RBCT Chapter 1438: This is just the beginning (4k)
Chapter 1438: This is just the beginning (4k)
Chapter 1438: This is just the beginning (4k)
Schroeder, president of Yike America, left Shanghai with a heavy heart and returned to Silicon Valley. In addition to worrying about the company's current situation, he was also uncertain about his personal future. He felt exhausted.
Needless to say, the company would rather give up the American market than compromise. The boss has already made his position clear, and the storm will only get more severe.
But this... leaving Yike...
Schroeder has considered this before, but as a director of YiKe and a member of YiKe's senior management, he is actually cautiously optimistic about the future.
Although it has lost the American market now, it is for the sake of greater and more solid autonomy. It may not be impossible to make a comeback in the future after a series of problems.
Schroeder has been with YiKe for nearly ten years. He has witnessed and promoted the company's rapid development and is very confident in the company's operating mechanism.
In addition, Yike and Bingxin, both companies that have been ranked first in the world in their respective fields, will surely unleash a power that will surprise the outside world due to their closer ties under pressure.
In addition, there is Mr. Fang, who is the best and craziest person in the world and has extraordinary leadership skills.
Therefore, Schroeder really believed what he shouted in the conference room of Yike General Office. He gave up his illusions and prepared to fight, and the fight was of course aimed at winning.
However, Mr. Fang's suggestion to himself now is to incubate a new project...
Schroeder was hesitant.
While hesitating, he was still under great pressure to handle Yi Ke's affairs in the US market, because BIS had imposed trade license controls on Yi Ke based on the Export Administration Regulations, and many of Yi Ke's US clients needed to communicate.
Operators such as Verizon and T-Mobile, suppliers such as Intel and AMD, and channel dealers such as Amazon and Best Buy all need to sort out complicated tasks before completely exiting the market.
What makes Schroeder feel even more complicated is that although BIS has taken action to restrict Yike, Yike's sales performance in the US market this quarter has not only not been affected, but has been extremely popular.
No matter what messy factors are happening outside, Mars 9 still has the world's most powerful core.
According to the current trend, by the end of the traditional peak season in the fourth quarter, the US market will contribute more than US$430 billion in revenue to Yike this year.
430 billion US dollars...
Although Schroeder had the will to fight, his heart bled at the thought of such a loss.
On November 11, the busy American president of Yike, who was in Silicon Valley, received a call from Larry, the head of Google, and was then asked to visit him for negotiations.
Schroeder felt a little surprised about Larry's visit, but he became even more emotional after seeing him in person.
"A meeting against Yi Ke was held in Washington yesterday. Google is under great pressure." Larry said bluntly after a brief greeting, "Washington will soon take escalating actions against Yi Ke."
Schroeder has participated in many rounds of discussions with Yike, so he is naturally basically aware of the situation on Google's side. The so-called pressure will only be from GMS.
But he felt that this matter should be discussed between Larry and Mr. Fang. Whether it was a notification or a warning, it should be communicated directly between these two.
"The cooperation between Yike and Google on the Android system is one of the most successful examples in the industry's history." Schroeder said without hesitation, "At the same time, the in-depth patent cooperation such as the Pro Alliance is also a major initiative to protect the Android system from internal friction caused by patent disputes. Larry, Google is bearing pressure not only for Yike, but also for itself."
Yike has invested a lot in research and development over the years, and part of the results are various patents, which are basically provided free of charge to the Pro Patent Alliance of the Android camp.
Once the relationship breaks down, these patents will also be the counterattack weapons of the Android camp to restart the war, but this will hurt others and oneself, unless it is absolutely necessary. Moreover, Yi Ke is also likely to suffer from Qualcomm 2.0, and the legal provisions are there.
In addition, Yike owns shares in Android and has signed multiple rounds of agreements with Google on system cooperation.
Basically, Yike's cooperation with Google's Android GMS has been the most solid within the scope of laws and regulations.
However, before Schroeder returned to Silicon Valley, he discussed this matter with Mr. Fang. The biggest problem is that the current laws and regulations are not effective, so Washington can just revise new laws and regulations.
It is easy to destroy but difficult to build. Yi Ke is always passive in this regard and can only fight back passively.
The current situation is that if Google complies with Washington's demands, it will not benefit itself, but will most likely suffer losses, which gives it a real motivation to withstand the pressure.
Another key point is that both the relationship between Google and Washington and the relationship between Larry and Obi are relatively good, which helps Google to maintain its position and not sacrifice its own interests to follow the footsteps of those targeting Yike.
Fang Zhuo believes that Google can say "no" for a certain period of time.
"But Washington is still strongly suggesting that Google take action and is considering putting pressure on the EU." Larry did not comment after hearing Schroeder's words, and said with a sharp look in his eyes, "At the same time, Washington will definitely take more stringent measures on the supply chain of Yike and Bingxin."
Schroeder nodded intently. It sounded like Larry had been able to withstand the pressure of this meeting in Washington.
Larry looked at the president of Yike America and said seriously, "It would be better if the supply chain of Yike and Bingxin can perform well, otherwise, it will be difficult for Google to persist."
At the Washington conference attended by many well-known Silicon Valley companies, attitudes towards YiKe were basically split, with many worried about the expansion of such interference.
Larry had communicated with Mr. Fang when he was in Paris, and this time he also expressed his views clearly, disagreeing with the more drastic measures of Washington and BIS.
Yike has already been kicked out of the US market, so why continue to be aggressive?
Anyway, Google does not agree and does not want the Android camp to suffer unnecessary losses.
In addition to participating in the meeting in Washington, Larry also communicated privately with the White House. He felt that he had been very attentive both in public and in private.
However, it must be said that Yi Ke’s resolute withdrawal from the US market and Mr. Fang’s attitude have angered many people, and calls for killing are heard everywhere.
Larry has a lot of worries when thinking about the upcoming election next year.
If the situation becomes more complicated, Google's position will require more consideration.
Schroeder could only say: "I will convey it to Mr. Fang."
Then, he added: "Yike and Bingxin already have sufficient plans in this regard."
Larry took one look at Schroeder and believed it.
After he finished talking about the news with Yi Ke, a smile appeared on his face and he asked, "Schroeder, I heard that many people here in the Silicon Valley Center have been contacted by companies. What are your plans for the future?"
Yike's R&D center in Silicon Valley has a very strong team and capabilities, and was also affected this time.
After hearing this, Schroeder suddenly understood why Larry made a special trip to visit him instead of calling the boss to communicate. He came here for him.
He thought about the project suggestions mentioned by Mr. Fang and said thoughtfully: "I might be in Silicon Valley, or I might do some cutting-edge projects in R&D transformation."
Schroeder then asked, “Well…Larry, do you think I have what it takes to start and lead a new company?”
Larry highly recognized the ability of Schroeder, the CEO of iChem America. When he heard that Schroeder really wanted to leave, he smiled and said, "Of course you have the ability to start from scratch, but Schroeder, instead of that, why don't you come to Google? There is a platform for you to display your talents. We all know how fierce the competition in Silicon Valley is."
He recruited: "Google can provide you with a lot of autonomy, Schroeder, I sincerely say that unless you find a revolutionary project, it is certainly worth your effort and worth your gamble. Otherwise, Google is your best choice. We have a lot of cooperation and we can trust each other."
Schroeder showed no expression. Well, that's what you said.
Mr. Fang provides me with direction, Larry provides me with courage, and with my own little bit of ability, it seems that it may be worth doing.
He still thanked the head of Google for his visit and recruitment.
After conveying the news of the Washington meeting and Larry's attitude to his boss, Schroeder also mentioned his latest intention, which was to try a short video project in the mobile era.
"Intel, AMD and other companies have already obtained BIS licenses. Our mobile phone industry chain has been de-Americanized and almost localized. Now it is the supply chain of Bingxin that needs to be tested."
"Take it slow. Google's current wait-and-see attitude is not bad. As long as the company can withstand the pressure for a period of time, its wait-and-see attitude will become stronger."
Many organizations now predict that Yike will quickly fail because more rumors coming out of Washington include future domination and restrictions on American technology.
Fang Zhuo already knew the content of the Washington meeting in advance, and now he just knew Larry's attitude more clearly, which was not beyond his expectations.
After talking about the company's situation, he agreed with Schroeder's choice: "Schroeder, you will be excited about your choice in the future. TikTok's success in China will also have commonalities in the global market. You will create a great career."
Schroeder was a little flattered. He rarely heard his boss praise people and make predictions like this.
During this phone call, Fang Zhuo continued to talk about support for project incubation. Compared with the performance of overseas markets, he indeed paid more attention to the impact of Douyin on overseas media opinions this time.
After finishing his conversation with Schroeder, he called Larry directly to clarify the current positions of both parties, and his attitude remained quite calm.
By maintaining communication in this way and paying so much attention to and thinking about changes in the situation, Fang Zhuo's work became a little free, but his mind was not idle at all.
However, Su Wei, who had been working overtime recently to compete in the e-commerce industry, felt that there must be bad news when she came home on the evening of the 23rd and saw Fang Zhuo frowning on the sofa.
Although Su Wei had not seen the public news, she knew that Yi Ke had friends in the United States. She first replaced the teacups on the table with hot tea, then sat down and asked, "Is there any new development in Washington?"
Fang Zhuo hummed, then said a beat slower: "BIS intends to revise the Foreign Direct Product (FDP) rules, which will restrict semiconductor designs based on software and technology from there and chips manufactured using production equipment from CCL."
Su Wei understood this and said, "Is this BIS amending the law to extend its jurisdiction?"
Fang Zhuo did not praise Teacher Xiao Su for his quick response. He said "hmm" again and continued, "It will be announced tomorrow, but today, JSR Corporation and Tokyo Ohka, several photoresist companies that monopolize the market, have contacted Bingxin. They have received a notice from Washington and will have to terminate their cooperation with Bingxin."
Su Wei pursed her lips. Because the shelf life of photoresist is usually less than 6 months, it is an extremely suitable weapon for restriction. Yike and Bingxin had previously promoted the implementation of related research and development in Luzhou, and it was obvious that Washington also knew this and contacted relevant manufacturers in advance before BIS officially announced the modification of FDP.
This means that the production capacity of ice cores will face great challenges.
"In addition, JSR Corporation and Tokyo Ohka have to pay attention to the purchase and usage of other customers." Fang Zhuo mentioned another related situation.
Su Wei listened to the news and frowned, "Any other bad news? Tell me all at once."
Fang Zhuo leaned back on the sofa, shook his head and smiled, "Finally, there is good news. Bingxin's previous orders to JSR Corporation and Tokyo Yinghua have been shipped overnight, and we will try to complete them before the BIS restrictions are officially issued."
As photoresist manufacturers, JSR Corporation and Tokyo Ohka are businessmen and do not want to lose a big customer, so they can only do this at this juncture.
Su Wei didn't laugh, and asked, "Isn't this second round of measures from BIS coming too quickly?"
This is beyond previous understanding. It is generally believed that there will be more measures at least until the end of the year. Today is only the 23rd. If it is announced tomorrow, it will be exactly two weeks away from the 10th.
The first round cut off Yike’s U.S. market, while the second round extended jurisdiction, prioritizing the weak spots in ice core operations.
"Who said it wasn't?" Fang Zhuo nodded, "It's indeed very fast, but fortunately it only targets Yi Ke and Bing Xin for the time being."
Yi Ke and Bing Xin have come to the fore. The other side's goal has not changed, they are just trying more measures.
"Washington and the BIS are coming with great force to put out your arrogance..." Su Wei put her hand on the man's arm in front of her and asked, "What should we do?"
How to do?
This question also came to the minds and lips of many people after BIS announced the latest measures as scheduled on the 24th. The top management of Yike and Bingxin knew the main weapon being wielded in this round.
Bingxin was unable to purchase ASML's advanced models in July 2012, and was subject to even stricter restrictions in February 7.
However, it still made breakthroughs by using the models and technologies available to it, and carried out research and development of equipment technology and process technology in various ways.
However, the problem of photoresist is indeed serious, and its time limit is a headache.
On November 11, Fang Zhuo convened a joint meeting between Yike and Bingxin to discuss the latest situation. He did not show any strange expression on his face, but smiled and said, "From yesterday to today, many people have asked me what to do. You really asked me the right question."
"I thought I was a god."
"BIS is coming with such force this time that the supply chains of Yike and Bingxin are beginning to be truly tested."
"but……"
"There is no other way for us to go. No choice is the best choice."
"I read the teacher's book. What he said after the Long March is still very appropriate now - don't be intimidated by the enemy's fierce force, don't be frustrated by difficulties that can still be endured, don't be discouraged by certain setbacks, and have the necessary patience and persistence. It is absolutely necessary."
“I wasn’t intimidated, I wasn’t frustrated, I wasn’t discouraged.”
"Everyone should do the same and show the necessary patience and persistence."
"Washington and BIS still have a lot of cards in their hands. They can say, 'This is just the beginning.'"
"But we can answer them with the same words, but where does that leave us?"
(End of this chapter)