Chapter 13
Chapter 13
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Translator: Vine
Chapter: 13
Chapter Title: An Offer for the King of Semiconductors
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“Welcome, Chairman. Chairman Lee Yong-moon is already waiting for you.”
A few days later, Chairman Jin arranged a meeting with Chairman Lee Yong-moon of Samjung Group as promised.
The venue was Samyeong Garden in Apgujeong-dong.
The place was run by the parents of Kim Ji-hee, a famous golfer at the time, and was chosen because Chairman Lee Yong-moon was particularly fond of their food.
“It’s been a while, Chairman Jin.”
“I trust you’ve been well?”
The two appeared to be on very good terms.
Good enough that I could set aside all my initial concerns.
The only thing that worried me was that he, too, would have heard the rumors about me that had been circulating in the business world.
Strangely, however, I saw no trace of prejudice in Chairman Lee Yong-moon’s eyes as he looked at me.
“So you’re the second son who pulled off that big deal.”
No, far from prejudice, he was showing a great deal of favor.
It seemed the armor-piercing shell export deal had done far more to quell the rumors about me than I had thought.
“It’s a pleasure to meet you. I am Jin Hyun-seung.”
“A pleasure. I’ve been wanting to meet you. And I’m not the only one; my son is quite interested in you as well.”
Chairman Lee Yong-moon had only one son.
Lee Young-hoon, who would one day succeed him and lead Samjung Group.
He would be about thirty by now?
Given our similar ages, it wouldn’t be strange for him to take an interest in me.
“In any case, Chairman Jin, you must be enjoying these days.”
After a brief greeting with me, he continued his conversation with Chairman Jin.
From the health problems that men their age often discuss to complaints about the looming economic crisis.
When on earth was I supposed to jump in?
I felt a growing sense of urgency, as the atmosphere suggested we might never get to the main topic.
“So, you want to create a sensor module based on MEMS (Micro Electro Mechanical Systems)?”
Just as I was starting to glance at my watch, Chairman Lee suddenly turned to me and spoke.
Had he been paying attention to me throughout their conversation? His question cut straight to the heart of the matter.
“That’s correct. It’s a module for various sensors that go into weapons, including gyroscopes and accelerometers. With Samjung Electronics’ current process level, it should be more than possible to manufacture.”
“For gyro sensors in weapons, don’t they usually use optical or gimbaled types? A semiconductor-based one would likely have accuracy issues, wouldn’t it?”
“That’s generally true, but those are difficult to miniaturize. And since I have a way to boost the accuracy, a semiconductor-based approach is actually more rational.”
“Even so, wouldn't a module make the process quite complex? Which would naturally drive up the unit cost.”
“You don’t need to worry about the cost. We’ve already set the price with those factors in mind.”
“That’s a relief. But in an extreme case, we might have to establish a separate business division. Can you take responsibility for that?”
His words meant that a one-time order was out of the question.
Indeed, if they had to go as far as establishing a separate division, they would naturally be concerned about the project's sustainability.
But I had already factored that in.
“The item I’m planning to develop this time is something that can be exported to the U.S. military, just like the new armor-piercing shells. In fact, not just the U.S., but all of our allies will be interested. Once the U.S. military chooses it, its reliability is guaranteed. In that situation, you wouldn’t have to worry about the business’s sustainability, would you?”
For a moment, Chairman Lee Yong-moon’s eyes wavered.
To drive the point home, I presented more detailed evidence—the effectiveness of precision-guided munitions, their potential customers, and their future impact on the defense market. His brow furrowed deeper and deeper.
“Heh heh…”
After listening for a while, Chairman Lee Yong-moon suddenly let out a hollow laugh.
Puzzled, I tilted my head, and he spoke with a long sigh.
“Listening to you, it occurs to me that perhaps our Samjung Group should consider getting out of the defense sector.”
“What do you mean all of a sudden?”
“Honestly, who would have thought of creating a shell that could counter a missile? This goes beyond staying a few steps ahead; it’s practically creating the future. At this rate, how can we even compete with you going forward?”
“You’re too kind… But without competition, doesn’t progress stagnate?”
“So, you want our Samjung to just clean up after you every time?”
“The profits you’d be taking in would be far too large to call it ‘cleaning up.’”
He responded to my joke with a faint smile.
But perhaps his words hadn’t been entirely in jest.
He then began to lament the difficulties of continuing in the defense industry.
“It’s not just that; there are so many things to worry about. And compared to semiconductors, the profits are just pitiful. Honestly, I don’t see any reason to keep dragging the defense sector along.”
That wasn’t something he needed to worry about just yet.
After all, it was a historical fact that in about eighteen years, Samjung Group would hand over its entire defense division to Jaewoo Thales.
The reason was to focus on semiconductors, their main business, which, from an efficiency standpoint, was the right choice.
“Anyway, I’ll accept the request. And if you have anything else to commission in the future, come directly to me instead of going through your father.”
His final words completely resolved my dilemma.
The sensors were just the beginning. In the future, Samjung was the only place that could custom-produce the various semiconductors I’d need for weapons development, and he had just given me a direct line.
Especially considering the Gallium Nitride devices and military-grade CPUs my research institute would unveil in the near future, getting Samjung to open a ‘Multi-Project Wafer’ division was my top priority.
“By the way, if it’s not too much trouble, I’d like to hear your opinion on something.”
As I was smiling to myself, Chairman Lee Yong-moon suddenly said something unexpected.
What did he want my opinion on?
As I met his gaze, he continued.
“I’m asking if you have any advice on the direction our Samjung Electronics should take.”
“Why are you suddenly asking me that…?”
“Actually, I recently met the commander of U.S. Forces Korea at a party hosted by our Samjung Techwin. He praised you endlessly, saying he’d never seen anyone who could see the future as clearly as you. Since the opportunity has presented itself, I wanted to hear some of that insight for myself.”
He sounded almost like a client visiting a shaman.
Flabbergasted, I glanced at Chairman Jin, but he too was looking at me with eyes full of curiosity.
“If you insist, I’d like to tell you not to give up.”
“Not give up on what?”
Chairman Lee Yong-moon looked at me quizzically.
“The CPU market. Specifically, the Alpha chip that Samjung is co-developing with DEC. I know that DEC is on the verge of collapse due to financial difficulties, and Samjung has all but thrown in the towel. But you must continue CPU development, even if it means acquiring DEC. Only then can Samjung reign as the true king of the semiconductor industry twenty years from now.”
“What…”
He stared at me, his mouth agape.
What was he thinking? His eyes darted back and forth for a long moment before he let out a deep sigh.
“Heh, I never thought I’d hear something like this here. But no matter how great the Alpha chip’s performance is, if Microsoft doesn’t agree to make it compatible with Windows NT, as is the case now, it’s just a pie in the sky. Are you aware that DEC ended up in this mess because they couldn’t overcome that very problem?”
“That’s why I’m suggesting you decide on a bolder investment. You must persuade Microsoft, whatever it takes. If you give up on the Alpha chip now, Chairman, you will have to pour an enormous amount of money into re-entering that market in the future.”
Chairman Lee Yong-moon stared at me blankly.
“Of course, it won’t be easy. From Microsoft’s perspective, they can’t ignore the pressure from Intel, which controls over ninety percent of the market, and their alliance is quite strong. But aren’t alliances in the economic world ultimately governed by the logic of money? If you look for an opening, I believe you will find a solution.”
He looked like he was having a hard time accepting it.
No, he looked like he didn’t feel the need to.
Then again, what was the use of preaching the importance of system semiconductors to Samjung, which was already experiencing tremendous growth from memory chips alone?
Just as history had shown, he ultimately voiced his intention to stick with the status quo.
“It was a rather interesting story, but there’s no reason for us to go to such lengths. Anyway, Chairman Jin, you must be pleased. To have a son with such incredible insight… Frankly, I almost wish he were my son.”
Chairman Lee Yong-moon tried to resume his conversation with Chairman Jin.
Though his words were full of praise, he seemed disappointed by my advice, which he found difficult to accept in practical terms.
But his opinion would change after he heard what I had to say next.
“Then how about you start by targeting the foundry market first?”
“Hmm?”
His gaze returned to me.
Did that sound plausible to him? His eyes were quite bright.
“If Samjung withdraws from CPU design, fabless companies won’t have to worry about technology leaks, so they’d feel safe entrusting you with contract manufacturing, wouldn’t they?”
“That’s a possibility. But the companies that would bring in real money are mostly integrated semiconductor companies like our Samjung, and they’re ahead of us in microfabrication. Other fabless companies would have no reason to give us their manufacturing contracts unless we have a special merit.”
“Then you just have to offer them a merit. For instance, possessing process technology that’s several steps ahead of the 180-nanometer process they’re currently developing.”
“You’re talking about a dream.”
Chairman Lee Yong-moon let out a hearty laugh at my words.
But perhaps because of my expression, which remained serious, his face soon hardened as well.
“What if it’s not a dream?”
“…”
“For example, what if I possessed the technology to scale below the so-called 90-nanometer barrier?”
For a moment, he looked at me as if I were the village idiot.
I suppose it was understandable, given that the global semiconductor industry was still in the development stage of the 130-nanometer process.
But I really did possess 90-nanometer process technology, and I had already verified it through my research institute.
*Pfft.*
After staring at me with a dumbfounded expression, he finally let out a snort of laughter.
Just as his mouth was about to open again, I took out a piece of paper I had prepared for today and pushed it in front of him.
“What is this?”
“This is the core concept diagram for the technology that broke the 90-nanometer barrier.”
“…”
“I’m sure you’re well aware, Chairman, that with existing technology, 130 nanometers is the scaling limit. So, we overcame that limit by increasing the current’s mobility.”
“You solved it by increasing current mobility?”
“That’s right. It’s called the Uni-axial strain silicon transistor. I can assure you, with this technology, it will be possible to develop processes beyond 90-nanometers, even down to 45-nanometers, without issue.”
In that instant, Chairman Lee Yong-moon’s eyes widened.
Proof that he understood the implications.
It seemed the top position at this country’s best semiconductor company wasn’t given for nothing.
“You… you developed this?”
“To be precise, my research institute developed it.”
“…”
He wore an expression of utter disbelief.
I suppose it wasn’t easy to believe that a nameless research institute had developed something that even world-class semiconductor companies were struggling with.
But historically speaking, one must remember that world-shaking technologies have always emerged from the most unexpected places.
“Why would you have a semiconductor research institute…?”
“It’s not exclusively for semiconductor research. But semiconductor design is one of its main research areas. To add to that, just like Samjung, my institute is full of KAIST graduates.”
That was probably the key point that would dispel his doubts.
It meant that under the same conditions, there was no rule saying Samjung had to be the center of the technology.
As expected, his eyes began to waver, and a moment later, his gaze was so intense it was practically burning.
“What on earth are you two talking about…?”
Chairman Jin, who had been listening from the side, cautiously interjected.
Just as I was about to explain, Chairman Lee Yong-moon hurriedly stopped him and then stared straight at me.
“My apologies, Chairman Jin… But why?”
“Why what?”
“If you’ve developed such an innovative technology, you could have entered the semiconductor market yourself.”
“I’ve already entered it, in a way. Didn’t I just tell you I have a semiconductor research institute?”
“No, what I mean is, why don’t you plan to handle the production yourself?”
That was a thought befitting the owner of Samjung, an IDM—an integrated device manufacturer.
Thinking of development and production as inseparable.
But he was only saying that because he couldn’t foresee how the future semiconductor market would evolve.
“When there’s already a potential partner like Samjung, there’s no reason for me to invest tens of trillions of won to build a factory. Not to mention, I don’t have that kind of money.”
“…”
“Simply put, it’s better to leave the baking to the baker.”
“Are you saying you want our Samjung to be the foundry? And you’ll be the fabless company?”
“Exactly. It would be ridiculous to build a factory just to procure semiconductor components for weapons, wouldn’t it? But since I’ve developed the technology, my plan is to connect it to definite profits, which ultimately aligns with the philosophy of fabless companies.”
His gaze instantly turned heavy.
A mixture of anticipation, anxiety, and fear.
As if not wanting to reveal his expression, he immediately changed the subject, shaking the paper I had given him.
“Do you know what this means? If this is real, our Samjung can establish an insurmountable lead in the memory sector as well. As you know, microfabrication isn’t just for system semiconductors.”
“Do you think I wouldn’t know that? That’s why I’m giving you, Chairman, this opportunity.”
“That’s what I don’t understand. Every semiconductor company in the world would come running if they knew about this. Why specifically choose Samjung?”
“Well, saying I thought it would be better for a Korean company to gain an edge in the market first… sounds a bit too disingenuous. To be honest, let’s just say I thought I could squeeze the most money out of you, Chairman.”
*Pfft.*
Chairman Lee Yong-moon let out another hollow laugh.
A laugh with a different meaning than the first.
Then, his expression hardened as he stared at me intently.
“This makes one thing certain.”
“…”
“That you are someone who should never be made into an enemy.”
“…”