Chapter 127 - The Blade Revealed
Although Su Yuanshan was responsible for the overall architecture of mobile phone chips at Haixin, he was ultimately not a communications specialist.
Thus, all he really knew about Qualcomm's position in 3G was that they held four key patents.
Besides the basic CDMA principle, there were three other core patents: rake receivers, power control, and soft handoff.
These four core patents formed Qualcomm's powerful patent fortress during the 3G era.
Regardless of whether it was WCDMA or TD-CDMA — as long as it contained "CDMA" in the name, royalties had to be paid.
This allowed Qualcomm to rake in enormous profits.
But apart from knowing the names of the patents, Su Yuanshan knew very little about their technical implementation, or even when Qualcomm had finalized them.
Thus, Su Yuanshan's attitude toward 3G was always about participation — he had no illusions of achieving patent supremacy in the 3G era.
...
After reviewing Yuanchip's wireless communication development progress, the four officials sat in prolonged silence.
Especially when they saw that Yuanchip was already designing base stations in their roadmap, Min Guangliang clenched his fists in excitement.
"So you mean you'll be able to provide a full end-to-end GSM solution — from base stations to terminals — within two years?"
Min Guangliang stared at Su Yuanshan, face flushed with excitement.
"Yes.
In fact, our baseband chips have already completed prototype testing.
We're only missing two non-critical algorithms —
just the testing alone burned over ten million U.S. dollars," Su Yuanshan said with a wry smile.
"Recently we recruited a batch of top mathematicians to help.
If they succeed, we might break through; if not... well, research and development is a money pit."
"Haha!
Don't complain!"
Min Guangliang laughed meaningfully.
"If your technology really matches the world's top level, you won't lose a penny."
"Does that mean," Su Yuanshan grinned,
"that the Ministry of Posts and Telecommunications will officially adopt our products?"
"I didn't say that," Min Guangliang replied with a sly smile.
Su Yuanshan chuckled.
Because of the Ministry's earlier misjudgments, China had completely missed the boat on GSM base stations and chips, wasting resources on big brother phones instead.
In the previous timeline, there was no need to elaborate.
In this timeline, with Yuanchip's rise, winning the GSM base station market was practically a given.
Though Su Yuanshan felt a little sorry for his old employer from his previous life, who would likely have to pivot toward wired telecom services now.
Next came Deputy Director Yang Weichang, who was obviously here for another purpose —
to discuss Yuanchip's spin-off of its EDA department.
Su Yuanshan patiently explained why the EDA department needed to be spun off and the benefits of selling shares.
After hearing his reasoning, Yang Weichang nodded and said the state would support it — though state-owned capital would likely enter through some arrangement.
Su Yuanshan had no objection to state capital investing in EDA —
after all, selling was selling, no matter who the buyer was.
Finally, it was the turn of the lead department for this whole "summons."
Seeing Su Yuanshan's gaze fall on him, Secretary-General Liang Wenshu sighed internally.
Over the past hour, he had gotten a clear picture of Yuanchip's technological level and their massive R&D investments.
The way Su Yuanshan affectionately called these deputy directors "Uncle" showed that the ministries were clearly protective of Yuanchip.
And no wonder —
ever since China promoted the slogan "Dare to think big, move quickly," a private company like Yuanchip had flourished.
Its existence was living proof of the success of reform and opening-up policies.
Wealthy, technologically advanced, loved by the ministries, and famous to boot —
Yuanchip was the perfect poster child.
No wonder they were so bold in negotiations.
Facing Su Yuanshan's steady gaze, Liang Wenshu finally smiled and asked,
"Xiao Su, I don't doubt your commitment to the lithography project.
But why do you insist on relocating everyone to your base?
Your research base isn't even fully built yet.
You don't even have all the optical instruments needed, right?"
Su Yuanshan inwardly thought:
If I don't keep everyone under my nose,
how can I make sure the money is spent properly?
But of course, he didn't say that aloud.
Smiling, he explained,
"Secretary Liang, that's exactly what I wanted to address.
This year, our R&D investment reached nearly 800 million yuan.
Out of that, 600 million went into setting up various laboratories."
"That's also why we've been holding on to our foreign exchange reserves instead of depositing them at the center —
we need it to buy equipment."
"Among the labs are a condensed matter physics laboratory and a high-spec laser laboratory.
Without the teams physically present, how can we proceed with research?"
Hearing that Yuanchip had spent 600 million on laboratory construction, Liang Wenshu was visibly stunned.
The others also nodded subtly in approval.
Yuanchip's commitment to real R&D was far beyond that of an ordinary private company.
After several seconds of silence, Liang Wenshu finally nodded,
"In that case, it makes sense for the two teams to be based at Yuanchip's site for better collaboration and research."
Su Yuanshan exhaled lightly.
Finally.
But just then, Liang Wenshu's expression turned sharp:
"However, I must remind you —
the primary goal of the lithography project is 'self-reliance.'
That doesn't just mean owning the technology rights.
It also includes achieving independent manufacturing of key components."
"From upstream projects like lithography,
we aim to drive improvements across the entire downstream supply chain."
"That's why the budget for the lithography machine project was slashed."
Su Yuanshan was taken aback.
He glanced at the other leaders —
only to find that they were all smiling.
Damn it.
So that's what this was all about!
This was the real hidden agenda!
Su Yuanshan inhaled deeply,
"You can't be serious, Secretary Liang.
You're not expecting Yuanchip to not only build a lithography machine but also bring the entire supply chain along with it, right?
Even if I had a money-printing machine, it wouldn't be enough!"
"Since Yuanchip has the technology, the ability, the commitment, and... the grand vision,"
Liang Wenshu said sternly,
"then you should consider the broader situation."
"Otherwise, as you yourself have worried —
one day, when foreign supplies are cut off, what will we do?
Some components, you can search the world for replacements.
But others... like servo motors —
where will you find replacements then?"
Su Yuanshan's eyelid twitched violently as he listened.
"Actually," Liang Wenshu continued,
"ever since Chengguang Institute struggled to source servo motors months ago,
we've been planning a national project for servo motor development."
"This time, we hope Yuanchip will also participate."
"As someone from a mechanical engineering background, I can tell you:
high-spec servo motors have already entered the era of digital control.
And in that field... we're practically starting from scratch."
Given how candid Liang Wenshu was being, Su Yuanshan understood:
The Chinese Academy of Sciences was genuinely serious this time.
Servo motors weren't just essential for lithography alignment systems.
They were also critical for CNC machine tools — and future robotics.
Su Yuanshan sighed quietly.
From an industrial layout perspective, it made sense.
But —
this shouldn't be Yuanchip's responsibility.
And Yuanchip certainly shouldn't have to foot the bill alone.
"Another money-burning project..."
he muttered.
"This time, there will be enterprise participation.
And the state will provide support.
As long as there are real results, you won't lose money,"
Director Yu reassured him with a smile.
"Also,
we hope you can help cultivate some talent in digital chip design and digital control systems."
After thinking for a few seconds, Su Yuanshan smiled and looked at his father.
Su Xinghe immediately understood.
His son was already preparing to compromise —
accepting this "buy one, get one free" deal.
He smiled and said,
"The ministry will decide the specifics.
Yuanchip can provide facilities and some subsidies."
"But as for manpower..."
he added seriously,
"Yuanchip really can't afford to cover it all.
The ministry should arrange for some related researchers to join Yuanchip."
"Thank you."
"Director Yu, no need to be so formal," Su Xinghe said as he stood up, shaking hands warmly.
"Come on, let's go eat."
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