The Magician’s Memorial - Chapter 130



Only Krnovel

Episode 130 The disappointing side (4)

Various types of semiconductors are used in mobile phones.

In particular, to make a smartphone, everything from memory semiconductors to communication semiconductors was needed.

It was not wrong to say that in order to make a CDMA-based smartphone, you must use Qualcomm’s semiconductors.

Technology monopoly.

Qualquen’s technology would monopolize the CDMA market.

Before smartphones became popular, a patent contract with Qualcomm had to be signed to sign a contract on good terms.

That’s why I flew directly to the United States.

I immediately went to SAVE Investment Company and asked about the progress.

“How are negotiations with Qualcomm progressing?”

He was a team leader who moved to the United States a few days earlier than me.

He was working with David on Qualcomm-related matters.

“Acquiring Qumcom’s shares was not difficult. Until last year, the stock price hit the upper limit at $88, but now it has risen slightly and is around $35.”

“You acquired a small amount of Qualcomm’s shares at the last Wall Street meeting, right?”

“We own approximately 12% of Qualcomm shares.”

One of the companies that suffered the most from the IT bubble was Qualcomm.

Even after a few more years, Qumcom’s stock price would fall to the low $10s.

“What is the share structure?”

“Qualcomm owns only 20% of the stock, and the remaining 80% is held by Wall Street and ants.”

“If we hold just 8% more, our stake will be higher than Qualcomm.”

“You can buy right now. “Wall Street is desperate to sell IT stocks right now.”

Qualcomm stock is now worth $35.

When the smartphone era begins in earnest, it will rise at least three times.

So there was absolutely no reason not to buy.

“If you’re going to buy, let’s go for it quickly. “Try to secure up to 50%.”

“Although Qualcomm’s stock price has fallen a lot, its market capitalization is over $40 billion. “We need to invest at least $16 billion to increase our stake to 50%.”

“Don’t you have that much extra money? “It would be enough to just invest the money earned from IT derivatives.”

“Yes, but wouldn’t it be too dangerous?”

“It may be difficult for the time being, but even after a few years, you will be a good son. So don’t worry and secure your stake.”

“All right. “We will go around Wall Street and secure as many shares as possible.”

After smartphones were released.

No matter how much money you give, it will be difficult to secure a stake in Qualcomm, but it was possible now, right after the dot-com bubble burst.

***

A few days later.

I found a quiet sandwich shop near Washington.

The door was closed, perhaps because it was late, but I knocked on the door.

It was a very faint knocking sound, but there was an immediate response.

Click!

A large man opened the door.

To be called a chef, he was a man whose entire body was made up of muscles.

“He’s waiting inside.”

I followed his guidance and went into the restaurant.

Someone was eating at one table.

“I’m sorry for being late. “There is no time other than now, so please understand.”

“no. “He will become the President-elect of the United States in a few days, so of course I have to be on time.”

The person in the restaurant was George Bush.

Because the election battle was so fierce, he, who had a very disfigured face, offered me a seat.

“The sandwiches here are very delicious. This restaurant was introduced to me by my father. “The bacon sandwich is especially excellent.”

“Then I will eat the same thing.”

Perhaps because it was a simple meal, the sandwich arrived in front of me in just a few minutes.

Since Bush was staring at me, I had no choice but to take a bite of my sandwich.

It was an ordinary sandwich with bacon, tomatoes, and lettuce.

“How does it taste? “There aren’t many places in America that make proper sandwiches.”

“Thank you for introducing me to this great place.”

“I should be the one to thank you. If it weren’t for SAVE Investment Company, the campaign funds wouldn’t have been as generous as they are now. But what did you believe in when you sponsored me with such a large amount of money? “What are you going to do if I don’t get elected?”

There are two days left until the election.

However, the approval rating gap was still narrow, so Bush appeared uneasy.

“SAVE Investment Company has never failed in an investment so far. Stocks, bonds, futures, even people.”

“Do you believe that I will absolutely be elected president?”

“Why would you come to a sandwich restaurant at this late hour? “If it wasn’t for meeting the President of the United States, I wouldn’t be here.”

“You are more confident than our aides. Still, hearing what you said made me feel a little more at ease. “Thank you.”

In order for Taewoo Group to expand into the world, it needed help from the United States.

It wasn’t even helpful. The United States did not have to interfere.

That’s why we invested a lot in Bush, so he had to become president.

“I prepared a gift for the president in advance.”

“Hehe, are you talking about a gift already? You’re going too far. “Still, I’m curious about what you’ve prepared.”

“Taewoo Group has decided to build a new $10 billion factory in the United States. “We will build a factory in the area the President wants.”

Taewoo Motors and Taewoo Electronics needed new factories.

As US sales were increasing, a new factory had to be built in the US as well.

If you’re going to build it, wouldn’t it be better to keep the president’s spirit alive?

“I have prepared a very nice gift for you. “I will also prepare a reciprocation so that you will not be disappointed.”

“Just the heart is enough.”

The meeting with Bush ended briefly.

The next meeting will probably be the presidential inauguration ceremony.

***

Next on the agenda was Apple.

I went to California and visited Apple headquarters.

Steve welcomed me with an awkward smile.

“It was hard to come this long way. And I’m sorry. “The release of the iPhone keeps getting delayed.”

“It’s not too late yet.”

Steve’s perfectionist personality was truly remarkable.

Even though Apple’s stock price was falling due to the dot-com bubble, the company was delaying the release of the iPhone and upgrading its performance.

“We can’t delay the launch any longer. “We will unveil it in time for CES (Consumer Electronics Show) next year.”

“When do you plan on officially launching it?”

“We plan to officially launch it within June at the latest.”

“Then there are less than eight months left. The production schedule will be tight.”

“So I’m a little worried, but wouldn’t we be able to meet the quantity through consignment production?”

Steve had already signed a contract with a Chinese company specializing in consignment production.

If I had stepped forward, Taewoo Electronics could have taken charge of the consignment production, but it was not profitable, so I took a step back.

Since Apple only pays 3% of profits for consignment production costs, the margins were not suitable for Taewoo Electronics.

However, if it is a parts contract rather than consignment production, a margin remains.

I also came to Apple to talk about that.

“I want Taewoo Electronics to supply all of the semiconductors that go into the iPhone.”

“Did Taewoo Electronics also have a semiconductor company? “I was planning to sign a contract with Samjin Electronics, Hyunjae Semiconductor, and a Japanese semiconductor company.”

“We are currently planning to acquire the electronic semiconductor division soon. “The acquisition is possible within this year at the latest.”

“It would be possible if we acquired a semiconductor company, but we cannot sign a contract with just one company. “You have to spread the risk.”

It was advantageous to procure parts from multiple sources.

If parts are procured from only one source, production problems will occur in the event of a major accident such as a fire.

However, if procured from multiple sources, there may be some disruption in production, but production does not come to a complete halt.

“I completely agree with what Steve said. “Although we are still taking over Hyunjae Semiconductor, it is risky to sign an exclusive contract when we do not know whether Taewoo Electronics can produce proper semiconductors.”

“But why did you make that suggestion?”

“It’s for Apple’s future. Taewoo Electronics does not produce mobile phones. So there is no competition with Apple. However, in the case of Samjin Electronics and other Japanese semiconductor companies, they produce their own mobile phones.”

Technology leakage.

Steve used all of Apple’s capabilities to create the iPhone.

Among those technologies, some were patented by Taewoo Electronics, and many of them came from my head.

But if you sign a contract with a competitor.

Naturally, it was inevitable that the technology would be leaked.

Of course, it is impossible to copy the entire technology, but it does end up teaching some of the smartphone manufacturing technology.

“You have a point. “Competitors may not be able to manufacture smartphones similar to the iPhone right now, but they are bound to produce competing products at some point.”

“Taewoo Electronics does not compete with customers. Wouldn’t that make customers feel comfortable signing a contract with us?”

Do not compete with customers.

This wasn’t something I came up with.

This is a quote from a Taiwanese semiconductor foundry company.

And it was also the direction in which Taewoo Electronics’ semiconductor division would move forward.

“Are you planning to grow Taewoo Semiconductor into a foundry company?”

“That’s right. “Starting with Apple, we are planning to sign a contract with Qualcomm in the near future.”

This was also the reason for purchasing Qualcomm’s shares.

If only we could sign exclusive contracts with Apple and Qualcomm, we could immediately make up for the current semiconductor deficit.

“I understand what you mean. And I also agree. But can we trust the current semiconductor technology? “If you look at the rankings of semiconductor companies, semiconductors are not even in the top 10.”

“If you look at just sales, it is outside the top 10, but it is not lacking in technology. And Taewoo Electronics plans to invest more than $5 billion in semiconductors every year.”

“Hmm, first of all, I will sign a contract with Hyunjae Semiconductor. However, if there is a problem with product performance or a disruption in production, we have no choice but to sign additional contracts with other companies.”

I got a confirmation from Steve.

Although there were conditions attached, I was confident that I could satisfy the conditions he set out.

Actually, I didn’t have to convince Steve.

Since I owned more than half of Apple’s shares, I could have signed an exclusive contract with Taewoo Electronics if I tried my best.

But it didn’t happen.

Because it could be killing the goose that lays the golden eggs.

“There will be no problems with performance or production. “Even if Taewo Semiconductor suffers a deficit of billions of dollars, I will keep my promise.”

“Are you really planning to print semiconductors with money?”

“Isn’t the semiconductor industry an industry that requires investment of money and time in the beginning? “If necessary, I am considering stealing my personal belongings.”

“That’s a trustworthy answer. “Then I will leave the semiconductor problem to Taewoo.”

Steve had a vague idea of ​​what assets I had.

So, he must have smiled with satisfaction.

However, I had no intention of pressing the issue with only money.

Money and time are important, but one exceptional talent can bring about even greater change.