Chapter 412 Cooperation
He Yuzhu smiled and said, "Your grandma, Ping's grandma, and your mom are genuinely worried about you."

“I know,” He Ningxue’s tone softened, “but I really haven’t met the right person. Or rather, my mind isn’t on this right now. Dad, you’re handing over the real estate business to me. I don’t want to disappoint you, and I don’t want to disappoint myself.”

"Dad hopes you can be happy. Career is important, but life is more than just career," He Yuzhu said.

At this moment, Xiaoman walked in and said, "Mom isn't forcing you, I just hope you can give yourself some space in life and look at the people around you."

He Ningxue was silent for a moment, then nodded: "I understand, but I also have my requirements. I want to find someone like my father."

"Hahaha, my daughter has such good taste!" He Yuzhu laughed.

"of course."

Seeing the father and daughter working together so well, Xiaoman could only say, "If you marry someone like your father, I'm afraid you'll never get married in your life. Are you doing this on purpose?"

"It has to be about the same, I can't stand anything too ordinary," He Ningxue said, pouting.

“I didn’t tell you to find a regular job. You’ve met a lot of people out there, you should at least stop and take a look around.”

"As ordered!"

"Stop joking with me, I don't want my daughter to become an old maid."

"What's there to be afraid of? My dad will support me."

"I wouldn't dare, I'd be afraid of sleeping on the sofa every day," He Yuzhu laughed.

"dad"

"Did you have this in mind from the beginning? That won't do. I'm planning to have a grandson and a granddaughter," He Yuzhu said.

"Dad, as for grandsons and granddaughters, even if I get married, I won't have that many children."

"Then you should get married first."

"Hmph, I'm not going to be friends with you anymore. I'm going to go play with my sister-in-law and my nephew." He Ningxue stomped her foot and ran away.

"Look, the child is all grown up now. She runs away after just a few words. You should also talk to our mother and Aunt Ping and tell them not to provoke her, otherwise this girl will just buy a plane ticket and leave."

"Fine, then you can protect her then." Xiaoman said, both amused and exasperated.

However, He Ningxue was even more frustrated when she arrived at Le Huizhen's place. She was having a good time playing with her nephew when Le Huizhen suddenly said, "Isn't your nephew fun?"

"It's so fun! So cute!"

"Then you should get married and have a child soon, so he'll have a companion. Otherwise, the people around his age in the family are all uncles and aunts."

He Ningxue opened her mouth wide but couldn't say a word for a long time. Finally, she forced out, "Are you still my best friend? How come you're just like our mom and the others?"

"It's precisely because we're best friends that I'm advising you to get married soon. A woman's prime is very short. When I met your older brother, I didn't hesitate at all."

"You have the nerve to say that? If it weren't for me, you would have been hiding some TVB actor for an interview that day."

"I'll teach you to tease me." Le Huizhen pounced on her.

"Hehehe, don't tickle me, or I'll tickle my nephew's ticklish spot!"

He Ningxue stayed in Beijing for three days before leaving, not because of any pressure to get married, but because she had too many projects to complete.

In the late summer of 1992, the sweltering heat of Beijing had subsided, and the mornings and evenings were a bit cooler.

There was a knock on the door of Huang Lingyi's office at the Yellow River Microelectronics Research Institute.

The secretary led in two middle-aged men dressed casually and with a composed demeanor.

The man in front extended his hand and shook hands firmly with Huang Lingyi: "Director Huang, my surname is Li, and this is my colleague, surnamed Wang. We have been sent by our superiors to discuss a long-term cooperation with your institute. This is my identification."

Huang Lingyi glanced at the identification documents, understood what was going on, but remained outwardly calm: "Welcome, both of you. Please have a seat."

Comrade Li got straight to the point, placing an agreement bearing an official red seal on the table: "Your institute's 'Loongson' series processors and its breakthroughs in lithography technology have received high attention from higher authorities. After rigorous testing and verification, their performance has been deemed reliable and fully meets the urgent needs of our military's information equipment upgrade."

Comrade Wang continued, "We hope to establish a deep and stable cooperative relationship with your institute. The military will make small-batch purchases of existing 'Loongson' chips. At the same time, we hope that your institute can conduct customized research and development based on our specific needs."

“I understand your department’s demands, but I cannot make this decision myself. I need to consult with your superiors first,” Huang Lingyi replied after carefully reviewing the draft agreement.

"When will Director Huang give us an answer?"

"It should be soon. However, there will be someone else to talk to you about the business matters. After the cooperation is reached, you can send someone to talk to me about the technical matters."

"Understood. You can keep this agreement. We hope you can get back to us as soon as possible."

"Ok."

After seeing off the two military representatives, Huang Lingyi immediately dialed He Yuzhu's number.

"Chairman, the military personnel just left. They came with an agreement, which I will send to you now. Please send someone else to negotiate later. I really don't understand business."

"Okay, send it over first, I'll talk to them personally later."

"You'd like to discuss this in person?"

"Yes, since we've already decided to take this path, let's talk things out clearly, otherwise there will be more trouble later."

"Okay, I'll be right over."

A few days later, in the same conference room.

He Yuzhu sat at one end of the long table, opposite Comrade Li and Comrade Wang, as well as a newly joined middle-aged officer whose rank was indicated by his shoulder insignia. He was introduced as "Director Zhao".

"Mr. He, it's an honor to meet you." Director Zhao's voice was loud and clear, his eyes sharp. "Director Huang should have handed the agreement over to you. Our needs are very clear. Can we finalize the cooperation today?"

He Yuzhu laid out the draft agreement in front of him: "Gentlemen, the exclusive supply means that Loongson will not enter other fields. You should understand what this means to us, right?"

"clear."

"Alright, I'd like to ask how you plan to handle the initial and subsequent R&D expenses?"

The meeting room fell silent as He Yuzhu's question went straight to the heart of the matter.

Director Zhao exchanged a glance with Li and Wang beside him, and they understood why Director Huang was not talking.

He Yuzhu ignored their little antics and calmly stared at Director Zhao across from him, waiting for a response.

Director Zhao took out another agreement and pushed it to He Yuzhu.

"Mr. He, we are well aware that 'exclusive supply' means a huge opportunity cost for a commercial company. Regarding the cost, after preliminary research, headquarters has proposed two options for discussion. First, the military can pay a substantial one-time technology transfer fee to buy out the exclusive military license for the existing 'Loongson' models and the subsequent three generations of improved versions. Second, we will pay patent licensing fees annually and bear all customized R&D costs. Which option to adopt, or to explore a third mutually acceptable model, is the purpose of our meeting here today."

He Yuzhu nodded slightly; this opening was quite sincere.

“Director Zhao is a man of few words. So, I will also speak frankly. A buyout means cutting off the potential commercial value of this technology in other fields, which could be even greater, and it may also dampen the team’s long-term R&D enthusiasm. While an annual license can generate a steady stream of revenue, it is more uncertain and will put pressure on your company in terms of long-term costs.” He paused briefly.

“Clearly, Mr. He has a better solution. We are all ears.” Director Zhao knew that this was He Yuzhu giving him a chance to speak.

He Yuzhu glanced at the three people and nodded, saying, "My proposal is to establish an independent subsidiary, which we will control, specifically responsible for the research, development, production, and confidentiality management of the military-grade 'Loongson' chip and its supporting systems. You will invest as a strategic investor, not participating in daily operations, but sending representatives to supervise quality and confidentiality. At the same time, you will commit to a long-term, guaranteed minimum purchase volume. This way, we can ensure the exclusivity and control of the technology, allowing us to invest with peace of mind, while you can also share in the profits from the technology's success as a shareholder and effectively control procurement costs."

This plan was clearly unexpected by the other party.

Comrade Li and Comrade Wang subconsciously looked at Director Zhao.

Director Zhao pondered for a moment, his fingers unconsciously tapping lightly on the table a few times.

He Yuzhu's plan is based on "profit sharing, risk sharing, and sovereignty in our own hands." At the same time, it also decouples Loongson from other fields. This is more complicated than a simple sale or licensing, but it is also more conducive to long-term and deep integration.

“Mr. He’s idea is very novel. It involves setting up a joint venture, and I need to report to my superiors in detail. However, we can discuss the procurement issue first; we need chips right now.”

"Yes, the first batch can be delivered according to the quantity in this agreement. I can even waive the deposit; you can pay after you have inspected and accepted the goods."

Director Zhao's gaze sharpened slightly, and he quickly exchanged glances with his two colleagues beside him. He Yuzhu's straightforwardness only made them more cautious.

“Since Mr. He has placed such trust in us, we cannot be ambiguous,” Director Zhao said in a deep voice. “The first batch of chips will be handled as you have suggested. Once the chips pass inspection, the payment will be settled within a week. We will assign a dedicated person to handle the relevant acceptance standards and confidentiality procedures.”

“Okay.” He Yuzhu nodded. “My assistant will follow up on the specific details.”

"So, regarding the subsequent cooperation model, especially the establishment of a subsidiary that you mentioned," Director Zhao steered the conversation back to the core issue, "we will report to our superiors as quickly as possible. However, before the final plan is determined, we hope that the research institute can take into consideration the development of subsequent models of 'Loongson', especially its stability and anti-interference capabilities in extreme environments."

“Technology research has been ongoing,” He Yuzhu said. “The institute’s R&D roadmap is clear. However, customized R&D requires clear demand guidance and resource investment. Before a new cooperation framework is established, the board of directors also needs a reasonable explanation for large-scale targeted investment.”

His words were calm, yet they highlighted the reality: without stable cooperation and financial support, the research institute alone could not sustainably meet the military's special needs.

Comrade Wang said, "I understand. We will expedite the internal review process and provide a clear list of requirements and a preliminary budget. We also hope that Mr. He can prepare a more detailed plan for the establishment of the subsidiary, including the equity structure, management model, and technology isolation plan."

“No problem,” He Yuzhu replied. “The plan will be delivered to everyone within a week.”

The initial agreement was reached, and the atmosphere was much more relaxed than before.

"Then let's do it today."

“Wait, I have another project that I think you’ll be interested in,” He Yaozu interrupted Director Zhao.

"Please say."

“We are also researching another chip called ‘Elbrus’ and related supporting systems. It has unique advantages in complex calculations and specific algorithm processing. Are you interested?”

"Could you be more specific?" Director Zhao asked.

He Yuzhu glanced at him and uttered two words: "Trajectory calculation."

Then the aura of the three people opposite him changed, and He Yuzhu remained calm and smiled in response.

"You're still researching this?" Director Zhao said in a deep voice.

“The Elbrus project was inspired by the North. After being thoroughly digested, reconstructed and upgraded by the research institute, all potential risks were eliminated. Its design concept is different from that of Loongson and is more suitable for high-performance computing and certain specialized fields.”

"Then why didn't you give it to Old Fang before?" Director Zhao blurted out.

"I've been researching this project for several years now. It's a chip project, not a military project. If you're not interested, then please leave," He Yuzhu said irritably.

Director Zhao forced a smile and said somewhat embarrassedly, "Please forgive my rudeness just now. We are very interested and wonder if this chip is also suitable for certain command and control systems that require high-intensity data processing?"

“From a technical perspective, it is a perfect fit. However, its application scenarios differ from those of Loongson. If you are interested, we can arrange a formal technical exchange.”

"That's great!" Director Zhao smiled. "Mr. He can arrange the time, and we can send people over to learn at any time."

After seeing the military representatives off, Huang Lingyi approached He Yuzhu and asked with some concern, "Chairman, is it possible that we're also releasing 'Elbrus'?"

He Yuzhu shook his head: "Since we've chosen this path, hiding things will only arouse suspicion. Taking the initiative to showcase ourselves and controlling the pace will earn us more trust and room to maneuver. Besides, technology can only iterate and improve through application. Letting them see our strength and sincerity will give us more confidence in subsequent negotiations."

He paused, then continued, "Pass the word to prepare the technical briefing and demonstration environment for 'Elbrus,' at the highest level. In addition, you will also be involved in the drafting of the subsidiary's plan; technical isolation and confidentiality measures are of paramount importance."

“I understand.” Huang Lingyi nodded solemnly.

In the following days, the Yellow River Microelectronics Research Institute entered a state of highly intensive preparation.

Under Huang Lingyi's personal leadership, the technical team meticulously prepared a technical briefing and demonstration environment for the "Elbrus" chip and related systems.

All participants signed the highest level of confidentiality agreement, and the demonstration was held in the institute's best laboratory.

On the day of the demonstration, the number of vehicles and people who came exceeded He Yuzhu's expectations.

Besides Director Zhao and others he had met before, there were several other people who clearly weren't military personnel. He Yuzhu had even seen some of their faces in publicly available information or news reports from his previous life.

These are the unsung heroes of our time.

The entire demonstration was conducted quietly. Huang Lingyi herself served as the main presenter. She did not embellish the presentation but instead used solid data, clear architecture diagrams, and a smooth live demonstration to explain the design philosophy, computing power, and stable performance of the "Elbrus" chip in simulated complex environments.

When the demonstration reached the simulation of trajectory calculation for a specific algorithm, He Yuzhu noticed that many people began to communicate silently.

After the demonstration, a brief silence fell over the room.

An elderly man with gray hair, sitting in the center, whispered a few words to Director Zhao.

Director Zhao stood up, walked to where Huang Lingyi had just been, and said into the microphone, "Everyone can begin asking questions now. This is a rare opportunity. Mr. He, you shouldn't mind answering some questions, right?"

“Please feel free to ask, but I can’t guarantee that Director Huang will be able to answer all your questions, since she is only an expert in the chip industry,” He Yuzhu said, standing up.

The experts below did not stand up to ask questions, but each handed in a piece of paper.

Someone started compiling the information on the spot and then handed it to Huang Lingyi.

Huang Lingyi arranged the question slips by number and read them aloud one by one:
"1. Elbrus startup time at -55°C".

She shook her head: "No test was conducted. Record: Low temperature start-up test."

"2. Continuous computational error rate at 125℃".

Record: High-temperature steady-state test.

"3, instantaneous γ flux 1E8 rad(Si)/s, latch flip probability."

"I'm sorry, I don't understand this, and we don't have a testing environment here. You'll need to test it yourselves."

He Yuzhu understood that they were going to conduct a radiation hardening test, but he didn't interrupt.

The question-and-answer session continued, with a total of fifty or sixty questions. Huang Lingyi wrote down all the questions she couldn't answer into a list of 37 items to be verified.

The people below had no complaints; on the contrary, they were very interested in the chip.

There was a murmur of conversation below, and then someone summarized the opinions and reported them to the old man who had just given instructions to Director Zhao.

The old man nodded after hearing this, and said a few more words to Director Zhao. Director Zhao then stood up again, went upstairs to announce that today's demonstration was complete, and everyone else could go home.

After seeing those people off, Director Zhao returned to the conference room where they had negotiated earlier with He Yuzhu and the others, except this time there was an elderly man present.

Director Zhao then introduced, "Mr. He, I'm sorry, the leaders didn't allow me to say this before, but I'm formally introducing him now. This is our Chief Han."

"Greetings, Commander." He Yuzhu stood up.

"Sit down, sit down, Comrade He, your research institute is remarkable. You have accomplished something that many institutes under the Academy have not."

"It's just that we specialize in different areas," He Yuzhu said, but in his heart he thought, "That's because we spend more money."

"You're too modest. The proposal you put forward for the branch office has been approved. It all depends on the results of today's demonstration. I can tell you now that it's a success."

"Hmm." He Yuzhu replied calmly.

"You're not surprised at all. It seems we're the ones who're anxious!" Chief Han said self-deprecatingly in response to He Yuzhu and the rest of the research institute's calm demeanor.

"Was it Chief Han who also negotiated the contract?"

"I'm not responsible for that. I'm only responsible for announcing the results. Xiao Zhao and the others will discuss the details with you. That's all for today. I need to go back and report." With that, Chief Han stood up.

He Yuzhu and the others also got up to see them off, and soon after, the two sides sat back down at the negotiating table.

However, He Yuzhu was not in charge of the negotiations this time; instead, the legal department took over, and he stood by as a backup.

The result was that the other party approved the land, built a laboratory and a factory, and replicated all parts of the Yellow River Microelectronics Laboratory except for the lithography machine.

As for the experimental personnel, they will send a group to Huanghe to learn first, and these people will be the main force thereafter, since Huanghe's own laboratory still needs to operate.

(End of this chapter)

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