Technology invades the modern world

Chapter 406 The Perverted Worldline

John Morgan the Elder praised it in an exaggerated tone.

He acted as a lubricant between Beijing and Washington, and his collaboration with Lin Ran was seamless.

They had an amazing understanding of each other.

On the morning of the 4th, John Morgan Sr. flew directly from Narita International Airport in Tokyo to Pudong, and met Lin Ran at 10:00 a.m. after layers of tight security.

John Morgan Sr. was genuinely envious. If Apollo Technologies were America's company and listed on NASDAQ, its market value would have skyrocketed.

Given America's spending power, lunar tourism has already started in earnest.

Lin Ran pushed a cup of tea in front of him, her expression calm: "Morgan, the tea is still hot."

It seems your journey from Narita Airport went smoothly.

“Of course, my friend, everything went very smoothly.” Morgan picked up his teacup, took a sip as if to appear sophisticated, then put it back on the table and got down to business. “Our collaboration has also gone very smoothly.”

I must congratulate you, Professor. The grand spectacle you've orchestrated at Yenching University is the most perfectly constructed narrative I've ever seen in the financial markets.

He took an encrypted tablet out of his briefcase, brought up an interface, and handed it to Lin Ran.

It was a complex earnings curve, which showed an almost vertical rise on September 1st.

"This is the result of our alliance fund's efforts over the past 72 hours," Morgan said with pride. "When news of the sinking of the Haguro spread through unofficial channels, panic reached its peak."

But the real profits come from your subsequent actions.

Lin Ran stared at the screen without saying a word.

At this moment, John Morgan Sr., like an artist introducing his work, explained in detail: "Your missiles were the first driving force; they shattered military confidence. And your subsequent humanitarian search and rescue was the most fatal blow."

It proved to the world that you not only have the power of life and death, but also the power to define good and evil.

This absolute control completely shattered the last vestige of hope in the 4V capital market.

“So,” he swiped the screen, and the last number popped up, “taking advantage of this perfect wave of panic, we made a total of $8.2 billion in just three days by shorting TAIEX stock index futures, New Taiwan dollar forward foreign exchange contracts, and buying put options on TSMC.”

“Of course,” he added, “this is just the appetizer; the real feast is just beginning.”

"It seems we have achieved our first-phase goal." Lin Ran's tone was calm and composed, as if the $82 billion was just an insignificant number.

He is more concerned with progress at the strategic level.

For a Cold War veteran, wealth is just a number; it has no effect whatsoever on his heart.

"What new instructions has the White House given regarding this incident?" Lin Ran asked.

“Instructions?” Morgan laughed heartily. “Professor, you’re too modest.”

You didn't create an 'incident,' you created a solution!"

“The President greatly admires your efficiency.” John Morgan Sr.’s choice of words was very deliberate. “The sinking of the Haguro was like a bucket of ice water, waking up everyone still dreaming on Capitol Hill.”

Now, nobody talks about strategic ambiguity anymore.

The consensus in Washington is unprecedented: the entire semiconductor supply chain in the 4V region must be safely relocated before the appointed time, at all costs.

He looked at Lin Ran with admiration in his eyes. "If only this were my son," Old John Morgan thought to himself.
"With a single missile, you have completely cleared away all the political obstacles for us."

Now, our plan is no longer a greedy adventure by a small group of people on Wall Street, but has been endowed with the supreme political correctness of safeguarding national security and 'avoiding world war.'

"So, what's the next step?" Lin Ran asked.

"Speed ​​up!" Morgan answered decisively.

"A four-year plan is too slow. We need to compress it into two years now."

Ethelred Capital will formally submit an emergency supply chain security plan to TSMC's board meeting next week, demanding that TSMC immediately transfer at least 50% of its most advanced 3nm and 2nm production lines to Arizona, USA; Kumamoto Prefecture, Japan; and Pyeongtaek, Korea, through technology licensing and collaborative factory construction.

"We will have the Department of Commerce, the State Department, and the Pentagon take turns to express concern and put pressure on TSMC's management."

Meanwhile, on your side, all you need to do is maintain economic and policy uncertainty, making TSMC's investors feel that they have no choice but to cooperate.

Morgan picked up the cup of Longjing tea, which had cooled down a bit, and drank it all in one gulp.

"Professor, we are working together to direct a big show."

You're responsible for dismantling the stage's load-bearing walls, and we're responsible for safely securing the wallets and jewelry in the audience's pockets as they panic and flee.

He stood up and extended his hand.

"Pleasant to work with."

Lin Ran shook hands with him, his expression remaining calm: "It's been a pleasure working with you."

Lin Ran was very curious: how much did the Big T family earn from this deal? Could it be around 10%?

The Canon headquarters in Ota Ward, Tokyo, is unaffected by the tsunami that struck Tokyo in recent days.

Unless Tokyo sinks, Canon will always be Canon.

Prime Ministers change, cabinets fall, factions rise and fall, and even the so-called security treaty is nothing more than a piece of old paper from 70 years ago.

Politics is like the waves on the sea; a wave comes in today and recedes tomorrow.

These are all temporary.

However, it seems that John Morgan Sr. did not think so.

Inside the special conference room, the throne room, there are tatami mats from Kyoto with a history of over a hundred years, and on the wall hangs a calligraphy scroll with the words "Humility and Openness" written by a master calligrapher.

This is where Canon makes the most important decisions for the company; it's usually deserted and very quiet.

But today, this tranquility was broken by an uninvited guest.

John Morgan Sr. sat on the single sofa prepared for him, a stark contrast to the group of Canon executives kneeling opposite him.

This is because of his identity and also because of his bloodline.

Japan places great importance on lineage.

John Morgan Sr.'s bloodline, if placed in Japan, would be even more extraordinary than the Celestial Dragons, essentially a product of a marriage between Mitsubishi and Ampère.

Chairman Mitarai, whose full name is Fujio Mitarai, was formerly the chairman of the 2nd Japan Business Federation and a member of the Cabinet Office's Economic and Fiscal Advisory Council.

This elderly man led the Canon empire for decades. Although he is nearly ninety years old, he stands tall with a straight back and his eyes are still sharp.

He spoke first, his voice steady: "Mr. Morgan, thank you for taking the time to come."

"I wonder what urgent matter, Mr. President, requires your personal presence?"

John Morgan Sr. laughed and said, “Mr. Mitarai, you are a legend in the Japanese industrial world. It is an honor to meet you.”

"The President sent me here to invite Canon to join a great new peace plan that concerns the future peace of our two countries and the entire Pacific region."

He took a document from his assistant and gently placed it on the table.

"The White House and the new Sugawara cabinet have reached a preliminary consensus."

To ease current tensions, we will take the lead in building a new tripartite technology trust framework.

The first and most important project within this framework was the transfer of NIL (nanoimprint lithography) technology from Canon to a designated company in China.

The air in the conference room froze instantly.

In fact, everyone knew who John Morgan Sr. was, and everyone guessed why they came.

The fact that selling chicken ribs can turn into a KFC family bucket is something only Americans do.

The only way to win back the best terms from your competitors during negotiations and receive personal praise and commendation from the President upon returning to the White House is to do so.

However, John Morgan's words still surprised everyone.

Because NIL is Canon's big bet in the field of lithography machines, it is a gamble on the future, a long-term investment of more than 20 years.

They thought that when John Morgan Sr. came to Canon, he was transferring unimportant technology, and even if Canon handed over all the less valuable technologies, it wouldn't be unacceptable.

Because Canon can be exchanged for cash, the Chinese government can make a good living off Canon, but Canon itself can't use it.

Therefore, some Canon executives even think this is a good thing.

It's better to exchange something for something else than to let it rot in your hands.

NIL is different; this is the future, the future of Canon.

Even for America, selling 5nm lithography technology to China is a bit too outrageous.

The current president of Canon's expression changed, and he was about to speak when Mitarai raised his hand to stop him.

“Mr. Morgan,” Mitarai’s voice remained calm, “NIL technology is the culmination of twenty years of hard work and nearly a trillion yen that Canon has invested. It is the cornerstone of our company’s survival and competition in the next generation.”

You're now asking us to hand it over to our biggest competitor in the world? Frankly, this isn't a peace plan; it's corporate suicide. You're making us commit suicide.

In 2014, Canon officially acquired the semiconductor lithography equipment business of America’s Molecular Imprints, Inc. (MII), a pioneer in NIL technology, for more than $1 million.

Canon began its basic research on NIL in 2004. By 2025, this project will have lasted for a full 21 years.

Over the past two decades, Canon has maintained an elite team of hundreds of top physicists, optics experts, materials scientists, precision mechanical engineers, and software engineers.

The salaries and benefits of these top talents represent a huge and ongoing expense.

Conducting nanoscale research and development requires the purchase and maintenance of extremely expensive equipment, such as electron beam writers and high-precision detection equipment, and also requires the continuous consumption of large amounts of special chemicals and raw materials.

For the research and development and production of NIL technology, Canon has established dedicated, highly cleanroom facilities and production lines in Utsunomiya City, Tochigi Prefecture, Japan, and other locations.

The cost of building and maintaining facilities of this level is calculated in the tens of billions of yen.

This is a typical high-stakes R&D project for Japanese companies.

For Canon, NIL technology represents a gamble on the company's future; it is by no means an ordinary product that can be easily traded.

“I understand your concerns.” Morgan’s smile remained unchanged, but he began to throw out the bait, the enticing part.

"Of course, this won't be free. First, DARPA will sign a ten-year, $50 billion long-term cooperation agreement with Canon to purchase your technology in ultra-high-definition optical reconnaissance satellites and quantum sensing equipment."

The profit from this order will far exceed your investment in NIL.

Secondly, we will invite Canon to become the second international strategic partner of the America National Semiconductor Technology Center, following the Neon Rapidus project. You will receive comprehensive support from our cutting-edge materials science and software algorithms.

The chips are very tempting.

But that makes it even more puzzling.

In the eyes of Japanese people, it's no different from being sick.

Did the American government pay for China to acquire NIL technology?
Am I living in some dimension I don't know? That's the only feeling in the mind of Canon's current president.

What a twisted timeline this is.

The Canon executives present were starting to question their lives. Where had they ended up?
Mitarai slowly shook his head: "Mr. Morgan, what Canon is pursuing is not short-term profits, but long-term technological dominance."

NIL technology is our future. This future, we will not sell.

Morgan's smile finally vanished.

“Mr. Mitarai, it seems you have misunderstood my purpose.” His voice became deep and clear. “I am not here to negotiate with you today, but to convey a fait accompli.”

He looked at everyone present and began to coerce them.

"The White House and Chiyoda have spoken by phone."

Both our countries agree that we must do everything in our power to prevent the situation from escalating into a war that neither of us can afford.

This technology transfer is a small price to pay to avoid war.

You might think that Canon is an independent neon company.

However, on the New York Stock Exchange, over 45% of your ADRs are held by American institutional investors such as BlackRock, Vanguard, and State Street.

If the president were to issue an executive order requiring these funds to liquidate all shares of Japanese companies with potential technological ties to China, do you think it would take Canon's stock price to drop to zero?

"Canon may think that NIL technology was developed by you."

But how many core components in that FPA-1200NZ2C lithography machine, from the laser controller to the drive software for the ultra-precision motion stage, come from Americana's KLA-Tex, Applied Materials, and our other allied companies? With just one order from the Department of Commerce, Canon's proud production line could become a pile of inoperable scrap metal tomorrow.

Chairman Mitarai's body trembled slightly.

Morgan stood up, walked up to the old man, looked down at him, and delivered his ultimatum.

“Mr. Mitarai, you have two paths to choose from.”

The first path is for outstanding companies that are heroes of our alliance and have contributed to regional peace to accept our $50 billion in gratitude and join us in continuing to lead the world within a new and safer framework.

The second option is to be completely removed from our global financial and technology supply chains as a stubborn company that lacks a sense of the bigger picture and threatens regional stability.

"The White House and Chiyoda are both waiting for my call; they hope to hear good news."

If there really were $50 billion, this business deal wouldn't be impossible.

But America's subsidies and orders were nothing but empty promises.

Just like in 2022, the Chip and Science Act, which allocated a whopping $527 billion to bring semiconductor companies to America.

In reality, subsidies are indeed provided, but they all go to well-established American companies like Intel. Intel received $85 billion in direct subsidies and $110 billion in loans, while companies like TSMC only received $66 billion in subsidies.

However, up until 2025, they only provided less than 10 billion, and the rest will be disbursed gradually as your production capacity is relocated.

It's like you put up 10 billion and they give you 500 million.

This is completely different from Intel's subsidies.

The Americans' pie-in-the-sky tactics are a bit too much. They say they'll get over $50 billion over ten years, but in reality, you'd be lucky to get $5 billion in ten years.

A suffocating silence fell over the entire throne room.

All the Canon executives present were thinking to themselves, "Is John Morgan really not working for Yanjing? What price did Yanjing pay to be forced to sell even NIL to China?"

Isn't chip manufacturing one of the very few fields where we still have an advantage? If NIL is given away, does that mean we're no longer in the game?

The sunlight streaming through the floor-to-ceiling windows was perfect, but the interior was a cold, shadowy space.

Finally, President Mitarai slowly bowed his head and said:

"I understand. Canon will make its due contribution to peace."

Neon couldn't protect Canon in front of America; Canon had no choice but to bow its head.

John Morgan Sr. disappeared through the doorway; his polite "Have a pleasant day, everyone" was better left unsaid.

A deathly silence that lasted for a full minute.

"What a joke!" The current president, Hideaki Maeda, a reformist known for his tough stance, slammed his hand on the low table in front of him, causing the teacups to jump. "President, are we really going to accept these conditions? This is extortion! This is robbery! We're handing over the future of Canon for the next thirty years to Beijing, and right now!"

Another director in charge of research and development, Dr. Kobe, a scientist who has devoted his life to NIL technology, closed his eyes in anguish: "It took us twenty years to find our own path out of ASML's shadow, and now we have to hand it over to someone else?"

Anger and resentment began to spread within the meeting room.

A young director couldn't help but raise the question that was on everyone's mind.

"Excuse my bluntness, Chairman."

What I don't understand is America.

They spent ten years and used every means at their disposal to prevent Yanjing from acquiring advanced chip manufacturing capabilities.

Now, why are they forcing us to personally hand over the master key that unlocks all locks to the other side?

This question silenced everyone, and they all looked at the silent old man sitting at the head of the table.

Fujio Mitarai did not answer immediately.

He simply and slowly refilled his empty teacup with hot tea.

“Mr. Maeda,” he began, his voice steady, addressing the current president by name, “do you think the Americans would do business at a loss?”

“Of course not,” Hideaki Maeda replied immediately.

“Then,” Mitarai continued, “do you think that Morgan, who was just sitting here, a core member of the Morgan family, who is only one step away from becoming the head of the Morgan family, would allow his president to make such a foolish strategic mistake?”

Maeda was stunned.

Fujio Mitarai turned his gaze to Dr. Kobe. "Mr. Kobe, you are the father of NIL."

I have a technical question for you.

If, tomorrow, we send a brand new FPA-1200NZ2C, along with all the operating manuals, to Shenhai.

What do they need to truly achieve large-scale, high-yield production of 5-nanometer chips?

Dr. Kobe was taken aback for a moment. This question instantly switched him from anger back to calm thinking.

He began rapidly constructing the entire production process in his mind.

“President,” he began slowly, “they first need a perfect template master, which requires a top-of-the-line electron beam writer. Currently, the most advanced equipment comes from Applied Materials, America.”

“Then, they need a stable supply of nanoimprint resin with an absolutely precise formulation,” he continued. “Currently, only America Dow Chemical and a few Japanese chemical companies that we work with can do this, and their key raw materials also come from America.”

"Finally, and most importantly," Dr. Kobe's voice began to tremble, "even if they manage to imprint the chips, they can't judge their quality with the naked eye."

They need nanoscale defect detection equipment to scan every wafer and analyze hundreds of millions of defects in the structure.

This field is absolutely monopolized by America KLA Corporation; their algorithms and databases are among the core components of the entire semiconductor industry.

Mitarai Fujio put down his teacup with a soft sound.

"Now, do you understand?" The old man looked around at his subordinates, who now fully understood.

“They’re not selling a technology. They’re selling a trap, a trap that we at Canon have built with twenty years of our hard work.”

(End of this chapter)