Chapter 571: The Invitation Strategy
"Our entire CPU design department has more than two thousand people, split into countless sub-teams, which I won't go into detail introducing one by one."
Leading the group up floor by floor, Gao Xiaodi explained the function and responsibilities of each level's team to the visiting distributors.
Compared to the wafer fabrication process, the guests found chip design much easier to grasp—especially when Gao introduced the architecture department. Soon, someone was already engaging him in a discussion on the differences between the SOL architecture and Intel's P6.
"Yes, the P6 architecture made significant improvements to microarchitecture, and we have to acknowledge their strengths," Gao said with a smile. "But from a foundational logic perspective, SOL is more scalable."
He thought for a moment, then added, "Besides, our next-generation architecture is already in development."
That immediately sparked curiosity among the group. Xu, one of the more vocal participants, asked eagerly, "President Gao, how much of an improvement can we expect compared to the current version?"
"It's hard to say at this stage, since we're still constrained by fabrication process limits. But I can tell you—it's a 64-bit architecture."
A brief silence followed, before someone asked, "A 64-bit architecture? Wouldn't that require operating system support? Will Microsoft be on board?"
"What do you think?" Gao Xiaodi grinned and countered. "Every time Gates visits China, he makes sure to stop by Yuanxin. Just look at our recent phone launch in Silicon Valley—Gates came to support us even when his wife was due to give birth."
The crowd nodded, suddenly feeling far more assured.
Gao smiled slightly and continued the tour, occasionally pausing at employee workstations to offer technical explanations.
As time passed, they finally reached the top floor. Gao suggested, "Everyone must be tired. Why don't we head to the conference room and take a short break?"
He instructed his assistant to have administration send up some fruit and beverages, then casually pulled out a chair and sat down—eschewing the main seat entirely. The guests followed suit, all of them tactfully avoiding the host's chair.
Not long after, the refreshments arrived, delivered by Gao's assistant and two logistics staff. At the same time, He Wei entered, carrying a thick stack of documents.
She sat directly in the host's seat, smiling cheerfully—prompting a few surprised looks from the guests.
…
Back at Yuanxin's tech park, Su Yuanshan was giving Ken Kutaragi a tour of Xi Xiaoding's Pandora Lab.
The lab had long since outgrown Dr. Xi's original vision. What he had once dreamed of was a true research "lab," composed of no more than a dozen genius-level researchers.
But as the years went by, even though only elite talent was admitted, the team had grown steadily. What started as two or three groups had grown into seven or eight—and if you counted some side projects pursued out of sheer curiosity, there were dozens of them.
Dr. Xi had long since resigned himself to the reality.
You couldn't just let brilliant ideas and creativity die on the vine, could you?
"Mr. Kutaragi, artificial intelligence is one of our core projects here," Dr. Xi said with his legs crossed, sipping his tea as he spoke in fluent English. "I'm personally part of the team. If you choose to collaborate with us, I think we could achieve a 1+1>2 effect."
"I believe so too," Kutaragi replied in English—though noticeably less fluent. But he had no choice; Su Yuanshan had already warned him earlier: "I'm not translating for you today."
"However, Dr. Xi, we'd like to broaden the scope of our discussions on AI."
Dr. Xi nodded. "Please, go ahead."
"From what you've publicly released so far, it seems that Yuanxin's AI focus is primarily on neural networks and machine learning language models?"
Su Yuanshan interjected at that point. "Wait a second, Kutaragi—do you actually understand neural networks and machine learning?"
"…Just a bit," Kutaragi admitted reluctantly. Of course, he wasn't about to confess that he barely understood the concepts. "But Mr. Su, that's not the point. What's important is that we'd like to explore collaboration in robotics. And that doesn't conflict with what you're doing, does it?"
Su Yuanshan muttered inwardly: Oh, yes it does.
These are two completely different concepts.
But Dr. Xi's eyes lit up. Without hesitation, he nodded. "We can do that. It's a good direction."
Su Yuanshan fought back a sigh but eventually nodded with a smile.
Turns out that old saying was right—robots are a man's eternal romance.
And he recalled that in the future, while Japan lagged in internet and AI, their robotics technology remained world-class…
"In the coming wave of industrialization, robots will be a mainstream force—like the Jenny spinning jenny was for textiles," Kutaragi said enthusiastically.
Dr. Xi and Su Yuanshan exchanged glances, both slightly startled.
Wait… so you weren't talking about building a Gundam?
Just then, Su Yuanshan's phone rang. He glanced at the screen and answered immediately.
Ten seconds later, he slapped his thigh with a loud thud.
"Beautiful job!"
…
The next morning, Su Yuanshan personally escorted Ken Kutaragi to the airport. After seeing him off, he didn't leave.
Instead, he waited outside for the next arriving flight.
At 11:00 sharp, the Shanghai flight arrived on time. He Wei appeared at the airport entrance, dressed in a black skirt and white blouse, dragging a small suitcase behind her.
Upon seeing Su Yuanshan, she froze briefly. Quickly handing her suitcase to a colleague behind her, she jogged over and asked, "President Shan? What are you doing here?"
"Of course I'm here to pick you up." Su Yuanshan smiled and opened the door of the executive van. "You're the hero of the hour—please, after you."
"Oh… no, no, I couldn't. You first, sir."
"Don't be difficult—get in." Su Yuanshan then smiled at the mid-level marketing managers following behind. "Come on, everyone."
Once everyone was in, Su Yuanshan was the last to board. Wen Xiaoqian, left behind momentarily, had to scramble to catch up and return to Su Yuanshan's car.
The executive van, sandwiched between a Volvo and a Mercedes, sped toward Yuanxin.
"Hard work, everyone," Su Yuanshan said, noting He Wei's flushed cheeks and the eager, nervous expressions on the others' faces. "Do you know what your real achievement was?"
"You mean closing over 200 million yuan in orders?" He Wei exhaled deeply and smiled, trying to conceal her admiration for Su Yuanshan.
Yes. The previous day, they had secured distributor contracts totaling over 200 million yuan for the coming year. Given that China's market for white-box PCs was around 250,000 units, they had locked down nearly half the market.
And in those days, brand loyalty for computers was practically nonexistent. Whoever sold the machines dictated the market. If the seller pushed, the customer bought.
"Yes, but more importantly—you used a very effective method. A very good one."
Su Yuanshan spoke with genuine admiration.
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Chapter 572: The Firefighting Team
"It was mostly President Gao's speech that backed those distributors into a corner."
He Wei knew well the relationship between Su Yuanshan and Gao Xiaodi. And judging by the fact that President Shan had personally come to pick them up, it was clear he was mindful of giving credit where it was due. So, instead of claiming any glory for herself, she gave Gao Xiaodi full praise—which also helped redeem the image of the CPU department after Su Yuanshan had openly criticized it during the last board meeting.
"Oh? What exactly did Gao say?" Su Yuanshan chuckled, remembering the triumphant tone Gao had when he'd called him the night before.
"He told them Yuanxin has many employees who came back from top-tier foreign chip companies. And in places like Intel and IBM, forget inviting distributors to tour their design and production facilities—even Chinese engineers working there aren't allowed anywhere near the core code and architecture. They treat their own people like thieves…"
"Cough…" Su Yuanshan laughed but sighed.
That guy Gao Xiaodi… always pulling out the national pride card when needed. But as far as CPU strategy went, Su Yuanshan thought this time it was "within reason."
Because honestly, the biggest obstacle the Tenglong processors faced wasn't technology—it was trust. A deep-rooted lack of trust in domestic products, and a near-instinctive reverence for anything from the U.S.
And these people were businessmen, not venture capitalists. They cared about profit, about reliability, about reputation.
Still, once you cracked the distribution network and earned buy-in, the rest of the journey became much smoother.
Su Yuanshan also knew well: in the coming years, public opinion about processors—especially among retail consumers—would be largely driven by "hardcore gamers."
And Yuanxin happened to be really good at speaking to that audience.
After a brief pause, Su Yuanshan asked, "So what's your next step?"
"First, synchronized advertising with our product launch schedule. We've analyzed it closely—once Yuanxin CPUs gain visibility in the DIY market, that momentum will naturally influence brand-name OEMs as well."
"And second—profit margins. Patriotism is great, but if distributors don't make money, none of it matters. So we're working with Meijie to ensure the dealer and distributor networks get their share."
As she spoke, He Wei entered full work mode. She unzipped her briefcase and pulled out a report.
"This year's forecast for the domestic PC market—including brand-name and white-box PCs—is about 900,000 units. Next year, even with modest growth, we should see around 1.2 million units. Now, that may sound small compared to Western markets, but if we secure even half, it's no longer a mosquito's leg—it's a big mosquito's leg."
"And in terms of advertising, we plan to launch a joint campaign with Chengdian Gaoke. We want to build awareness this year and then scale up aggressively."
"If that works, we can replicate the model. First nationwide, then Southeast Asia, then Western markets—our version of surrounding the cities from the countryside."
She spoke with such energy that Su Yuanshan blinked a few times, not wanting to interrupt her enthusiasm.
But this was a strategic matter. If they moved too fast into Southeast Asia next year, it might end in disaster.
Take mobile phones, for example. He was racing to push into Western markets—not just to scale up, but also to reposition focus away from neighboring markets that were soon to be hit by a financial "harvest."
"He Wei, I suggest we hold off on neighboring markets for now."
"Huh? Why?" she blurted instinctively, then caught herself and pursed her lips apologetically.
Su Yuanshan smiled. "Starting this year, our mobile and digital product focus is shifting to developed Western countries. That's also a great opportunity for promoting our processors—after all, building brand recognition is key."
"And like you said, synergy in advertising has exponential effects."
"Plus, Yuanxin needs new profit engines over the next few years. Right now, the processor market in neighboring countries is dominated by the IAO trio. Didn't Gao Xiaodi spend months trying to crack into Asia earlier this year? He nearly got steamrolled."
"So instead of battling it out in entrenched markets, why not charge straight into enemy territory? Western consumers are generally more open to innovation. And with the brand effect from our phones and MP3s, we've got a strong psychological foothold. With the right strategy, it could trigger a powerful reaction."
(AIO = Intel, AMD, Ocss.)
He Wei fell silent, brows furrowed in thought. Su Yuanshan chuckled. "What's wrong? Getting cold feet?"
"No… not at all." She looked up and exhaled. "It just means we'll have to go to Silicon Valley…"
"Mm. But no rush. Focus on stabilizing the domestic market first. I'll have someone prepare everything you need for the Western processor markets. After that…" He offered a wry smile. "You might need to start living on airplanes."
"That's fine. We can handle it," He Wei replied, glancing at her colleagues, who all nodded with cheerful resolve.
"Good. Once we get back, go see President Chen and President Duan. They're waiting for you."
…
He Wei barely had time to drop off her suitcase at the dorm before heading straight to the executive building.
On the way up, she felt a little nervous—President Shan coming to pick them up was already a big deal (even if he was technically just giving them a lift). Now she was being summoned by President Chen and President Duan?
Was the rumor true? Was Yuanxin strapped for cash, and the orders she'd just secured were the company's lifeline?
No, that couldn't be. Anyone who'd taken even a cursory look at Yuanxin's performance would know the CPU division might be shaky, but the rest of the company was thriving. There was no way it was that desperate.
And sure enough, once she arrived at the chairman's office and received praise from both Chen Jing and Duan Yongping, she realized what Su Yuanshan had said in the car was absolutely genuine.
Then Chen Jing's next sentence knocked her speechless.
"He Wei, we're officially appointing you as Director of Yuanxin Group's Marketing Department."
"…What?"
Her lips parted slightly, overwhelmed by the moment.
She'd only been promoted to Deputy Director three months ago.
Everyone knew—whether in business or government—moving from deputy to director was the hardest leap. And she'd only been with Yuanxin for two years. This promotion felt like riding a rocket.
Being named Director meant she was now, effectively, part of Yuanxin's executive leadership team.
Duan Yongping chuckled beside her, teasing, "What's wrong? You're not planning to turn it down, are you?"
"N-no…" He Wei blushed, her chest rising and falling with emotion. She inhaled deeply. "Thank you, President Chen. Thank you, President Duan. I'll do my best!"
"Don't thank us. You should thank yourself," Chen Jing said with warmth and clear admiration.
This young woman had been recruited by Su Yuanshan in a rare fast-track hire. Yet she'd never relied on that connection. She'd worked hard, often staying on the front lines of sales, keeping close to retail operations.
Because of her deep understanding of store-level sales dynamics, she had proposed numerous effective strategies—many of which had since been adopted across Yuanxin's subsidiaries.
That was perhaps the only real "advantage" her connection to Su Yuanshan had provided—getting her voice heard.
And now, having served as the "firefighter" for the CPU department, and delivering stellar results in just two months…
At Yuanxin, such people were never left unrewarded.
"He Wei, the marketing department is a major division. It basically determines the strategy and direction of the company's entire market expansion," Duan Yongping said, his tone serious after the jokes had passed.
Ever since taking over his share of operational leadership, Duan had paid close attention to marketing. At one point, he had even wanted to place his protégé, Cao Xiaoliang, in that role.
But Chen Jing had advised him to wait.
Maybe someone even more suitable would emerge.
Now, Duan was convinced.
He Wei nodded firmly. "Understood. I'll fulfill my mission."
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Chapter 573: The Lockdown Descends
"He Wei's mind is sharp. She's well-suited for the marketing department." Chen Jing glanced over at Su Yuanshan and gave a casual nod.
She was seated on the sofa in Su Yuanshan's office, while he sat half-perched on the edge of his desk. The two of them were speaking with the informal ease of long-time comrades.
"Mm. With over a billion people, it's inevitable a few would be particularly talented in specific areas," Su Yuanshan replied, nodding in agreement. "But I think she still lacks some intuition for overall market direction…"
"That's where you come in." Chen Jing gave him a sidelong glance and smirked. "You're her mentor, after all. No way you'd just sit on your hands."
"…" Su Yuanshan fell silent for a moment, then shook his head in mock exasperation.
"Don't give me that look," Chen Jing said, still smiling. "Actually, in terms of ability, Cao Xiaoliang is also quite good. After all, he's Duan's protégé, and in many ways… they're alike."
She picked up her teacup and blew gently on it before putting it down again, still too hot to drink.
Su Yuanshan perked up. "Oh? You think Duan and I are alike? In what way?"
"Both of you are relentless mentors."
Su Yuanshan blinked. "Relentless? Or reckless?"
Chen Jing rolled her eyes at him. After a pause, her tone softened. "Honestly, Duan… and your senior brothers, too—they all have solid character. Duan brought those people out of Xiaobawang, and while saying every one of them is an elite might be a stretch, they're all truly his disciples. And he's never had that 'train your student, starve your master' mentality. In the old-school sense, he passed down everything."
"But the truth is, while Cao Xiaoliang is talented, he doesn't have the same closeness with you that He Wei does. The marketing department is becoming more and more important in Yuanxin. If Cao took over, it'd be awkward for you to get involved. With He Wei, there's no such barrier."
As she explained her reasoning for appointing He Wei, Su Yuanshan finally understood her deeper strategy. He smiled wryly. "Jing-jie, please don't treat me like some kind of omnipotent puppet master… I'm not the Chairman who tells everyone to advance ten meters."
That line made Chen Jing laugh.
At Yuanxin, there was a long-running joke based on a historical anecdote about Chiang Kai-shek. The story goes: one night, unable to sleep, he called the frontline and barked, "Soldiers, advance the machine-gun nest by ten meters!"
"Don't get lazy," Chen Jing said, her smile fading. "You're the one who said the next two years will be the most critical. We have to maintain expansion while preparing for a coming winter in semiconductors—and brace for pressure from all sides…"
Her brow furrowed, and she gave him a pointed glare.
Su Yuanshan, of course, hadn't kept Chen Jing in the dark about the bigger picture. Particularly with the looming financial storm—she needed to understand it in order for Yuanxin to start repositioning its resources ahead of time.
From the very beginning, Yuanxin's outward expansion had focused heavily on neighboring markets. But Su Yuanshan hadn't presented it like some prophetic prediction about Soros or global conspiracies—he laid it out from a financial systems perspective, analyzing the foreign exchange vulnerabilities of Southeast Asian countries, especially the "Four Little Tigers."
Given what Soros had done to the British pound in 1992, it wasn't hard for Su Yuanshan to predict that the Asian economies, in their current state, were ripe for the taking by speculative capital.
Maybe it was because Su Yuanshan had never been wrong before. Or maybe she just trusted his instinct. Either way, Chen Jing chose to believe him.
"Alright, alright. I won't slack off. I'll start working overtime," Su Yuanshan said, raising his hands in surrender.
"Just don't burn out." Chen Jing sighed. "Because if you're right, the next few years won't be easy for us either."
"No, Jing-jie… we'll be fine." Su Yuanshan's expression hardened. He looked southward through the office window. After a few seconds of silence, he said softly, "What's poison for them… will be medicine for us."
Chen Jing was quiet for a moment, then stood. "Okay. I'm heading back to the capital. I'll fly to London next week."
…
If promoting a product is like navigating across a frozen lake, then the marketing department is the icebreaker.
He Wei earned the unanimous endorsement of Su Yuanshan, Chen Jing, and Duan Yongping because she had found a workable, effective strategy—she had become the ship that could break through.
And with her appointment finalized, Yuanxin's associated companies ramped up aligned campaigns to support their move into China's PC market.
For instance, Chengdian Gaoke's home computer ads began prominently featuring the "Tenglong" processor as a key selling point—a first in domestic television advertising.
Yuanxin's CPU division followed Intel's example and began releasing sleek, minimalist ads complete with a signature sound. Since Intel had already claimed the iconic "dun-dun-dun-dun-dun," Su Yuanshan cheekily recreated the classic Windows XP startup tone—by picking up a guitar, heading to a friend's place with a piano, and recreating it from memory.
"Sorry, Bill," he muttered after recording it.
In addition to TV spots, Yuanxin ramped up print and soft media efforts, flooding tech outlets like Computer Weekly, Computer World, and PC Enthusiast with ads and feature stories. After the launch of the new Tenglong 166 during National Day, they even mailed curated review units to major PC publications.
With this media blitz, the Tenglong CPU finally began to break into the public consciousness—at least among computer-savvy consumers.
That growing brand recognition, combined with the new model matching Intel's top speeds, naturally made it easier to gain traction at retail.
Market response validated He Wei's judgment: she quickly secured bulk orders from Fantasia and Tongfang.
While these weren't flagship partnerships (Chengdian Gaoke had exclusive rights to that title), they still helped round out those companies' product lines.
The real battle for market share in branded PCs, however, would depend on how Chengdian Gaoke performed in a market now ruled by four major players.
Just as things seemed to be heading toward a promising future, one line of international news changed everything.
It flashed briefly on the nightly broadcast of CCTV's news program—just a short bulletin. But within China's tech circles—especially among firms that relied on Western cooperation—it sparked a storm.
October 7th: The Wassenaar Arrangement was signed.
It would officially take effect on December 1st.
October 15th: Yuanxin convened its third-quarter executive board meeting.
This time, Su Yuanshan personally took the chair.
The agenda:
"How to Prepare for Upcoming Technological Blockades and Challenges."
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Chapter 574: Vigilance in Times of Peace
The atmosphere inside the conference room was solemn and heavy, and a few extra chairs had been added—two important heads of Yuanxin's core departments, Gao Xiaodi and Li Yinan, were also attending this meeting.
Even the person taking minutes today had a title that would astonish outsiders: Zhou Xiaohui, who now oversaw all operations in the Pearl River Delta and had full access to every high-level meeting at Yuanxin.
In front of each attendee, besides their own laptops, was an additional reference dossier.
No matter how serious the subject, proper procedure couldn't be skipped. Rotating chair Xi Xiaoding sat at the head of the table, and after briefly outlining the purpose of the meeting, he handed the floor directly to Su Yuanshan and continued reviewing his notes in silence.
Ten days earlier, Su Yuanshan had sent an internal email requesting that all members of the executive board consider the possible impact of the WA Agreement and propose contingency strategies for Yuanxin.
As the head of R&D and Yuanxin's Chief Scientist, this was the first time Xi Xiaoding had ever felt such crushing pressure.
In the days that followed, he had suspended all of his research to conduct a full audit of Yuanxin's current technological capacities. He also reached out to every overseas partner to gauge their position. The results were… not promising.
…
"Everyone," Su Yuanshan began, his tone more serious than usual, "since you've already been briefed, I'll get straight to the point."
After a brief pause, he opened his notebook.
"Over the past ten days, discussions have taken place within the domestic scientific community, academia, and even within our company, about the implications of the WA Agreement signed ten days ago. Let's be clear: the WA Agreement is, at its core, a new rich man's club formed by a handful of developed nations. But I've observed that opinions still vary within China regarding its significance."
"Some people argue the WA Agreement is focused on military exports, especially weapons control, to extend Western influence in unstable regions and reinforce global hegemony."
"They claim that as long as civilian technologies don't have clear military applications, the impact will be limited. They cite examples like the U.S. allowing civilian use of GPS and even authorizing its use in China as a precedent."
At this point, Su Yuanshan sighed. "What they forget is that the so-called civilian GPS access came with the E911 mandate, which forced mobile operators to build public safety location networks—essentially enabling real-time tracking of users via their phones anywhere, anytime. Sounds like precision-guided cleanup to me."
He muttered a curse, then went on.
"I won't even mention countries like Portugal, Spain, or the smaller Eastern European states. Sure, they might be good in some areas, but can they build atomic bombs? Intercontinental missiles? Are they seriously looking down on 'Miss Qiu'?"
(Note: "Miss Qiu" is the codename for China's first atomic bomb—596.)
(Note 2: "Two Kick Fireworks for the Sheikhs" is slang; the reader should know the implication.)
Everyone in the room knew—back when the "Eight-Inch Group" was dissolved and the entire country had breathed a collective sigh of relief, Su Yuanshan had remained on edge. Now that his predictions had come true, no one was going to stop him from venting a little.
"So, I say those people… their brains must be waterlogged."
After unloading, Su Yuanshan picked up his glass, took a sip of water, and exhaled deeply.
"What I mean is—'be prepared for danger in times of peace' has been our guiding principle since the night I first persuaded my father and uncle to establish Yuanxin. Today, we must prepare for the worst-case scenario: what if, one day, this country rises to such a level that it triggers full-scale confrontation and complete technological decoupling—what then?"
"I hope everyone understands—this is our new baseline."
The room fell into a deep silence.
Su Yuanshan rarely talked about Yuanxin's founding. From the start, he'd worked hard to turn it from a personal venture into a collective one. Hence the wide distribution of shares, the founding team, the creation of Yuanxin Holdings, and this very executive board system.
Today was the first time he had publicly admitted, "I persuaded my father and uncle to start Yuanxin."
That could only mean one thing: he would brook no challenge to his judgment.
—Not that anyone was going to challenge it.
In the past five years, Yuanxin's development had already proven that Su Yuanshan wasn't just a technical genius—someone who'd become an associate professor at twenty-two—but a visionary entrepreneur decades ahead of his time. His macro-level decisions had never been wrong.
"Based on this thinking, I've outlined the major challenges Yuanxin will face in the near future."
"The most immediate is the expansion of our wafer fab."
At that, Su Yuanshan turned to look at Zhang Rujin.
Zhang gave a small, bitter smile. He paused, took off his glasses, and glanced around the room.
"I just returned from Japan yesterday. I met with both Nikon and Canon, our key lithography machine suppliers. While they both expressed willingness to continue prioritizing cooperation with Yuanxin, the moment I brought up the WA Agreement, they refused to make any commitments."
"But there is a silver lining," Zhang added quickly. Su Yuanshan mentioning the fab first meant it was still the top priority, since it currently produced over 80% of Yuanxin's chips.
"Nikon has been using several of our optics team's technologies. They don't want to burn bridges, so they've agreed to accelerate delivery on our orders before the WA rules go into effect. Of course, they didn't guarantee completion—but the fact that we're allowed to jump the queue is already good news."
Su Yuanshan nodded. It was something—though it reminded him uncomfortably of TSMC rushing out 7nm orders during an export crunch in his past life.
His blood pressure spiked.
After a pause, Zhang continued. "If we're to prepare for the worst, then we must reduce reliance on foreign high-end tech. That makes domestically built lithography machines more urgent than ever."
He put his glasses back on and flipped open his notebook.
"But… the situation isn't promising. Domestic lithography depends heavily on foreign components."
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Chapter 575: Yuanxin's Madness
Just as Zhang Rujin began detailing the current state of domestic lithography development, Su Yuanshan raised his hand and interrupted with a wry smile.
"Uncle Zhang, leave us some hope, will you?"
Zhang paused, caught off guard. But seeing Su Yuanshan's forced smile, he couldn't help but laugh bitterly and shake his head.
Indeed, it wasn't something one could dwell on too deeply. If you pulled on this thread too far, it would eventually unravel into a discussion about the overall state of China's industrial base—a subject far too heavy and complex for even Yuanxin to bear.
On the surface, Yuanxin seemed to be standing shoulder to shoulder with the world's leading tech giants. In some areas, it even had a slight edge. But those giants rested on an entire pyramid of industry, built from the bottom up with solid foundational layers. In contrast, Yuanxin was more like a skyscraper that had been raised from a sea of single-story shacks—many of its materials and supports still imported from abroad.
No matter how tall or luxurious that skyscraper might be, it could never match the stability of a pyramid.
That, more than anything, was why Su Yuanshan insisted on prioritizing the wafer fab—even if its spin-off would cost Yuanxin dearly. Because he knew: the foundry wasn't just a business—it was the cornerstone. It was the base of their own future industrial pyramid.
"As for lithography," Su Yuanshan continued, "Engineer Zheng gave me a quick briefing. So far, our equipment pipeline hasn't been directly affected. But he's playing it safe and has ramped up procurement."
Domestically, lithography had taken a slightly different path than originally expected. From virtual obscurity, it had grown to the point of producing machines that could handle 436nm g-line lithography suitable for 0.8µm processes—an accomplishment that, in theory, should be encouraging.
But paradoxically, it now meant domestic progress had reached the threshold of being targeted for a tech blockade.
Just to clarify: by wavelength and linewidth theory, g-line sources can theoretically push down to the 0.25µm node. But as the process approaches those limits, everything becomes exponentially more complicated. For example, even now, Hongxin's machines had been installed for over six months, yet Huajing was still struggling to fully adapt their matured 0.8µm process to them.
What's more, g-line photoresist materials in China still only supported up to the 0.5µm node. So even with machines in place, practical scalability was bleak.
Even Yuanxin's own advancements in process technology had only been possible thanks to Nikon's i-line 365nm machines. While the theoretical minimum process node was still 0.25µm, the shorter wavelength and better beam profile gave them a serious edge.
Meanwhile, Intel had already launched their Pentium MMX line last year, built on a 0.35µm process—and with ease reclaimed the crown for performance, proving the sheer strength of its manufacturing technology.
Word on the street was that Intel's 0.25µm process was nearly ready for production.
And Deyuan? Still stuck wrestling with 0.35µm.
At the same time, Nikon had already begun shipping the next generation of lithography machines using 248nm KrF excimer lasers, with 193nm ArF systems in development—DUV, the now-famous deep ultraviolet.
With multiple-patterning techniques, DUV could eventually hit the dry-lithography limit of 65nm.
After that would come immersion technology.
If there was anything that still gave Su Yuanshan a sliver of hope, it was the long-troubled dual-stage wafer platform and the not-even-half-conceived immersion lithography approach.
After a few seconds of thought, he said, voice low but resolute, "To the state, lithography equipment is a golden treasure—nurtured with great difficulty. There's no way they'll just abandon it. We only need to do what we're supposed to do."
He raised his hand sharply, as if to sweep away the gloom that had crept into the room.
Chen Jing, watching him, didn't hide the soft look in her eyes. She suggested gently, "Maybe we open the floor for discussion?"
"It's fine. Next topic," Su Yuanshan replied firmly, turning to Tian Yaoming and then to Li Yinan at the end of the table.
"When we talk about a tech blockade, we're not just talking about restricting access to foreign technology. It also means suppressing our ability to expand. Wireless communication is the future—even the global consensus agrees on that. And even our own country is establishing a Ministry of Information Industry."
"So what's the outlook from your communications department?"
Tian Yaoming, normally upbeat and full of optimism, actually frowned. He glanced at Li Yinan.
Li picked up the cue and cleared his throat.
"In terms of communications technology and standards, we've already built a fairly robust patent wall. We've also secured cross-licensing agreements with firms like Qualcomm and Ericsson. In short, we're not afraid of being locked out. In fact, thanks to our core patent in power control, we can even restrict others if necessary."
Su Yuanshan nodded. "Go on."
"But…" Li Yinan said with a half-smile, "If those folks get shameless and try to block our international expansion, well… President Shan, I have no countermeasures for that."
The gloom lightened a bit with that comment—finally, some good news.
"Besides, there's a saying going around: once you control telecom infrastructure like base stations, you've basically planted a flag in another country. Like a form of technological colonization… If it really comes to that, it won't be enough for us to fight alone."
Su Yuanshan chuckled. He realized he was asking the wrong person and turned instead to Chen Jing.
"President Chen?"
Chen Jing answered crisply: "Two words—discounts and dominance."
"In recent years, we've built over 5,000 base stations across Southeast Asia by partnering with local telecom companies—using joint ventures, investment, extended payment terms, and subsidies. Thanks to the local economic growth, we've now recovered most of the investment."
"As for other regions…" She paused to sip from her water glass. "During my last trip to Europe, I spoke with several telecom execs. For now, there's still some skepticism about our technology—understandable, given the legacy of players like Nokia and Ericsson."
"So to enter developed markets, we need breakthrough tech. We have to be the only option, the one with the must-have product. Then things become much easier."
"Furthermore, while they can block our hardware exports, they can't block us from licensing our patents. Which is why I suggest that R&D do a full audit of our current technical assets: list out what we lead in, what we can catch up on, and what still relies on foreign tech."
"Once that's clear, we focus our firepower: double down on strengths, chase autonomy where needed, and expand aggressively."
"In the worst-case scenario, even if our products stay domestic, our technology can still reach the world—we'll just live off patent royalties. That works too, right?"
Her words drew firm nods from several of Yuanxin's senior engineers.
Yuanxin had always been hampered more by industrial limitations—by slow machinery imports and weak foundational manufacturing—than by intelligence or ingenuity.
Because in terms of pure brainpower? Yuanxin was second to none.
—This was a company often dubbed "Mini-Academia Sinica." It had become the ultimate destination for top-tier computer and semiconductor graduates willing to enter the private sector. It placed insane value on R&D.
Right now, Yuanxin wasn't just a tech company.
It was a collective embodiment of the nation's finest minds.
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