Back in 1978, I was admitted to Northwestern Polytechnical University.

Chapter 240 Intel is coming to investigate? A scolding will make them behave!
Northwestern Polytechnical University, Department of Mathematics, Computer Lab.

The computers were lined up in a row, and in front of each computer sat a person with a focused expression—a student and a teacher, their eyes fixed on the flickering screen with bright lines on it.

"Teacher, I've finished checking, and the circuit I was responsible for is fine!"

"Teacher, I'm fine too!"

Zhu Xianghua nodded: "Okay, I have no problem with that either. Since the circuit check has been completed without any errors, let's send the design drawings to our school-run factory and have them make a set! This is a computer that the Air Force's top-priority project urgently needs!"

"Yes, it can perform 30 million calculations per second. Once we build this computer, it will definitely become the most powerful computer in the country! I estimate that many organizations will come to purchase it."

"Yes, we achieved this level of computing power using only one hundred 8086 chips. This is an absolute breakthrough. In the future, we won't need to develop any special chips for researching mainframe computers; microprocessors will suffice!"

Although Dongfang made slow progress in microcomputers, it did not slack off in its research on large general-purpose computers in order to meet the needs of national defense. In 1973, it developed a large general-purpose computer with a capacity of one million calculations per second. By 1983, it had developed the large vector computer 757 with a computing capacity of ten million calculations per second. A year later, the Galaxy-1 computer with a capacity of one hundred million calculations per second was developed.

However, these all used dedicated chips. It wasn't until the 1990s that microprocessors began to be used in large computers.

Now, the Air Force's early warning aircraft need powerful computing capabilities, so the computer system was naturally handed over to the computer science department of Northwestern Polytechnical University. They lived up to expectations and designed the circuit diagram of this brand-new computer in a short period of time. Next, it will be put into production. As for the operating system... it is also under intensive development.

"Unfortunately, we only have the 8086 at hand, its computing power is too slow. We'll have to wait for our Loongson to come out..."

Before the student could finish speaking, Director Meng's voice came from the doorway: "Professor Zhu, Professor Zhu! We have guests. They want to see our computer R&D head. Could you come out for a moment?"

Zhu Xianghua nodded: "Okay!"

Reaching the doorway and taking off his shoe covers, Zhu Xianghua asked curiously, "Who's coming?"

"They are all experts in the field of computer science, and they said they would like to exchange ideas with Northwestern Polytechnical University."

"Oh."

Inside the conference room sat a group of foreigners. The one in the lead was short and rather thin, speaking with a Hungarian accent, and was talking to the others.

Foreigner?
Zhu Xianghua thought it was a domestic computer expert, but for some reason, his eyelids started twitching.

"Oh, you've arrived?" At this moment, the man in the lead looked up at the door and asked, "Excuse me, are you the person in charge of the computer science project at Northwestern Polytechnical University?"

Zhu Xianghua nodded: "Yes."

"Let me introduce myself. I am Andy Grove, the third employee of Intel Corporation, and now the president of Intel Corporation. We are here to lodge a serious protest with you. You have copied our 8086 processor and even sold computers equipped with this processor to other countries! This is a serious infringement!"

Grove's words instantly made Zhu Xianghua's mind go blank.

Damn it, is this supposed to be an exchange? This is more like a crash party!
How to do how to do?
Zhu Xianghua is already a master of technology, but dealing with foreigners is not his forte, let alone now, where the other party is clearly up to no good.

"What we find even more intolerable is that you actually put our 8086 chip into military fighter jets! Our processors are civilian processors! We absolutely do not want to see you using our products for military purposes!"

Grove's voice was filled with anger: "I experienced World War II. My father was captured by the Germans and forced into hard labor, eventually dying from exhaustion. My mother was killed by several Soviet soldiers... Therefore, I cherish peace, and I don't want to see our products used in war or for killing! Here, I solemnly demand that you immediately stop this infringement and keep our chips away from weapons!"

Zhu Xianghua couldn't answer a single question; his mind was buzzing. Just then, a voice rang out from the doorway.

"Mr. Grove, I understand that Intel, as the dominant player in the chip industry, wants to suppress new entrants and prevent them from growing too big. However, it seems you've come to the wrong person!"

Qin Liang is back!
Zhu Xianghua instantly felt confident. As long as Qin Liang came back, he would be fearless. Qin Liang would definitely be able to silence these foreigners!
"Who is this?"

"This is Qin Liang, a student from Northwestern Polytechnical University. He is the initiator of many projects at Northwestern Polytechnical University," Zhu Xianghua said. "I understand your feelings, but Qin Liang is right, you have the wrong person."

Grove's face darkened: "What does this mean?"

“Mr. Grove, I think with your wisdom, you should be able to see who your real competitor is,” Qin Liang said. “If you really don’t know, then I’m very disappointed. Intel has chosen an idiot as its president.”

"What did you say?" Grove's men were instantly enraged.

Fortunately, because Qin Liang had previously reprimanded the shepherd-like translator sent by the foreign affairs department, no one from the foreign affairs department wanted to come when they heard that they were coming to Northwestern Polytechnical University. As a result, these foreigners needed to bring their own translators. However, the English proficiency rate at Northwestern Polytechnical University is very high, and they can now communicate in English with ease.

"You personally nurtured the island nation's chip industry, and now you've raised a tiger that will threaten you, yet you don't even realize it? In just a few years, Intel will be squeezed out by the island nation's electronics industry! Since you don't even have this sense of crisis, you're not worthy of communicating with Northwestern Polytechnical University! If you want to sue, go ahead and take it to court! Professor Zhu, let's go!"

Zhu Xianghua was very excited. Qin Liang had taught these guys a lesson as soon as he arrived! Those words were really satisfying!

After World War II, the island nation was reduced to ruins. In 1952, Akio Morita, a young retired technical officer, and his partner Masaru Ibuka brought transistor technology back to the island nation from Bell Labs for $2.5. Two years later, the TR-55 radio was produced by their company, Tokyo Telecommunications Industries Co., Ltd. A year later, the company was officially renamed Sony.

Radios were not only bestsellers in Japan, but also in the United States, to the point that Sony had to ship their products to the US by plane! This is how the island nation tasted the sweet success of electronics!
In 1962, NEC acquired the most advanced integrated circuit manufacturing technology in the United States at the time. Soon after, NEC opened up the technology to companies such as Mitsubishi, and many other large companies began to cooperate, such as Panasonic and Texas Instruments, Mitsubishi Electric and Motorola, Hitachi and IBM...

In this way, the Americans cultivated powerful competitors. Back then, they were confident that their strength was unmatched, and the transfer of production was just to enjoy low labor costs. In their minds, island nations that were completely controlled were the best choice!

"Halt!" Grove's voice rang out. "Island nations are our competitors. What grounds do you have for this? If not, we'll add a clause to our lawsuit accusing you of sowing discord between us and our allies!"

Qin Liang stopped, turned his head, and looked at them as if they were idiots.

"You Intel found that the memory chip business was too simple and lacked challenges, so a large portion of the memory chip business fell to the island nation. Back then, you were the first to launch 1K and 4K memory chips, but by 76, the island nation and you had launched 16K chips simultaneously. In 77, the island nation developed a 64K chip, while you only developed yours last year. You have been left behind by the island nation, and you don't even realize it?"

"You probably don't know that from 76 to 79, Japan invested 737 billion yen in memory chips, which is equivalent to three-thousandths of Japan's GDP! Several Japanese companies, such as Fujitsu, NEC, and Hitachi, formed a technology alliance, and forty percent of their R&D funding came from subsidies from the Japanese government!"

"Look at Intel, you can only rely on your own profits to invest in research and development. How can you compete with island nations? If you don't find a solution, your memory chip business will be completely lost within three years, and your company will face a survival crisis!"

Qin Liang turned around and continued walking towards the door: "I originally thought that you had realized the crisis, so you wanted to swindle money from us to make up for your losses. Now it seems that I was wrong. You are all a bunch of short-sighted fools!"

"Stop! Stop!" Grove's voice was filled with anger: "You're the arrogant fool! How could we not see the problem! Stop! You stop right there!"

This guy looks really angry!

Qin Liang was overjoyed.

"So what exactly are you trying to say? If you're just trying to swindle money from us, you're sorely mistaken. That won't solve anything!"

"So what do we do?"

"Are you asking me for advice? This is so insincere!"

Grove stood up and strode over to Qin Liang: "What are your thoughts? We at Intel would like to ask for your advice!"

"Alright, since you want to ask me questions, I'll give you a few simple pointers." Qin Liang turned and walked back.

Americans have always been like this, arrogant and condescending. If you try to please them, they'll continue to put on airs, thinking you're really afraid of them. Only by confronting them head-on will they back down.

If Northwestern Polytechnical University were to beg for mercy, they would demand an exorbitant amount in damages for the infringement. But right now... they won't give them a single penny!

“The cost of capital in island nations is only seven to eight percent, while in the United States it is as high as twenty-two percent. The United States also has high labor costs. So, your idea of ​​moving the chip industry to countries with cheap labor is not wrong in itself. It’s just a pity that you chose the wrong partner!”

Deindustrialization is a curse that no developed country can avoid.

As a country develops, people's living standards will improve, and wages must rise accordingly. Not to mention, in places where labor unions are powerful, every now and then there will be calls for wage increases, or strikes.

Capital is profit-driven. Since domestic labor costs are too high, they will inevitably shift to countries with lower labor costs. As for domestic workers? Don't you complain about low wages? Fine, you might as well quit your jobs!
Although the United States has a massive semiconductor industry base like Silicon Valley, it has begun to transfer some low-tech industries to island nations, which has in turn fostered the development of the island nations' semiconductor industries!

Upon hearing Qin Liang's words, Grove's expression became complicated: "You wouldn't be suggesting that we move our semiconductor industry to the East, would you?"

Grove's ethnic background gave him a natural sensitivity to business, and he wouldn't fall for Qin Liang's tricks!

Well, this guy is definitely not easy to fool!
Qin Liang immediately shook his head: "We look down on your semiconductor technology, it's too inferior!"

The American on the other side was so angry he almost stood up again. He even wondered why Grove didn't just leave a protest letter, pack his bags, and walk away, preparing to initiate legal proceedings.

"Then tell me, which country should we move our industries to?"

Grove wasn't angry at all. The fact that Qin Liang could rattle off so many data points just now showed that Qin Liang was very clear about the current situation Intel was facing!
They had noticed the island nation's rapid growth in the memory chip field and were worried about the future, but... they had no good solutions and could only worry helplessly. So, when they heard from the people at General Dynamics that the East was copying their chips and selling them abroad, they immediately decided to come over and take a bite out of Northwestern Polytechnical University!
result……

They simply won't give in. A lawsuit would inevitably drag on for ages, while Intel's business would only deteriorate further. If this continues...

"South Koreans."

The Intel staff were slightly taken aback when they heard this suggestion.

You have to understand, the East hasn't even established diplomatic relations with South Korea yet! This Eastman is actually recommending that they cooperate with South Korea, which fully demonstrates that the person in front of them has no selfish motives, or... that this person is talking nonsense, there are only two possibilities!

"How is this any different from cooperating with island nations?"

"Of course!" Qin Liang smiled. "Although the island nation is a dwarf in politics, it is definitely a great power in economics. They try to sweep everything away with economic development. Those little dwarfs still have the absurd idea of ​​ruling the world in their minds. South Korea is different. They just want to live in peace in a corner and be able to protect their own little piece of land."

That reason... seems a bit far-fetched, doesn't it?

"South Korea doesn't have many independent companies; most of their companies are controlled by Wall Street."

These words instantly jolted Grove awake. Yes, how could he not have thought of that!
The companies in island nations are truly powerful! Island nation cars have already taken over the American market, and island nation electronics are about to take over the American market! These Silicon Valley elites have already felt the threat from island nations, but unfortunately... they seem to have no way to deal with it.

Business competition? Our capital costs are higher than those of the island nation, our labor costs are higher, and the other side also has government support!

Let's try a different approach: find a place with lower capital costs and lower labor costs than island nations, and with government support, but... it's all controlled by Wall Street capital!
In later generations, almost everyone knows that the island nation's electronics industry declined, leaving only upstream industries such as photoresist, while South Korea's electronics industry was exceptionally developed, with giants like Samsung. So... why didn't the United States target South Korea when it was frantically suppressing island nations, with the Plaza Accord specifically aimed at their economies?

The reason is simple: most of the money South Korea earns comes from Wall Street, so why would they want to suppress it?
“That’s right, Mr. Qin, we welcome your valuable suggestions!” Grove nodded, then, as if remembering something, added, “However, you have to give us an explanation for copying our Intel technology.”

Standing to the side, Zhu Xianghua couldn't help but say, "You guys have gone too far! Qin Liang gave you advice to solve your current predicament, and you actually repay kindness with enmity by continuing to pursue this bullshit plagiarism?"

“One thing at a time,” Grove said.

If the other party just used benefits as a bargaining chip, and the price of their move was that they couldn't be held accountable, then they would have to abide by the agreement. But now... since they didn't say that, then there's no need to abide by it!

"Moreover, all we need is an explanation from you."

"There's not much to explain. The computer was designed by Northwestern Polytechnical University, but it was later bought by Shuguang Machinery Factory. The ones that foreign customers bought were all Shuguang brand, and had nothing to do with Northwestern Polytechnical University. If you want to sue, we'll fight you! We will show the complete cooperation agreement. The computer we designed earlier used the 8086 chip, which was given to us by you Americans. As for what chips the later computers used, that's Shuguang Machinery Factory's business."

It's pointless to insist now that the chip was developed by our side. We can dissect the chip, and so can they. If they take apart a Northwestern Polytechnical University computer and examine the internal structure of the chip under a microscope, and find that it's exactly the same as Intel's, then the evidence will be conclusive.

So now it's been handed over to a shell company!
Grove froze on the spot, and the other Americans were also stunned. The Easterners actually wanted to play this trick.
"Furthermore, we understand that although Shuguang Machinery Factory has made money, its expenses are too high, and it is currently facing a cash flow crisis. It may go bankrupt one day. If you want to sue, you'd better hurry up."

Their methods of manipulating capital are even more sophisticated than those of Wall Street capitalists!

Watching the Americans' faces change from red to white, and then from white to black, Zhu Xianghua was overjoyed. Sure enough, Qin Liang had the foresight. His mind had gone blank just now; how could he have forgotten about this shell company?
If I had known, I wouldn't have panicked at all!

(End of this chapter)