asked, and then all sorts of questions were thrown at Papken, including why he didn't sell the lithography machines to American chip manufacturers. Papken wanted to retort, "Shouldn't you be asking Intel that? Why don't you buy SVG's lithography machines?"

Papken shrugged helplessly and said, "SVG is about to die!"

"Distinguished members of Congress, ladies and gentlemen, exporting lithography machines is a last resort."

America's competitor in the semiconductor industry is not SVG, or countries like mainland China that lag behind the world's mainstream semiconductor technology by half a century, but rather Nippon Semiconductor!

Faced with round after round of questions, Papken muttered something under his breath: these congressmen keep questioning him but don't touch on Nippon Benzo Semiconductor. Did they take public relations fees from Nippon Benzo Semiconductor?
"SVG hopes to preserve the flame of lithography machines in America, so that this jewel in the crown of industry can remain in America!"

Papken couldn't help but wipe away a tear. This cry clearly changed the atmosphere of the hearing. The image of a tech hero who was concerned about American technology shedding tears was clearly presented.

"What SVG wants to do is revitalize America's technology and manufacturing industries and take back everything that America Semiconductor has lost from Japan!"

“Selling lithography machines is risky, but,” Papken argued vehemently at the hearing, “would America, which represents human technological civilization, is a beacon for humanity, and seeks a future and light for mankind, fear a competitor that has bought outdated products?”

"The only thing that can defeat America is America itself. What kills American innovation is not technology exports, but the prohibition of thinking!"

After Papken uttered his last words, the hearing room was initially silent, then scattered applause broke out, and finally, it swept through the entire hearing!

(End of this chapter)