Siheyuan, Shazhu: I have both parents in this life

Chapter 280 Phoenix Perching on the Wutong Tree
The groundbreaking ceremony was simple yet efficient.

There were no lengthy speeches, no fancy arrangements.

He Yuzhu, Xiaoman, Chen Sheng, and EDB's Li Sir jointly picked up shovels tied with red ribbons and shoveled the first shovelful of soil for the Yellow River Semiconductor Singapore base.

The moment the soil was turned over signifies that this 120-acre land will bear the Yellow River system's future ambitions in cutting-edge technology.

"Mr. He, Ms. Qiao, we look forward to your company achieving great success here." Mr. Li's smile was sincere and full of expectation.

"I will definitely live up to your expectations," He Yuzhu nodded in response.

After the ceremony, He Yuzhu and his entourage immediately headed to the National University of Singapore (NUS).

Accompanied by Mr. Li and representatives from the university, they visited the laboratories of the Department of Electrical Engineering and the Department of Materials Science.

He Yuzhu focused his inquiries on the curriculum, research directions, and the career paths of graduates.

“NUS and NTU students have a solid foundation, a broad international perspective, and active thinking, making them excellent reserves for research and development.” He Yushui whispered to He Yuzhu, introducing what she knew. Wang Siyu also added information about some outstanding students in law and business management.

He Yuzhu nodded from time to time as he discussed with the school the initial intentions for establishing scholarships and joint research projects in the future.

In the evening, He Yuzhu met Dr. Peterson and his core team members, who had just arrived in Singapore, in the pre-booked hotel conference room.

Without any pleasantries or small talk, the meeting got straight to the point.

Standing in front of the blackboard, He Yuzhu used clear lines to outline the blueprint for Yellow River Semiconductor: "Here, in Jurong East, will be Yellow River's first semiconductor R&D center, covering materials, processes, and design. Dr. Peterson, your team is the cornerstone, and you must shoulder the responsibility behind it."

Dr. Peterson said seriously, "Mr. He, we already have a preliminary concept for the technology roadmap. Singapore's environment and support give us confidence. Talent is key, and we need to continue to attract top talent."

“The EDB and the two universities are very supportive of talent recruitment, joint laboratories, and talent training programs, and these are also our priorities for the next stage,” Xiaoman said, incorporating the results of the day’s discussions into the plan. “Chen Sheng will be stationed here permanently, responsible for infrastructure implementation and initial operation coordination, while Dr. Peterson will lead the research and development.”

The meeting was pragmatic and efficient, clarifying short-term goals, resource needs, and respective responsibilities.

Peterson's team is full of hope for the future, which should be attributed to the new boss's capabilities and the company's corporate culture. Fairchild's failure has made them see through many things.

The meeting ended as the city lights began to twinkle.

He Yuzhu and Xiaoman finally had some private time and had dinner with He Yushui and Wang Siyu at a quiet local restaurant.

There were no complex business or technical discussions at the dinner table, only casual concern and relaxed laughter.

He Yuzhu inquired about the details of the younger girls' studies and life in Singapore, and listened to them share interesting stories from school and the troubles of growing up.

The warm atmosphere lasted until the end of dinner. He Yuzhu had his two younger sisters sent back to school, while he and Xiaoman returned to the hotel.

The following morning, He Yuzhu and Xiaoman bid farewell to Chen Sheng, who had come to see them off, at Changi Airport.

"I'm leaving this to you, Ah Sheng. Contact Xiangjiang anytime if anything happens," He Yuzhu instructed.

"Don't worry, boss." Chen Sheng nodded solemnly.

The trip to Singapore gave He Yuzhu some inspiration, and after returning, he convened a meeting with the senior executives of the Yellow River Group.

This time, He Daqing, Shi Bin, and Bai Yifeng were not allowed to participate. He Yuzhu sat in the main seat in the meeting room, while Hong Lang, Gu Yuanheng, Xian Xingyao, Xu Damao, and Xiaoman sat on either side.

The meeting's topic could be summed up in just two words: 'talent'.

Then below are 'Local Talents' and 'Introduced Talents'.

"Everyone, please share your thoughts," He Yuzhu said.

Xian Xingyao spoke first: "Boss, I don't have much to say about local talent right now, but I do have something to say about the talent we bring in. The engineers who came to our factory when we bought out the technology from the Japanese company are top-notch, but after all, their language habits and research approaches are different, and it will take time to get them to work together. With the subsequent expansion of production and the rollout of new R&D projects, there will be a significant talent shortage. It's not feasible to just bring in talent by directing them; it's time-consuming, costly, and may not necessarily fit our Yellow River's corporate culture."

"Xingyao has hit the nail on the head. Does anyone have anything to add?"

“Then let me say something too,” Gu Yuanheng said.

"Just say what you want to say, there are no outsiders here."

“Okay, let me talk about local talent. In previous years, we trained quite a few people, but a number of them left for various reasons. It wasn’t because our treatment was bad, nor because our technology was not advanced, but because they aspired to Europe and America.” Gu Yuanheng said with a sigh.

“It’s the same on my end,” Xian Xingyao said.

"Have you thought of any solutions, or found the root cause?"

"We have certainly considered solutions, but they haven't been very effective," Gu Yuanheng said.

"Another serious problem is the loss of technology. Although we signed confidentiality agreements and non-compete agreements, that was in Hong Kong. Once they leave, there's not much we can do about it."

"So our legal aspects are still somewhat lacking," He Yuzhu frowned.

"That's right," they all said in unison.

"Okay, I understand. Today we'll discuss how to solve this problem. Otherwise, if this continues, we won't be able to retain talent, and the new technologies we develop may be leaked."

He Yuzhu got up, picked up a pen, and wrote two words on the blackboard: "introduced" and "local," then drew a line between them.

Then he began, “The problems have been laid out, and we’ve also gotten a sense of their root causes. We can’t change the prevailing trend of aspiring to Europe and America for the time being, but the Yellow River cannot sit idly by. We must establish a system that can attract, retain, utilize, and protect our achievements. Today, we’re going to discuss and come up with a practical solution.”

"First, let's talk about talent acquisition. Xingyao is right. Relying solely on poaching talent is not a long-term solution. It's costly, risky, and difficult to integrate. We need to change our thinking and transform 'talent acquisition' into 'integration' and 'rooting'."

“Let me take the Peterson team in Singapore as an example.”

He Yuzhu then wrote a few more words on the blackboard: 'Top Talent'.

"You might not agree with my high praise, but you'll see in the future. Let's talk about how to retain them first."

Everyone nodded.

"Alright, we'll leave the salary and benefits aside for now. The R&D platform is something we'll be investing heavily in in the future. More importantly, we need to resolve all their worries, including family resettlement, children's education, and medical care. The goal is to let them focus on their research and make this their final destination."

He Yuzhu paused at this point, allowing the audience to process what he had just said.

The meeting room fell into a brief discussion.

Soon after, Xiaoman spoke up: "Singapore's current support system is already taking shape, with talent apartments, international schools, and medical green cards. We can copy it, but we need to add one more thing—employment placement for family members. If a researcher's wife is also an engineer, she can go directly into a factory or laboratory; if she is a teacher, she can go to a school for employees' children; if she is a nurse, she can go to a hospital for employees. We shouldn't let a talented person worry about their family's employment."

“Sister-in-law, isn’t this just the same thing as back home?” Xu Damao said.

"It was indeed borrowed from somewhere," Xiaoman said.

The others were all stunned, not expecting that this was how things were done in China. Of course, Xiaoman had something else to say: getting a job in China wasn't easy, because there was too much competition.

Hong Lang then added, "I think the housing aspect should be more flexible, not just renting without selling. After working for five years, employees can be given ownership at an internal price, with the ownership locked for ten years. If they leave within ten years, the property will be repurchased at the original price. This way, they won't want to leave, and even if they do, they can't take it with them."

Gu Yuanheng said, "Can we further refine our children's education? In addition to international schools, we can run our own experimental school from elementary to high school, with bilingual textbooks and direct admission quotas for internal staff. Outsiders who want to get in can pay a sponsorship fee, which is like opening another avenue for revenue."

Xian Xingyao raised the issue of household registration: "The queue for Hong Kong residency is currently very long. I've inquired and found that skilled immigrants can apply through the 'Quality Migrant Admission Scheme.' We can act as guarantors, and you can get your ID card in six months. Family members can apply at the same time, so you don't have to be in different places."

“Your identity refers to people from China, Southeast Asia, and Africa, right? People from other places might not be willing to settle here,” A Lang said.

“That’s true, but I think we can still try,” Xian Xingyao said.

“Difficult,” Gu Yuanheng said, because Hong Kong’s status was indeed somewhat special at this time.

"Is there any more?" He Yuzhu asked.

Xu Damao raised his hand: "Brother, can we set up our own hospital? Like the old Red Star Steel Rolling Mill, which was a supporting enterprise."

“Something like a clinic is possible, but a fully-fledged system will take time. Are there any others?” He Yuzhu nodded.

"Then there's the legal aspect, which requires consulting a professional, since the laws of each country are different."

"Okay, let's summarize then." He Yuzhu began writing on the blackboard: "Only by building a good nest can we attract, retain, and nurture the phoenix!"

Core task: Building a "nest" talent strategy

Objective: To develop an actionable plan within one month and build core competitiveness in attracting, retaining, and cultivating talent.

Then He Yuzhu spoke up: "Now let's talk about the division of labor:"

"1. The family arrangements will be led by Lingyi, with Honglang assisting. You can choose the other assistants yourself."

"2. The upward channel is led by Gu Yuanheng, with Xian Xingyao assisting, and everything else is the same."

"3. Xu Damao will be in charge of the medical aspects. You can choose the professionals for your own professional matters."

"4. In terms of legal matters, do you have anyone you can recommend? External ones are fine too. If not, I will go and talk to him personally."

Hong Lang said, “Boss, the big local law firms in Hong Kong are very good at handling commercial disputes and mergers and acquisitions, but when it comes to such professional technical confidentiality and cross-border non-compete agreements, especially when the opponent may be a European or American giant, are their experiences sufficient? We may need to have more specialized intellectual property and international law expertise.”

Gu Yuanheng added, "Yes, boss, those clauses are easy to write, but when it comes to enforcement, especially overseas, whether the courts will recognize the agreements we signed in Hong Kong, and to what extent they can be enforced, are all big questions. We don't want the agreements to become worthless pieces of paper."

He Yuzhu nodded; this was precisely the difficult point he was pondering. "Therefore, we need to find truly knowledgeable people. Do you have any recommendations? Local Hong Kong law firms or top international law firms are all welcome."

Xian Xingyao thought for a moment and said, "Attorney Shi, their law firm is very strong in maritime and international trade law, but in terms of intellectual property... they may not be the best."

Gu Yuanheng continued, “Clifford Chance and Freshfields are powerful British firms with extensive international networks and rich experience in handling transnational disputes, but they may not serve us. After all, we took down Jardine Matheson.”

Everyone in the meeting room fell silent this time.

He Yuzhu tapped his fingers lightly on the table. After a moment, he spoke, "It seems we need a 'chief architect' who can integrate resources and is willing to tailor solutions for us. Leave this to me. I'll ask around first."

Of those present, only Xiaoman roughly knew who He Yuzhu was looking for.

The meeting then adjourned. He Yuzhu returned to his office and dialed a number. The phone rang for quite a while before it was answered.

"Wilson!"

"Boss?" Wilson was clearly surprised that it was He Yuzhu who was calling him.

"it's me."

What can I do for you?

"Hand over what you're doing now. If it's something you absolutely have to do, then finish it. Then fly to Hong Kong. I have something I need you to do."

"Ah, Hong Kong, oh, I'll make the arrangements right away. There's no one who absolutely needs me right now."

"Call this number after you book your flight, and someone will pick you up." He Yuzhu gave a phone number that belonged to Shi Bin.

"Okay, okay, is there anything else you need, boss?"

"How's the situation in New York? How's the Grand Hyatt's CEO doing?"

"Everything is normal. Gambino hasn't come back either. Taco has gone to develop second-tier markets, so there's no conflict with us now. As for Jack Webber, he seems to be doing a good job so far."

"That's perfect. You can leave for a while and see how he behaves."

"Yes."

Three days later, Wilson arrived at He Yuzhu's office, looking travel-worn. He was actually quite shocked on the way there, as Shi Bin gave him a brief introduction to the Yellow River Group.

They showed him almost everything they could along the way, which was very different from his impression of his boss as someone who dabbled in finance and had connections in both the legal and illegal worlds. So the old guy was a bit reserved now, feeling that he was somewhat out of place in such a large corporation.

"boss!"

"Why are you so reserved now that you're in Hong Kong? This isn't like you. Are you afraid I'll detain you and you won't be able to get back?" He Yuzhu teased.

"No, no, boss, it's just that the scale of your business far exceeds my expectations. I haven't been able to fully adapt to this situation yet."

"The overall picture is created by people; we'll observe and learn gradually," He Yuzhu said with a faint smile.

"I heard you brought your family along? Let them have a good look at Hong Kong, this Pearl of the Orient."

"Yes, that's what I meant too. We also want to let them know the boss's capabilities."

"It seems you have other ideas?"

"You can't hide it from me. Karl has told me several times that he's doing very well here, so I'm also thinking about things back home."

"Oh? You're still in contact?"

"Don't worry, boss, he didn't say anything he shouldn't have."

"Hmm, it seems Old Bai has done a good job training you. But you've come at the right time; the reason I called you here is to discuss something related to this."

Wilson immediately perked up, "Boss, could you elaborate?"

"Okay, let's get down to business first."

He Yuzhu's expression turned serious, and he explained in detail to Wilson the core issue discussed at the meeting—how to build a legal system that can effectively attract and retain top talent and strongly protect core technologies and trade secrets, especially the response strategies when facing transnational disputes and the poaching of top talent.

He particularly emphasized the limitations of local law firms in handling such high-end, complex, and transnational legal matters.

Wilson listened, his brow furrowing and relaxing intermittently. After He Yuzhu finished speaking, he pondered for a moment before saying, "Boss, your concerns are very necessary and forward-thinking. When I handled technology and talent acquisitions for companies like Fairchild, AMC, and Xerox Alternatives in North America, I deeply realized that top talent is the most valuable asset, but also the most vulnerable to loss. Traditional employment contracts and basic confidentiality agreements are indeed insufficient in the face of the allure of true giants and the complex international legal environment."

"Well, elaborate from your professional perspective."

"Yes, to solve this problem, we need a multi-dimensional defense strategy, not just a few nice contracts."

"continue."

"There are roughly the following points: First, in addition to highly competitive salaries and equity incentives, some of the core benefits of core technical personnel (such as project dividends and patent royalties) are deeply tied to their confidentiality obligations and non-compete periods, making the cost of breach of contract extremely high, so that they dare not breach the contract unless someone else pays the money for them."

"Secondly, non-compete agreements must be 'precise' and 'regionalized.' Therefore, we need to understand where our competitors are so that we can tailor our strategies accordingly. Of course, this is time-limited. We need to customize different versions of the agreement based on the different requirements of each country's laws regarding the non-compete period (usually 1-2 years) and compensation standards (a certain percentage of salary must be paid as non-compete compensation after leaving the company). The legal environments in North America, Europe, and Asia Pacific are vastly different, so we must adopt a 'one-size-fits-all' approach."

"Third, the fortress of trade secret protection requires sufficiently strong evidence at critical moments."

"Fourth, build a global legal response network."

"Is there anything else?" He Yuzhu asked.

Wilson took a sip of water and continued, “Boss, this is a huge and complex systemic project. Frankly speaking, I can’t complete it by myself or by temporarily piecing together resources. We need to establish a highly professional ‘Global Legal and Compliance Department’ at the group level, directly under your leadership, to integrate resources and make long-term investments in order to build this ‘legal fortress’ to protect our core competitiveness.”

“Very good, Wilson. It seems your discussions about the North American acquisition were worthwhile; you did quite a thorough job.”

"Thank you for the compliment, boss!"

What do you think of our "building a nest to attract phoenixes" plan?

"Boss, to be honest, I'm really tempted. I think I might be one of the many phoenixes."

"Hahaha, that's exactly why I came to find you. To build a nest to attract phoenixes, the 'nest' must not only be comfortable, but also sturdy, able to withstand the wind and rain and the covetousness of the outside world."

“I completely agree with that.”

"In that case, I plan to establish a global legal and compliance department for the group, and you will be in charge for the time being. Are you confident?"

Wilson's heart skipped a beat. He was stunned by the enormous surprise, but he also knew that this matter had to succeed, because he couldn't bear the consequences of messing it up.

(End of this chapter)