Chapter 184 The Considerations of the Ministry of Posts and Telecommunications
Zhang Rujin wasn't exactly a process expert—but that didn't mean he didn't understand manufacturing processes. He simply wasn't specialized in process improvements.
What he excelled at was connections and building fabs.
That was where Chen Jing's so-called "backup plan" came into play.
The fab Yuanxin planned to build wouldn't be based on outdated, second-hand production lines like other partnerships.
No, Yuanxin would pay for the most advanced equipment available, while TI would supply the technical expertise, building a brand-new wafer fab.
This fab would have no physical constraints—only technological ones.
In theory, the equipment could fully support 0.35-micron process nodes.
But the cost was steep.
TI would hardly lift a finger—they were contributing only an 8-inch technology set, a now-outdated 0.8-micron process, and two sets of fabrication workflows.
Yet, they would receive 30% of the equity—valued at $400 million.
They didn't even want cash—only shares.
Thinking about the fines SMIC had to pay later in his previous life, Su Yuanshan still felt pretty satisfied with this deal.
...
After returning to Silicon Valley, Su Yuanshan managed to squeeze in one last meeting with Lin Bencheng.
Satisfied that everything critical in Silicon Valley was handled, he left Chen Jing to manage the remaining details and headed back to China ahead of schedule.
Because a big mess was waiting for him back home.
...
Capital Airport.
"Xiaoshan!"
"President Shan!"
Tian Yaoming and Pan Xiaojun came running up to greet him.
Pan Xiaojun quickly took Su Yuanshan's luggage, while Tian Yaoming gave him a firm pat on the shoulder and scrutinized him.
"You've lost weight, man. Haven't even been gone half a month."
"Mostly a diet issue," Su Yuanshan said with a laugh, hopping into the backseat of the waiting Audi.
"Senior Brother, what's the situation?" he asked.
"Right now, the Ministry of Posts and Telecommunications is considering two plans," Tian Yaoming said.
"One is very conservative—create a Mobile Communications Bureau within the Ministry to oversee mobile communications."
Su Yuanshan nodded. "And the other?"
"The other is more aggressive—directly establish a mobile communications company and throw it into the market."
As the Audi A6 glided away from the airport, Tian Yaoming looked over and said softly,
"The two sides are deadlocked.
We don't even know which temple to pray at anymore..."
Su Yuanshan's mouth twitched.
That... was indeed very typical of the way things worked here.
The main reason Tian Yaoming hadn't gone to the expo was that he had been busy cultivating relationships at the Ministry, trying to get Yuanxin's comprehensive solution approved.
Technically, Yuanxin didn't need to rush.
No matter how the Ministry debated, they would eventually have to pick Yuanxin.
Yuanxin currently possessed a fully self-owned mobile phone + base station solution—
Well, the "self-owned" part was a little fuzzy for the mobile phone, but Xinghai had provided a mutual authorization that allowed each company to sublicense to third parties.
There's an old saying:
"When Mom and Dad fight, it's always the kids who suffer."
Yuanxin, being the "kid," couldn't afford to sit idle.
"Apparently your previous report on the development trends in mobile communications really shook them up," Tian Yaoming said.
"That's why there are now two competing proposals."
He paused, then added,
"They want to hear your personal opinion.
Face-to-face."
"Great," Su Yuanshan muttered, leaning back against the window and watching the scenery fly by.
"It's my fault now..."
Honestly, he thought, if it were up to him, they should just go straight to the market model.
But... the conditions weren't there yet.
In his previous life, the country had cautiously moved forward:
In 1994, it had established a Mobile Communications Bureau, then launched a GSM network pilot program in Guangdong Province.
The first mobile phone to land there was the Ericsson GH337—
It dominated the market almost instantly.
From there, the mobile communications industry exploded.
Later, sweeping institutional reforms led to the splitting of the Ministry of Posts and Telecommunications, creating independent entities like China Mobile, China Telecom, and various Internet service providers (China Netcom, Unicom, Railcom, Satcom, Great Wall Broadband...).
Eventually, the market stabilized into three giants: Mobile, Telecom, and Unicom.
As for the tangled stories of domestic telecom carriers—that could fill volumes.
(We'll dive into it once the timeline catches up. ^_^)
"And anyway," Su Yuanshan said, smiling wryly,
"it's not my personal opinion—it's Yuanxin's think tank's collective wisdom."
Tian Yaoming winked at him. "If you say so."
The Yuanxin Think Tank had been established under Su Yuanshan's proposal and with strong support from his father, Su Xinghe.
During the National Day holiday, Su Xinghe had invited over thirty professors from related disciplines to gather at the provincial capital for two days of brainstorming.
They discussed the future of semiconductors, the Internet, and mobile communications.
Su Yuanshan didn't attend in person—
It would have looked too much like Su Xinghe was just showing off his son.
But even though he didn't show up, his ideas were fully represented.
Su Xinghe had gathered everyone's opinions and passed them along to Su Yuanshan.
Su then used that feedback to refine a report he had been drafting for months.
Finally, it was submitted as a "reference document" through President Zhou of Dian University.
There was no real alternative.
At the time, even official think tanks were barely formed.
And civilian think tanks?
Forget it.
Most government policy decisions still relied heavily on administrative research offices, and science commissions had very limited influence.
Otherwise, there wouldn't have been so many "snap judgment" policies over the years.
But Su Yuanshan's report...
It was no exaggeration to say it concerned the nation's future.
In it, starting from technical trends, he outlined year-by-year projections for the growth of the Internet and mobile communications industries for the next fifteen years.
And he foresaw the rise of an entirely new sector:
The Mobile Internet.
That would be the starting point for China to overtake the West.
When his report landed on the desks of key ministries, it created a stir.
At that time, the national mood was still:
"The future is bright, but the road is difficult."
And now here was someone daring to say:
"There's a shortcut—and I'll walk it for you if you don't believe me."
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