America: My Time

Chapter 468 Semiconductor Protocols

Chapter 468 Semiconductor Protocol
“Riko, what do you think is the reason that John, that little fox, is so concerned about the situation in the Japanese entertainment industry, so concerned about their development? If he cares about Phoenix Comics and Animation, that's understandable, after all, Phoenix Comics and Animation have amazing profits. But Elite Agency and TV Tokyo's profits are pitifully small, not even comparable to 7-Eleven, or even Tsutaya, not to mention investments in telecommunications companies like Universal Online. So why did he make this decision at this particular time?” At this moment, Akio Morita still couldn't understand John's intentions. He couldn't understand why John would ignore so many businesses and instead focus his attention on entertainment, just for a woman?
Akio Morita didn't have such foolish thoughts. Although John was young and lacked the ability to resist women, it was impossible for him to disregard his own interests for beauty. If John were so foolish, he wouldn't have achieved what he had today, let alone amassed such a vast fortune. What was it that he hadn't considered? Why would this little fox make such an unusual decision?

"Perhaps it's just a hobby. It's said that Mr. John's personal hobbies are music and writing. Naoko also has many works by Mr. John, so it's understandable that he cares about the entertainment industry!"

"Hmph, only you would have such a foolish view. This little fox would give up more profit for his hobby? That's impossible. He's a businessman first and foremost; otherwise, he wouldn't have achieved what he has today. He wouldn't waste his energy in the entertainment industry, which offers no hope, for a personal hobby. Look at the situation in Japan right now. The record industry is in a slump, not to mention the film industry. Even the development of television is not smooth sailing. I see almost no potential for growth. That's why I chose to develop in Hollywood and acquire Columbia Pictures and Columbia Records. Because the Japanese market is too small to be worth investing in, at least for now. If there's anything worth investing in in Japan, it's only comics. But right now, Phoenix Comics almost monopolizes the Japanese comics market, and there's no potential for growth. Phoenix Comics' annual profit is now hundreds of millions of dollars, a result that many large companies can't achieve. If John were to focus his energy on comics and animation, I could accept it, but now he's concerned about the entertainment industry, which is a big problem."

"I've heard that the idol market is developing rapidly. The emergence of Onyanko Club has made it second only to Nakamori Akina and Matsuda Seiko in a short period of time, leading many people to believe that this is another direction for the idol market!"

"Heh, only you guys would think like that. Truly wise people wouldn't think like that. The idol market is valuable, but the profit margin is so-so. And do you think such a huge group wouldn't have any flaws? Those idols will have no scandals. Once a scandal occurs, their future is predictable. I'd rather believe the record market is recovering than believe John cares about the idol market's profits. Elite Agency's idols and actors are there to guarantee Tokyo TV's hiring, not for profit. Also, haven't you noticed that Elite Agency's development is Asianized? They're leveraging Phoenix Group's resources for Asian development, not focusing on Japan itself!"

Of course, Akio Morita also considered that John was trying to lower others' guard. After all, John, the little fox, had made amazing gains from the previous series of actions, whether it was the depreciation of the dollar or the appreciation of the yen. At this time, it was possible that he would keep a low profile.

John had no idea what Akio Morita was thinking, but even if he did, he wouldn't care too much. His arrangements for Japan were based on his understanding of the situation in the US, where things were currently very turbulent. Led by Intel, semiconductor companies were all pulling out all the stops, putting increasing pressure on the White House. Of course, his own visit to Japan also played a part; those guys were worried that his cooperation with Japan would allow him to enter the memory chip field and jeopardize their plans, so they were even more eager to succeed.

This is human nature. When Seagate integrated Maxtor and Quantum, it caught up with Western Digital in the hard drive field, which made many people uneasy, especially software companies. They were worried that Seagate would really make progress in hard drive storage in a short period of time, making the dream world a major obstacle disappear and causing greater changes in the software market.

John's remarks have already spread throughout Silicon Valley, and many people think that John's statement makes sense. Only by being professional can one have greater development potential. Nvidia is the best proof, and Intel is also the best example. If Intel hadn't been distracted, how could it have fallen into its current predicament? Its CPU chips are not as good as Nvidia's, its memory chips are not as good as Neon's, and its attempt to advance in all directions has resulted in being mediocre in everything and inferior to its competitors in everything.

Many others also felt that John's other suggestion made sense: partnering with Japanese companies to build a factory could help them escape their current predicament. However, they were unable to contact Japanese companies or gain their approval. John's acceptance of the invitation at this crucial moment forced them to overthink things and consider the worst-case scenario. If John partnered with those Japanese guys and entered the memory chip field, all their calculations would fall apart. That's why they were so eager for quick results and used all their resources to put pressure on the White House.

If Japanese companies were to cooperate with John, these semiconductor companies would likely face annihilation. At this time, Intel released a report revealing that Japan had almost completely monopolized the semiconductor data needed by the US military. The impact of this report was astonishing, forcing the White House to react swiftly. Pressure from the US quickly mounted on Japan. The semiconductor agreement, originally scheduled for September, was revised in a very short time, leaving Japan no chance to object. They had to accept it or face trade repression from the US. Even European companies sided with the US, as they too were suffering from the relentless attacks of Japanese companies. Since the US had dealt Japan a fatal blow, they naturally wanted to express their 'goodwill'!
Before John could extricate himself from the arrangements made by the Japanese, the semiconductor agreement between the United States and Japan had already been completed. Under pressure from the Americans, Japan had no choice but to accept it. The winter of Japan's semiconductor industry had arrived, and it came so suddenly.

When John learned of this news, he was shocked. He hadn't expected the Intel guys to be so capable, pushing the semiconductor agreement to fruition so quickly. However, after the initial shock, John wasn't too concerned. This was within his expectations; it was just a slight delay, and the overall impact wouldn't be significant. The only ones who would suffer were the Japanese semiconductor companies, not himself or Nvidia.

Once this semiconductor agreement is implemented, Toshiba and Fujitsu will be in a precarious situation. Toshiba will be the worst off, as it holds the largest market share and will be the most affected. At this point, even if they wanted to change their situation, it would be impossible. The implementation of the agreement will put them under tremendous pressure, and all their advantages will disappear.

Has Nvidia changed? No, not at all. Even AMD hasn't changed much. Nvidia doesn't operate in the memory chip market. After AMD partnered with Nvidia, they focused their efforts on the chip industry, not the memory chip market. So, they haven't changed because of the semiconductor agreement.

In contrast, differing opinions emerged within Intel. With its CPU chip market share shrinking and facing pressure from Nvidia and AMD, Intel's situation was far from ideal. This was due to its lagging technology and the significant impact of poaching on its R&D progress. At this juncture, some proposed a complete shift to the memory chip field, arguing that with semiconductor agreements in place, they could compete with Japan in this area.

"By selling the chip business, we can obtain sufficient development funds and have enough strength to compete with Japanese semiconductor companies, as long as we completely divest the chip business and sell it to Nvidia!"

"Your suggestion is indeed very good, but have you considered that if we divest this business, it will be impossible for us to return to the chip market in the future? I don't think divesting is the best option. We can compete with AMD for market share and give up the memory chip business."

Even at this point, there were still differing opinions within Intel, and the company was still debating its development path. It can only be said that their internal conflicts were too severe, which was also a result of Nvidia's actions. If it weren't for Nvidia's poaching activities, which severely damaged Intel's chip development, this situation wouldn't have occurred.

Silicon Valley is waiting for Intel's decision, as are many semiconductor companies. After all, they all yearn for a leader to guide them in their battles for market share. Intel is the company they trust the most, and they are willing to believe in Intel rather than Nvidia and Dreamworld.

Despite being the strongest in the chip industry and the software industry, and even involved in server and minicomputer development, Nvidia is seen as an insurmountable wall and an untrustworthy scoundrel by its Silicon Valley counterparts because these guys all have their own agendas!
(End of this chapter)