The Magician’s Memorial - Chapter 452



Only Krnovel

452. Variable Creation (2)

Semiconductor executive meeting.

President Lisa, who is in charge of fabless, and President Wei, who was recently promoted and is in charge of the foundry division.

And up to 20 executives, led by those two, attended the executive meeting.

Because we didn’t report our performance at the end of the year.

They came to the conference room carrying a huge amount of data, probably thinking that they would be reporting on performance at this executive meeting.

“We will now begin the Taewoo Semiconductor Vision Meeting.”

“I didn’t plan on receiving a performance report, but it seems like you’ve prepared a lot, so should we start with the report first?”

The planning director took on a social role.

As soon as the meeting started, I first handed the microphone over to the Taewoo Semiconductor executives.

President Lisa took the microphone as a representative and reported data related to Taewoo Semiconductor’s performance in 2016.

It took over 30 minutes just to report the data.

I listened intently to the last words that contained the conclusion.

“Taewoo Semiconductor’s performance has been breaking records every year. And this year, even greater demand is expected. We expect operating profit to increase by at least 20% in the first quarter.”

“With sales of 200 trillion won last year and operating profit of 30 trillion won, the semiconductor market is definitely booming.”

The semiconductor industry has cycles.

It was at its peak now.

But after two years, a recession cycle sets in.

Then, of course, it would have been right to reduce investment.

But there was no need to worry about that, as the Corona era arrived, which would turn the recession cycle around in an instant.

Because it is clear that demand for semiconductors will continue to increase at least until the Corona era.

“Supply is not keeping up with demand. Fortunately, Taewoo Semiconductor was able to achieve high sales thanks to its early expansion of its factory size.”

“There has certainly been a significant increase in demand for semiconductors. I think the semiconductor market will be good at least for this year and next year.”

“Although sales and operating profit are high, operating profit may decrease as a lot of money is invested in semiconductor city development and remodeling of old factories.”

Taewoo Semiconductor earned over 30 trillion won in a year.

This performance was possible because we dominated the foundry market.

When the first semiconductor city complex is completed next year, there is a possibility that operating profit will exceed 100 trillion won.

The market boom and the massive volume combined create a synergy effect.

Because the current semiconductor market is one where operating profit can increase by more than three times.

“It must cost a lot of money to remodel an old factory.”

“Because semiconductors are a product with a very fast-changing cycle, we need to bring in new facilities and equipment periodically, and we also need to carry out internal construction within the factory.”

Semiconductor factories are undergoing continuous remodeling.

Because the factories had to be replaced with new models every five years, there was even talk that semiconductor factory construction workers would have lifetime employment.

“In fact, one of the reasons I gathered you here today is the issue of remodeling the old factory.”

“I also questioned the need for remodeling the old factory. Once the semiconductor city is completed, there is no need for the old factory. No matter how much the factory is expanded and the facilities and equipment are replaced, it is not suitable for producing new semiconductors.”

It was a semiconductor city specializing in new semiconductors.

On the other hand, in the case of older factories, since they were specialized in old semiconductors, there were limits to remodeling.

“Old factories will eventually have no choice but to produce old semiconductors.”

“There is no reason to produce old semiconductors. China is producing old semiconductors at low prices, so we are far behind in terms of price competitiveness.”

China’s semiconductor boom.

Naturally, it started with old semiconductors.

In the case of Taewoo Semiconductor and Samjin Semiconductor, efforts were being made to develop 7-nanometer level semiconductors.

Chinese semiconductor companies were focusing on the development and production of older semiconductors at 28 nanometers or higher.

“We cannot stop producing semiconductors above 28nm just because we are losing price competitiveness. The moment we lose a piece of the market to Chinese companies, the technology gap will narrow even faster.”

“Are you saying that we should produce old semiconductors even at a loss?”

Actually, I’ve been thinking about this problem recently.

It all started when China’s Tsinghua Group attempted to steal Taewoo Semiconductor’s technology and know-how using industrial espionage.

Is there any reason why we should clear the space?

If the old semiconductor industry vacates the space because it is not profitable, Chinese semiconductor companies will be able to enter without bloodshed.

“If we introduce as much automation as possible into the old semiconductor production process, we will not see a deficit.”

“Even now, semiconductors are being produced using a lot of automated equipment and facilities. Of course, there may be more areas that can be automated compared to new semiconductors, but complete automation is impossible.”

“Please remodel the old semiconductor factory so that it can be operated with only a small number of workers. As long as it does not run at a loss, that is enough.”

It wasn’t a decision made solely based on profit considerations.

From a profit-oriented perspective, it would have been better to hand over production of older semiconductors to later entrants.

I might have done the same thing with any other product.

Since it was a semiconductor that could be used as a strategic weapon, we had to protect our share of the pie as much as possible.

Electronic products did not only use new semiconductors, and there were still many electronic devices that required older semiconductors.

If the trade dispute between the US and China escalates.

Old semiconductors that don’t make money can play an unexpected role.

Even if the US tries to control the Chinese semiconductor market, it will inevitably have to purchase Chinese semiconductors to secure a supply of older semiconductors.

But what if Taewoo Semiconductor could supply the old semiconductors?

Taewoo Group could have taken the lead in the semiconductor market, and we could have had a louder voice.

“It takes a lot of money to transform an old factory into an automated factory.”

“It doesn’t matter if the belly button gets bigger than the stomach. We have to keep a hold of the old semiconductor pie to keep latecomers in check.”

“The technological gap between the latecomer and Taewoo Semiconductor is at least five years. Even with massive support from the Chinese government, the gap could last for more than two years.”

“But if we continue to hold onto the old semiconductor pie, the technology gap could widen to more than five years. After all, semiconductors are a field that requires a combination of technology and know-how.”

As production increased, know-how naturally increased.

However, if Taewoo Semiconductor did not let go of its production capacity, the amount that latecomers could produce would decrease.

“Do you really mind if we run a deficit?”

“It’s okay to see a deficit in the trillions of won. We can easily cover it with the sales from new semiconductors, and if it’s not enough, we will provide support at the headquarters level.”

“Then, can I make it just the way I want?”

President Lisa’s expression changed.

Until now, she had only expressed negative opinions.

When the topic of whether it was okay to run a deficit came up, he made a playful expression.

“What are you going to do?”

“There was a factory method that I had always wanted to try. I wanted to combine it with artificial intelligence to minimize the parts that require human control, and mobilize various technologies applied to logistics warehouses and automobile factories to create a fully automated semiconductor factory.”

Taewoo Group possessed excellent automation technology.

We were jointly developing automation equipment technology through collaboration with Amazon.

The automobile industry has also been developing and using various robots, including robotic arms.

And even artificial intelligence technology, of which Cheon Min-jeong is the center director.

“It sounds like you’re saying you’re going to mobilize all of Taewoo Group’s technological capabilities to build an automated factory.”

“We will create a true smart factory, not just a smart factory in name only! We will create an unmanned factory that combines automobiles, logistics, and artificial intelligence.”

Are you really the person who was worrying about the deficit until just now?

To create the smart factory envisioned by President Lisa.

It will cost at least 3 times more and up to 10 times more than the cost of existing remodeling.

Moreover, there was not just one old factory.

Large-scale, complex-sized old factories will start to emerge from next year.

If we were to turn all those old factories into smart factories, it could really be a waste of money.

“If not now, then it would be impossible to even try. Taewoo Semiconductor’s sales are increasing at this point, so do whatever President Lisa wants.”

“Can I say something too?”

President Wei was just quietly listening to the story.

He also had a lot to say, as if he couldn’t keep his lips still.

“Is Mr. Wei also interested in the old factory?”

“Yes. Leave the foundry to me. I will make it into a factory that is much more productive than it is now.”

“Then let’s do this. Each of you will take charge of one old factory. Then, analyze the pros and cons and apply them to the remaining old factories.”

President Lisa and President Wei locked eyes with each other.

Until just a moment ago, they were fellow executives, but from now on, they are competitors.

It seemed to me that this was a competitive issue, but the two CEOs had very different thoughts.

“I would like to request permission to use affiliated personnel!”

“We request the opening of a permanent communication line with Taewoo Construction!”

Two people making demands at the same time.

It was simply a remodeling of an old semiconductor factory to create variables.

But now it was showing signs of turning into an arena of competition.

***

A few days later.

Director Cheon Min-jeong came to see me urgently.

I thought they came running because of the old semiconductor factory.

Looking at her anxious expression, I could guess that something else had happened.

“What’s going on?”

“A large-scale hacking attempt has been confirmed. They are simultaneously hacking Bitcoin exchanges as well as companies that hold large amounts of Bitcoin.”

Bitcoin hacking is not something that happened yesterday or today.

There have been continuous hacking attempts in the past, but there have been few instances where Director Cheon Min-jeong is as excited as she is now.

“It must be quite large in scale.”

“It is said that small and medium-sized exchanges have been hacked for Bitcoin. It has nothing to do with the reliability of Bitcoin, but if the current situation continues, various problems may arise.”

One of the people who created Bitcoin was Cheon Min-jeong.

The first thing she did when she joined Taewoo Group was to create Bitcoin, and that’s why she was even more attached to it.

“From industrial espionage to hacking, this is nothing short of a mess. Is this China’s doing again?”

“At first, I suspected it was China, but after analysis, it was confirmed to be North Korea’s doing.”

One memory came to mind.

I once read an article that said North Korea made a lot of money by hacking Bitcoin.

North Korea chose hacking as a new means of earning foreign currency, and Bitcoin was no different from Noda to North Korea.

“Is hacking protection possible?”

“For companies associated with us, we can defend ourselves, but for small and medium-sized exchanges, we can’t do anything.”

Taewoo Group’s security was secure.

The people who created the cryptocurrency were responsible for its security.

Since a large number of people were defending in real time, the possibility of being breached was zero.

However, other companies could not have a security system like ours.

“Can you also provide anti-hacking systems for small and medium-sized exchanges?”

“We can support the system, but ultimately, it requires specialized personnel to properly utilize it.”

“Let’s proceed like that for now.”

North Korea is messing with us?

If these attempts continue, I will not just sit back and do nothing.