Rebirth of Hong Kong Island, leading the technology war

Chapter 253: Sansang Semiconductor's High Offer
Liu Chao asked, "General Peng, what's the matter?"

Peng Xiaojun reported the matter to Liu Chaochan.

Liu Chao was excited: "Boss Peng, I think this is reliable! Sansang's capabilities are very strong, second only to TSMC. There is no problem with tape-out. Since they took the initiative to contact us, the quotation may be a surprise."

The so-called "surprise" Liu Chao mentioned is, of course, the lower price.

Peng Xiaojun didn't dare to think so. After all, Sansang Semiconductor is also a large manufacturer with strong technical strength.

Peng Xiaojun said: "They want to have a talk with us, but we have to go to their place to have the talk."

Liu Chao was stunned: "Go to their place, the imperial capital? That's not far away."

The headquarters of Starry Sky Glory is also in the imperial capital.

Peng Xiaojun shook his head: "It's true that Samsung Group's headquarters is in the capital, but its semiconductor division is not here, it's in the Shanghai Stock Exchange."

Liu Chao asked: "Then we go over there? When do we talk?"

Peng Xiaojun said: "They will talk this afternoon."

Liu Chao frowned slightly. This was a difficult matter.

It is now ten o'clock in the morning. It takes four or five hours to get from the capital to Shanghai by high-speed rail. That means we have to leave now to make it in time. Time is too tight.

Liu Chao asked: "Is it necessary to be so urgent? Even if it is so urgent, can't we have a video conference?"

Peng Xiaojun smiled bitterly: "They are very determined and want to talk face to face. Otherwise, it would be like we are giving up the opportunity."

Liu Chao was stunned: "This...what is their attitude? This is just forcing people to do something!"

Peng Xiaojun sighed and said nothing.

Peng Xiaojun is now starting to feel conflicted.

Although it is a good thing to talk to Sansang, at least it gives him one more chance and he won't end up hanging on a tree.

Although Hu Jiangshan is very confident, theoretically it won't be that smooth. It may not even pass the tape-out, and then all hopes will be dashed.

If we can talk to Sansang, we might have a better chance.

However, Peng Xiaojun was very unhappy with Sansang's attitude. Although he took the initiative to contact them, it seemed as if Starry Sky Glory had something to ask of them.

He even gave me an ultimatum, saying that if I didn't talk about it this time, I might not have a chance next time.

This is not an attitude towards cooperation at all.

It’s not right to go, and it’s not right not to go. It’s really difficult to make a decision.

But I have to make a decision right now, otherwise I will miss the high-speed train.

Liu Chao said, "Boss Peng, we still have to talk to them. There is no news from Boss Hu yet. We can't give up any opportunity."

Peng Xiaojun did not respond. He walked back and forth in the office twice, then said, "Okay, I'll contact Sansang Semiconductor again and request a video conference. If they agree, then we'll talk. If they still don't agree, then forget it."

Liu Chao opened his mouth. As if he wanted to say something? But he finally nodded. He agreed with Peng Xiaojun's decision.

We do need to negotiate with Sansang Semiconductor, but we cannot do so in such a disrespectful manner, as nothing will come of it.

Cooperation is all about equality.

If the cooperation is unequal, it will not last long and will not benefit our party.

Of course, Peng Xiaojun would not call Sansang himself, but asked the external relations department to contact them while he waited in the office.

Liu Chao didn't even bother to leave and just sat there.

This made the atmosphere in the office quite tense.

Suddenly, the intercom on the desk rang, startling Peng Xiaojun and Liu Chao, who almost jumped up from their seats.

Peng Xiaojun quickly picked up the microphone and asked, "What's the matter?"

Liu Chao stretched his neck to listen. Although he couldn't hear clearly, he finally saw Peng Xiaojun's expression relax.

"Okay, I got it. We'll arrange a meeting room right away."

After that, Liu Chao put down the microphone and said to Liu Chao: "Sansang Semiconductor has agreed to hold a video conference."

"it is good!"

Liu Chao punched the air and finally suppressed his excitement.

"Boss Peng, I told you that Sansang is a big company. They won't be so unreasonable. They will definitely understand our situation."

Peng Xiaojun said, "Okay, Lao Liu, go get ready. We're going to have a video conference with the people from Sansang Semiconductor. Oh, and call Xiaoya as well."

"Okay!"

Liu Chao left the office happily.

Peng Xiaojun knew Liu Chao very well. He was good in every way except that he was a little superstitious about big companies. He always felt that only the technology from big companies could meet his requirements and solve practical problems.

From the beginning, Liu Chao didn't believe that Hu Jiangshan could complete the tape-out, and always wanted to find another way.

Since Sansang Semiconductor agreed to the video negotiation, Liu Chao felt that the other party was very sincere and there was a great chance.

Peng Xiaojun felt that Liu Chao was too optimistic and thought too highly of Sansang Semiconductor.

Sansang is indeed a large company, but it also has a tradition of bullying customers due to its size, and is not easy to deal with.

In Peng Xiaojun's mind, as long as there is hope with Boss Hu, he doesn't want to cooperate with a company like Sansang because the risk is too great.

A moment later, Peng Xiaojun, Liu Chao and Fang Xiaoya sat in a conference room with the projection screen lowered, waiting to have a video conference with the people from Sansang Semiconductor.

Fang Xiaoya and Liu Chao were talking in low voices.

Fang Xiaoya said: "Why did Sansang contact us all of a sudden? Didn't he just ignore us?"

Obviously, Fang Xiaoya didn't have a good impression of Sansang, a big company, and felt that the management of Simidaguo was best at going back on their words.

Liu Chao said: "Hey, maybe they figured it out. Our Starry Glory is at least the leading private aerospace company in China and has great prospects. They think it is a good choice to cooperate with us."

Fang Xiaoya was speechless for a moment, feeling that Liu Chao was taking it for granted.

Would San Sang think so? It's impossible. San Sang will never contribute to the development of China's aerospace industry, let alone help China's private aerospace companies.

Of course, it is not impossible as long as the benefits are great enough.

At this moment, Sansang’s people applied for a video connection.

"Here we go, are you all ready?"

Fang Xiaoya and Liu Chao both nodded.

Peng Xiaojun pressed the agree button.

Samsung's participants showed up.

There were two people on the other side, a man and a woman. The man looked to be in his forties or fifties, big and strong, with a square face and thick lips.

Anyone with enough experience would guess that this man is most likely a Chinese.

This is indeed the case. This person's name is Park Zhenghao, and he is the business manager of Samsang Semiconductor in China.

The other girl, named Yang Lianhua, is a member of Park Zhenghao’s group and can be considered Park Zhenghao’s deputy.

The other party introduced himself, which stunned Peng Xiaojun and the other three. Starry Sky Glory sent its boss and two core executives, but the other party only sent business team members.

Park Zhenghao is at most a middle-level manager in the company, according to China's standards.

Aren’t the identities of the two negotiating parties too unequal?
When communicating with Sansang, the other party clearly asked Starry Sky Glory to send someone who can really make decisions in the company, and it would be best if the boss was involved. At the very least, the other party should send a senior executive, right?

This made Peng Xiaojun doubt Sansang's sincerity.

Even Liu Chao felt disappointed.

Fang Xiaoya showed a little anger on her face. She felt that Sansang Semiconductor was really bullying her. If they wanted to talk, they should talk properly. Why did they do this?
At this time, Park Zhenghao said: "Hello, everyone from Starry Glory, are you ready for the negotiation?"

Peng Xiaojun said calmly: "Mr. Park, can you two make a decision?"

Park Zhenghao shrugged and curled his lips: "Of course, this is our business, we can make decisions independently."

After hearing this, Peng Xiaojun and others finally calmed down.

As long as the other party can make the decision, it doesn't matter who negotiates.

Peng Xiaojun said: "Well, Mr. Park, we can have a formal talk now."

Park Zhenghao nodded: "Okay, your company will tell us what it needs."

Park Zhenghao's Chinese is not very good, and her words don't make sense, but fortunately her speech is okay and can be understood.

Peng Xiaojun said: "We at Starry Glory are developing our own rockets. This is a very complex system, and we also need to develop our own chips based on their functions. We need to tape out one of our chips now. I wonder if your company can do it?"

Peng Xiaojun then showed Park Zheng the basic information about the chip.

Park squinted his eyes and looked at it for a long time, not knowing whether he understood it or not. After two or three minutes, he finally nodded.

"Oh, it's not a very complex or advanced chip. It looks like an ordinary design, very backward."

Peng Xiaojun, Liu Yu and Fang Xiaoya looked at each other, feeling that the other party seemed to be talking nonsense.

Although the chip designed by Starry Glory does not have a particularly advanced manufacturing process and the process requirements are not very high, it does not mean that this chip is backward.

The manufacturing process is at least around ten nanometers, and the functionality is very clear; it is not a simple design.

After reviewing the chip, senior engineers at Huaxin International felt that it was much more complicated than the average 14-nanometer chip and that tape-out success could not be guaranteed.

Of course, maybe it’s because Sansang Semiconductor is really strong, and this kind of tape-out is a piece of cake for them.

That’s all I can think of now.

Peng Xiaojun asked: "Is your company sure you can do tape-out?"

Park Zhenghao nodded: "Of course."

"That……"

"But we still have to negotiate the terms before we can proceed to the next step of cooperation."

Peng Xiaojun said, "Of course. I don't know how much the tape-out costs. Please give me a quote."

Park Zhenghao was also unambiguous and stretched out three fingers.

Peng Xiaojun and Liu Yu looked at each other, not understanding how much it was.

Three million lighthouse dollars?

If this number is true, then that's great.

Huaxin International's quotation is basically this number, which is much lower than TSMC.

More importantly, Sansang's semiconductor technology should be much stronger than that of Huaxin International, and its tape-out success rate should be higher, at least in theory.

Peng Xiaojun said: "If it is 3 million yuan, we can accept it, but what is the success rate of tape-out? We need..."

Before Peng Xiaojun could finish his words, he was interrupted by Park Zhenghao.

"Mr. Peng, please don't misunderstand me. I didn't say 3 million Lighthouse dollars. I said 30 million."

These words stunned Peng Xiaojun and the other three.

"...30,30 million Lighthouse dollars, Mr. Park, isn't that too much? As far as I know, TSMC can't possibly offer such a high price."

Park Zhenghao had a wooden face and it was almost impossible to tell what he was thinking.

Park Zhenghao said calmly, "Excuse me, TSMC's current tape-out quotation has exceeded 10 million yuan, which is lower than our quotation. But if your company feels that TSMC is more in line with your requirements, why don't you negotiate with them?"

"Well... Mr. Park, I think you should understand our situation. TSMC will not easily accept our commission."

"That's right, I understand. So our offer of 30 million Lighthouse dollars is reasonable. We have to consider some risks. Do you understand?"

Park Jung-ah’s meaning is also very clear.

They, Sansang, can accept the commission from Starry Sky Glory to produce the film, but the fees must be high. After all, they are likely to face pressure from some aspects.

For example, the Ministry of Commerce of the beacon country on the other side of the ocean is not a vegetarian department. Once they find that San Sang has such behavior, they may really step in to stop it.

Can Sansang stand up to the Ministry of Commerce of the Lighthouse Country? Maybe, after all, Sansang is backed by a big chaebol in Huafu Street.

But you have to give enough benefits, then those big guys will come forward to solve the problem, and only then will it be possible to successfully tape out the chip without any trouble.

This may be considered a reason, but 30 million Lighthouse Dollars is indeed too expensive.

At this time, Liu Chao couldn't help asking: "Mr. Park, if you accept the commission, how long will it take to prepare for tape-out?"

Park Zhenghao said: "It will probably take about three months."

Three months? That’s not long. It went by much faster than I expected.

If TSMC accepts the commission, it may take more than half a year to enter the wafer tape-out process.

Liu Chao whispered to Peng Xiaojun, "Boss Peng, three months is pretty fast and relatively reliable."

What Liu Chao meant was that three months of tape-out is much more reliable than completing it in one week, and this is the normal speed.

Peng Xiaojun hesitated for a moment and whispered to Liu Chao: "30 million Dengta yuan is too expensive. We can't afford it."

Thirty million Lighthouse yuan is equivalent to letting Huaxin International tape out the wafer ten times, which is indeed not cost-effective.

However, the tape-out schedule for Huaxin International is very long, possibly even longer than that of TSMC, and it cannot be completed in half a year.

Besides, Huaxin International’s tape-out may not be successful in one try. It will take even longer for the second or third time.

Liu Chao said: "I think we can negotiate. It is an international practice for Sansang to ask for a high price."

Peng Xiaojun thought it made sense, so he said to Park Zhenghao: "Mr. Park, we can't accept this price. We hope the price is lower."

Park Zhenghao smiled slightly and said, "Okay, you Chinese people like to get everything done in one go, so then 20 million, 20 million Dengta yuan, it can't be any lower."

Even if it's tens of millions of Lighthouse dollars, it's still quite high.

But it sounds better than before.

Of course Peng Xiaojun wanted to lower the price further, but Pu Zhenghao refused to give in.

Peng Xiaojun said: "Mr. Park, let us think about it."

Park Zhenghao nodded: "You have 24 hours to think about it."

(End of this chapter)