Tech Giants: Starting from Bankrupt Companies

139: Chapter 139 The Light of Dawn: The Cataclysm of the WorldSamsung Headquarters, Seoul, same day at 22:00 (Seoul Time)

Lee Jae-yong, Vice Chairman of Samsung Electronics, stood before the floor-to-ceiling windows of the conference room, looking out at the night view of Seoul. His phone screen was playing highlights from the Huaxing launch event—specifically the segment where Mobile Phone Product Manager demonstrated the ’lingxi pen’.

”Mid-air operation... ultrasonic positioning...” Lee Jae-yong murmured to himself. ”How did they solve the drift problem?”

”Vice Chairman, the emergency board meeting starts in five minutes,” the secretary reminded him.

Lee Jae-yong turned around. Twelve people were already seated in the conference room—the top decision-makers of Samsung Electronics. Every face was as grim as iron.

”Have you all finished watching?” Lee Jae-yong asked.

Everyone nodded.

”Then, the reality we face is this: the Chinese have not only caught up, they have already surpassed us in certain fields.” Lee Jae-yong walked to the head of the table but did not sit down. ”The screen: peak brightness—our latest product is 1300 nits. The processor: we’ve fallen behind in architectural design. The battery: 4500mAh while still ensuring safety—our Note 7 disaster is still being mocked.”

He paused, scanning the room. ”Most importantly, the price—6999 yuan, roughly 1000 USD. If Samsung were to make the same configuration, the cost alone would exceed that amount. How did they do it?”

”Supply chain independence,” the President of Technology answered. ”According to our intelligence, Huaxing’s screens, storage, batteries, and even some chips all come from Spark Industry—a company within the same system. No middlemen, no patent fees, and no layers of profit margins piled on top.”

”In other words, they are building a closed loop,” Lee Jae-yong realized. ”From materials to components to the finished machine, they control it all. This isn’t just a company; it’s an ecosystem.”

”And this ecosystem is expanding outward.” The Strategy Director pulled up a map. ”Next month: Kuala Lumpur, Riyadh, Moscow. These are all traditional Samsung stronghold markets, but Huaxing’s prices are half of ours while their specs are higher.”

The conference room fell into silence.

Samsung’s dilemma lay here: the high-end market was suppressed by Apple, and the mid-to-low-end market was being eaten away by Chinese brands. Now, Huaxing was using high-end technology at a mid-range price, directly piercing Samsung’s core heartland.

”We must change our strategy.” Lee Jae-yong finally sat down. ”Following behind America and using American technology will always leave us in second place. And now, America might not even want to leave us that second spot.”

He pulled up a document. ”This is the assessment from the technical department: over the next three years, if the xinghuo system maintains its current pace of innovation, Samsung will lose 30% of its global market share in consumer electronics. Worst-case scenario: 50%.”

The numbers struck everyone’s hearts like a heavy hammer.

”Therefore, I propose launching ’Project Phoenix’,” Lee Jae-yong said. ”Invest 15 billion USD to develop FD-SOI full-industry chain technology. We need to establish a ’non-American equipment process line’—from design software to lithography machines, to escape American control as much as possible.”

”15 billion? That requires board approval...”

”I will handle the board,” Lee Jae-yong interrupted. ”More importantly, we need allies. The Japanese, the Europeans, and even... the Chinese.”

”The Chinese? They are our competitors!”

”They are also partners,” Lee Jae-yong corrected. ”Xinghuo has material advantages, and Samsung has manufacturing experience. If we cooperate, we can jointly oppose American technological hegemony. If we don’t, we will be picked off one by one.”

He stood up. ”Gentlemen, the world is splitting. On one side is the traditional system dominated by America; on the other is the rising power of China. We must choose a side, or... create a third side.”

”A third side?”

”An Asian Technology Alliance,” Lee Jae-yong stated, voicing the idea he had been brewing for a long time. ”Samsung, TSMC, Xinghuo, plus Japanese material and equipment companies. If we can integrate—from design to manufacturing to materials—Asia can become its own self-contained system.”

The idea was so bold it made everyone in the conference room gasp.

”America won’t allow it,” someone objected.