The CEO of Intel has come and gone, the head of AMD has come and gone, BIS and USTR are watching closely, Chinese and foreign media have set off a storm of public opinion, and new restrictions are secretly approaching.
With all these factors, Yike's internal turmoil is unavoidable.
On October 15, Errol, Vice President of Public Policy and Business Development of Econo America, resigned. This news was captured by the media, which was regarded as a sign of the gradual collapse of Econo.com, and Errol was strongly invited to be interviewed.
Errol's position is that Yi Ke is responsible for dealing with the government, and he has been in Washington for most of the past six months. If he leaves his job at this time, he will surely be able to talk about a lot of hot topics, although he cited "family reasons."
reasons for resigning.
However, no matter how the media interviewed or invited him, Errol firmly refused, not wanting to become a public opinion star at all. Although he may have resigned, as someone who once represented Yi Ke and communicated with Washington, he could feel the influence of the media.
In terms of overall influence and circle of friends, there is really no need to risk sacrifice to chase temporary popularity.
Errol is indeed not very optimistic about Yike's recent situation in the U.S. market, and even thought that Yike would be at risk of delisting from Nasdaq in the future.
However, after repeatedly rejecting the media, he was also thinking about a question: How should the remaining Yike shares in his hands be measured?
The market value of Yike has been fluctuating in the past few months. However, this month, affected by multiple bad news, the market value can no longer sustain the position of US$340 billion. There are also pessimistic predictions by institutions that Yike may return to below US$300 billion.
However, on the last day of his resignation, Errol also received news from his colleagues in China that the company's cloud business had received a large government order, and this was obviously just a microcosm.
According to the current possible situation, if the company loses the US market, its revenue will definitely be hit hard, but the company still has unrealized potential in the Chinese market, like the YMS division...
Errol sometimes feels that if YMS is willing to significantly increase advertising, Yike will almost have the ability to immediately change its nature and become a mutated version of China's Google. Under the current dire expectations, it is not ruled out that it will draw blood from this aspect in the future.
.
Similarly, Yike's smart home also has good growth expectations within the company.
Errol thought about it, the US market is indeed important, but the Chinese market can fully support Yike. If the growth of the mobile phone market slows down, Yike's strength can compete across fields. For example, a "Kunpeng" was established this year.
I don’t know what the future holds for the tram project.
He finally decided to keep some Yike shares. After all, the overall growth of U.S. stocks this year has been a lot, and Yike's current decline has almost gradually fulfilled the expectation of losing the U.S. market.
Errol resigned, but still paid close attention to the developments of his old club. Soon, he saw a surprising news: Mr. Fang, who had been in China for a long time, actually took a flight to Berlin!
Going abroad at this time... I'm afraid it's not really the "come to Jesus" moment!
Errol updates the news from time to time, almost forgetting the question of how to measure the future value of Yike.
On October 23, many media reported the news that Fang Zhuo, the head of Yike, flew to Berlin, and his subsequent whereabouts showed that he immediately went to the Ice Core International Factory in Magdeburg.
It seems that this is an ordinary inspection of an overseas ice core factory, but many Wall Street media have already set off to fly to Germany, hoping to use their cameras to capture the parties involved in Yike's suspicion.
However, Fang Zhuo's trip was a forced impromptu trip. He was originally thinking about how to express his attitude and had work arrangements in China. However, Qiu Ciyun, who had been wandering around Germany and France recently, suddenly fell ill. Germany was There were high-level discussions going on, so he simply came out.
Although I am cautious about going abroad at this stage, flying directly to Germany is still reassuring.
In other words, France, which I may go to next, is also reassuring.
Fang Zhuo came to Germany this time to bring European President Pan Ben, Emerging Business Unit President Zhang Yaqin and Ice Core executives. On the second day of his inspection of the Magdeburg factory, news came from Berlin that he had met both sides. Merkel, the leader of Germany, welcomed his arrival very much and made an appointment to meet him in Berlin.
This coincides with Fang Zhuo's thoughts. Now that he has come out, of course he also wants to meet the senior officials here.
The reason why we chose to build the first overseas ice core factory in Germany was Merkel, a German evergreen and one of the leaders of European affairs. Her pragmatic attitude and consistent tenure can ensure the construction of ice cores. The factory and operations are relatively stable.
In addition to Ice Core's overseas factories, Yike also has a lot of cooperation and investment in Germany. Deutsche Telekom is the operator with the closest overseas cooperation. Yike Cloud has built a data center in Munich, and the SCHOTT glass factory has also been one of the most closely cooperated overseas operators by Yike. A stable supplier for many years...
And, after the financial crisis, the annual Yangtze River Delta economic and trade delegation led by Fang Zhuo is also one of the most active business exchange groups in China and Europe.
Fang Zhuo agreed to the appointment and received a friendly reminder that many media and reporters had already arrived in Germany or were on their way here.
He responded to the other party, which will not cause trouble to himself.
In fact, just before boarding this flight, vague news came from Washington again. Due to the recent situation, the relevant restrictions may not wait until the end of the year. If Yike does not take effective actions, it is likely that the next Targeted measures will be taken every month.
Fang Zhuo's understanding of this is an ultimatum.
From March to now, Yi Keming's attitude on the surface is to solve the problem, but as soon as the recording was leaked, a very important point in the public opinion was Yi Ke's "offense" that he was unwilling to give in.
Is not willing to give in an offense?
Anyway, this is how it is expressed in many media statements in the United States. Outside of the business level, next year's election is already brewing, and this incident has once again become a good starting point.
Yi Ke has become a very suitable target.
At this moment, Fang Zhuo didn't feel much pressure in his heart. Instead, he felt a slightly strange excitement. Since he had done everything he could, let's see what would happen.
On the 26th, a group of Yike and Bingxin executives who stayed in Magdegeburg for three days went to Berlin to attend an economic and trade event co-organized by the German Financial Steward, the China Business Center in Germany, and the China Council for the Promotion of International Trade.
Of course, this event is temporary. It didn't exist originally, but now that Fang Zhuo comes, it will exist.
In addition, Fang Zhuo will meet with Merkel in private before participating in economic and trade activities.
Because it was a private meeting, no one else could accompany me, so I was very curious about what the German leader and the boss could talk about.
"It's okay. She wants to invest, and I want to protect it."
"She thinks there can be one of the world's most advanced production lines in Magdegeburg, and that's the main thing."
Fang Zhuo didn't think there was anything to hide.
"Then did you agree?" Pan Ben asked.
"No." Fang Zhuo replied.
Everyone was surprised. Shouldn't the relationship between the two parties be further strengthened at this time?
"The cost of advanced technology is too high now, and Ice Core's current energy does not lie in this, and we don't need to be too blind." Fang Zhuo explained briefly, and then said, "Moreover, the current half-and-half cooperation model is not very suitable. , we still have to wait until the overall situation becomes clearer, but 16nm cannot be here, our 28nm is now quite mature, and the 65nm and 45nm in Magdeburg are indeed gradually losing competitiveness."
Magdeburg started with 65nm, and later added a 45nm production line. Part of it was in cooperation with European car companies, and part of it was conventional wafer foundry.
As first-class processes expand to 16nm, 28nm is quite appropriate as the critical point for advanced processes.
Fang Zhuo did not agree to Merkel's investment advice and gave a subordinate response, but he did not feel that the other party was disappointed, and he probably meant to open up the window.
Outside the fab, the two talked about Yike's performance in the European market. Mobile phones are normal consumer electronics products. Yike Cloud focuses on serving European small and medium-sized enterprises, and the data remains local. Everything is suitable.
In general, the communication between Fang Zhuo and Merkel was very pragmatic, safeguarding their own interests, and there were no extra chores.
However, perhaps because of the identity of the other party, despite the dullness of the story, everyone was still listening with rapt attention. Judging from the current situation, it is good news that they can have a peaceful dialogue with each other.
"Okay, get ready to work. Mr. Zhang will try to sign a few more customers. Since we are here, the price can be easily negotiated." Fang Zhuo named Zhang Yaqin who was accompanying him. Part of the work he was responsible for was Yikeyun. Developing the European market.
Different from the strategies of Microsoft, Amazon and other companies in Europe, Yike Cloud does not pursue large government customers here, but focuses on small and medium-sized enterprises, which can be considered a way out.
On the 28th, Fang Zhuo and others attended the event, as well as Chinese companies in Germany. It seemed like a very formal economic and trade event.
However, reporters have been squatting at this three-day event since the first day, strongly requesting to add interviews and reporting on the beautiful business friendship between China and Germany.
As the main target of being chased, the hotel where Fang Zhuo was staying had actually been harassed, but his real decision to accept the interview was based on the latest news from the American operator.
Yike's cooperative operators, including T-Mobile and erizon, have all received strong suggestions from Washington and will consider terminating their cooperation with Yike within the year.
In the current US and European markets, the most important part of the smartphone sales channel is the operator's bundled package. Once Yike ends its cooperation with US operators, it will almost mean that it will be kicked out of the US market.
Calculating the time, the inventory in the hands of the operator will be sold out before Christmas.
There is no official announcement, but the route and time are basically specified.
On the last day of October, Fang Zhuo accepted media interviews in Berlin.
Although I had faced many media cameras at the Internet industry conference in Shanghai before, this was a formal media meeting. Although the theme was Sino-German economic and trade, most reporters were directed at the head of Yike.
Come.
The deputy finance steward of Germany attended the meeting. He talked about Sino-German business cooperation, and then found that everyone's eyes and cameras were almost directed at the head of Yike next to him.
He was a little helpless and joked with anticipation: "Hi, Mr. Fang, it's your time now."
Fang Zhuo nodded slightly and just reached out to turn on the microphone. Many reporters were already taking pictures, and Kate, a reporter from the Wall Street Journal, directly asked questions first.
"Mr. Fang, will Yike withdraw from the US market?"
This is the question that everyone is most concerned about.
Fang Zhuo smiled and replied without too much evasion: "That depends on whether the U.S. market can accommodate Yike."
Kate followed up and asked: "If Yike's BIS temporary license expires, will it still insist on cooperating with Bingxin International? We have not seen any results in Yike's replacement, whether it is Intel, Samsung, GlobalFoundries, or UMC
, Taiwan Journalists have concluded negotiations with Yike, is that true? Did Yike not carry out the 'positive' solution claimed in the announcement from the beginning?"
For the first time since March 1 this year, Fang Zhuo answered this question that is still attracting much attention: "Yike has actually actively negotiated with various wafer manufacturing companies, but as you can see, different companies
I have encountered all kinds of pressure, and I also want to ask about this issue."
"On the one hand, BIS issued restrictions that did not allow Yike to cooperate with Bingxin. On the other hand, the SEC intervened and stopped the cooperation between Yike and GF. This actually did not provide a reasonable space."
"As a company committed to providing consumers with the highest quality products, Yike will not voluntarily give up the U.S. market, but it is also unwilling to suffer unfair treatment."
Fang Zhuo paused and gave a clear answer: "Yes, Yike will still insist on cooperation with Bingxin International."
Following his words, the current photographers all snapped together to capture this moment.
More reporters on the scene suddenly became commotion, and even the senior executives of Chinese and German companies who participated in the interview but could only be spectators couldn't help but look at the leader of Yike.
Yike insists on cooperation with Ice Core, but the latter is on Aramco's carefully selected list, which means that once the temporary license expires, Yike will not be able to sell products in the U.S. market.
This is a positive response.
This almost puts a final word on the doubts hanging over Yike!
Another reporter from the New York Times, Pez, asked loudly amidst the discussion: "Mr. Fang, why are you doing this? Do you really know the consequences? Mr. Fang, Yi Ke has essentially given up on the United States.
market!"
"Pez, you asked the wrong person. You should ask BIS why they did this?" Fang Zhuo knew the reporter who asked the question and asked with a smile, "Why should ice cores be restricted? Is it because it has launched enough
Advanced technology?”
"You, you, this ice core, it..." Pez couldn't answer for a while, and used a reason that has been mentioned in recent public opinion, "It destroys the division of labor in the global semiconductor industry!"
"If a company that is unwilling to lag behind achieves impressive results through continuous research and development and provides the best quality technology to many well-known customers around the world, this is called destroying the industrial division of labor." Fang Zhuo refuted, "How many more like this in the world?
For enterprises, the cost of purchasing chips will not be that high."
There was no order for interviews at the media meeting. Almost as soon as Mr. Fang finished speaking, several reporters rushed to speak.
"Mr. Fang, if Yike's temporary license cannot be extended, what does this mean for Yike?" a reporter from Der Spiegel asked.
After Fang Zhuo heard this question, he immediately heard the questions from other reporters. He indicated that order still needed to be maintained at the scene. Then he pondered for a moment, considering that the audience for this interview was probably audiences from different regions around the world, and replied: "I like it very much."
Alexandre Dumas's "The Count of Monte Cristo", I really like a passage in it, "I don't think a person can get happiness so easily. Happiness is like a palace guarded by a dragon on a magical island. To get happiness, you have to go through a journey."
It’s a vicious fight.”
"I don't know what the standard of BIS's temporary license is, and I don't know whether Yike can get an extension, but I think for Yike, it's just that Yike's success is always difficult, and getting it probably requires a hard fight.
.”
"Yike is not afraid of competition in the market and is willing to consistently provide the best products within its capabilities to global consumers."
Will BIS be extended?
The current situation of shouting and killing...
Matthews, a reporter from the Fox News Channel, did not expect to hear such a blunt statement today. He was quite shocked, especially when he thought that he still had Yike's stock in his hand. He couldn't help asking: "Mr. Fang, Yike is like this
Are our decisions in the interest of our shareholders? Do you know what losing the U.S. market represents?”
"Yike has not lost the U.S. market, nor is it willing to lose the U.S. market." Fang Zhuo revealed, "But as far as I know, BIS is already formulating a plan to force Yike to withdraw from the U.S. market. Considering this situation, Yike
What investors should be asking about is not me, but BIS."
"As a company that continues to innovate and drive industry development, Yike has the right to choose suppliers. As a company that continuously invests in research and development, Bingxin International has always been a reliable strategic partner of Yike. Many of its products in the past have been loved by consumers.
The products also prove this.”
Matthews almost wanted to rush to the stage, and the voice of the question was on the verge of breaking his voice: "Mr. Fang, Yike's business, Yike's market value, Yike... users of Yike, why are you unwilling to give up cooperation with Bingxin?"
?!You, you are simply committing a crime!”
Fang Zhuo spread his hands: "Is this a question?"
Someone nearby told Matthews from Fox News to calm down.
Fang Zhuo continued to speak to the camera: "There is an American writer John Steinbeck, whose "The Grapes of Wrath" I also like very much. 'Only when human beings are no longer tortured or even willing to sacrifice for a certain idea can they
The most frightening thing is that this quality is the foundation of human beings, and it is this quality that makes people unique in the universe."
"A great company should live up to its values, even if it suffers for it."
"Many people keep asking me whether I will give up cooperation with Bingxin, and whether I will give up cooperation with Bingxin."
"I have the answer now and I won't give up."
"Then you asked me again and asked me why I didn't want to give up."
"Why?"
"Because Yike is willing to maintain progress, and the open and inclusive market, consistent investment in R&D, and down-to-earth process innovation, these are the things that Yike appreciates and agrees with about ice cores."
"Yike and Bingxin have always been willing to accept challenges from their establishment to the present. They have faced Sony, Nokia, Microsoft, Samsung, and Apple along the way. If we need to face the biggest challenge now, then we insist on meeting the challenge itself.
It’s an expression of our values.”
"Just now Pez said that ice cores are damaging to the global industrial division of labor. Hey, remember, forcibly restricting behavior outside of global market rules is damaging to the global division of labor, and it is also the biggest challenge facing the global industry today."
"I know what everyone wants to ask. Whether it is questioning or questioning, Yike and Bingxin are inseparable strategic partners and will not be shaken by any factors."
"This is my consistent attitude!"
"No matter what problems or challenges we face, I would like to represent myself personally, all the employees of Yike and Bingxin, and also the practitioners in the industry who are unwilling to succumb to threats, and all the colleagues around the world who stick to their beliefs and defend their dignity.
…”
Fang Zhuo faced the camera. This time it was not leaked, but he gave the answer openly: "Then come on."
No Fuck, that's not appropriate.
However, when he saw an American reporter in the audience raising his middle finger, he did not hesitate to give the same middle finger that complemented the situation.
In the writing of "Deutsche Welt", this scene was given a description and prediction: This is probably the most expensive middle finger in history.
This chapter has been completed!