sbdcsierra Chapter 577 The Semiconductor War
Chapter 577 The Semiconductor War
Following the implementation of the Obama administration's stringent export control policies, the Holland administration quickly followed suit.
ASML's export approval process acts like a tightly locked iron gate, shutting out the Chinese market.
The domestic semiconductor industry was instantly plunged into a gloomy situation.
A chip shortage swept in like a tidal wave, causing related companies' stocks to plummet.
Executives from Huawei, SMIC, and other top domestic companies approached Meng Chuan.
It's no secret in the country that Meng Chuan is the actual controller of Mengying Capital.
Dream Shadow Capital is ASML's largest shareholder, holding a 60% stake.
They are simply powerless to fight against a government of a country.
Perhaps only Meng Chuan can help them overcome their predicament.
Because Meng Chuan's patriotism is now known throughout the world.
Therefore, on the third day after the Holland government implemented export controls.
Huawei representative Ms. Meng Wanzhou and SMIC representative approached Meng Chuan with grave expressions:
"President Meng, we share the same surname, Meng, and we were one family five hundred years ago."
"With the chip supply now disrupted, our 5G equipment production is severely hampered, and a large number of orders are at risk of default."
"This is not only about the survival of enterprises, but also about the advancement of China's 5G technology globally!"
"I wonder if Mr. Meng could think of a way to help our domestic companies?"
Now, our only hope rests on Meng Chuan.
SMIC's executives also looked worried:
"Our production lines are already partially shut down due to a lack of key chips and lithography machine components. If this continues, the domestic chip self-sufficiency rate will decline significantly!"
Meng Chuan's face was gloomy, and his heart was filled with helplessness.
Despite being the largest shareholder of ASML, he was constrained by the strict control of the Holland government.
Asma has protested to the Holland government, and many senior executives within the company also have strong opinions on this matter.
It's important to know that China is ASML's largest export market.
If the restrictions continue, revenue is expected to decline by 45% this quarter, and R&D investment will become even more unsustainable!
Therefore, the sanctions against China were not Asma's original intention.
The sanctions even caused Asma's stock price to plummet.
“Asma is located in Holland, and the local government’s restrictions have left us with limited options. For now, the only temporary solution is to purchase from third countries.”
Meng Chuan said helplessly:
"But this is certainly only a stopgap measure. If the US or the Holland government is determined to restrict exports to China, they will eventually block the channels to third countries. There is only one way to ensure long-term stability—"
Meng Chuan's words ignited hope in the eyes of Meng Wanzhou and the SMIC representatives.
They all stared intently at Meng Chuan, awaiting his answer.
"That means bringing Asmai back to the country."
Meng Chuan made a startling statement.
Meng Wanzhou and the SMIC representative both looked at him in shock.
They had imagined countless terrible scenarios.
I've also considered all possible solutions.
But they never dared to even think of "moving Asmai away".
This idea is too audacious; it's practically an attack on Asmai's stronghold.
"This... I'm afraid it's not feasible, is it?"
Meng Wanzhou looked at Meng Chuan in disbelief.
With exports now strictly controlled, how could the Ho Lan government possibly allow Asma to "leave"?
Meng Chuan looked at the two of them:
“I know that you all have your own research achievements in chip manufacturing processes. Huawei’s HiSilicon Semiconductor was already able to design flagship mobile phone chips using 16nm process technology in 2015; SMIC can also produce 32nm chips. You all have solid technical foundations.”
He changed the subject:
"If the three of us join forces to establish a brand new chip and lithography machine manufacturing company, I can poach most of ASML's technical talent and even dismantle and ship core components."
At this point, relocating the entire factory is almost impossible.
Recruiting talent has become the only way to break the deadlock—as long as the people are still there, there is a possibility of rebuilding technology and production capacity.
"This matter is of great importance, and I need to go back and discuss it with my father."
Meng Wanzhou still couldn't hide her shock.
Even more shockingly, Meng Chuan actually knew about HiSilicon Semiconductor, a subsidiary of Huawei.
If Meng Chuan's plan is feasible, China will gain dominance in the chip industry in the future.
Even the global production of lithography machines may depend on exports from China.
This would undoubtedly be a great company capable of changing the world, provided that Meng Chuan can truly recruit core talent.
A representative from SMIC also stated:
"I also need to report to the chairman."
No one would dare to agree to Meng Chuan's request on the spot.
If things go wrong, these companies' overseas operations could suffer incalculable damage.
"Okay, I'll give you three days to consider."
Meng Chuan nodded.
Time waits for no one; the longer it drags on, the stricter the controls will become.
At the same time, a spokesperson for the Chinese Foreign Ministry strongly condemned the hegemonic actions of the United States and Holland on the international stage.
"This behavior, which uses 'national security' as a pretext to wantonly undermine the international free trade order, is a typical example of bullying and seriously damages the stability and fairness of the global industrial chain!"
But the United States turned a deaf ear.
Under pressure from the United States, the Holland government rejected all export applications involving China.
Even the basic components needed for the maintenance of Asmai equipment are completely stuck.
Faced with this predicament, Meng Chuan's resolve to "move back to Asmai" only grew stronger.
Late at night, Meng Chuan was in a secret room at the Green Gang headquarters.
They contacted Ryan, who was in the UK, via encrypted communication:
"Ryan, I need to smuggle Asma's core personnel, technology, and equipment back to China through a third country! Do you have any way to do that?"
Meng Chuan's tone left no room for argument.
Ryan paused for a long time on the other end of the phone, then repeatedly groaned, his voice filled with anxiety:
“Young Master Meng Chuan, this is like dancing on a knife’s edge! The UK, the US, and the UK have close ties. If this is exposed, my businesses in the UK will be destroyed, and I may even face imprisonment! Moreover, Asmai’s equipment is massive and sophisticated, and its core technical personnel are under close surveillance. How can it be taken away so easily?”
Meng Chuan was silent for a moment, then said in a deep voice:
“Ryan, I know it’s dangerous. I will mobilize all the resources of the Green Gang in Europe to cooperate with you, and if necessary, at any cost! Just tell me if you dare!”
This is both a breakthrough move and a test for Lane (and the Warburg family behind him).
If they can provide their full assistance, it wouldn't be unreasonable for Meng Chuan to protect the Warberg family in the future.
"I...I need to discuss this with my brother. Give me a day."
Ryan hesitated for a moment, then hung up the phone.
At the same time, on Wall Street in the United States, core members of the Rothschild family sat around a luxurious conference room, raising their glasses in celebration.
Joe, who was in the lead, was full of vigor and high spirits:
"Meng Chuan, let's see how you break this deadlock this time! If we cut off ASML, China's semiconductor industry will find it difficult to rise, and our hegemony in the global financial and technology fields can continue to be consolidated!"
Meanwhile, in the White House, Obama's outgoing team is still working diligently to finalize the follow-up sanctions measures.
They are trying to leave a "political legacy" of high-pressure tactics against China for the next government.
A fierce, suspenseful, and strategic battle concerning the global semiconductor industry landscape is unfolding amidst a complex web of power struggles.