MMB Chapter 177 Having too many lice doesn't make you itchy
Chapter 177 Having too many lice doesn't make you itchy
Compared to the United States' airtight technological iron curtain, South Korea, especially with its numerous internal factions and chaebol families eager for profit reports, has a much looser defense.
"Mr. Li, we certainly welcome Xiaomi's intention to purchase components from Samsung Electronics."
Lee Jae-yong smiled slightly, adopting a businesslike attitude: "As long as the price is right, Samsung can supply your company with screen panels and battery modules at any time."
"No, I want to buy not only your finished products, but also your core technology!"
Li Feng tapped his finger twice on the table:
"First! I want to purchase Samsung's latest Exynos 4210 dual-core processor! Furthermore, I need a license for some of the underlying architecture specifications of this processor!"
"Secondly! In the fields of DRAM and NAND flash memory! I want to introduce your latest mass-produced 25nm and even 20nm process memory production lines and next-generation technology transfer licenses!"
The air in the private room froze upon hearing this!
The expressions of the South Korean executives following behind Lee Jae-yong changed drastically!
Exynos 4210! That's Samsung's killer feature, just released this year and featured in their latest flagship, the Galaxy S2! It uses a far-leading 45nm manufacturing process!
20nm-level memory technology is Samsung's absolute trump card for dominating the global semiconductor memory market!
This Chinese guy actually wants to buy their livelihood and even transfer their production lines and technology away?!
"That's impossible!"
A Samsung technology executive couldn't help but loudly retort in Korean, "Mr. Lee, your request is absurd! These are the most core confidential assets of the Republic of Korea and the Samsung Group; there is absolutely no way we could transfer the technology or license production to others!"
Although Lee Jae-yong did not speak, the smile on his face also faded, clearly indicating that he acquiesced to his subordinate's attitude.
"Is it absurd?"
Li Feng let out a soft laugh in response to the South Koreans' fury.
He knew exactly where these tycoons' weaknesses lay.
"President Li, let's speak frankly."
Ignoring the roaring executive, Li Feng stared into Li Zairong's eyes and threw out his chip.
"I know that there is a lot of competition within Samsung right now."
"Regarding the year-end appointment of vice president, although you are the first in line, without an outstanding performance report that will shock the board and your father, your position might not be so secure, would it?"
Lee Jae-yong's pupils contracted, and a hint of panic flashed in his eyes behind his glasses.
This Chinese man actually knew exactly what kind of succession pressure he was facing!
"Technology is something that can't be monetized if it just sits in your hands collecting dust."
Li Feng's tone carried a devilish allure: "While your Exynos 4210 is advanced, Qualcomm still holds absolute dominance in the international market. If you don't increase chip shipments to offset R&D costs, it's simply not a worthwhile investment."
"What if I could offer you an irresistible super order?"
Li Feng took a thick letter of intent from Zhang Xinyu and slid it to Li Zairong.
"Xiaomi Technology guarantees to purchase no less than ten million high-end processors and top-tier screen panels from Samsung annually over the next three years!"
"As for the 20nm/25nm memory production line and technology transfer..."
Li Feng's eyes turned extremely aggressive: "Those were sold to our Huaxin Technology! We will build a factory in Xuzhou and completely replicate your processes!"
"For this production line and technology licensing, I am willing to pay Samsung Group a one-time technology transfer fee and patent buyout fee of three billion US dollars!"
Three billion US dollars! That's nearly 20 billion RMB! Plus tens of millions of RMB in hardware purchase orders every year!
This is more than just a windfall!
For Lee Jae-yong, who urgently needs to achieve outstanding results and solidify his absolute dominance in the family business, this is definitely a brilliant achievement that can crush all competitors into dust!
The conference room was so quiet you could hear a pin drop.
The South Korean executive who was just shouting a moment ago now stared at the astronomical figure on the letter of intent, his breath catching in his throat.
Faced with absolute interests, so-called "core secrets" and "technology blockades" are nothing more than commodities whose prices can be negotiated.
Lee Jaeyong took a deep breath, took off his glasses and wiped them, suppressing the turmoil in his heart.
"Mr. Li... your generosity has indeed exceeded my expectations."
Lee Jae-yong put his glasses back on, and his gaze toward Lee Feng held a newfound respect.
"However, even if I were willing to sign off on the transfer of the entire production line and underlying technology, the relevant departments in South Korea..."
"As long as you are willing to sign, I believe that with Samsung Group's influence in South Korea, we can definitely find a 'reasonable and legal' solution to the rest."
Li Feng interrupted him, a smug, confident smile playing on his lips.
What he wanted was to first buy the entire technology supply chain, then ship it back to China, and conduct brute-force reverse engineering and replication of his self-developed technology in Huaxin Technology's laboratory!
The Americans won't sell me the core technology for lithography machines? Then I'll use three billion US dollars to break down the door on South Korea's door!
By simply bringing these readily available 20nm and 45nm high-end pipelines back to China, Huaxin Technology's R&D team can save at least five years of trial and error!
Buy time with money! This is Li Feng's only way to break the deadlock in the semiconductor industry, a race that is fraught with danger!
Lee Jae-yong remained silent for a long time, rapidly weighing the pros and cons.
On one side are her brothers and sisters within the family, eyeing her with predatory intent; on the other side are a staggering order worth tens of billions of yuan and technology transfer fees from the Chinese.
Ultimately, the desire for power triumphed over everything.
"Mr. Li."
Lee Jae-yong stood up and extended his hand to Lee Bong.
"We still need to discuss the technology licensing details for that 20nm memory production line."
"But I believe that for the sake of our long-term friendship, this will definitely be a very pleasant collaboration."
Their hands were clasped tightly together.
In this private club in Nanjing, China's semiconductor industry, under heavy blockade, finally broke through a crack stained with money and ambition!
......
After Lee Jae-yong and his entourage left with satisfied smiles, only Lee Feng and Zhang Xinyu remained in the private room.
As the door to the private room closed, Zhang Xinyu, who had been trying to appear calm, suddenly seemed to have all her strength drained away and slumped onto the carpet.
She held the calculator, her face deathly pale, her fingers trembling, her lips quivering.
"Boss... 3 billion... US dollars?!"
"That's a whopping 20 billion RMB!"
Zhang Xinyu's voice was suffocating. Although the amount of money she handled while following Li Feng was enormous, the cash flow gap of 20 billion yuan was still beyond the limits of her heart.
"Boss, where are we going to get those 20 billion?!"
Zhang Xinyu was frantic, like an ant on a hot pan, quickly calculating the company's assets: "We borrowed 30 billion from a national banking syndicate to develop Huaxin! And we secured another 8 billion overseas through pledging Nvidia shares!"
"A few months ago, in order to buy that 12-story luxury apartment in The Grand Hyatt in Happy Valley, Hong Kong, we used JD.com shares to take out a loan of US$450 million, which is 3 billion yuan!"
"All things considered... the group's current apparent debt has reached a staggering 41 billion RMB!!"
"If we add the two billion dollar hole from Samsung..." Zhang Xinyu felt the world spinning before her eyes, "Our total debt is about to exceed 61 billion!!!"
Six hundred and ten billion!
What does this mean? The total market capitalization of many listed companies in China doesn't even reach half of this figure!
Every day when I open my eyes, the interest generated by these huge loans alone amounts to several million!
The interest can reach over 30 billion yuan in a year, which is a bottomless debt abyss!
However, she was faced with the president's chief secretary, who was terrified.
Li Feng, however, leisurely sat back down in the rosewood chair, picked up the slightly cooled tea, and took a leisurely sip.
"So what if it's 61 billion?"
Li Feng's face showed no sign of panic, but rather a calm and playful expression of someone who had seen through the true nature of capital.
"Xinyu, you still don't understand the true meaning of the game of capital."
"When you owe a bank one million, you're afraid of them. But when you owe them six hundred billion... the bank has to be afraid of you and treat you like royalty!"
"The more debts you have, the less you worry; the more lice you have, the less you feel the itch."
Li Feng put down his teacup, his eyes gleaming with a shrewd, calculating light: "Even a conservative estimate, the current valuation of our Haofeng Group is over 150 billion RMB! A mere 60 billion RMB in debt is nothing to me as long as my cash flow remains uninterrupted!"
Zhang Xinyu swallowed hard. Although the boss spoke in a domineering manner, the money still had to be handed over to the Koreans in a real way!
"But boss, the group's corporate account simply doesn't have three billion US dollars in readily available cash! Could it be... that you're planning to use Haofeng Pan-Entertainment's core business to drain all the profits from games and streaming media?"
"Absolutely impossible."
Li Feng rejected it without even thinking about it.
Haofeng Group is the foundation of his livelihood, and the finances of these core assets must be clean and transparent, and absolutely cannot be involved in the quagmire of semiconductors.
"We can still generate this money without affecting the core business."
"You should contact investment banks on Wall Street first."
"Xiaomi Technology's valuation has now soared to ten billion US dollars!"
"After deducting the 5% given to Yu Chengdong, you pledge [44%] of Xiaomi's shares overseas!"
"Based on a valuation of 10 billion, even if we pledge those 44% of the shares at half the usual rate, we could still get at least $2.2 billion in loans from investment banks!"
Zhang Xinyu's eyes lit up, and she quickly wrote it down in her notebook.
Li Feng didn't stop, and continued to throw out his leveraged chips:
"Then there's that prime building in The Grandeur in Happy Valley, Hong Kong. Now that we've bought it outright and have the title, we shouldn't let it sit idle!"
"Hong Kong real estate has always been a high-quality collateral. Mortgage that entire building to a local Hong Kong bank! With the property market premium of the last two years, you can easily get a loan of US$700 million!"
"Finally, there's Valve's 15% strategic stake!"
Li Feng sneered: "Before clearing out the cash, squeeze out every last bit of value from it! Pledge it as collateral and borrow another $450 million!"
Two billion, plus seven hundred million, plus four hundred million!
Zhang Xinyu's calculator flew across the keyboard, and when she saw the final result, she was completely stunned and numb!
"US$3.35 billion!!"
"Not only is it enough to pay Samsung the $3 billion technology transfer fee! The group's accounts... even have an extra $350 million! That's a cash surplus of over 2 billion RMB!!"
"Boss, your leverage strategy of getting something for nothing is amazing!"
Not a single penny of Haofeng Group's core funds was used!
Relying entirely on those scattered external investments and the cyclical pledging of real estate, more than 30 billion yuan in cash flow was conjured out of thin air!
This is the terrifying aspect of capital! Ordinary people have to save up for a down payment on a house their whole lives, while every asset in Li Feng's hands is a fulcrum for him to move the earth!
Seeing Zhang Xinyu's adoring gaze, Li Feng simply smiled faintly.
For him now, loans are simply a tool for expansion.
He not only feels no psychological burden about the more than 60 billion yuan debt he carries, but he would even like to borrow more if conditions permit!
"Boss, raising the money isn't a problem. But..."
After Zhang Xinyu's initial joy, the head housekeeper's worries resurfaced. "This debt of over 60 billion yuan, the annual interest is an astronomical figure. Although we make money from games, we can't keep snowballing like this, borrowing new money to pay off old debts, can we? We need some money to balance the books..."
"Balancing the accounts?"
Li Feng's eyes were full of mockery: "By the end of next year at the latest, someone will be knocking on our door with a checkbook!"
In its previous life, Minecraft was acquired by Microsoft in 2014 for a record-breaking $2.5 billion!
That's equivalent to over 17 billion RMB!
With the help of Haofeng's global promotion, this process will inevitably be brought forward in this lifetime.