Siheyuan, Shazhu: I have both parents in this life

Chapter 319 He Yuxin's Transformation
With her brother's instructions and her sister-in-law's encouragement, He Yuxin went to the special economic zone.

The hardships of the early stages of Yantian Port's construction far exceeded his expectations. It was a desolate wasteland with extremely scarce infrastructure. Offices and accommodations were all temporary prefabricated houses, a far cry from the prosperity and comfort of Hong Kong.

At first, He Yuxin found it extremely difficult to adapt.

But he kept his elder brother's words in mind: this trip was not for enjoying himself, but for learning and gaining experience.

He forced himself to calm down and follow Ah Lang and the engineering team, learning little by little, from the most basic planning drawings and earthwork to coordination with inland construction units.

He saw the foresight of his elder brother's strategic plan, personally experienced the complexity and hardship of doing business in the mainland, and gained a deeper understanding of the importance of the policy environment and interpersonal relationships.

Three months later, when he returned to Hong Kong, He Yuxin's skin was dark, but his eyes were even brighter.

This broke Chen Lanxiang's heart. She thought of how much harder her youngest son must be suffering in the army, and she wiped away a few more tears.

After returning to Hong Kong and reporting to He Yuzhu, He Yuxin made a decision that surprised even He Yuzhu.

“Brother, the Yantian project is on track, and there’s no problem with a professional team overseeing it. Also, the Xiangjiang Port is operating very well even without me. I think I should take this opportunity to travel and see more of the mainland.” He Yuxin’s gaze towards his brother was firm.

"Can you tell me why?" He Yuzhu asked him with a smile.

"This trip showed me the small size and limitations of Hong Kong. The development of the Special Economic Zone has been too fast; it's like a model. But I feel that in such a large country, the situation in each place must be different. I want to see what the real market is like, what the people need, and where there are still opportunities for us in the Yellow River region."

He Yuzhu looked at the long-lost light in his younger brother's eyes and felt gratified, but his face remained expressionless: "Oh? Where are you planning to go? What do you think?"

"I plan to travel from south to north, first to Huadu to check out the commerce there; then to Wuhan, which I've heard is a transportation hub connecting nine provinces; then to the old city of Beijing to experience the political and cultural center; and then... maybe to eastern Hebei to see what Secretary Zhao's side is lacking at the grassroots level, besides the projects that have been agreed upon; if I have time, I'd also like to visit Tianjin and Shanghai." He Yuxin had clearly done her homework and already had a preliminary plan.

“Okay, but I have to give you some homework: for every major city you visit, you need to give me a brief research report.” He Yuzhu nodded.

"Understood, brother."

“Be careful on the road. Don’t use your Hong Kong identity to get someone to write you a letter of introduction. Conditions on the mainland are much worse than in Hong Kong now. Transportation and accommodation are not as good as at home. In some places, even the guesthouses may be rudimentary. You need to be prepared,” He Yuzhu said.

"I see."

"Alright, talk to your parents properly before you leave, so your mother won't cry again."

"Okay, by the way, brother, do you have Fifth Brother's address? I'd like to go see him!"

"We probably can't see it for now. Their organization probably keeps it confidential. Maybe we'll have a chance later."

"Alright, once we get to Beijing, besides Aunt Xia's house, do I need to visit anyone else?"

"There's another elder. Go and give him a call. Oh, and bring back some local specialties from the south when you go back."

"Ok."

And so, He Yuxin stayed at home for only a few days before heading to the mainland to begin his research trip.

Time quietly slipped into the second half of 1981.

On September 10th, He Yuzhu received a fax from Chen Sheng in North America.

IBM released its first personal computer, the IBM PC 5150, featuring an Intel 8088 processor and Microsoft's MS-DOS operating system, officially ushering in the era of personal computers.

In his fax, Chen Sheng provided a detailed analysis of the IBM PC's configuration, price, and market response, and urgently inquired: "The alliance between Intel and Microsoft is gaining momentum. Should AMD immediately launch its own personal computer products to counter this, or should it focus on providing processors for other compatible PC manufacturers?"

He Yuzhu replied: "We will first try to contact IBM to explore their intention to purchase our AMD processors; at the same time, we will accelerate the research and development of AMD's own brand of personal computers, and we must find advantages in performance, compatibility and price. Patent barriers and legal risk assessments should be carried out in advance, and we should be prepared to deal with all challenges."

As He Yuzhu predicted, IBM rejected AMD's offer, and its alliance with Intel remained strong.

Then He Yuzhu dropped a bombshell in the North American market. A month later, AMD officially released its first-generation personal computer, the AMD1981-1, which used a better-performing self-developed processor and an optimized operating system, ADOS, and was priced about 15% lower than an IBM PC with the same configuration.

The initial market response was encouraging, with orders pouring in, especially from educational institutions, small and medium-sized enterprises, and some government procurement departments that were dissatisfied with IBM's high-price strategy.

Of course, a storm followed. Intel was the first to retaliate, filing a lawsuit against AMD, accusing the AM8088 processor of infringing on several of its microcode and architecture patents.

Following this, various media outlets began publishing review reports stating that "AMD compatibility is questionable" and "its stability is inferior to IBM's."

Subsequently, some distributors with close ties to IBM began refusing to supply AMD.

The battle quickly spread from the PC market to the processor sector, and then to other sectors.

"Boss, what's our next step?"

He Yuzhu wanted to see what the consequences would be if he broke the monopoly, and now he has seen it.

When can we release our second-generation product?

"It's already in mass production. We produced very few of the first generation. Now we only make them when we receive an order."

"Then release the second generation. I want to see how they fight back. There are no issues with the patents, right?"

"No problem, it basically bypasses Intel's core technology patents and its architecture is different from theirs."

What about compatibility?

"It is compatible."

"Okay, let's send it and see what happens!"

"clear."

Just before Christmas in 1981, AMD unleashed its trump card: the upgraded AMD 1981-2, whose performance far surpassed the IBM-5150, especially in storage, while its price was only 10% higher than the AMD 1981-1.

The market reaction was explosive. Apple and IBM's high-price strategy had always been criticized by users, but now with such high cost-performance, orders came in like snowflakes.

Several mainstream North American tech media outlets, after reviewing the product, also gave it ratings as "powerful" and "excellent value for money."

Seven days after the release of AMD's 1981-2, Intel filed a supplemental complaint in the District of California, alleging that AMD's new processor used Intel's core microcode architecture, infringing on several of its core patents.

They are asking the court to immediately issue an injunction to ban the sale of the AMD 1981-2.

Almost simultaneously, IBM also made its move.

They didn't file a direct lawsuit because the patents weren't in their hands, but their tactics were more insidious: they pressured their vast network of suppliers.

As a result, several key component suppliers, including a major memory chip manufacturer and a power module supplier, notified AMD that they would significantly reduce or even suspend supplies, citing reasons such as "insufficient production capacity" or "the need to prioritize existing major customer orders."

The pressure quickly spread within AMD, and the company's employees went from being overjoyed and excited about the product's success to worrying about the company's future.

Because most of them have already experienced it once before, they were almost driven to bankruptcy by Intel.

At the group meeting.

The general counsel brought the first piece of bad news: "Mr. Chen, the additional evidence Intel has provided this time is very tricky. The expert team they hired is fixated on several key points of our architecture design, believing that we cannot bypass their basic patents. After the preliminary hearing, although the court did not immediately issue an injunction, its attitude is not very favorable to us."

The purchasing manager then threw out another big problem: "Those suppliers are very tough, saying they can't afford to mess with IBM. We are urgently looking for alternative suppliers, but the qualified vendors have either been contacted or have extremely high prices and long delivery times."

The news from the head of marketing was clearly not good either: "Negative publicity is spreading very quickly, especially in the enterprise market, where IBM's brand influence is too great. Two previously interested major clients have already said they want to 'wait and see'."

The meeting room fell silent, and all eyes were on Chen Sheng.

Chen Sheng paused for a few seconds before speaking: "As for Intel, have our expert team and legal team fully respond to the lawsuit, make our patent documents and technical white papers more substantial, and refute them point by point. At the same time, contact several neutral technical evaluation agencies and invite them to conduct public comparative tests to let the facts speak for themselves."

"Yes, Mr. Chen."

"I'll try to figure out a solution to the problem with the originals, but you can't slack off either. First, have your people go all out and buy them all over the world; second, start looking for alternatives."

The purchasing manager nodded and said, "I will arrange for my subordinates. Don't worry, no one will slack off. This is a matter of life and death for the entire company."

"As for sales, let them wait and see; there's nothing we can do about it for now."

"Understood," the head of the marketing department replied.

After the internal meeting, Chen Sheng immediately gave a detailed report to He Yuzhu via radio. He was now even afraid to make long-distance calls.

"Boss, that's roughly the situation. What's our next step?" Chen Sheng had never been so anxious.

On the other end of the phone, He Yuzhu's voice was unusually calm, as if he had expected this: "Fight them to the bitter end, and don't lose public opinion. As for the supply of components..."

Chen Sheng's heart skipped a beat when He Yuzhu paused.

However, He Yuzhu's next words made his heart race.

"Have someone prepare a warehouse immediately to receive the goods. I will have them shipped by sea in batches to Dongda, and then Dongda will resell them to AMD after several intermediaries. This includes the memory chips and power modules you mentioned. The quantity should be enough to support your normal production for more than a year, provided that you don't receive any particularly large orders."

Chen Sheng could hardly believe his ears: "One, one year? Boss, are you serious? This, so many scarce components, have you robbed a big factory like Texas Instruments?"

"Don't worry about that, but one thing to note is that these components are from different brands and have slightly different models, so you need to be careful when using them," He Yuzhu said.

"We will take this into consideration. I already had my staff start looking for alternative solutions."

"That's good. I've prepared all the bullets for you. Whether you can win this battle depends on yourselves," He Yuzhu said with a smile. "Don't worry, boss, we will do our best," Chen Sheng replied.

After disconnecting the call, Chen Sheng took a few deep breaths to calm himself down. He didn't even dare to tell his subordinates the news, as he didn't know if there were any spies sent by the enemy.

Then he went directly to the University of Tokyo, explained the details of renting the warehouse and reselling it, and then made a phone call to Wilson.

"Wilson, I need your help."

"Chen, we're all working for the boss, there's no need to be so polite."

“Okay, then we need lawyers in North America who are more knowledgeable about patents.”

“No problem, the European team will arrive within two days. However, they can only help you with analysis and countermeasures. In court, you will still need local lawyers.”

"I know I'll buy you a drink."

"We'll talk after you win. I'm not going to drink to drown my sorrows after losing a case," Wilson joked.

"If I were to drink a sorrow-relieving drink, I would drink it myself."

"Let me know if you need anything, and I will give you my full support. I wish you success!"

"Thank you!"

While the North American business war raged, He Yuzhu's side was bogged down by matters on the mainland, and Ji Dong's second round of negotiations began.

Except for the port of Caofeidian, everything else has been agreed upon. Now that the preliminary letter of intent has been signed, the details are being discussed.

At the market, Lao Zhao was entrusted by someone to ask He Yuzhu to purchase a batch of supplies. The first item on the list was AMD computers, and you can imagine the expression on He Yuzhu's face.

"Why did they choose this manufacturer? You know, they have no reputation, no benchmark customers, and they're currently embroiled in lawsuits!" He Yuzhu said to Lao Zhao.

"How would I know that much? People just said this place is cheap and the service is okay. Of course, it would be even better if they had a minicomputer."

"I'll give it a try; they don't know if they can even ship the goods right now."

"Okay, what about the next one?"

"Uncle Zhao, tell me the truth, what factory uses all of these?"

"You mean radios, wireless radios, televisions, and all that stuff? What else can they be used for?" Old Zhao clearly didn't know anything about it.

"Okay, it seems you didn't know."

"Then tell me about it," Old Zhao asked curiously.

“Radar, guidance, large-scale computing,” He Yuzhu casually pointed to the names of a few components.

“Hiss, I really don’t know. Uncle wouldn’t trick you. Don’t do it if it’s not dangerous. Let them think of another way.” Zhao Fengnian gasped. He really hadn’t thought of that.

“I’ll give it a try. I’ve been thinking of setting up an import trading company to do this kind of thing. In the future, our color TVs, washing machines and cars will need a lot of imported parts.”

"If it works, great. If not, don't take the risk. Your business has reached this level, you can't afford to have problems because of this."

“I know,” He Yuzhu nodded.

"There's something else I need to tell you. The higher-ups want to see the results of your Yantian Port project before deciding whether to allow you to develop Caofeidian."

"That's understandable."

"I'm glad you understand. Also, your Aunt Xia has helped you get a few apartments in Beijing, so you can go back and visit them when you have time."

"Someone's already selling it?"

“Now the policy has changed, and more people want to come out and make money, but they don’t have any. This old house is their start-up capital.”

"What about Courtyard No. 95?"

"That courtyard is a bit troublesome. Let's take back a few rooms, but we'll probably have to wait for the others."

"Okay, I see."

When are you going to take the elderly back to visit?

“Please go back and tell Aunt Xia to help me prepare a larger courtyard. Once it's ready, I'll bring people back home because there are too many people in my family.”

"That's no problem, you still have a lot of money left."

"I'll thank Aunt Xia properly when I get back."

"Our two families are so close, there's no need for formalities. Besides, quite a few people are envious of us talking to you this time, and quite a few have reported me, Old Zhao, to the authorities."

"It won't affect you, will it?"

“What’s there to be afraid of? Jidong is dirt poor. If they’re so capable, let them trade with me. I’ll go there and I definitely won’t make any special requests.”

"Hehe, Uncle Zhao, if this investment really goes through, I'm afraid there will be plenty of people willing to trade with you."

"Go away, go away, I can handle this. What I mean is, when you talk to other places, you don't have to be like you are with us. Just say what you mean. The people of Jidong will remember your kindness and they will repay you. I can't say for sure about other places."

"I know, I'm just a businessman."

"Yes, you are a businessman. Don't bring the past into your thinking. The country is different now than it used to be."

"I sent Yuxin to investigate."

“I had completely forgotten about this if you hadn’t mentioned it. Yu Xin went to Jidong and visited every place he could. I read his analysis, and it was incredibly detailed and practical. It put even us local cadres to shame.”

“I think you must have kept a copy, Uncle Zhao,” He Yuzhu said with a smile.

"That's right. I even wanted Yuxin to stay, but the kid refused. He said there are still many places he hasn't been to yet, and he wants to travel all over the country."

“It’s impossible for him to stay. He’s the only one among my younger siblings who can take over my job. Do you think you can just take him away?”

"Hey, the He family has raised you well. I have a personal matter to discuss."

“After you go back, Shengli doesn’t want to work at the factory anymore. She was arguing about going into business a while ago, and she even had a fight with her mother. Can you give me some advice?”

"You really want me to come up with ideas?"

"Otherwise, why would I say it?"

"Then let that girl go to the special zone by herself."

Why go to the special economic zone?

“Isn’t this ready-made?” He Yuzhu picked up Lao Zhao’s shopping list.

You mean the import company.

"correct."

Is she cut out for this?

“In the early stages, I will find someone to mentor her. If she is capable, I will let her work independently. If not, she can work as an accountant. I will pay her according to the salary standards in Hong Kong.”

"Just keep spoiling her," Old Zhao said.

"The only thing I'm worried about is that you and Aunt Xia are both on duty. Will it affect you?"

"What you said is indeed a problem. I'll go back and find out more about it. If it has any impact, we definitely can't let her out. We'll talk about it after we've withdrawn from the agreement."

"Alright, you'd better hurry up, or I'll do it myself."

"Go ahead and do it. Even if you're capable, giving her some soup or broth will be enough for her."

"Okay, I see."

"Now that we've finished talking, are you going to the mainland?"

"They probably can't go back. I still have a lot of things to do here. Don't worry, the people you send there will definitely be fine."

"That's fine."

After Lao Zhao left, He Yuzhu stared at the procurement list, somewhat lost in thought. This was several years earlier than in his previous life. It seemed that the butterfly effect he had brought was still quite significant.

He already has many of the things mentioned, but he won't deliver them so quickly. However, one thing that might change things in North America is that AMD's orders came in time.

(End of this chapter)