Rebirth of Hong Kong Island, leading the technology war

Chapter 601 Who says there's no solution? My connections can rewrite the rules of the chip industry!

Lu Xiaolei noticed that Hu Jiangshan was deep in thought and couldn't help but ask softly, "Mr. Hu, what are you thinking about? You're not thinking about the chips, are you?"

Upon hearing this, Hu Jiangshan looked up and replied with a smile, "You guessed right, I am indeed thinking about chip-related issues."

Upon hearing this, Lu Xiaolei couldn't help but laugh out loud: "Mr. Hu, I wonder if you have any ideas? If you can really help me, I will definitely thank you."

Song Guoyuan, who was sitting to the side, also showed a knowing smile.

Everyone present understood that Lu Xiaolei's words were mostly a joke to lighten the mood. After all, in this special period, China is still in a very difficult situation in the field of high-end chip manufacturing, and everyone has become accustomed to this "one-size-fits-all" situation.

Surprisingly, Hu Jiangshan gently put down his coffee cup and said calmly, "Actually, there might be a solution to this problem."

These words stunned both Lu Xiaolei and Song Guoyuan, who exchanged a surprised look.

Lu Xiaolei tentatively asked, "Mr. Hu, do you mean you really have a way to solve the chip supply problem?"

Song Guoyuan then added, "Mr. Hu, do you have any channels to obtain chips from overseas? However, we need to clarify that our demand is very large, and small-batch supply may not be able to meet the demand. As for price, it is not the most important consideration."

As representatives of Ali Group, a leading Chinese internet company, they certainly have the confidence to say such things.

Ali Group has abundant funds. As long as the product quality is excellent, the price is really not a big deal. They can easily pull out a large check.

Hu Jiangshan shook his head: "I didn't mean overseas channels. Actually, there are also domestic manufacturers that can provide AI chips. Mr. Lu, I remember mentioning this to you last time."

Lu Xiaolei was taken aback at first, then suddenly realized: "Mr. Hu, are you talking about Huayao Company?"

“That’s right.” Hu Jiangshan nodded affirmatively. “If I remember correctly, Huayao has indeed developed an artificial intelligence chip, and we already have a sample.”

Lu Xiaolei said thoughtfully, "Indeed, you mentioned this matter last time. We even sent someone to talk to Huayao, but the result was not ideal."

Hu Jiangshan looked puzzled: "Not ideal? Is it because they refused to provide chips?"

“No, that’s not it,” Song Guoyuan continued. “They didn’t refuse outright, but they put forward some rather harsh conditions. They required that if we used their chips, we would also have to use the accompanying software and algorithms they provided. This requirement put us in a difficult position.”

As someone in the tech industry, Hu Jiangshan immediately understood the crux of the problem.

Huayao is building its own large-scale artificial intelligence model ecosystem, also known as "Pangu," while Ali Group is also making moves in this field.

Ali simply needs hardware products like AI chips and wants to maintain autonomy at the software and algorithm levels, which is a perfectly reasonable request.

However, Huayao has always adopted an assertive strategy in business cooperation, especially in the chip field, where they prefer to provide complete solutions, packaging and selling hardware, software and algorithms together.

Huayao's reasons are also quite valid. This will ensure that the chip's performance is maximized, while also helping to build an independent technology ecosystem and avoid affecting the brand's reputation due to compatibility issues.

However, based on Hu Jiangshan's past life experience, Huayao did not actually have such strict requirements when selling artificial intelligence chips. If customers only wanted to purchase chips, they usually would not encounter much resistance.

It seems that at this stage, Huayao is indeed implementing a rather tough policy, which is why Ali chose to give up.

Later, for various reasons, Huayao naturally relaxed its requirements.

Hu Jiangshan pressed on, "So, have you tested Huayao's AI chip samples? Shouldn't they have provided testing opportunities?"

Song Guoyuan nodded in response: "That's true. We previously obtained Huayao's artificial intelligence chip for testing, and the results were satisfactory. Its performance fully meets our requirements."

Lu Xiaolei sighed softly: "If Huayao is willing to only sell chips and not force us to use their algorithms, this deal can be made. Even if their price is a bit higher, we can accept it."

“But this negotiation will probably not be easy,” Song Guoyuan analyzed. “I heard that their own chip supply is also very tight, especially since mobile phone chips have just achieved mass production, and the production capacity of artificial intelligence chips is estimated to be even more limited. I guess they should prioritize ensuring the supply of mobile phone chips now.”

Hearing this, Hu Jiangshan understood.

Hu Jiangshan is more aware of Huayao's chip production capacity problem than anyone else here.

Today, Jiangshan Group's two semiconductor production bases have considerable capacity. In particular, the semiconductor production line on Tenglong Island is now a high-level facility, with a production efficiency more than double that of a mid-level production line.

If the production line operates at full capacity, it can fully meet Huayao's demand for artificial intelligence chips.

However, Huayao's artificial intelligence Pangu model is still in the research and development stage, so the demand is not large and the number of orders is naturally not many.

Lu Xiaolei said thoughtfully, "Speaking of which, I've always been curious about how Huayao solved the chip manufacturing problem. I asked the chip manufacturing companies at TSMC in Taiwan, and they knew nothing about it either. Moreover, I heard that they were also investigating this matter, but they couldn't find anything."

Song Guoyuan stated definitively, "It's certain that the chip was not manufactured by TSMC's foundry in Taiwan; they wouldn't dare accept this order."

Lu Xiaolei looked puzzled: "Could it be a mainland manufacturer? But there shouldn't be any foundries of this high standard in mainland China, right? Even Huaxin International probably can't reach this level."

"Oh, right," Song Guoyuan suddenly thought of something, "Perhaps we can contact Huaxin International directly and see if they can manufacture the products for us?"

Lu Xiaolei shook her head in denial: "Impossible, Lao Song. You and I both know that if TSMC in Taiwan doesn't dare to accept our orders, Huaxin International won't either. Their equipment is from the same source as that of manufacturers on the island, unless they stop production."

Song Guoyuan nodded helplessly: "Indeed, Huaxin International doesn't dare to disobey their orders."

Hu Jiangshan was more familiar with this situation than they were.

Lu Xiaolei and Song Guoyuan's judgment was correct. Huayao is not the only company being targeted. Although Ali Group is not on the list, it has actually been implicitly blocked.

It can be said that no domestic technology company of any size can escape this fate.

Even if Huaxin International's manufacturing process could meet Ali Group's needs, they wouldn't dare accept the order, let alone the technical feasibility.

Because if you go against the wishes of the beacon of the United States, you may face even more severe restrictions.

Currently, Huaxin International's supply of key materials such as photoresist has been halved. If it faces further pressure, it may face the risk of a complete supply disruption, which Huaxin International cannot afford.

Of course, material supply is only one aspect; the more challenging issue is the maintenance of the lithography machine.

There is even a risk that the equipment could be remotely locked, causing the production line to be completely paralyzed.

While such extreme measures are despicable, they are indeed possible.

Observing Hu Jiangshan's expression, Lu Xiaolei noticed that he seemed confident and couldn't help but ask, "Mr. Hu, do you have any good suggestions for this matter?"

After a moment of contemplation, Hu Jiangshan said, "I can try to communicate with Huayao. Perhaps they can relax the conditions and only supply you with chips. The accompanying software and algorithms may not be a mandatory condition for bundled sales."

This suggestion elicited incredulous expressions from both Lu Xiaolei and Song Guoyuan. Song Guoyuan cautiously asked, "Is Mr. Hu very familiar with the people at Huayao?"

Hu Jiangshan nodded slightly: "Indeed, we have some dealings with Huayao."

Song Guoyuan remained reserved: "If there is no way to speak directly with the core executives at the highest level of Huayao, I'm afraid this matter will be difficult to accomplish."

Judging from Song Guoyuan's attitude, his previous experience with Huayao was not pleasant.

Indeed, Huayao has always been known for its tough style.

If you follow the established procedures exactly, it's relatively simple; you just need to meet the conditions they publicly list.

However, if you want to treat it differently, such as purchasing only the chips without using the accompanying software, you will encounter great resistance.

To put it politely, Huayao's employees adhere to principles.

To put it bluntly, he's rather stubborn and inflexible.

Of course, as Song Guoyuan said, another important reason is that without special approval from higher management, Huayao's middle-level managers have no authority to modify established policies and can only follow the rules.

Lu Xiaolei remained silent. He vaguely remembered someone mentioning that this Mr. Hu had extensive connections and seemed to be able to contact Huayao's top management, including several rotating chairmen.

Sure enough, Hu Jiangshan smiled slightly: "I can indeed help make the connection in this matter."

"Is Mr. Hu really able to contact the top leaders of Huayao?" Lu Xiaolei couldn't hide her surprise.

Hu Jiangshan nodded firmly: "If you think it's worth a try, I can help arrange a meeting. However, I must make it clear beforehand that whether or not a deal can be reached depends on the negotiation between the two parties. I am just an intermediary and cannot guarantee the outcome."

Hu Jiangshan was very smart; he made his position clear beforehand to avoid being put in a passive position when problems arose later.

After all, there is a complex competitive relationship among the various technology companies in mainland China, and some unpleasant disputes often occur. It would be unwise to rashly get involved.

Hu Jiangshan had suffered a similar loss in his previous life. At that time, he was caught in the middle of two tech giants working on a project, and he was caught in the middle and suffered a lot of frustration.

This time, Hu Jiangshan was determined to act only as an introducer and not participate in the specific business negotiations.

Hu Jiangshan's main business is chip manufacturing; he just wants to get paid and do his job without getting involved in too much trouble.

Song Guoyuan looked at Lu Xiaolei, seeking her opinion with his eyes.

Lu Xiaolei also hesitated.

This is no small matter after all. The key issue is whether Hu Jiangshan's side is reliable or not, which they are unsure about.

Although trying it out won't cause much loss, will there be any problems if we rush into this?
Song Guoyuan hesitated to speak, clearly doubting the success rate of this matter.

Lu Xiaolei whispered to Song Guoyuan, "Old Song, why don't we ask Boss Hu for help? What if it works?"

Song Guoyuan shook his head with a wry smile: "We'd better not try it rashly. If we anger Huayao, it will be difficult to cooperate in the future."

Song Guoyuan's concerns were not unfounded.

Similar incidents have indeed occurred before, and Huayao has always been known for its tough stance, even more so than the Ali Group, making it quite difficult to handle.

Lu Xiaolei turned to Hu Jiangshan and asked, "Mr. Hu, may I ask which senior executive of Huayao you know?"

"It's General Manager Wang," Hu Jiangshan replied.

"Mr. Wang? Which Mr. Wang?"

"Wang Chengdong".

“…Ah?” Lu Xiaolei and Song Guoyuan exclaimed in surprise at the same time.

Wang Chengdong holds a pivotal position at Huayao. Although not as prominent as the three rotating chairmen and President Ren, he is still one of the rotating chairmen.

More importantly, Wang Chengdong is a pragmatist at Huayao, in charge of several important departments, including mobile phones, tablets, laptops and even the emerging automotive business. He is a key figure at Huayao.

If Wang Chengdong agrees, the matter can basically be settled.

But the problem is, how could Hu Jiangshan possibly know Wang Chengdong? One is a business elite from Hong Kong Island, and the other is a core executive of Huayao. The two seem to have no connection whatsoever.

Hu Jiangshan noticed their doubts and said with a smile, "You don't need to doubt me. I do know President Wang Chengdong, and we have a pretty good relationship."

Lu Xiaolei couldn't help but press, "How close are you? Can you reveal some details? It would give us some confidence."

Hu Jiangshan took a sip of coffee and said calmly, "Let me put it this way, I'll be meeting with President Wang in a little while, about twenty minutes from now."

"Meeting with President Wang? Here?"

Lu Xiaolei and Song Guoyuan were even more shocked, dumbfounded and speechless. They never expected it to be such a coincidence.

Hu Jiangshan is actually going to meet Wang Chengdong here!
If that's the case, then we can start talking about AI chips in no time.
That's such a coincidence!
No, you should say they were just incredibly lucky!
Lu Xiaolei quickly said to Song Guoyuan, "Old Song, let's give it a try. This is a rare opportunity. If we can solve this problem, it will be a one-time solution, and we won't have to worry about it anymore."

Song Guoyuan hesitated for a moment, then finally nodded: "Then let Boss Lu help connect us with President Wang so we can have a good talk. If that works, then we can solve the problem."

It's clear that Song Guoyuan still had some doubts about what Hu Jiangshan said, but at this point, he figured it was better to believe it than not.

Since we'll be seeing Wang Chengdong soon, we have no choice but to give this a try.

A moment later, Hu Jiangshan's cell phone rang.

Before Hu Jiangshan picked it up from the coffee table, both Lu Xiaolei and Song Guoyuan caught a glimpse of the caller ID.

[General Manager Wang]

Lu Xiaolei and Song Guoyuan exchanged a glance.

Mr. Wang, perhaps it really is this big shot, Wang Chengdong.

(End of this chapter)