America: My Time

Chapter 272 The Dilemma of the Semiconductor Industry
Chapter 272 The Predicament of the Semiconductor Industry

Morgan couldn't ignore John's words. If John really had such ideas, Morgan's and Rockefeller's schemes would all fall apart. With John's intelligence, if given a year or two, he might really be able to revive the two major airlines.

"John, what do you think of the aviation industry? Are you really unwilling to get involved in the manufacturing of civilian large aircraft in the United States? You know, McDonnell Douglas is a good choice. If you miss this opportunity, it will be difficult for you to get involved once McDonnell Douglas has calmed down its internal situation!" At this moment, Morgan continued to probe John's thoughts, trying to find out if he had any ideas about aircraft manufacturing.

"I lack the time, energy, and funds. This might be the best opportunity for an acquisition, but I simply cannot do it. Time, energy, and funds are far from sufficient for developing commercial large aircraft. Gulfstream's current capabilities are inadequate. Integrating some of McDonnell Douglas's assets with Gulfstream would only plunge Gulfstream into difficulties. In contrast, I would much rather take over Hughes Aircraft Company, making it the best in the helicopter industry and the strongest player in the field. Only by becoming strong and large can we generate sufficient profits and ensure the company's stable development. With Boeing around, I don't believe McDonnell Douglas can achieve much growth, let alone compete with Boeing in the commercial large aircraft market! Right now, I prioritize the development and expansion of semiconductors over choosing commercial large aircraft, which I'm unfamiliar with."

When he heard John bring up Boeing, Morgan couldn't help but sigh inwardly. It seemed that John, the little fox, really had no intention of getting involved in commercial aircraft, at least not in the short term.

“That’s true, you have your concerns. It’s right to be cautious in industrial manufacturing, especially after the Jeep incident, which left you with lingering fears. I understand your choice! However, regarding the automotive industry, do you really not want to continue having factories in the US? I know Bentley has been bringing up Polaris Industries, but I’m not referring to that, I’m referring to Jeep, and Bentley as well.” In Morgan’s view, John’s repeated refusals were perhaps precisely because of the previous confrontation with Jeep. With so many companies involved, it’s understandable that John would be wary.

"Is this what you Morgans want to know? Is it those old guys, the United Auto Workers, or the White House?" At this moment, John couldn't help but become more vigilant. For Morgan to ask such a question, this matter was probably not simple. Perhaps all of the above was possible. After all, in many people's eyes, Bentley's reaction had set a bad precedent for the entire American auto industry, and could cause the situation to spiral out of control!
"It seems nothing can be hidden from you. It's the White House and Ford who are deliberately asking. These guys want to know your exact thoughts. After all, this is a manufacturing industry, and the White House can't ignore this relocation."

"Jeep's manufacturing will cease, but research and development will remain in the US. Specialized production will be outsourced to Polaris Industries. Jeep's workers will have to fend for themselves. This time, Bentley Motors will not compromise; no one can change their minds. The White House cannot alter Bentley's decision. Wrongdoing must have consequences; no one is exempt! If Bentley Motors were to abandon its punishment of these guys simply because of persuasion, who would care about Bentley's dignity? Everyone would think Bentley is easy to bully, and that I am easy to bully. If the White House insists on having its own ideas, there's nothing I can do. If they are not satisfied with my sincerity, I don't want any more sacrifices; my money didn't grow on trees."

Faced with John's answer, Morgan and Jimmy both sighed. Although they had known this would be the outcome, hearing John's answer in person was still hard for them to accept. It meant that John, this little fox, was incredibly tough on such matters and wouldn't give those guys any chance to scheme.

“I understand. I will communicate with White House. I believe that with such an acquisition, White House will not have any complaints. Besides, you have production plants in the United States, so White House cannot make too many demands. The development of enterprises should not be affected by them, and they cannot interfere with the normal development of enterprises.”

"Yes, the White House has no right to interfere with the development of companies. If they wanted to meddle in everything, the United States would have no way to develop, and companies would have no means of survival. In my opinion, investing heavily in research and development is the most important thing. If the United States' technology falls behind Japan, it will be difficult to catch up later. Although I know that those guys in the semiconductor and automotive industries have been encouraging the White House, I want to say that they are wrong. It is not feasible to rely on the White House to pressure Japan. Even if they succeed, it will not benefit them in any way. The technological lag is irreversible. They are only pursuing profits and have forgotten that they are high-tech companies."

"John, do you think our plan will fail?"

"No, failure is inevitable. As long as the White House is determined, taking down Japan is only a matter of time. However, this doesn't mean the US can control everything in the semiconductor industry. In my opinion, semiconductor manufacturing will gradually move away from the US because the cost is too high. So even if those guys incite the White House to suppress Japan's semiconductor industry, they will eventually lose that part of the production themselves. Instead of wasting time scheming against Japan, they should focus their energy on research and development. Is IBM's R&D capability weak? Are they unable to develop more powerful servers and workstations, or are they incapable of developing professional servers and workstations like Dream World, as well as network systems? No, they have the capability, but they haven't done so. IBM's investment in R&D is too low these days, and so is the entire US. Perhaps their mindset is too outdated and needs to change." John paused at this point, then continued, "As I said during the previous fundraising, neither Dreamworld nor Nvidia will distribute dividends like Gameworld will do in the next few years. Instead, all revenue will be invested in research and development. Only by securing absolute patent rights can one truly dominate the market. Some people only see the immediate benefits but not the long-term benefits. I hope Morgan can stand with me on this issue."

"Don't worry, John, Morgan won't do anything foolish. The faster Dreamworld and Nvidia develop, the more we'll benefit. We'll absolutely support you in the company's development. But John, what are your plans for Global Online? Don't you really need to raise some funds? You know, a lot of people are watching this company."

"It will be difficult to raise funds in the short term, after all, it still has few customers and limited revenue. Most importantly, the development of personal computers is still too slow and it needs time to accumulate experience. In a few years, the situation may be completely different. When Nvidia develops a powerful enough chip and storage technology advances further, it can fully support the graphical operating system of our dream world. At that time, everything will have a qualitative leap."

"John, don't you dream of acquiring other companies? Relying solely on your own research and development might be too slow. If you could acquire other companies, many of your problems might be solved!"

"Oh, does Morgan have a way to help the idea of ​​Dream World?"

John became even more wary of Morgan's words. This guy was clearly eyeing Dream World. If Dream World continued to make acquisitions at this time, it was likely that what the other party wanted was not cash, but shares of Dream World!
"That's certainly an idea. Dream World could acquire and merge with other companies to accelerate its own development. With professional software and powerful hardware, it could grow rapidly."

"I really don't have such thoughts in the short term. Neither Intel nor AMD can be acquired. Moreover, their help to Dreamworld is limited. After all, their technology has fallen behind Japan, their memory has been overtaken by Japan and other companies, and they are not as good as Nvidia in chip development. So, acquisitions and mergers are really not very useful."

Upon hearing John's words, Morgan sighed. It seemed his plan had failed; acquiring more shares through mergers and acquisitions was impossible. However, this also demonstrated the impressive technology of Dream World. Intel and AMD had fallen behind Japan in storage, and even Dream World looked down on them, not even considering acquisition.

"John, does Japan really have such strong R&D capabilities? This isn't just my question; it's a question many on Wall Street have. We all want to know just how far Japan has progressed in the semiconductor field?"

"Japan is indeed very strong in the storage field. Dream World's workstations and servers all chose Japanese storage instead of American storage. The reason is simple: American products cannot meet Dream World's needs, or even the needs of the game world. I know these guys have been encouraging White House, and have even been using the media to get the game world to buy their products. An outdated product, a product that cannot meet the game world's requirements—what reason do we have to accept their ridiculous argument just because they are an American company? We have no obligation to help them!"

(End of this chapter)