Video Editor

At this moment, the atmosphere in the Singapore Economic Development Board meeting room plummeted to freezing point.

Chen Weiming, representing Ningxin Semiconductor, just announced a decision: to cancel the plan to build a wafer fab in Singapore.

Sitting opposite him, Singapore's Deputy Managing Director of the Economic Development Board, Tan Boon Hao, was ashen-faced, tapping his finger on the letter of intent on the table: "Mr. Tan, are you kidding me? This letter of intent was signed six months ago at the Ritz-Carlton Hotel, in front of media from both countries. Only six months later, you're unilaterally canceling it?"

"Director Chen, the situation has changed." Chen Weiwei tried his best to remain calm. "The scale of the Shanghai factory has doubled compared to the original plan, and the investment has increased from 500 million to 1 billion US dollars. We need to concentrate our resources and cannot promote two projects at the same time. In addition, your unreasonable behavior in Singapore has completely angered the management. Not to mention this wafer fab, you may not be able to have any cooperation in the future."

"What? How could you do this? Besides, our Singapore project is only worth two hundred million US dollars, which you can easily afford! So this is just your one-sided, rude excuse."

"Actually, it's not a matter of money at all, but a matter of managing resources and talent, as well as the responsibilities of your side in Singapore," Chen Weiming explained. "In addition, wafer fabs do need a lot of experienced technical personnel. The team we can mobilize right now is only enough to manage the Shanghai factory. As for Singapore... we don't have a suitable person to take charge at the moment."

“Mr. Chen, we can actually wait!” Chen Wenhao said. “You can postpone it for a year, or even two years! But you can’t cancel it outright!”

"I'm sorry, the board has already made its decision."

"What about the breach of contract clause?" Chen Wenhao flipped to the last page of the letter of intent. "It's written in black and white that if we unilaterally cancel, we'll have to pay three times our initial investment as compensation. We've done a lot of preparatory work for this project—land planning, water and electricity infrastructure, talent training programs… How are these investments calculated?"

Chen Weiming was prepared: "We will pay a penalty of five million US dollars in accordance with the contract."

"Five million?" Chen Wenhao sneered. "Mr. Chen, you're underestimating Singapore's losses. We turned down investments from three Japanese electronics factories for this project. The opportunity cost alone is more than five million!"

"Director Chen, don't you ever look for problems within yourselves?"

"Humph!"

"A small place should have the awareness of a small place! You actually dared to complain and make trouble unreasonably. You brought this situation on your own."

"You...you're being rude!"

"Hmph! Monkeys dressed in crowns! How dare you preach so arrogantly? I advise you to tuck your tails between your legs and behave yourselves like monkeys. If you escalate the situation, don't blame Lemon Technology for being ruthless."

"..."

The negotiations lasted for two hours, but ended in discord.

A week later, the Singapore government formally submitted a complaint to the U.S. Department of Commerce through the Ministry of Foreign Affairs.

The document states: "Ningxin Semiconductor and its parent company Lemon Technology violated business integrity by unilaterally canceling the investment project after a formal letter of intent had been signed, causing significant economic losses to Singapore and severely damaging Singapore's confidence in American-funded enterprises."

Copies of the document were also sent to The Wall Street Journal, the Financial Times, and The Straits Times.

The media buzzed again.

The Wall Street Journal headline reads: "Singapore accuses Lemon Tech of breach of trust, escalating the US-China wafer fab dispute."

The Straits Times went even further: "Lemon Technology chooses China over Singapore: political factors or business considerations?"

……

An emergency meeting was held again at Lemon Technology's Santa Monica headquarters.

General Counsel Robert read from the complaint document: "The Singapore side has made three demands: First, to resume the Singapore wafer fab project and expand its scale; second, if it cannot be resumed, to pay US$30 million in compensation; and third, to issue a public apology."

“Thirty million? How did they calculate that?” CFO Kevin frowned.

"They said that the national electronics industry development plan was adjusted for this project, other projects were postponed, and 500 technicians were trained... The losses are far more than five million."

Suning asked Robert, "Do we have a legal basis for this?"

“A letter of intent is not a formal contract, and the penalty clause has limited binding force,” Robert said. “Besides, we are willing to pay five million, which is already above industry practice. Thirty million… is simply outrageous.”

"Then we can ignore them."

“But boss,” Lisa cautioned, “Singapore is also putting pressure on the U.S. Department of Commerce. If the Department of Commerce gets involved, it could affect our other businesses.”

"Singapore is just a tiny place! Its development over the years has made them complacent. Since they can't find their place, let's teach them a lesson."

"This……"

……

Three days later, Washington.

In the office of Deputy Commerce Minister Smith, Singapore’s Ambassador to the United States, Huang Wenxian, personally visited.

“Minister Smith, this is not a simple commercial dispute,” Ambassador Huang said seriously. “It concerns Singapore’s trust in American companies. If Lemon Technology’s behavior is not stopped, which American company will dare to invest in Singapore in the future?”

“Mr. Ambassador, I understand Singapore’s concerns,” Smith said. “But Lemon Technology insists that this is a purely commercial decision and that it is willing to compensate in accordance with the letter of intent.”

“Five million is not enough!” Ambassador Huang said. “What we want is fairness. Either the project is restored and expanded, or reasonable compensation is awarded.”

"In that case, I'll arrange a meeting with Su Ninggan and hear his side of the story."

"Then I'll have to trouble Minister Smith."

The next day, Smith called Suning.

“Mr. Gan, the pressure from Singapore is immense. Could you consider resuming the project? Even if it's on a smaller scale.”

“Minister, it really won’t work.” Su Ning said bluntly, “Our human and management resources are limited, and we can only focus on the Shanghai project. Even if we manage to build it in Singapore, we can’t guarantee the quality, and there will be even more problems. In addition, the Singapore market is too small and simply does not have the basis for large-scale investment.”

"Then increase the compensation amount. Thirty million is too much, how about fifteen million?"

"A maximum of eight million. That's the limit."

"Eight million... Singapore probably won't accept that."

“Then we’ll just have to let them sue,” Su Ning said. “We’ll prepare our defense.”

"Why bother?"

"Minister, if a child is disobedient and throws a tantrum, should we just keep indulging him?"

"This……"

“Minister, Singapore’s actions this time have had a terrible impact. If we don’t teach them a profound lesson, they may become even more outrageous and arrogant in the future.”

"Alright! But I still suggest we prioritize peace."

"Minister, rest assured! The board of directors of Lemon Technology will consider all aspects."

"OK! Mr. Gan, let's arrange a meeting sometime. My friend bought a small island, and it's quite an interesting island."

"Oh? Great! It would be my pleasure."

……

A week later, Singapore's stance hardened further.

In an interview with The Straits Times, Chen Wenhao said, "If Lemon Technology does not provide a satisfactory response, Singapore will consider taking countermeasures."

The reporter asked, "What specific measures are being taken?"

"Lemon Technology's products are prohibited from being used in all government procurement projects."

When this news reached Santa Monica, Suning convened a meeting with his core team.

“This is a threat,” Lisa said. “Singapore’s government procurement costs hundreds of millions of dollars every year. If our products are banned, it will affect our market image in Southeast Asia.”

“And they may encourage other ASEAN countries to follow suit,” Robert added.

After a few minutes of silence, Su Ning suddenly said, "Since they're threatening us, we'll retaliate."

How to counter this?

"Notification to Singapore: Effective immediately, the use of any computers and mobile phones containing Lemon Technology's patented technology is prohibited in Singapore. If discovered, we will file a patent infringement lawsuit and initiate a blockade process. All responsibility will be borne by the unreasonable Singapore."

The conference room was quiet.

“Boss, this…” Kevin reacted first, “This is tantamount to banning the use of our products throughout Singapore. The Singapore government may not care, but what about the users? What about the businesses? They can’t live without Lemon Computers.”

“So we need to make them feel the pain,” Su Ning said. “More than 6,000 companies in Singapore use our system, including banks, airlines, and port management. If they can’t use it, the whole country will be in chaos.”

Robert worried, "But that would completely ruin things."

“The relationship has already been torn apart,” Suning said. “They threatened to ban government procurement, and we simply escalated our response.”

"Boss, is this necessary?"

"Of course! Haven't you heard of killing the chicken to prevent the monkey?"

"This……"

"Lemon Technology is now a world-class industrial cluster. If any country follows suit, how will we do business?"

"But wouldn't initiating the lockout procedure cause users to feel fear?"

"Technology is what makes humans feel fear. If we cannot overcome our fear of technology, we will never be able to master it."

...The following day, Ningxin Semiconductor and Lemon Technology jointly issued a statement:

"In light of the unreasonable demands and threatening statements of the Singapore government, effective immediately, all electronic products containing Lemon Technology's patented technologies sold or used in Singapore, including but not limited to computers, mobile phones, and communication equipment, must obtain special authorization from our company. Unauthorized use will result in patent infringement lawsuits from our company, and we are considering initiating a blockade procedure. All responsibility will be borne by the unreasonable Singapore government."

The statement caused an uproar worldwide within half an hour of its release.

The Wall Street Journal issued an urgent update: "Lemon Technology imposes technology sanctions on Singapore, banning the country from using its products."

CNBC commented: "This is the first time a tech company has imposed a technology blockade on a country."

Singapore is even more chaotic.

Singapore Telecom was the first to call Lemon Technology's Asia-Pacific headquarters: "Our switching system uses your patent, what are we going to do now? The communications of the entire country will be affected!"

Singapore Airlines called second: "Your flight scheduling system is yours. If it's shut down, the planes can't fly!"

People lined up to make phone calls at major banks.

Chen Wenhao was stunned.

He didn't expect Suning's reaction to be so intense.

The Prime Minister's Office of Singapore held an emergency meeting.

"What do we do now? The entire national system is going to crash!" The Minister of Transport was sweating profusely with anxiety.

"Can we switch to another system?" the finance minister asked.

"It's impossible in the short term! The banking system, port management system, air traffic control system... they're all based on Lemon's technical architecture. Replacing the system would take at least three years!"

"What if Lemon Technology really decides to sue?"

“According to their patent list, we infringe on almost every patent on every computer and every phone we use. If we were to sue, Singaporean companies would go bankrupt.”

The meeting lasted three hours, and the final decision was to make concessions.

The next day, the head of the Singapore Economic Development Board personally called Suning.

“Mr. Gan, I am Mr. Goh, Director of the Singapore Economic Development Board. We hope to renegotiate.”

"Director Wu, there's nothing to discuss now. Our statement has already been issued."

"That's just a misunderstanding! Deputy Director Chen's words do not represent the position of the Singapore government!"

"But the words have already been spoken. The whole world has seen that Singapore is going to ban our products."

"We can take it back! We can issue a public clarification!"

Suning was silent for a few seconds: "Then you should issue a public apology and admit that your previous remarks were inappropriate."

"This... requires cabinet approval."

"Then let's wait until it's approved before we talk about it."

After hanging up the phone, Director Wu immediately reported to the Premier.

An hour later, the Prime Minister's Office of Singapore issued a statement:

"The Singapore government has always welcomed foreign investment and respected commercial contracts. Regarding the Lemon Technology investment project, we are willing to resolve the issue through negotiation on the basis of mutual respect. The inappropriate remarks made by individual officials in the past do not represent the government's position."

A statement was issued, but no apology was offered.

Suning refused to comply: "Continue to enforce the injunction. Have the legal department prepare the patent litigation materials."

Robert asked, "A real lawsuit?"

"Prepare in advance and put pressure on them."

……

Three days later, Singapore could no longer hold out.

The chairman of the Bankers Association publicly appealed: "The government must resolve the dispute with Lemon Technology as soon as possible, otherwise the financial system will face the risk of collapse."

The airline association warned: "If the flight scheduling system is affected, Singapore will lose its regional aviation hub status."

Under immense pressure, Singapore Economic Development Board Director Goh personally flew to Los Angeles.

The two sides met again in the conference room.

“Mr. Gan, we are willing to accept eight million US dollars in compensation and issue a public apology,” Director Wu said bluntly.

“Now it’s eight million plus one condition,” Su Ning said.

"What conditions?"

"The Singapore government has pledged that Lemon Tech products will be given priority in all government procurement projects over the next ten years."

"This...isn't this going too far?"

"Then forget it." Su Ning stood up to leave.

"Wait!" Director Wu gritted his teeth. "Okay! But only under the same conditions will priority be given."

"make a deal."

That afternoon, both parties signed a settlement agreement:
1. Ningxin Semiconductor paid eight million US dollars in compensation to Singapore;

2. The Singapore government issued a public apology;

3. Over the next ten years, the Singapore government will prioritize Lemon Technology products in its procurement under the same conditions;

4. Lemon Technology withdrew its technology injunction and patent litigation threats;

5. Both sides pledged not to attack each other on this matter.

Following the signing of the agreement, the Prime Minister's Office of Singapore issued a formal apology statement.

Lemon Technology also withdrew its ban statement.

The storm subsided.

But the damage has already been done.

The Financial Times commented: "This dispute shows that technology companies have the ability to compete with states. When core technologies are in the hands of private companies, even states have to bow down."

The Wall Street Journal analysis states: "Lemon Technology's use of patents to force Singapore to make concessions sets a precedent for commercial sanctions. In the future, multinational corporations that master core technologies will have more say."

At the Santa Monica headquarters, Suning told his team, "We won this time, but we also exposed some problems."

"What's the problem?" Lisa asked.

“We rely too much on patented technology,” Su Ning said. “We were able to win this time because Singapore cannot do without our technology. But if our technology is surpassed one day, we will not have this confidence.”

"So we need to strengthen research and development?"

“Yes,” Suning said. “The Shanghai factory must succeed. We need to master the entire technology chain from design to manufacturing. At that time, it won’t be us who are afraid of sanctions, but others who are afraid of sanctions from us.”

"clear."

A month later, the first steel column was erected on a construction site in Pudong, Shanghai.

The land in Singapore's Jurong Industrial Estate, originally designated for a wafer fab, has been converted into a warehouse for a Japanese electronics factory.

However, Lemon Technology's stock price rose instead of falling during this turmoil...

The market believes that the company's willingness to stand up to a country demonstrates its confidence.

LEM rebounded to $45, and its market capitalization returned to $210 billion.

But only Suning knows that behind this victory lies real technical strength.

Without technology, everything is just empty talk.

Therefore, he had to build the wafer fab and master the core technologies.

Next time you encounter something like this, you'll have more confidence to say no.

Singapore's lesson has spread throughout the world: do not easily threaten companies that possess core technologies.

Because in this era, technology is power.

Lemon Technology is becoming the one in power.

...(End of chapter)