When I am reborn, I just want to be a top student

Tangdu, Galaxy Technology.

In the office, the encrypted terminal on Wang Donglai's desk lit up.

“Boss, three days ago, ASML headquarters sent a meeting request. Their people have been waiting in Tangdu for two days. The team is led by ASML’s new CEO, Christopher, along with their chief strategy officer and representatives from two major investment institutions.”

A thoughtful look flashed in Wang Donglai's eyes.

Before its lithography factory went into operation, ASML was like an insurmountable mountain weighing down on China's semiconductor industry.

Extreme ultraviolet lithography machines are unique in the world, costing hundreds of millions of euros each, and there's a waiting list.

Now they've flown to Tangdu on their own initiative and haven't come back. They're just waiting here for two days. This kind of situation never happened before.

A very faint smile appeared on his lips.

"Schedule for tomorrow morning."

The following morning, Christopher and his entourage arrived on time in the reception room at Galaxy Technologies headquarters.

The newly appointed CEO was wearing a well-tailored dark gray suit and his shoes were polished to a shine, but the worry under his eyes was obvious to everyone.

The two investment firm representatives he brought, Horn from BlackRock and Drake from Vanguard, were also dressed in suits, but when they sat on the sofa, their backs were ramrod straight, like two tightly wound springs.

Galaxy Semiconductor CEO Liang Song and Legal Director sat to Wang Donglai's right, each with a copy of ASML's letter of intent for cooperation spread out in front of them.

Wang Donglai skipped the pleasantries and got straight to the point: "Mr. Christopher, you flew all the way from the Netherlands, surely not just to visit the ginkgo trees in Tangdu. Let's get straight to the point."

Christopher took a thick document out of his briefcase and handed it to Wang Donglai with both hands.

The cover features ASML's logo, the blue and white windmill pattern that once inspired global semiconductor companies to look up to it, but now appears somewhat faded under the light.

"Mr. Wang, ASML's board of directors has authorized me to submit a strategic investment proposal to you. ASML is willing to issue one billion US dollars in shares to Galaxy Technology in exchange for 20% of ASML's shares. After the transaction is completed, Galaxy Technology will become ASML's largest shareholder, with corresponding board seats and veto power."

He paused briefly, then his tone became more earnest: "This price is a significant discount from the current market valuation, based on the board's assessment. We've come with sincerity, not to test you, but to seek change."

Wang Donglai picked up the letter of intent, flipped through a few pages, and glanced at the carefully designed terms: board seat arrangements, technology sharing framework, and market division plan.

Every page is meticulously written, and every page attempts to maximize survival space with the least amount of equity.

He placed the letter of intent back on the table and gently pushed it back.

"Mr. Christopher, you just said that this price is a discounted, sincere price. But I have a question: what valuation did you use as the basis for calculating this discount?"

Christopher's smile froze slightly as he explained, "Based on the average market capitalization of the most recent quarter, it's about $15 billion. $1 billion for 20% of the shares is already a very low price."

Wang Donglai leaned back in his chair and tapped his finger lightly on the table.

"Market capitalization is the market's discounted expectation of a company's future cash flows. As for ASML's future, frankly speaking, your lithography machine orders have decreased by nearly 60% in the past year, and demand for high-end EUV machines has been replaced by lithography factories by more than half. Currently, your biggest support for maintaining your market capitalization is the maintenance services for existing lithography machines and the patent licenses that haven't expired yet. But these existing assets are also rapidly declining. With each new lithography factory that goes into production, a batch of old lithography machines will be prematurely retired. Once they are retired below a critical point, maintenance service revenue will plummet, and the bargaining power for patent licenses will collapse. At that point, how much will ASML be worth?"

Horn's fingers tightened silently on the sofa armrest.

Drake lowered his head, pinching the bridge of his nose with his thumb and forefinger, as if that would erase this troubling reality from his sight.

Christopher was silent for a few seconds before looking up again.

His voice was a little lower than before, but still steady, like an old captain who had been helming the ship for many years in a storm, who would not show panic in front of the passengers even if the cabin was flooded.

"Mr. Wang, your analysis is sound from a purely business perspective. However, ASML's patent pool covers a significant proportion of the core technologies in the lithography field, from optical systems to workpiece stages to alignment precision control. These patents are not just existing stock; they are standards. If Galaxy Semiconductor can participate in the subsequent formulation of these standards through its board seats, it will greatly help your company's voice in the global semiconductor industry."

He paused, his tone becoming more pragmatic: "In addition, we have existing customer relationships and maintenance networks in major markets around the world. If Galaxy Semiconductor wants to accelerate its overseas expansion, ASML's channels are a ready-made springboard. There's no need to build from scratch; we can directly integrate into the existing service system."

After listening, Wang Donglai did not answer immediately.

He picked up his teacup and took a sip, moving so slowly that Horn couldn't help but look to Christopher for help, but Christopher just shook his head slightly, indicating not to interrupt.

“Mr. Christopher, you say ASML’s patents are standards, but standards only have value when someone uses them. When the process routes of lithography factories dragged the entire industry from ‘precision engraving’ to ‘synchrotron radiation surface light sources,’ your patents based on traditional optical paths had more reference value than commercial value. As for distribution channels, ASML’s channels are built around lithography machines—after-sales service, spare parts, and technical support are all designed to support lithography machines. Lithography factories don’t need these. Their maintenance costs are a fraction of yours, spare parts are replaced very infrequently, they don’t need on-site engineers, and they don’t need to remotely monitor customers’ production data. If distribution channels can’t bring in new orders, then they’re not assets, they’re costs.”

He placed the teacup back on the table, making a very soft clinking sound, and asked with a calm yet cruel tone, "So I'll ask again, what exactly is the core value of the proposal you brought?"

The reception room remained quiet for a long time.

Christopher put the rejected letter of intent back into his briefcase, then took out a thinner document from the inner compartment.

His movements were slow, as if he were performing some kind of ritual.

He had been looking at this document over and over on the plane for a long time. He had discussed every clause with Horn and Drake in the hotel. Behind every set of numbers was an argument and compromise at a board meeting.

He knew this was an extremely difficult negotiation, but he had no other options left.

“Mr. Wang, we can lower the valuation even further and are willing to renegotiate the shareholding ratio. But there is one thing I want to make clear: it was our proactive decision to let you take control of ASML. This proactiveness itself is a sign of our sincerity.”

After Christopher finished speaking, he pushed the document in front of Wang Donglai.

Wang Dong looked at the document but didn't touch it.

His gaze swept across Christopher's face, then landed on Horn and Drake.

BlackRock and Vanguard, ASML's two largest external shareholders, were once powerful financial giants that wielded considerable influence at the top of the global semiconductor industry chain.

Now they sit in Tangdu's reception room, rarely even having a chance to interject.

He suddenly asked a question that caught everyone off guard.

“Mr. Christopher, I have a question for you. When we built the experimental lithography facility, someone within ASML proposed a collaboration with us—not a purchase, but a genuine partnership. Who rejected that proposal at the time?”

Christopher's expression changed slightly.

His lips moved slightly, but Wang Donglai did not wait for his reply.

"It's not your fault. Back then, in ASML's decision-makers' eyes, Galaxy Technology was nothing more than a disruptor from China. How could a company that deals in the internet and batteries be on par with them in the field of lithography? So you rejected the cooperation proposal and chose to continue the blockade. Now you're sitting here not because you've figured things out, but because you've been defeated by the market. But being defeated doesn't mean you're qualified to talk about cooperation."

He stood up and walked to the whiteboard on the side of the reception room.

I picked up a marker and drew a set of simple curves: one was ASML's stock price trend in recent years, and the other was the capacity ramp-up curve of the lithography plant.

The stock price trend is a steep downward slope, while the production capacity ramp-up is an upward angle.

The two curves intersect at a certain point, and then accelerate and extend in opposite directions.

"This turning point was a few months ago. From that day on, the lithography plant's capacity exceeded ASML's equivalent capacity. From that day on, your stock price could no longer be supported by the fundamentals."

Wang Donglai drew a circle at the crossover point, then turned to look at Horn and Drake, saying, "You two are from Wall Street, and you know better than me what will happen after the crossover point. The decline after the crossover point is not a correction, but a clearing out. The market will reprice the entire industry, and old-era assets will be labeled 'obsolete' and discounted to the floor."

Horn took off his glasses and gently wiped them with a velvet cloth.

He repeated this action many times, and then put it back on.

He looked at Wang Donglai, his voice lacking the composure of a Wall Street elite, replaced by a thin, strained calm. "Mr. Wang, we both come from a capital background, and we know there's no need to corner the other side at the negotiating table. ASML is indeed in a difficult situation right now, but it still holds many valuable assets. If you're willing to pay a higher price, we can redesign a plan that allows you to acquire control at a lower price without completely eliminating ASML's existing shareholders. BlackRock and Vanguard are willing to accept a certain degree of loss, but not all of it."

Wang Donglai put down his marker and returned to the main seat to sit down again.

He looked at Horn and Drake with a calm but cold gaze.

“Mr. Horn, you’re being very frank. So I’ll be frank too. If I don’t make an offer now, ASML’s market value will most likely continue to decline in a few months. If I make an offer then, the price will only be lower. So it’s not me sitting here trying to lower the price; it’s you who have come to me. The price I’m offering isn’t taking advantage of a crisis; it’s putting out a fire. If we can’t put out this fire, the losses will not only be for ASML, but also for the remaining positions you two have in this stock.”

He picked up the letter of intent that had been pushed back, opened it again, wrote a line in the blank space of the terms page, and then turned the document back.

Next to the circled intersection on the whiteboard, there is a number written on it.

Christopher looked down at the line of text, his lips pressed into a thin line.

Horn leaned over for a look, and his face drained of all color within seconds.

Drake didn't lean over to look; he could already tell roughly what the number was from Christopher's expression.

Galaxy Semiconductor acquired 51% of ASML's shares for 15 million. After the transaction, ASML's existing lithography machine production lines will be shut down in an orderly manner and transformed into overseas maintenance centers and parts supply bases for lithography factories. Galaxy Semiconductor has the right to obtain permanent licenses for ASML's core patents at a reasonable price.

Wang Donglai's voice wasn't loud, but every word sounded like it was carved into stone.

Christopher gripped the edge of the letter of intent, his knuckles turning white.

He recalled the day he first walked into ASML's headquarters, when extreme ultraviolet lithography machines were still the jewels of the global semiconductor industry, and each delivery was like a coronation ceremony.

Now he sits in Tangdu's reception room, listening to a Chinese man acquire more than half of the company's shares for 15 million.

He wanted to suggest we renegotiate, but he swallowed the words back.

Because he knew that renegotiating would only result in a lower outcome.

"Mr. Wang."

His voice was so hoarse it sounded unlike his own: "ASML has tens of thousands of employees worldwide, decades of technological accumulation, and a global supply chain network. Fifteen million... can we increase that number a little more?"

Wang Donglai shook his head and refused without hesitation: "Fifteen million, fifty-one percent of the shares. This price is not something I wrote down randomly; it's calculated based on ASML's discounted cash flow over the next few quarters. If you think it's too low, you can wait, but time is not on your side."

The living room was so quiet that only the faint sound of the air conditioning vents overhead could be heard.

Horn looked at the glass of black tea in front of him, which had gone completely cold, with a very thin film of tea residue on the surface.

He suddenly remembered a time when he brushed past the head of investment and financing at an investment summit without even saying hello.

At that time, he thought Asma's moat was so deep that no one could cross it.

Now he sits here, listening to people from the same company acquire his most valuable asset for an almost humiliating price.

Christopher placed the letter of intent on the table and flattened it with his palm.

He looked up at Wang Donglai, his eyes bloodshot, but his tone had returned to calm.

The calmness wasn't because he'd figured things out, but because he'd completely realized that he wasn't there to negotiate, but to surrender.

How a surrender document is written is never decided by the person surrendering.

“Mr. Wang, I have brought the board’s final authorization. The bottom line is five hundred million US dollars and 30% of the shares. If it exceeds this, even if I sign it, the board will reject it.”

He took the authorization letter out of his briefcase and placed it on the table.

The letter of authorization bore the seal of ASML's board of directors, and the blue windmill logo looked like a faded old flag under the lights.

Wang Dong glanced at the authorization letter but did not accept it.

He stood up, as if issuing an ultimatum, and said to the group, "Mr. Christopher, you said your bottom line is five hundred million US dollars for thirty percent, then my bottom line is fifteen million. You can go back and discuss it with the board, or you can choose not to. But there's one thing I must remind you: if you still can't make up your mind, the offer in the next negotiation will only be lower than today's."

After saying that, Wang Donglai prepared to leave.

Christopher's hand, gripping the authorization letter, trembled slightly.

He recalled ASML's internal financial model, which indicated that, based on the current rate of order attrition and the declining maintenance revenue curve, cash flow would be depleted in the near future.

ASML will then enter its most difficult period of losses.

By then, let alone five hundred million US dollars, whether it can even be sold will be a problem.

Wang Donglai clearly knew more about ASMI's situation than he did.

He turned and looked at Horn.

Horn's shoulders slumped slightly, and he remained silent.

The same goes for Drake.

Christopher took a deep breath.

He put the authorization letter back in his briefcase and picked up the letter of intent that Wang Donglai had written on.

His right hand gripped a pen, the tip hovering above the signature line.

In that instant, he thought of the tulip garden in front of ASML's headquarters, which bloomed passionately but briefly every spring.

He didn't know if the flowerbed would still be tended next spring, but at least today he had to plant something more tangible with his own hands, even if it didn't look like flowers.

"Mr. Wang."

His voice was very low, so low that only the person sitting opposite him could hear it: "I've signed this agreement."

Wang Donglai did not laugh.

He simply looked at the signed letter of intent, nodded, and then stood up and extended his hand.

Christopher grasped the hand and felt its strength. It was completely different from the image he had imagined when he first saw Wang Donglai's photo in the news a few years ago, when he thought he was just a young, ambitious tech upstart.

Now he knows that this person didn't get here by luck.

“Mr. Christopher, it’s a pleasure doing business with you. Galaxy Semiconductor will begin the formal acquisition process next week. During this time, you can review the terms of the agreement with our legal team to ensure that the rights and obligations of both parties are clear. Also, the price I just mentioned is 15 million Chinese yuan, not US dollars. I know you’ve been calculating in US dollars before you came, but the legal text of this agreement will be based on Chinese yuan.”

Christopher's face twitched, and he wanted to say something, but seeing Wang Donglai's expression, he finally gave up.

It only has meaning if ASML survives; if it goes bankrupt and is eliminated, it has no value whatsoever.

Now, his only hope is that by boarding Galaxy Technology's ship, he can survive, and perhaps even use this opportunity to rebuild his business. (End of Chapter)